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Childcare crunch leaves US families stuck in limbo

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The cost of caring for young children has risen sharply in recent years. Many households that qualify for public support still do not receive it in a typical month.

Childcare prices increased 29 percent between 2020 and 2024, according to Child Care Aware of America. Federal assistance, however, reaches only a minority of households that meet state eligibility rules, leaving many parents to cover substantial care costs themselves.

The Government Accountability Office, an independent agency that examines federal spending and programs, found that 22 percent of qualifying families receive Child Care and Development Fund assistance in a typical month. The fund is the main federal program helping lower-income families pay for childcare, although individual states administer the support.

Waitlists grew sharply nationwide

The National Women’s Law Center estimated that about 400,000 children were waiting for childcare assistance during the second half of 2025, compared with roughly 118,800 in early 2024. The organization also found that 17 states had waitlists or had stopped accepting new applications, illustrating how access can vary significantly across the country.

The expiration of temporary pandemic support added to existing funding pressures. Child Care Aware of America reported that about $39 billion from the American Rescue Plan, a major pandemic-era federal relief package, went toward childcare, with states required to spend the money by September 2024.

NPR reported that Texas mother Valentina Sosa earns about $300 a week working part time while caring for her young daughter. The cheapest childcare option she found costs $975 a month, an amount that would take up most of her earnings from that job.

Sosa told NPR that receiving assistance could allow her to work additional hours and increase her income. “It would definitely change a lot,” she said.

HHS reversed earlier childcare rules

The Department of Health and Human Services, the federal agency responsible for overseeing the program, reversed Biden-era requirements in 2026 that had capped family copayments at 7 percent of household income and required providers to receive advance payments based on enrollment rather than attendance.

HHS said removing the federal copayment requirement could allow states to direct available funds toward more children. States retain discretion over how they structure their programs and may still keep the earlier standards.

Karen Schulman of the National Women’s Law Center told NPR that childcare has not received public funding comparable to schools. Separately, Kim Kofron of Children at Risk told NPR that federal, state and local governments all have roles in reducing long waits and improving access to affordable care.

Sources: NPR, National Women’s Law Center, Government Accountability Office, Child Care Aware of America, U.S. Department of Health and Human Services

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