In just over 100 days—on September 30, 2023—child care for millions of children and families nationwide will begin to disappear, with dire consequences for children, families’ earnings, and state economies. In the first-ever economic analysis of the looming child care cliff, The Century Foundation has projected the impact of the cutoff for children, families, and state economies, including for all fifty states and the District of Columbia. We find that: More than 70,000 child care programs—one-third of those supported by American Rescue Plan stabilization funding—will likely close, and approximately 3.2 million children could lose their child care spots; The loss in tax and business revenue will likely cost states $10.6 billion in economic activity per year; In addition, we project that millions of parents will be impacted, with many leaving the workforce or reducing their hours, costing families $9 billion each year in lost earnings; The child care workforce, which has been one of the slowest sectors to recover from the pandemic, will likely lose another 232,000 jobs; In six states—Arkansas, Montana, Utah, Virginia, West Virginia, as well as Washington, D.C.—the number of licensed programs could be cut by half or more. In another fourteen states, the supply of licensed programs could be reduced by one-third. (author abstract)
Child care cliff: 3.2 million children likely to lose spots with end of federal funds
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United States
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All states
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