Child Care Relief on the Table in House and Senate Negotiations

America needs child care relief to keep the industry afloat during the nation’s economic recovery from the COVID-19 pandemic. The disastrous economic crisis has hit the child care industry especially hard, causing widespread layoffs and closures as a result of catastrophic drops in enrollment.

Recent legislation introduced by Republicans and Democrats show the bipartisan support in Congress for child care relief, but without an adequately funded child care stabilization fund, providers will continue to struggle to keep their doors open to meet the needs of children and families. Here’s a look at recent news coverage and analysis of the nation’s child care crisis.

THE LATEST: The Washington Post Editorial Board called on Congress to rescue the child care industry from the brink of collapse. Citing data from Child Care Relief campaign partners, the op-ed highlighted the dire state of the child care industry, which is largely tuition-funded and struggling with declining enrollment and mandatory closures. With half the industry at risk of permanent closure and parents returning to the workplace, the lack of child care will devastate both our economy and the personal finances of millions of Americans. Read the op-ed here.

CHILD CARE RELIEF PASSED IN THE HOUSE: In two bipartisan votes this week, the House of Representatives passed child care relief bills. The Child Care is Essential Act would create a $50 billion child care stabilization fund to provide grants to help providers pay for personnel, sanitation, training and other essential costs associated with reopening and running a child-care facility amid the pandemic. The Child Care for Economic Recovery Act would provide $10 billion for the Child Care Development Fund to distribute grants to construct, renovate or improve child care facilities, $7.1 billion increase of the Child Care Entitlement to States, and tax subsidies for working families, helping to bring quality child care within their reach to support ongoing employment. Read more analysis from CNBC’s Megan Leonhardt here.

CHILD CARE RELIEF IN THE SENATE: This week, Senate Majority Leader Mitch McConnell released the details of the next economic recovery package, which includes $15 billion in emergency funding for the child care industry. The proposed financial relief – $10 billion through a child care stabilization fund to states and $5 billion through the Child Care and Development Block Grant (CCDBG) program. Previously, the House passed the HEROES Act, which included $7 billion for child care, which was bolstered this week by passage of the Child Care is Essential Act. Even the most conservative estimates indicate a $26 billion investment to stabilize the child care industry would only cover half of the nation’s providers.

U.S. CHAMBER CALLS FOR CHILD CARE RELIEF: In a new letter to Congress, the U.S. Chamber of Congress is urging lawmakers to ensure the upcoming COVID-19 recovery package includes enough emergency stabilization funding to prevent the child care industry from collapsing. The business leaders, who have made child care a priority for years, wrote: “Thirteen million Americans rely on the childcare sector to care for and educate their young children while they work. Without this industry’s survival and ability to safely care for the children of working parents, every other American industry will struggle to return to work. The U.S. Chamber of Commerce appreciates the attention Congress is giving to this critical issue, but urges lawmakers to quickly find a bipartisan, bicameral path forward that is targeted and timely.” Read the full letter here.

IN THE STATES: A recent survey of Kentucky parents found that nearly 30 percent are struggling to find child care and they are stressed about sending their children back to care as they plan to return to work. A UC Berkeley study found that child care in Southern California is on the brink of collapse as they struggle to cover the rising costs related to COVID-19 safety requirements. In New York, child care providers are desperate for federal relief to prevent further closures and to fill vacant positions.

ICYMI: MASSIVE VOTER SUPPORT FOR CHILD CARE RELIEF:A poll released this week by First Five Years Fund and the Center for American Progress found broad support and demand for dedicated federal relief for child care providers. The support cuts across political affiliation and among key constituencies, with more than 80 percent in favor of a federal child care stabilization fund. Read the full results of this poll here.

In Bipartisan Votes, House Passes $50 Billion Child Care Stabilization Fund and Additional Child Care Relief

This week, the House of Representatives voted to pass the Child Care is Essential Act, which creates a $50 billion child care stabilization fund that would provide relief to child care providers struggling during the pandemic. The bipartisan vote took an important step to create a child care stabilization fund to provide relief for child care providers crippled by the COVID pandemic. With bipartisan support, the Child Care is Essential Act passed in a 249-163 vote, with 18 Republicans joining Democrats in voting to create the fund to provide direct grants to help pay for personnel, sanitation, training and other costs associated with reopening and running a child-care facility amid the pandemic.

