U.S. Chamber Foundation Survey Shows Employers See America’s Child Care Challenges as a Major Hurdle to Recovery

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The COVID-19 public health crisis has rapidly shifted how we do business. Seemingly overnight, employers adapted the workplace to keep their employees healthy and follow public health guidance. Video communication was implemented, commutes changed, and working parents faced the reality of full-time childcare and full-time work. Many businesses moved all or part of their workforce to remote work, some were forced to closed operations, and still others were deemed essential. Businesses of every size and industry have been impacted by this pandemic, so employers have had to figure out how to operate a business in an entirely new landscape.

Prior to the pandemic, limited access to affordable, high-quality childcare had significant recruitment and retention costs for employers. As childcare programs have closed or are operating at limited capacity, the impact of this lack of childcare options on employers is even greater. In the fall of 2019, the U.S. Chamber of Commerce Foundation conducted a series of surveys, which led to the creation of four reports, referred to as Untapped Potential, to better understand how childcare challenges affect parents’ participation in the workforce, affect employers’ ability to recruit and retain skilled workers, and impact state economies.

Now, several months after this study, working parents are facing new, complicated childcare challenges caused by COVID-19. Parents are trying balance their dual roles with limited to no access to formal childcare or family, friend, or neighbors to help, making childcare an important need for every employer and state to prioritize in their return to work plans.

With that in mind, the U.S. Chamber of Commerce Foundation has launched a new longitudinal study to understand how childcare challenges affect working parents and their employers in the unprecedented times of COVID-19.

Click here to see the survey findings:

THE CASE FOR A CHILD CARE STABILIZATION FUND

Our nation’s long-term well-being depends on a child care industry that works for every family. In addition to the proven benefits of high-quality child care to a child’s learning and healthy development, access to care is an
essential pillar of America’s labor market and economy. Sixty-seven percent of children under age 6 in the United States have all available parents in the labor force, which means millions of American workers rely on child care just to be able to go to work each day. Unfortunately, the COVID-19 pandemic has pushed an already-struggling child care industry to the brink of collapse.

Dedicated relief through a Child Care Stabilization Fund will enable states to provide grants to struggling child care providers to help shore up the market and ensure parents have access to the care that will allow
them to return to work.


National Business Leaders Call for Increased Federal Child Care Relief

This week, a group of current and former senior executive leaders from some of the nation’s largest and most visible companies penned a letter to Congress requesting that relief funding be directed to the child care industry. The nation’s recover from the economic downturn caused by the COVID-19 crisis will rely on a stable child care industry so millions of working parents can return to job sites.

The letter authors, all members of the ReadyNation CEO Task Force on Early Childhood, write that, “Sustaining child care is vital to the development of our nation’s youngest generation and in helping re-start our nation’s economy.”

Further, they emphasize that, “access to affordable, quality child care is essential to a healthy economy – now during the current public health crisis, as Americans return to work, and as our economy once again flourishes.” 

Without access to quality, affordable care, parents are kept out of the workforce at serious financial cost. A recent study by ReadyNation, Want to Grow the Economy? Fix the Child Care Crisis, found an annual economic cost of $57 billion in lost earnings, productivity, and revenue as a result of the infant-and-toddler child care crisis. 

ReadyNation is a national, bipartisan business network of current and former executives focused on strengthening workforce development and the economy through the promotion of smart investments in America’s children and youth. ReadyNation is also part of the Council for a Strong America, which is a member of the Child Care Relief campaign. 

Read the full letter to Congress here, and see the full list of signatories below:  

*Please Note: Below signatories lend their names in an individual capacity, not as a company representation. Company/organization names are included for information purposes only.

Douglas M. Baker, Jr.
Chairman & CEO, Ecolab Inc.

Roy Bostock
Vice Chairman (Ret.) Delta Air Lines; Former Chairman Yahoo!

