WASHINGTON (NEXSTAR) — Millions of children could lose child care soon, according to a new report. That has Democrats calling on Congress to extend federal funding to prevent what they call a “child care cliff.”
Two years ago, the American Rescue Plan allocated around $39 billion to child care centers across the country. But the federal subsidies will stop at the end of September.
Shineal Hunter owns Family Circle Academy in Philadelphia, and says the child care center will be hurt by the loss of federal funding.
“We may have to reduce our hours. I may have to eliminate some staff,” Hunter said.
Without that money, she predicts her center won’t be able to care for as many kids.
A new report from The Century Foundation says across the country 3.2 million children could lose access to child care when the federal funding ends. It predicts that will take parents out of the workforce and cost the U.S. economy more than $10 billion per year.
“We are pushing the economy forward. And in addition to doing that we are providing a safe, high-quality space for children,” Hunter said.
Senator Tim Kaine is among a group of lawmakers trying to get Congress to extend the funding.
“Just because the COVID emergency is over, doesn’t mean the child care need isn’t intense. If anything, it’s more intense because the unemployment rate is so low,” Kaine said.
Not everyone believes federal funding is the solution to making child care more accessible and affordable. Rachel Greszler with the Heritage Foundation says extending the money wouldn’t be a silver bullet.
“Simply having more federal money is going to not address the root causes that are unnecessarily driving up costs,” Greszler said.
She argues state and local governments should be the ones supporting child care based on their individual community needs.
“You need to know your community and what is actually going to get the most bang for the buck in any government money that’s provided,” Greszler said.
But advocates say taking away money that many child care centers now rely on will have a painful impact.
“We need continuous funding. And we need funding that’s going to be long term, not just a band aid,” Hunter said.