In a second bipartisan vote, the House passed the Child Care for Economic Recovery Act, which provides funding to help child-care providers reopen and improve the safety of care facilities going forward. The bill includes $10 billion for a Child Care Development Fund to distribute grants to construct, renovate or improve child care facilities, $7.1 billion increase of the Child Care Entitlement to States, and tax subsidies for working families, helping to bring quality child care within their reach to support ongoing employment.

Earlier this month, Senate Majority Leader Mitch McConnell released the details of an economic recovery package that includes a $15 billion in child care relief, and Senators Joni Ernst (R-IA) and Lamar Alexander (R-TN) introduced the Back to Work Child Care Grants Act of 2020, which would provide dedicated economic assistance to stabilize the child care industry and resources to child care providers amid the COVID-19 crisis. The Back to Work Child Care Grants Act was also introduced in the House by Rep. Tom Reed (NY-23) with bipartisan support.

According to the results of a national poll released by First Five Years Fund and Center for American Progress, more than 80 percent of voters favor a child care stabilization fund, and up to a $50 billion price tag has virtually no bearing on their support of the proposal. Additionally, 9 in 10 voters want child care providers to be at the front of the line for Congressional relief, and support for child care relief cuts across party lines, including those who voted for Donald Trump (74%), voters 65 and older (83%), suburban women (86%), and Black (97%) and Latinx (93%) voters.

NAEYC Provider Survey: A State-by-State Look at the Findings

The lack of sufficient public investment for child care in the face of the COVID-19 pandemic has forced families, educators, and programs into a
series of impossible choices. To help policymakers and the public understand the challenges the field is facing, NAEYC has surveyed tens of thousands of programs across states and settings in March, April, May, and June, and has created the reports outlined below. Together, they paint a clear picture: If substantial, targeted, emergency support doesn’t come—and soon—in order to save child care, there will be little left of child care to save.

CLICK HERE TO SEE THE STATE-BY-STATE DATA FROM NAEYC’S NATIONAL SURVEY.

U.S. Chamber of Commerce Calls on Congress to Include Child Care in COVID-19 Recovery Package

See the Letter

In a new letter to Congress, the U.S. Chamber of Congress is urging lawmakers to ensure the upcoming COVID-19 recovery package includes enough emergency stabilization funding to prevent the child care industry from collapsing.

From the letter:

“Thirteen million Americans rely on the childcare sector to care for and educate their young children while they work. Without this industry’s survival and ability to safely care for the children of working parents, every other American industry will struggle to return to work. The U.S. Chamber of Commerce appreciates the attention Congress is giving to this critical issue, but urges lawmakers to quickly find a bipartisan, bicameral path forward that is targeted and timely.”

The influential business lobby has made child care a top priority for years, making the business case for investing in quality early learning and care opportunities.

Now with the COVID-19 pandemic, the child care industry is facing insurmountable odds as a result of drastic increases in operating expenses paired with ongoing declines in enrollment, providers need significant financial relief if they are going to be able to stay in business and continue safely caring for children.

America’s working parents cannot return to the workplace if they don’t have access to quality child care. The Chamber makes clear that, “Congress can produce a win for working families and the businesses where they work,” by providing significant stabilization funding for child care in this recovery package.

See the Letter

Senate Recovery Package Includes $15 Billion in Child Care Relief Funding; Significantly More Will Be Required to Prevent the Industry from Collapse

This week, Senate Majority Leader Mitch McConnell released the details of Safely Back to School and Back to Work Act, which includes $15 billion in emergency funding for the child care industry. The proposed financial relief – $10 billion through a child care stabilization fund to states and $5 billion through the Child Care and Development Block Grant (CCDBG) program – is an important investment, and underscores the unanimous agreement among Republicans and Democrats on Capitol Hill that America’s economic recovery will depend on the availability of child care to working families. The inclusion of a child care stabilization fund in this legislative relief package follows the introduction of a Democratic proposal earlier this summer to establish a $50 billion child care stabilization fund, as well as the House-passed HEROES Act, which included $7 billion for child care relief. Child care providers have been hit hard by the COVID-19 economic crisis, and even the most conservative estimates indicate the industry will require significantly more than $15 billion if providers are to survive the coming months of increased operating expenses, decreased revenue, and nationwide economic uncertainty.

