Washington, D.C. – On April 14, President Joe Biden addressed the nation from the Treaty Room in the White House, discussing the imminent withdrawal of U.S. troops from Afghanistan. During this address, he also introduced a significant initiative aimed at addressing the child care crisis exacerbated by the COVID-19 pandemic.
The Biden administration has proposed a robust $39 billion allocation as part of what it calls the American Rescue Plan. This funding is directed toward states, territories, and tribes to alleviate the challenges faced by the child care sector during the pandemic. The resources are intended to support early childhood educators and family child care providers in their efforts to keep their facilities operational. Child care has emerged as a critical concern for essential workers and parents, particularly those caring for elderly family members. This is especially true for mothers, who are often the primary caregivers and face unique challenges in returning to the workforce.
Statistics reveal a troubling trend: while many fathers have successfully re-entered the workforce, mothers—especially those without college degrees—have struggled to do so at similar levels. This disparity threatens to widen the gender income gap by 5 percentage points. As women strive to regain their footing in the job market, families with young children, particularly families of color where mothers may be the sole or primary earners, may endure prolonged financial strain.
The White House emphasized the vital role women play in the labor force, contributing to 91 percent of the income growth observed in middle-class families over the past four decades. However, since the onset of the pandemic, approximately 2 million women have exited the workforce, many due to caregiving responsibilities. Experts warn that these trends could reverse years of progress in increasing women’s participation in the job market.
The pandemic has dealt a severe blow to early childhood education and child care services, with many small businesses—predominantly women-owned and often operated by people of color—struggling to survive. Child care providers have faced declining revenues due to decreased enrollment while incurring significantly higher costs—estimated to be up to 47 percent more—for personal protective equipment, cleaning supplies, and additional staffing to maintain safe environments.
The Biden administration acknowledges that child care providers were already operating on thin margins prior to the pandemic. A survey conducted in December revealed that about 25% of child care providers were closed during the early pandemic, significantly reducing access to essential services, especially for families of color. Those who remained open have had to make difficult decisions, with two in five reporting they have taken on debt to cover increased costs. Consequently, three in five programs have resorted to reducing expenses through layoffs, furloughs, or pay cuts. Alarmingly, one in six child care jobs—predominantly held by women of color—remains unfilled, compared to the one in twenty jobs lost across the broader economy.
The $39 billion allocation includes $24 billion specifically designated for child care stabilization funding. This funding aims to help child care providers reopen or stay open, ensure safe learning environments, retain staff, and provide mental health support for both educators and children. The remaining $15 billion will be available for flexible funding to states, aimed at making child care more affordable for families, increasing access for families receiving subsidies, enhancing pay for early childhood workers, and addressing other care needs in their states.
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In summary, President Biden’s announcement of a $39 billion rescue plan is a crucial step to support the child care sector, which has been disproportionately affected by the pandemic. This funding aims to help child care providers remain operational, support educators and families, and ultimately pave the way for a more equitable future for women in the workforce.