Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Jeffrey Epstein and Vanguard — The Barefoot Investor

    May 1, 2026

    ‘Shooting Ourselves In Our Own Feet’: House Republican Wrecks Trump Over His Latest Attack

    May 1, 2026

    9 Simple Balance Exercises You Can Do in Just a Few Minutes

    April 30, 2026
    Facebook X (Twitter) Instagram
    Trending
    • Jeffrey Epstein and Vanguard — The Barefoot Investor
    • ‘Shooting Ourselves In Our Own Feet’: House Republican Wrecks Trump Over His Latest Attack
    • 9 Simple Balance Exercises You Can Do in Just a Few Minutes
    • Google Ads in a Competitive Market: How to Win Without Simply Spending More
    • Experts Say Hotel Elevators Are The Germiest Spot In Any Hotel
    • SoftBank is creating a robotics company that builds data centers — and already eyeing a $100B IPO
    • Seclude Hotels Hosts Creators Club at Palampur Estate
    • The Financial Crisis That Didn’t Happen
    Facebook X (Twitter)
    SBM Global News
    Demo
    • Home
    • Top Stories
      • Politics
    • Business
      • Small Business
      • Marketing
    • Finance
      • Investment
    • Technology

      SoftBank is creating a robotics company that builds data centers — and already eyeing a $100B IPO

      April 30, 2026
      Read More

      Nevina Infotech Pvt. Ltd. – Company Profile

      April 30, 2026
      Read More

      Amazon is already offering new OpenAI products on AWS

      April 29, 2026
      Read More

      Technbrains – Company Profile – AllBusiness.com

      April 28, 2026
      Read More

      Truecaller faces mounting pressures as its growth matures

      April 27, 2026
      Read More
    • Lifestyle
      • Travel
    • Feel Good
    • Get In Touch
    SBM Global News
    Demo
    Home»Top Stories»Child Care Is an Industry on the Brink
    Top Stories

    Child Care Is an Industry on the Brink

    By Staff WriterFebruary 26, 20246 Mins Read
    Facebook Twitter LinkedIn Reddit Email
    #image_title
    Share
    Facebook Twitter LinkedIn Pinterest Email

    Running a child care business has long been a very challenging math problem: Many providers can barely afford to operate, yet many parents cannot afford to pay more.

    During the pandemic, there was temporary relief. The federal government spent $24 billion to keep the industry afloat. Many providers were given thousands of dollars a month, depending on their size, which they used to pay for expenses, the biggest of which was wages.

    But that funding, which started in April 2021, expired in September. Five months later, the business is more precarious than ever.

    In addition to the end of the monthly checks, providers’ costs have increased along with inflation — for food, supplies and liability and property insurance. Rising wages at food service and retail jobs have made it harder to recruit child care workers, one of the lowest-paying jobs in the country.

    And families’ use of child care has changed, making it difficult for providers to maintain the requisite number of workers and collect a stable income. Some parents now use care less consistently because they work from home more often or found alternative arrangements, like having family members or nannies care for children, during the pandemic.

    The result is an industry on the brink, new data shows.

    In a survey released Sunday by the National Association for the Education of Young Children, over half of 3,815 child care owners or directors said they were enrolling fewer children than they were licensed for. Mostly it was because of staffing shortages — they said they could not afford to pay workers more because parents could not afford to pay more.

    Half of the providers said they had increased tuition. Of a broader group of more than 10,000 child care workers surveyed, 55 percent said they knew of at least one program in their community that had shut down since the expiration of federal funds.

    Many parents are feeling the stress of rising costs and shrinking availability. On average, a recent survey by Care.com found, they spend one-quarter of their income on child care (the Department of Health and Human Services says for child care to be affordable, it should cost no more than 7 percent of a family’s income). A majority said that tuition had increased and that wait lists had grown since the funding’s expiration.

    Some have tapped their savings or taken more jobs to pay for care. Others have asked family or friends to care for their children, or cut back their work hours to do so.

    “As these funds disappear, it’s just pushing programs that were just barely staying together over the edge of unsustainability,” said Elizabeth Ananat, an economist at Barnard College.

    The Biden administration has asked Congress for $16 billion for one year of additional funding for child care, and a group of Democratic senators has supported it, though it is unlikely that it would get the Republican approval needed to pass.

    In the meantime, some states, including a few led by Republicans, have invested state funds to make up for the loss of federal funds. For example, Vermont will spend $125 million a year for large expansions in eligibility for subsidies for low-income families, and Kentucky spent $50 million on grants after federal funds expired.

    That is not enough, said Sondra Goldschein, executive director of the political action committee for the Campaign for a Family Friendly Economy, which is spending $40 million to back President Biden and Democratic candidates who support child care. “We want child care to be thought of as permanent infrastructure and have sustained substantial investment in the sector at the federal level,” she said.