Last week Sen. Joni Ernst (R-IA) Sen. Lamar Alexander (R-TN) introduced the Back to Work Child Care Grants Act of 2020 to provide dedicated economic assistance to stabilize the child care industry and resources to child care providers amid the COVID-19 crisis. The legislation served as a model for many of the child care provisions that were included in today’s recovery package, and was cosponsored by 10 other Republican senators. Companion legislation is expected to be introduced in the House this week.

Previously, Sen. Ernst and Sen. Kelly Loeffler (R-GA) introduced a resolution last month calling on Congress to allocate $25 billion for child care relief as part of the next COVID-19 recovery package. Meanwhile, House Democrats passed the HEROES Act in May, which included $7 billion for child care. Subsequently, Democratic leaders in the House and Senate introduced the Child Care Is Essential Act, which would provide $50 billion in funding for a child care stabilization fund.

According to the results of a national poll released this week by First Five Years Fund and Center for American Progress, more than 80 percent of voters favor a child care stabilization fund, and up to a $50 billion price tag has virtually no bearing on their support of the proposal. Additionally, 9 in 10 voters want child care providers to be at the front of the line for Congressional relief, and support for child care relief cuts across party lines, including those who voted for Donald Trump (74%), voters 65 and older (83%), suburban women (86%), and Black (97%) and Latinx (93%) voters.

Child Care Takes Center Stage in Presidential Race

The devastating impact of these financial realities cannot be sustained without direct federal investments through a child care stabilization fund that ensures providers can keep their doors open to meet the needs of children and families.The situation varies from state to state, and even from community to community. Here’s a look at recent news coverage and analysis of the nation’s child care crisis.

THE LATEST: In a live televised event this week, former Vice President Joe Biden, the presumptive Democratic nominee for president, unveiled his proposal to invest in high-quality early learning and care programs that support families, communities, and businesses across the country. Child care remains an overwhelmingly bipartisan issue among voters nationally, and has become a focal point of candidates for office on both sides of the aisle. Read the full Biden proposal here.

WHITE HOUSE TO FOCUS ON CHILD CARE IN COLORADO: During a trip to Colorado this week, Ivanka Trump will tour a child care facility and participate in a roundtable with providers, parents, and local stakeholders on the importance of child care to America’s economic recovery and the best practices to ensure children and workers can return safely. Read more about her visit here.

BIPARTISAN MOVEMENT FOR CHILD CARE IN CONGRESS: Senators Joni Ernst (R-IA) and Lamar Alexander (R-TN), chairman of the Senate Committee on Health, Education, Labor, and Pensions (HELP), introduced the Back to Work Child Care Grants Act of 2020, which would provide dedicated economic assistance to stabilize the child care industry and resources to child care providers amid the COVID-19 crisis. Original Senate co-sponsors include John Cornyn (R-TX), Susan Collins (R-ME), Steven Daines (R-ME), Cory Gardner (R-CO), Martha McSally (R-AZ), Thom Tillis (R-NC), and Todd Young (R-IN). Additionally, 41 Republican lawmakers in the House sent a letter to Congressional leaders calling for dedicated federal relief for child care providers and businesses to stabilize an industry that has been devastated by the ongoing COVID-19 pandemic. House Democrats expect a floor vote on the Child Care is Essential Act on Monday, which would create a $50 billion child care stabilization fund through the upcoming COVID-19 recovery package.

MASSIVE VOTER SUPPORT FOR CHILD CARE RELIEF: A poll released this week by First Five Years Fund and the Center for American Progress found broad support and demand for dedicated federal relief for child care providers. The support cuts across political affiliation and among key constituencies, with more than 80 percent in favor of a federal child care stabilization fund. Read the full results of this poll here.

