Child care in the United States has been a longstanding issue, and the COVID-19 pandemic only amplified the challenges families face. During the 2020 election, many candidates, including President Joe Biden, made promises to address this crisis.
While schools and daycares have reopened since the pandemic’s peak, the financial strain on families persists. In many states, parents with two children still pay more for childcare than their monthly mortgage payments. Despite legislative efforts, comprehensive solutions remain elusive.
The Child Care Landscape in 2025
Though some pandemic-era pressures have eased, child care affordability continues to be a significant issue. The U.S. Department of Labor recently reported that the cost of child care has risen by over 30% since 2019 in some regions, outpacing wage growth.
Families earning median incomes often allocate upwards of 20% of their earnings to child care, far exceeding the 7% threshold deemed affordable by federal standards.
Child care providers also face their own struggles. Many are grappling with staffing shortages and higher operational costs, forcing them to raise prices or reduce capacity. This dual burden on families and providers has reignited debates on policy reforms.
What Happened to the Build Back Better Plan?
President Biden’s Build Back Better Act initially promised transformative investments in child care. The original proposal aimed to cap child care costs for middle-class families at 7% of their income, fund universal preschool, and expand existing programs like Head Start. Nearly $20 billion was earmarked for child care in the initial $3.5 trillion package.
However, the ambitious plan faced significant political resistance. Concerns over its overall cost and potential tax increases led to intense negotiations. By late 2021, the proposal’s scope was significantly scaled back to around $1.5 trillion, focusing on key priorities like health care and climate initiatives.
Despite these concessions, the bill ultimately failed to gain unanimous support from Senate Democrats, with Senators Joe Manchin and Kyrsten Sinema withholding their votes.
Child Care Provisions in the Inflation Reduction Act
After the Build Back Better plan faltered, parts of it were reintroduced in smaller packages. The Inflation Reduction Act (IRA), passed in August 2022, prioritized climate change and health care but omitted major child care reforms. Advocates criticized the IRA for failing to address the child care crisis, leaving families to rely on patchwork state-level initiatives and limited federal programs.
State and Local Efforts to Address the Crisis
In the absence of federal action, some states have stepped up. For example:
- California expanded its subsidized child care program to include more low-income families and increased wages for providers.
- New York launched a pilot program offering universal pre-kindergarten in underserved areas.
- Colorado established a Department of Early Childhood to streamline services and allocate funds more efficiently.
These programs, while impactful, vary widely in scope and effectiveness, creating disparities in access and affordability across the country.
What’s Next for Child Care Policy?
Efforts to pass comprehensive child care reforms continue. In late 2024, several lawmakers reintroduced the Child Care for Working Families Act, which proposes significant federal investments to reduce costs for families and improve provider compensation. While the bill has garnered strong support among progressives, its prospects in a divided Congress remain uncertain.
Meanwhile, President Biden has signaled his commitment to addressing child care affordability in his second term. Advocates are hopeful that bipartisan support for workforce development and family-friendly policies could pave the way for incremental progress.
Conclusion
The child care crisis in the United States is far from resolved. While schools and daycares have reopened, the financial burden on families remains unsustainable. Legislative setbacks like the Build Back Better plan highlight the challenges of achieving systemic reform. However, state-level initiatives and ongoing advocacy efforts offer a glimmer of hope.
Addressing child care affordability and accessibility will require continued collaboration between federal, state, and local governments, as well as private sector stakeholders. For now, families are left navigating a system that remains both costly and uneven.