John J. Brennan
Senior Advisor, Chairman Emeritus, and former CEO Vanguard

Chet Cadieux
President & CEO QuikTrip Corporation

Meredith Callanan
Head of Corporate Marketing and Communications (Ret.) T. Rowe Price Group; Former Chair
T. Rowe Price Foundation

Carl Camden
President & CEO (Ret.) Kelly Services

Mike Chesser
Chairman Emeritus and CEO (Ret.) Great Plains Energy

Maxine Clark
Founder, Build-A-Bear Workshop; CEO Clark-Fox Family Foundation

Adam Contos
CEO RE/MAX

Barry Downing
President & CEO Northrock, Inc.

Robert H. Dugger
Managing Partner Hanover Provident Capital; Partner (Ret.) Tudor Investment Corp.

Victor J. Dzau
Former President & CEO Duke University Health System;
Chancellor Emeritus
Duke University

George Halvorson
Chair, Institute for InterGroup Understanding;
Chairman & CEO (Ret.) Kaiser Permanente

Richard Hazleton
Chairman & CEO (ret.) Dow Corning Corporation

Larry Jensen
Chairman and Principal Cushman & Wakefield | Commercial Advisors

Candace Kendle
Co-Founder, Chair and CEO (Ret.) Kendle International Inc.

Jim Krieger
Vice Chairman & CFO Gallup, Inc.

Jack McBride
CEO Contec, Inc.

Anne Mulcahy
Chair & CEO (ret.) Xerox Corporation

Robert Myers Chairman & CEO (Ret.) Casey’s General Stores

P. Scott Ozanus
Deputy Chairman & COO and Americas Chairman KPMG LLP

John Pepper
Chairman & CEO (Ret.)
Procter & Gamble

Mike Petters
President & CEO
Huntington Ingalls Industries

Jim Postl
President & CEO (Ret.) Pennzoil-Quaker State Company; Former President & CEO Nabisco International

Robert F. Rivers
Chair & CEO Eastern Bank

Joe Sheetz
CEO
Sheetz, Inc.

Jeffrey H. Smulyan
Chairman & CEO Emmis Communications

Tim Solso
Lead Director and former Non-Executive Chairman General Motors; Chairman & CEO (Ret.) Cummins, Inc.

James Lee Sorenson
President Sorenson Impact Foundation

Jim Spurlino
President Spurlino Materials

Child Care Providers Face Challenges in Accessing Paycheck Protection Program

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The following data and information is from the results of a new survey conducted by the National Association for the Education of Young Children.


Small businesses are at the heart of the American economy, and the child care industry is at the heart of small businesses—as a support for the leaders and parents who run and work in them, and as a source of small businesses themselves. The child care system, which thrives on multiple types of programs and settings that meet parents’ and children’s needs, primarily consists of small centers and family child care homes run by
women, often women of color. According to the Committee for Economic Development, there are approximately 675,000 child care businesses in the United States.

Significant steps have been taken by Congress to assist small businesses of all kinds during the pandemic, including the creation of the Paycheck Protection Program (PPP). In the time since the program’s creation, the National Association for the Education of Young Children (NAEYC) has conducted webinars and created resources for educators and program owners, supporting them to learn more about and apply for the PPP opportunity.

NAEYC’s survey report from April 17 found that, of 5,000 respondents, 53% of child care centers and 25% of family child care homes had applied for the PPP loan. Additional programs have likely applied since that time; others have chosen not to apply because of expressed concerns around the risk of taking on debt in the context of an uncertain future. Of the programs who had applied, nearly 500, from 42 states and Washington, DC responded to a follow up survey seeking to learn more about their experience with the Paycheck Protection Program. In this slice of the child care industry, we can see that while the PPP has bought some programs critical time with which to pay themselves and their employees and cover some of their fixed costs, entire segments of the market, particularly family child care homes, have been essentially unable to access the program and its benefits. Additional, substantial, direct federal relief is needed to ensure child care exists and is available to support children’s learning and families’ return to work over an extended period of time.