BUSINESS LEADERS CALL FOR CHILD CARE RELIEF: In a letter to Congressional leaders, the Business Roundtable urged support for child care providers, writing, “to help individuals and families manage through the COVID-19 pandemic and beyond, Business Roundtable supports additional resources for childcare providers to ensure greater access to affordable, quality care and early education.”

IN THE STATES: With less than half of child care facilities open for business in Michigan, access to care remains a barrier to reopening the state economy because parents are stuck on waiting lists and struggling to find open spaces for their children as they return to work. In Indiana, WBAA talked with a panel of child care experts to discuss how the pandemic has impacted child care facilities and families. Parents in Kansas are sharing their stories of struggling to find child care until school starts after the state announced classes would not begin until after Labor Day.

Bipartisan Congressional Briefing Reinforces Undeniable Need for Dedicated Child Care Relief

This week, Child Care Relief hosted a virtual briefing on the critical need for Congress to include a child care stabilization fund in the next economic stimulus package.

In case you weren’t able to join, here are some highlights from the moving testimonies by parents, providers, state administrators, and members of the business community:

Lucy Recio from the National Association for the Education of Young Children (NAEYC) presented results from the organization’s latest survey of childcare providers, which indicates that 41 out of every 50 programs are expected to close within the year without additional, dedicated stabilization funding. “The desperation is palpable, and I cannot sugarcoat this: I have been working in this space for over a decade and I have not seen the devastation and loss like what is facing our child care sector today,” she added.
Calvert’s ABC Preschool and Nursery’s program director Jennifer Calvert expressed her fear for the future of her Aberdeen, Mississippi-based child care center: “As programs like mine are closing, this will not only be a loss for individuals like myself who have spent years building up my program, but also for the families we serve who rely on our services, for children in our community who will miss out on the strong start that we know early childhood education provides, and for our community which will not be able to recover without us.”
Woody Dover from Georgia’s Department of Early Care and Learning explained that the state had to jump into quick action to support and stabilize child care providers, but that there is much more work to be done. “Though the CARES Act funding received has been significant and critical, there is a great deal of uncertainty as to how many child care providers will eventually be able to reopen and serve the needs of families,” he said.
Rasheed Malik from the Center for American Progress predicted that, without sufficient financial relief, the already-scarce supply of child care across the country – particularly in rural communities – will be decimated, leading to widespread economic challenges nationwide.
Dr. Elanna Yalow of KinderCare Education and the Early Care and Education Consortium (ECEC) explained how COVID caused drastic loss in enrollment and increase in cost for providers: “Our operations are not sustainable, as we continue to operate many programs at considerable losses based on approximately a 30 to 35% increase in operating costs for staffing, supplies, and cleaning, while at significantly reduced capacity and revenues, serving only approximately half the number of children.”
Dasja Reed, a Strolling Thunder parent from New Orleans, Louisiana, had to leave her job in March when her son’s daycare closed and is unable to return until she has access to care: “I’m still, unfortunately, out of work because I haven’t been able to find a daycare–I haven’t been able to find anything for my son right now.”
Julia Barfield of the U.S. Chamber of Commerce Foundation discussed the central role of child care in facilitating return to work, citing how 20% of parents are unsure if they can return to pre-COVID working conditions, and how 40% of employers are concerned that parents will be unable to go back to work due to lack of child care.
Scott Hall of the Greater Kansas City Chamber of Commerce said, “child care is the grease that allows the gear of American businesses to move. Without it, we will not recover.” Data gathered by the organization’s recent survey shows that child care constitutes business owners’ second biggest concern about COVID, closely trailing behind their concern for personal and employee safety.
Robin Phillips, CEO of Child Care Aware of Missouri, shared that COVID-19 closures wiped out more than half of the state’s child care programs, but that the industry faced tremendous challenges long before the pandemic: “COVID has pulled back the curtain on everything that’s been lacking in this underfunded, underappreciated system.”

You can watch a recording of the briefing on Child Care Relief’s YouTube channel.

