US parents pay nearly double the 'affordable' cost for child care and preschool
- Written by Joya Misra, Professor of Sociology & Public Policy, University of Massachusetts Amherst
CC BY-ND[1]
President Joe Biden wants to make child care more affordable[2] across the U.S.
Under his American Families Plan[3], proposed in April 2021, the federal government would subsidize the costs of child care to the tune of US$225 billion annually. Lower-income families could access child care free of charge, while middle-class families would pay no more than 7% of their income.
Additionally, the plan seeks to make free, high-quality preschool[4] available for all 3- and 4-year-olds.
Almost 60% of parents[5] say preschool and day care expenses are a financial strain. Currently, child care eats up 14% of the incomes[6] of middle-class working families – for example, those with a household income of $50,000-$100,000 for a family of four – according to the Center for American Progress, a progressive think tank. For lower-income families, the share rises to 35%[7]
As a scholar who studies government support for working families[8] in different countries, I know that the United States spends substantially less[9] on early education and child care than comparable nations. While the U.S. spends approximately $2,500 a year[10] on child care and early education per child, the average in Europe is $4,700. Some countries, including Norway and Sweden, spend more than $10,000.
Impact of limited funding
Given the devastating effects[11] of the pandemic on child care in the U.S., as part of the 2021 American Rescue Plan the federal government has added $39 billion[12] to support child care providers, and an additional $15 billion in flexible funding for states to make child care more affordable.
This is in addition to $10 billion[13] provided as part of a December 2020 COVID-19 relief package. Yet these one-time infusions can’t solve[14] the long-term lack of child care funding.
Federal spending is usually so limited that it reaches relatively few children. For example, the Child Care and Development Block Grant Act[15] provides federal funding to states that provide child care subsidies for low-income families with children under 13. Yet only 15% of the nearly 14 million children[16] who are eligible for these subsidies actually benefit from them.
Early Head Start and Head Start[17] are free, federally funded programs that promote school readiness for children ages 3-5 from low-income families. Early Head Start serves only 11% of eligible children, and Head Start serves 36% of eligible children[18]. Despite demand for Head Start services[19], inadequate funding limits[20] how many kids the program can serve.
In other words, most working families cannot rely on these programs.
Benefits of subsidies
While the roughly $10 billion[21] the federal government spends annually on Head Start and $5 billion[22] on other child care programs may seem expensive, spending on early childhood education pays large dividends[23] and boosts economic growth[24] – effectively generating more revenue than the programs cost.
Research consistently shows[25] that children enrolled in early education programs are more likely to go to college[26], earn more money[27], have better health[28] and not receive public assistance[29].
Indeed, a 2016 study shows that every $1 the government spent on high-quality early childhood education programs in North Carolina led to a $7 benefit[30] to the economy. More money spent on child care means less spent on other government benefits like unemployment insurance and Medicaid.
Effective models for pre-K
Biden’s American Families Plan also seeks to build on the work of successful state-funded preschool programs[31]. Florida, the District of Columbia, Oklahoma and Vermont have adopted nearly universal pre-K[32] for 4-year-olds, and some other states[33], counties[34] and cities[35] have begun to build these programs too. Universal pre-K programs are also being expanded to include 3-year-olds[36].
These programs work. For example, researchers studied the children who enrolled in the high-quality pre-K program in Tulsa, Oklahoma, as 4-year-olds after they reached middle school. They found[37] the pre-K alumni had better math skills, took more honors courses and were less likely to be held back in school than 4-year-olds who did not take part in the program.
Yet as of 2021 relatively few U.S. children[38] can attend high-quality preschool. Wealthier families are more likely to enroll their kids in licensed child care centers[39], which often have an early education component. This reinforces the achievement gap[40] between children[41] from poorer and wealthier families.
Based on all the evidence available, I have no doubt that higher government spending on early education and child care could dramatically change the lives of working families, improve the long-term life trajectories for many Americans and strengthen the U.S. economy[42].
[Insight, in your inbox each day. You can get it with The Conversation’s email newsletter[43].]
References
- ^ CC BY-ND (creativecommons.org)
- ^ make child care more affordable (www.childcareaware.org)
- ^ American Families Plan (www.whitehouse.gov)
- ^ free, high-quality preschool (www.edweek.org)
- ^ 60% of parents (www.nytimes.com)
- ^ 14% of the incomes (www.americanprogress.org)
- ^ rises to 35% (www.americanprogress.org)
- ^ government support for working families (scholar.google.com)
- ^ spends substantially less (theconversation.com)
- ^ $2,500 a year (www.oecd.org)
- ^ devastating effects (www.uschamberfoundation.org)
- ^ $39 billion (www.whitehouse.gov)
- ^ $10 billion (www.cnbc.com)
- ^ can’t solve (theconversation.com)
- ^ Child Care and Development Block Grant Act (www.acf.hhs.gov)
- ^ 15% of the nearly 14 million children (aspe.hhs.gov)
- ^ Early Head Start and Head Start (www.childcare.gov)
- ^ 36% of eligible children (www.nhsa.org)
- ^ demand for Head Start services (www.urban.org)
- ^ inadequate funding limits (nieer.org)
- ^ $10 billion (eclkc.ohs.acf.hhs.gov)
- ^ $5 billion (www.acf.hhs.gov)
- ^ large dividends (www.jstor.org)
- ^ boosts economic growth (equitablegrowth.org)
- ^ consistently shows (www.nhsa.org)
- ^ go to college (doi.org)
- ^ earn more money (doi.org)
- ^ have better health (doi.org)
- ^ not receive public assistance (doi.org)
- ^ $7 benefit (doi.org)
- ^ state-funded preschool programs (nieer.org)
- ^ nearly universal pre-K (www.ecs.org)
- ^ states (www.tn.gov)
- ^ counties (www.wakesmartstart.org)
- ^ cities (www.schools.nyc.gov)
- ^ 3-year-olds (dcps.dc.gov)
- ^ They found (doi.org)
- ^ relatively few U.S. children (s3-us-east-2.amazonaws.com)
- ^ licensed child care centers (nces.ed.gov)
- ^ achievement gap (www.epi.org)
- ^ children (theconversation.com)
- ^ strengthen the U.S. economy (www.epi.org)
- ^ You can get it with The Conversation’s email newsletter (theconversation.com)
Authors: Joya Misra, Professor of Sociology & Public Policy, University of Massachusetts Amherst