Key Findings

  • Of the half of child care programs who reported that they applied for the Paycheck Protection Program, half of those were approved for the loan; this would be equivalent to approximately one-quarter of the child care market receiving PPP loans.
  • At the time of their response, 12% of those who had applied had been denied and another 33% had not heard back yet.
    • Of those who were denied, 55% were family child care home.
    • The most common explanations programs were provided for their denials, in addition being told there was a lack of funding, included problems with their credit scores and their lack of a business checking account (even if they had a personal account)—neither of which are required by the SBA to qualify for the loans.
  • Rates of approval were slightly higher for borrowers who were previous clients of their lender (57% approval rate for previous clients vs. 49% approval rate for applicants who were not).
    • For family child care homes, approval rates were lower regardless of previous client status; if they were clients, they confronted a 27% approval rate, while those who were not previous clients saw a 23% approval rate.
  • Reflecting the range of small business settings and size in the child care field, the amount of the loans varied significantly:
    • 38% of respondents reported that their loan amounted to less than $50,000
    • 25% reported that it amounted to between $50,000 and $100,000
    • 30% reported that it amounted to between $100,000 and 150,000
    • 6% reported that it amounted to between $250,000 and $500,000
      • All of the family child care homes reported a loan amount of $50,000 or less.

Ensuring forgiveness for the programs who received the loan will be the next challenge; many child care providers, even those who ultimately applied in the hopes of saving their businesses so they could continue to serve children and families in their communities, expressed deep concerns about the risks of taking on debt, and were fearful that the loans would not be forgiven.

To the extent that additional funding and policy changes are coming for the Paycheck Protection Program, NAEYC encourages Congress and the Small Business Administration to make these funds increasingly available to true small businesses, such as family child care homes, who are sole proprietors and may be unbanked, and to provide guidance to the banking industry clarifying expectations around loan and forgiveness requirements. At the same time, even a fully functional and funded Paycheck Protection Program would not be enough to sustain the existence of the mixed-delivery child Care system that is needed to support the nation’s response to disaster and road to recovery. The viability of child care programs—and therefore the viability of our nation’s economy—is dependent on substantial, additional, and direct investments, and we look forward to working with Congress to make these investments a reality.

Talking Points – Child Care Relief

OVERVIEW

In addition to the proven benefits to a child’s learning and healthy development, quality child care is an essential pillar of America’s labor market and economy, making it possible for millions of parents to go to work or attend school each day. The nationwide Coronavirus crisis has hit the child care industry – both center-based care and family child care alike – especially hard, causing widespread layoffs and closures as a result of catastrophic drops in enrollment. Extended closures during this time could put a substantial percentage of them out of business permanently, exacerbating the existing realities of child care deserts. Child care closures will hit families of color, rural areas, and low-income neighborhoods especially hard, as these communities already had an undersupply of quality, affordable child care. At the same time, child care providers still working or reopening will have to operate on financial losses for months as a result of new social distancing requirements and low enrollment, as parents slowly return to work. The devastating impact of these realities cannot be sustained without direct federal investments that ensure child care providers can keep their doors open to meet the needs of working families. Without question, America’s economic recovery from the COVID-19 crisis will depend on whether the child care industry survives.

CHILD CARE AND THE COVID-19 CRISIS

After months of uncertainty and the potential for extended business closures, the strain being placed on our child care providers, who are already operating on razor thin margins, could force many out of business permanently.

Half of the nation’s child care providers are closed as a result of the COVID-19 crisis and say they won’t survive a closure of more than two weeks without significant relief. That loss of child care supply could result in a permanent loss of nearly 4.5 million child care slots.

While most parents know their children in K-12 will have a school to eventually return to, the same cannot be said for parents with children aged 0-5.

A recent Bipartisan Policy Center survey showed two-thirds of parents who still need child care are having difficulty finding it. Further, about half of parents are concerned their provider would no longer be open when they are able to return to work.