Lawmakers on both sides of the aisle have introduced legislation aimed at stabilizing the child care industry: Republican Senators Joni Ernst (R-IA) and Lamar Alexander (R-TN) introduced the Back to Work Child Care Grants Act earlier this week, and Democrat Senator Patty Murray and Representatives Rosa DeLauro (D-CT) and Bobby Scott (D-VA) introduced the Child Care is Essential Act in May. It is critical that these proposals are included in the upcoming COVID-19 recovery package.

If you are interested in learning more…

These resources dive deep into COVID-19’s impact on the child care industry:

Our child care stabilization fund explainer walks through how this form of dedicated relief will enable states to shore up the child care system and allow parents to return to work.
The National Association for the Education of Young Children (NAEYC) conducted a new survey of child care providers across the country that found 40% of them, and 50% of minority-owned providers, expect that they will close permanently without additional public assistance.
A recent survey by Child Care Aware of America and Save the Children Action Network (SCAN) shows that 87% of voters support direct federal assistance for child care providers.
“It’s past time to start talking solutions.” Leadership of SCAN and the U.S. Chamber of Commerce penned an op-ed in The Hill to call for long-overdue support for the child care industry.
Bipartisan Policy Center’s new report concludes that only 6% of the nation’s child care providers received a loan through the Paycheck Protection Program (PPP).
The Bipartisan Policy Center also hosted an online forum of 10 state child care administrators, who reached a consensus that CARES Act funds, though effective and needed, will not sustain the child care industry past the summer.
This interactive map by the Center for American Progress (CAP) explores how COVID-19 has exacerbated child care deserts, communities where there are three times as many children as there are licensed child care capacity.
An online discussion hosted by CAP and NAEYC heard from child care providers and their experiences in caring for children of essential workers and applying for loans.
Polling data released by a University of Oregon research group finds that 48% of lower-income households will not be able to return to their pre-COVID child care arrangement.

U.S. Chamber Foundation and Save The Children Action Network Call For Long Overdue Support For America’s Child Care System

In a recent op-ed published in The Hill, Mark K. Shriver, president of the Save the Children Action Network (SCAN), and Cheryl Oldham, vice president of Education Policy at the U.S. Chamber of Commerce, highlighted the bipartisan consensus on the urgent need to support child care. According to a survey conducted by SCAN, 87% of American voters–82% of Republicans and 94% of Democrats–favor public assistance in support of the struggling child care industry.

The op-ed also draws attention to the dire outlook confronting the child care industry. Citing studies conducted by child care advocates, the authors warned that more than 4.5 million child care slots could be permanently lost at the current rate of closure, and called for the federal government to act quickly to allocate additional funds to stabilize the child care industry. “It’s past time to start talking about solutions,” wrote Shriver and Oldham.

Parent. Teacher. Employee. Chef. Counselor. Coach. Nurse. Playmate. Not necessarily in that order. Ask a working parent how well they’re wearing all of these hats right now. Ask a working parent if they think child care is a second- or third-tier issue.

The COVID-19 public health crisis has been a wake-up call to the role of the child care industry in our lives. Child care is essential to America’s economic recovery. Thirteen million working parents rely on this industry to care for their children while they do their jobs. In many cases, working parents will not be able to return to work if their child care programs are unable to reopen.

It’s past time to start talking about solutions. The supply of child care was declining before this pandemic, so without immediate, targeted support for providers, we risk losing them permanently. While critical support through the CARES Act was provided to small businesses early on in this crisis, according to the National Association for the Education of Young Children, only one-quarter of the child care market received a Paycheck Protection Loan. Child care cannot be reserved for second or third phases of re-opening. Without this industry’s survival and ability to care for and educate our young children, every other industry will struggle to return to work and our economic recovery will suffer.

In February, the U.S. Chamber of Commerce Foundation studied the economic impact on states and employers when the child care system breaks down. What this study found was staggering – billions of dollars lost annually during a time when unemployment was low and economies were strong. Pennsylvania alone loses $3.47 billion each year from breakdowns in child care. Persistent challenges with child care access for working parents – even in a booming economy – resulted in stalled growth, high turnover, and employees leaving the workforce.