    Demo

    Subsidizing child care for most providers, as the government did during the pandemic, or for most families, as the Biden administration was unable to do in its social spending bill, is politically unlikely. Republicans did not support the bill’s family policies, including broadly subsidized child care and universal pre-K.

    But there has been support from both parties for other ideas. One is increasing financing for the block grant that helps low-income families pay for child care. It received an additional $15 billion during the pandemic, but that expires this fall, and before that expansion, it served only 14 percent of eligible families. Another is giving employers tax breaks or other incentives for helping employees pay for child care.

    Policies targeted at low-income families and focused on how child care benefits employers are more likely to get bipartisan agreement, said Patrick Murray, vice president for government affairs at KinderCare, a chain of 2,300 child care centers, who worked on the block grant as a policy adviser for the former Tennessee Republican senator Lamar Alexander.

    This year has been the most challenging in three decades for Rebecca Davis, who runs a child care center in Arkansas from her home in the Little Rock area.

    She used to care for children from six weeks old until they entered kindergarten, but since the pandemic, turnover has been higher. Taxes are coming due on the pandemic grant money.

    Yet she can’t raise tuition: “It’s a Catch-22: I would love to be able to give my employees a stipend or an increase on their hourly wages, but I can’t because the cost of everything has went up, and parents just can’t pay.”

    After expenses — payroll, utilities, mortgage payments, food and supplies — Ms. Davis’s take-home pay is often around $2 an hour.

    “You do not make a living doing child care,” she said. “Why do I do it? Because I love making a difference in a child’s life.”

    Before the pandemic, Shineal Hunter, like her mother, grandmother and great-grandmother before her, worked in child care, running a center for 55 children in Philadelphia. It focused on caring for children with behavioral challenges and helping families find services like housing or food assistance.

    After the pandemic, though, the business became unsustainable, with rising costs, inconsistent attendance and a staffing shortage.

    With the expiration of the federal funding looming, she closed her center.

    “It’s heartbreaking, that all the energy and effort that I’ve had for the last 15 years, the services provided in my community, those are gone,” she said. “I’m thinking of the children who are now going to fall between the cracks.”

    She watches one child at her home, before and after school, and is working part-time as a therapist. But she would like to return to child care again, and is making plans to reopen.

    View original article here

    Share. Facebook Twitter LinkedIn Email Reddit
    Previous ArticleA self-immolation outside the Israeli Embassy in the capital leads to a bomb-squad inquiry, the police said.
    Next Article Man Sets Himself On Fire Outside Israeli Embassy in Washington, Police Say

    Related Posts

    Opinion | And the Award for Best Performance at the State of the Union Goes to …

    March 11, 2024
    Read More

    Ramadan 2024: Crescent Moon Sightings Determine Start Times

    March 11, 2024
    Read More

    The Blue Waters of San Andres, an Island Belonging to Colombia, Are Stunning

    March 11, 2024
    Read More
    Add A Comment

    Leave A Reply Cancel Reply

    Demo
    Top Posts

    Former FBI, CIA Head Has ‘Serious Concerns’ With Trump Cabinet Picks

    December 28, 2024435

    Emirates to operate next-gen A350 on the third daily service to Cape Town

    January 14, 2026256

    AAVE Price Prediction: Target $215-225 by Mid-January 2025 as Technical Indicators Signal Bullish Momentum

    December 15, 2025240

    Ventive Hospitality Joins Green Fins: Strong ESG Lift

    February 17, 2026211
    Don't Miss
    Investment

    Jeffrey Epstein and Vanguard — The Barefoot Investor

    By Staff WriterMay 1, 20262 Mins Read

    Scott,As a mid-life woman, I have been impacted by predatory behaviour in the workplace and…

    Read More

    ‘Shooting Ourselves In Our Own Feet’: House Republican Wrecks Trump Over His Latest Attack

    May 1, 2026

    9 Simple Balance Exercises You Can Do in Just a Few Minutes

    April 30, 2026

    Google Ads in a Competitive Market: How to Win Without Simply Spending More

    April 30, 2026
    Stay In Touch
    • Facebook
    • Twitter
    Demo
    About Us

    Small Business Minder brings together business and related news from around the world in one place. Follow us for all the business news you'll need.

    Facebook X (Twitter)
    Our Picks

    Jeffrey Epstein and Vanguard — The Barefoot Investor

    May 1, 2026

    ‘Shooting Ourselves In Our Own Feet’: House Republican Wrecks Trump Over His Latest Attack

    May 1, 2026
    Most Popular

    Former FBI, CIA Head Has ‘Serious Concerns’ With Trump Cabinet Picks

    December 28, 2024435

    Emirates to operate next-gen A350 on the third daily service to Cape Town

    January 14, 2026256
    © 2026 Small Business Minder
    • Home
    • Get In Touch

    Type above and press Enter to search. Press Esc to cancel.

    Ad Blocker Enabled!
    Ad Blocker Enabled!
    Our website is made possible by displaying online advertisements to our visitors. To get the most from our site, please disable your Ad Blocker.