We know the economic recovery in our country will be a slow, phased process, and yet child care providers must be open and ready for families in order to begin the recovery process. This means:

  • Child care providers still operating or reopening, will have to operate on financial losses for months to come due to new social distancing requirements and low enrollment as parents slowly return to work.
  • Providers will also face increased supply expenses for safety and sanitation materials for the foreseeable future.

The devastating impact of these financial realities cannot be sustained without direct federal investments that ensure child care providers, both center-based and home-based care, can keep their doors open to meet the needs of children and families.

There is no denying, if child care providers remain closed and the industry collapses, working parents won’t be able to return to work and our economic recovery will suffer.

THE NEED FOR DEDICATED FEDERAL RELIEF

As our country moves through the various phases of recovery and reopening the economy, no industry will be able to restart if the child care industry collapses and a big portion of the labor force no longer has access to reliable, high-quality child care they depend on to be able to go to work. This will disproportionately impact working mothers, who support their families’ financial security as breadwinners and contribute to the size of the overall economy. While the Paycheck Protection Program has helped a small fraction of child care providers stay afloat for a short time, it is not designed to meet the unique needs of child care providers who must operate on financial losses for months to come as parents slowly return to work. Therefore, substantial, direct, and targeted federal support for child care is essential for the future of the industry.

Congress must take additional steps to provide substantial, direct relief to meet the unique needs of our nation’s child care providers and the families they serve to:

  • Stabilize the child care industry during the pandemic as stay-at-home and social distancing measures limit revenue and threaten the collapse of the industry.
  • Guarantee the child care programs that are choosing to stay open during the crisis have the necessary support so that essential and front-line workers can access care – and that the children attending these programs continue to receive high-quality services.
  • Ensure child care providers have the support they need to operate and be available for children and families as states re-open.

Our nation’s long-term well-being depends on a child care infrastructure that works for every family. An abundance of quality, affordable, child care is fundamental to our economic recovery from the pandemic and beyond.

By the Numbers: State-by-State Look at COVID-19 and Child Care

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Our nation’s long-term well-being depends on a child care infrastructure that works for every family. An abundance of quality, affordable, child care is critical to our economic recovery now and in the future. Moreover, we know that high-quality child care isn’t just essential to the workforce of today—it also drives academic achievement and other measurable short- and long-term improvements to health and social development in children that prepare our skilled workforce of tomorrow.

The COVID-19 crisis has had a tremendous and disastrous impact on child care across the country – affecting both child care providers and the families they serve.

Take a look at the impact this pandemic is having on child care in the states:

The information included in these resources includes data from Bipartisan Policy Center, the Center for American Progress, Child Care Aware of America, and the National Association for the Education of Young Children.

More state resources will be added over the coming days as data becomes available.

BPC/Morning Consult Parent Survey: Child Care in the Time of Coronavirus

A new survey conducted by the Bipartisan Policy Center and Morning Consult finds that child care in the United States is still necessary for parents to work, even amidst changing work environments. But child care is difficult to find and in many circumstances, closed indefinitely. This leaves parents who are working at home on their own to juggle their work and caregiving responsibilities. At the same time, frontline or essential workers who need formal child care face widespread program closures which can prevent them from finding the care they need.  

Work and the Need for CareChild care is essential for parents of young children if they are to work. Of parents surveyed, 56% said they or someone in their household is now working either remotely or at home. Only 14% represented a household where nobody has yet experienced a change in their work situation. About half (49%) of parents said they or someone in their household can care for their children during this time. The widespread change in work environments does not change the fact that many parents of young children need child care:  

  • 43% of those working remotely said they currently need child care. 
  • 49% of those working in-person need formal child care amidst COVID-19,  
  • only 8% saw no change in their previous child care provider’s availability. 
  • Of parents currently working in-person, just 32% had someone in their household able to care for their child(ren). 

Parents’ Caregiving Activities. Parents who are able to care for their children at home use different  approaches to balance their work and caregiving responsibilities and deal with widespread child care program closures (more on this below).  