The pandemic has decimated an already fragile industry comprised of small and very small businesses – many run by women and women of color – which are on the brink of collapse. According to this coalition of advocates, more than half of child care facilities have closed and may not reopen without relief. Additionally, more than 4.5 million child care slots will be permanently lost with these widespread closures. These are the small business owners—women, women of color, mothers, former teachers—who our communities need to stay in business.

A sharp decline in child care capacity would be an albatross to reopening the economy. Every day, businesses and chambers of commerce emphasize that accessible child care is a top-tier issue for them to start their return to work plans, and they are searching for answers and trying to find partners in their communities.

The Center for Disease Control’s public Framework for Reopening America identified the need for child care centers to allow the workforce to return to work. Businesses understand how access to child care impacts their employees’ ability to return to work, but we need targeted relief for providers so that they are still in business when families return.

New opinion polling suggests that American voters are keenly aware of the essential role child care plays for both families and business. In a new national survey from Save the Children Action Network and Child Care Aware of America, American voters overwhelmingly (87 percent) support providing support through the crisis so that current child care providers are able to make payroll and pay other expenses such as rent and utilities.

In a rare moment of unity, this support crosses partisan lines with 82 percent of Republicans and 94 percent of Democrats in favor. This bipartisan support is all the more remarkable when you consider that only 27 percent of voters reported that they would be personally impacted in some way if child care providers were unable to reopen. Voters recognize that it is in everyone’s interest for this industry to survive this crisis.

Yes, the child care industry needs our support. Child care is a two-generation workforce issue, essential to support the workforce of today and vital to develop our workforce of tomorrow. We need targeted and timely assistance to child care programs so that every other industry can return to work.

Mark K. Shriver is president of the Save the Children Action Network. Cheryl Oldham is senior vice president of the Center for Education and Workforce at the U.S. Chamber of Commerce Foundation and vice president of Education Policy at the U.S. Chamber of Commerce.

Bank Street College of Education Shares Possible Solutions for a More Equitable Child Care System

A blog post authored by Bank Street College of Education recommends immediate steps and long-term solutions that states can adopt to make early care and education systems more equitable. Citing the impact of developmentally meaningful early childhood education and the broad public support for public assistance to child care providers, the blog calls for reforms that place racial justice and equity at the center.

The article specifically draws attention to the undervalued and underappreciated nature of the work provided by professional early childhood educators, who are primarily women of color. Prior to the pandemic, 4 in 5 early childhood educators earned less than $15 an hour, 1 in 7 received employer-sponsored healthcare, while black female educators made 84 cents to every dollar earned by their white counterparts.

Guidelines provided by Bank Street College of Education aim at supporting both professional and home-based early childhood educators and ushering in systemic change towards a more equitable early care and education system. The organization suggests that states focus on education quality beyond physical safety, pay and equip providers as educators, build diverse system- and policy-level leadership, and broaden engagement with caregivers outside of formal systems of care and education.

“As a country, we need to finally recognize and fund early care and education as the public good that it is,” the report reads. “We need to build a foundation that delivers on the promise of education as an expression of justice and a means towards a more equitable society.”

The blog post is published in conjunction with Bank Street’s white paper, Investing in the Birth-to-Three Workforce: A New Vision to Strengthen the Foundation for All Learning, and an online discussion on turning these guidelines into action.

Coalition Of 22 State Attorneys General Call for Federal Child Care Relief

In a letter sent to Senate Leadership last week, 22 attorneys general urged lawmakers to increase child care funding in the next stimulus package. The signers of the letter represent more than 150 million residents, including many parents and child care workers who have contacted the signers’ offices to plead for support.

The attorneys general supplemented these personal constituent stories with data and research, including only 16 percent of child care providers could survive lengthy closure without public assistance, and just 11 percent could survive a month-long closure.

The letter recognizes the positive impact of funding provided by the CARES Act, but pointed out that additional financial support is required to meet the needs of child care providers who are facing increased costs to comply with public health requirements and other uncertainties. Providers’ decreased revenues make it hard for them to rise up to the increased necessity of child care as parents prepare to return to work.

“We need a solution that meets the moment and treats childcare as the essential infrastructure it is,” the letter reads. “To be serious about an economic recovery is to address our country’s childcare funding crisis.”