- Stimulus package includes $10 billion for child care providers
- Funding will help daycares, preschools, before- and after-school programs, and others stay open if they have experienced reduced enrollment or closures
- Many child care providers have struggled to remain profitable during the pandemic, while difficulties in child care access have prompted parents to cut hours or leave their jobs
The targeted assistance in a recently approved $900 billion economic stimulus package includes $10 billion for child care providers. While the funding has been welcomed, many providers remain closed and advocates have called for additional money to support the industry.
The money is intended to help child care providers stay open and pay staff if they have experienced closures or reduced enrollment. Most of the funding will go to the Child Care & Development Block Grant program, which will provide grants to help cover payroll, rent, and other costs. In addition, child care providers are eligible for the newly revived Paycheck Protection Program.
One recent analysis found that 27 percent of child care providers, including daycares, preschools, and before- or after-school programs, remain closed after shutting down at the start of the pandemic. The rate of closures varies by state, with some seeing a revival of more than 90 percent of child care providers and others operating with just one-third of pre-pandemic child care providers operational.
Other studies have had varying results, but have generally found that child care providers closed temporarily, are operating at limited hours, or have reduced their capacities. Providers have also grappled with the question of whether they can remain solvent, since reduced capacities and lower enrollment have cut into revenues while expenses for things like cleaning supplies and personal protective equipment have increased.
When child care is not available, employed parents have had to balance this duty with their work. Women have disproportionately been affected by this responsibility, with a large proportion considering whether to reduce their hours or leave the workforce.