  • One-third (34%) of parents who are working remotely are alternating work hours with someone else in their household to care for their children.  
  • Additionally, 21% of parents still working in-person are reducing their hours in order to care for their children. 
  • Some parents are working outside of normal business hours (10%) to care for their children. 
  • Additionally, parents are taking paid (8%) and unpaid leave (11%) to provide child care for their children amidst COVID-19. 

Search for Care. As noted, about half (49%) of parents say they or someone in their household is able to care for their children in absence of a formal child care arrangement. For the parents who still sought a formal care arrangement, options are hard to find. 

  • Nearly two-thirds (63%) of parents had difficulty finding child care, including 33% who found it very difficult.  
  • The percentage of parents who found it very difficult to find care nearly doubled from our previous survey, less than 6 months ago, when 18% found it very difficult to find care.  
  • Additionally, about half (47%) of parents are concerned they won’t be able to afford child care when they can return to the workforce.   

Provider Closures. This survey highlights one of the main reasons child care might be hard to find right now – widespread program closures. 

  • Just 22% of essential workers said they have been able to continue using their previous care arrangement during this time. 
  • Across all provider types, 60% of programs are fully closed and not providing care to any children at the moment. 
  • The most likely providers to remain open are family child care homes, 28% of which remain open for parents without any scheduling changes. 
  • Just 10% of larger centers and 16% of smaller centers remain open without scheduling changes.  
  • For parents whose program had closed, 42% of parents were still paying their provider either in full or partially. Of those who are still paying their provider, 21% continue to pay to ensure their spot remains upon reopening. 

Child Care as an Essential Service. There is a lot of confusion around the country about if—and how—child care programs should remain open to support the economy, particularly for workers who are on the frontlines of this pandemic.  

  • When asked if child care is an essential service that should remain open, the majority (42%) responded in the affirmative, while about 35% do not see child care as essential, and still about a quarter are unsure.  
  • About a quarter of parents said they were not aware of any plan in their state for child care operations, but the good news is that of those who did know the plan, the vast majority (82%) were supportive of their state’s decisions. 

When it comes to providing financial support to keep the child care market stable, parents believe federal and state governments have the highest level of responsibility (57% combined). Parents also believe federal and state governments have the greatest responsibility when it comes to providing child care assistance for essential workers, followed by the belief that it is each parent’s responsibility (25%). 

Returning to Child Care. When thinking about the ability to go back to work and place child(ren) back in child care, the survey illuminates what providers could be doing to address concerns parents have about re-opening. Specifically, three quarters of parents are concerned about their child’s potential exposure to COVID-19 when they go back to child care. Further, providers might consider sharing more information about their continuing operations, as around half of parents (46%) are concerned that their current or previous provider would no longer be open and 37% are concerned that their child’s teacher won’t be the same.  

Both the child care market and parents with young children are struggling to cope with the changes to society intended to stop the spread of the virus including working from home and the closure of child care programs. The findings in this survey illuminate how parents are dealing with child care in the time of the coronavirus and offer lessons for the market when it is able to re-open.   

The survey was conducted from March 31 – April 4, 2020, among a national sample of 800 parents of children under the age of 5 who were employed and paid for child care within the last three months, but whose situations may have changed recently as direct result of COVID-19. The interviews were conducted online. Results from the full survey have a margin of error of plus or minus 3 percentage points. 

Read more from the Bipartisan Policy Center’s survey, conducted with Morning Consult, on their website here.

National Survey Findings on Child Care in the Age of Coronavirus

National poll from Save the Children Action Network and Child Care Aware® of America shows 87 percent of Americans support federal funding to help child care centers pay staff and rent

Today, Save the Children Action Network (SCAN) and Child Care Aware® of America (CCAoA) announced the results of a national survey that identified registered voters’ overwhelming support for federal funding to address the worsening child care crisis as a result of COVID-19. This groundbreaking poll, commissioned by SCAN and CCAoA, highlights the child care industry’s vital importance to American families and the American economy. 

