MADISON, Wis. – The Century Foundation (TCF), in partnership with the Campaign for a Family Friendly Economy Education Fund (CFFE EF), released a new report today analyzing the impact of federal child care funding expiring across five states, including Wisconsin.
TCF’s report, Child Care Funding Cliff at One Year: Rising Prices, Shrinking Options, and Families Squeezed, was released alongside a CFFE EF storybook that showcases testimonials from providers who have closed their centers due to a lack of state and federal funding, and how this impacts a community at large. Last September, funding from the American Rescue Plan Act (ARPA), intended to stabilize the child care industry following the pandemic, began to expire. At the time, experts and advocates began to sound the alarm – the impending funding gap would weaken an already diminished sector.
TCF’s report examines key metrics related to the costs, availability, and staffing levels for child care and early learning services in Wisconsin as well as New York, Ohio, Pennsylvania and Virginia. Across all five states, the expiration of ARPA funds resulted in higher prices, declining supply, and decreased availability of program options.
In Wisconsin:
- Child care prices have increased by six percent since 2019.
- The average price for an infant in a care center is currently $13,572 per year.
- Child care employment levels fell by 28 percent from 2019 to 2023.
Researchers found that states who increased child care investments to cover the impending funding gap fared far better than those who did not. However, nearly all states continue to struggle to maintain a strong child care sector, underscoring the need for consistent federal investment in child care.
“Our findings show what any parent will tell you: finding and affording child care is taking a huge toll on families’ budgets and remains a big source of stress, as prices continue to outpace inflation and underpaid early educators are leaving the field,” said Julie Kashen, director of women’s economic justice at The Century Foundation. “At the same time, we’re seeing these are solvable problems: when elected leaders listen to parents and invest in care, it makes a difference. The message that leaders at the state and federal level should take from this report is that investing in child care works, and the time for action is now.”
“The testimonials from providers, teachers and parents, alongside the report from The Century Foundation, reaffirms what we already know: unless our elected officials prioritize permanent funding in child care, providers will continue to close, leaving care out of reach for more and more families across the Badger State,” said Brita Olsen, Wisconsin state director for the Campaign for a Family Friendly Economy Education Fund. “Child care keeps our economy going, and we need to ensure we invest in it accordingly.”
“This funding is the only reason I have hung on as long as I did. Had the funding not been there, I would have closed years sooner,” said Susan Elandt, a child care provider who closed her center earlier this summer due to a lack of funding.