“In these unprecedented times, we must listen to voters to better understand what American families – the backbone of our country – need. These poll results illustrate that voters across party lines agree that the child care industry should be prioritized in coronavirus relief efforts. With nearly nine in ten voters supporting specific targeted assistance for the child care industry to ensure it survives this pandemic, it’s clear voters understand that child care and the economy are co-dependent,” said Mark Shriver, President of SCAN. “The child care industry will be an essential component of the economic recovery when it comes to getting workers back to their offices once this pandemic ends. That’s why SCAN and our 350,000 grassroots advocates nationwide are working with policymakers to invest in kids and ensure the child care industry isn’t forgotten. American voters must be heard.”

“We are hearing from child care providers across the country who are laying off staff and don’t know how they will pay their rent and utility bills because their programs are only supported by monthly tuition payments,” said Lynette Fraga, Executive Director of CCAoA. “It’s heartening that the vast majority of Americans support providing financial assistance to the child care heroes who enable our frontline heroes to do their jobs. CCAoA is working closely with Child Care Resource & Referral Agencies and other partners to ensure that the child care industry recovers, that federal and state policy efforts reflect the needs of providers and families, and that the system returns stronger than it was before.” 

“Across party lines and ideological persuasions, voters are sending a clear signal to Congress that ensuring access to quality child care must be part of any first steps to reopening the American economy,” said Michael Meyers, President of TargetPoint Consulting. “They recognize the threat to child care is real and strongly support specific targeted assistance to the child care industry.  Support for bold policies is overwhelming, bipartisan and crosses generations and economic classes.”

Key Poll Takeaways

  • 87% support providing enough federal assistance during the crisis to ensure current child care providers are able to make payroll and pay other expenses, such as rent and utilities
    • 59% majority strongly support such funding
    • Support crosses partisan lines with support from 82% of Republicans and 94% of Democrats 
  • Four in five support the child care industry receiving targeted financial assistance from the federal government to address the impact of COVID-19
    • 50% strongly support such targeted assistance
  • 84% of lower and middle-income voters – those hit hardest by the economic upheaval – support this assistance
    • Support crosses partisan lines with seven in ten Republicans, nine in ten Democrats and three in four Independents in support
  • 79% support the expansion of the child care industry to serve areas where child care resources are limited or non-existent
    • 50% strongly support such an expansion
  • 78% support the federal government reimbursing essential workers for child care costs paid during the coronavirus pandemic
    • 53% majority strongly support such reimbursements 
  • 78% support federal assistance to increase pay for child care workers who continue to offer services for children of front line workers, despite increased risks and strains on the system
    • 50% strongly support such increased pay
  • 77% support emergency funding to provide child care in the event of a national economic crisis – like the coronavirus 
    • 50% strongly support such emergency funding

Poll Methodology

This survey was jointly commissioned by SCAN and CCAoA and generously funded by the Robert Wood Johnson Foundation.  Conducted April 11th to 15th, 2020 by TargetPoint Consulting and GQR, the survey encompassed 1,200 interviews conducted from a national sample of registered voters. The margin of error is +/- 2.8%. To read a full analysis and greater detail on the methodology, please see a joint memo from TargetPoint Consulting and GQR.

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Save the Children Action Network was created in 2014 as the political advocacy arm of Save the Children, to be the political voice for kids. We work to ensure that the issues critical to children’s lives and futures are given top priority by our elected leaders, building bipartisan support to make sure every child has a  strong start in life. In particular, we advocate for high-quality early learning and care for children in the U.S., and on issues impacting the world’s most vulnerable children.  

Child Care Aware® of America is our nation’s leading voice for child care. CCAoA works with state and local Child Care Resource and Referral agencies (CCR&Rs) and other community partners to ensure that all families have access to quality, affordable child care. CCAoA leads projects that increase the quality and availability of child care, offers comprehensive training to child care professionals, undertakes research, and advocates for child care policies that improve the lives of children and families.

Read more from SCAN and CCAoA online here.