Scholarships for Child Care are Drying Up

Introduction to the Crisis

For parents who need to work but can’t afford the steep cost of child care, federally funded scholarships can be a lifeline. Delivered through state child care assistance programs, the scholarships can mean the difference between a parent working full time — or not at all. However, qualified families are increasingly being turned away due to the rising costs of child care and the end of pandemic-era funds. Some families that had scholarships have seen them end, leaving them with significant financial burdens.

The Impact on Families

In three states — Arizona, Colorado, and Texas — parents who apply face long waitlists. Other states, including Nevada and Oklahoma, have increased copayments for parents or have said they will serve fewer children, according to the advocacy group Child Care Aware of America. In Idaho, enrollment was paused for part of last year. This situation has led to significant stress and financial strain on families who rely on these scholarships to balance work and childcare responsibilities.

Less Child Care Funding, Federal Staff Layoffs

As part of Trump’s sweeping cuts to the federal government, the administration eliminated jobs in the Office of Child Care, which oversees federal child care subsidies and ensures states are enforcing safety standards. All staff in five of the 10 regional offices were cut, along with more in the office’s headquarters in Washington. These layoffs include staff who upheld federal safety requirements for child care providers and ensured subsidies were being used effectively.

The End of Pandemic-Era Funds

During the pandemic, Congress approved record spending to boost the child care industry, recognizing its importance to restarting the economy. States received $24 billion to help child care providers boost wages, buy masks and air purifiers, and train staff, plus an extra $15 billion for child care assistance scholarships. That money expired in September, and Congress declined to extend it, despite a push from Biden and child care advocates. Since then, some states have attempted to continue programs with their own taxpayers’ money, but many, such as Arizona, have ended special pandemic-era programs.

No Longer Eligible for Scholarships — or Waitlisted

In Phoenix, child care worker Janeth Ibarra would have paid nothing last year for care for her twin boys because she would have received a special scholarship for those in her field. This year, her income qualifies her for regular state child care assistance, but because the state ran low on money for the program, she was on a waitlist earlier this year. As it stands, Ibarra, 22, earns $16.50 an hour and is paying more than $1,200 a month for child care, after a steep discount from her employer.

The Struggle to Afford Child Care

Even as providers struggle to make a profit, child care is prohibitively expensive for many families. In a study of 2022 child care prices, the Labor Department found the median cost of care for an infant in a center was more than $15,600 in large counties — higher than the median rent in many places. This has led families to make difficult trade-offs to afford child care, often sacrificing quality time with their children or other essential expenses.

Making Tradeoffs to Afford Child Care

When Brooklyn Newman divorced her husband, she moved with her two boys, now 2 and 4, into a trailer while she got back on her feet. The Phoenix mother was eager to send her older boy to preschool so he could have structure as the family weathered the split. But she could not afford tuition for her younger son until the preschool gave her a scholarship funded by pandemic aid. With both boys in school half-time, Newman could put in more hours at her job as a freelance business analyst. But when the scholarship ended, she had to pay out of pocket — adding $1,000 a month to her preschool tuition.

Trump’s Plan for Child Care

Trump has been vague on his plans to make child care more affordable. He said during his campaign that he believed tariffs would rake in “trillions of dollars.” Child care, he added, is, “relatively speaking, not very expensive compared to the kind of numbers we’ll be taking in.” Economists, though, have warned tariffs could cause prices for other household goods to skyrocket, squeezing family budgets, and it’s unlikely there would be much money left over for the government to spend if Trump successfully implements steep tax cuts.

Conclusion

The drying up of scholarships for child care has significant implications for families and the economy. As the cost of child care continues to rise and federal support dwindles, families are forced to make impossible choices between work, childcare, and other essential expenses. It is crucial for policymakers to address the long-standing issues within the child care industry, including affordability, accessibility, and the low pay of child care workers, to ensure that all families can access the care they need to thrive.

FAQs

1. What is happening to child care scholarships?

   • Child care scholarships are drying up due to the end of pandemic-era funds and rising costs of child care, leaving many families without affordable options.

2. How are states responding to the lack of federal funding?

   • Some states are attempting to continue programs with their own funds, while others have ended special programs, increased copayments, or serve fewer children.

3. What are the implications for families?

   • Families are facing significant financial strain, having to make trade-offs between work, childcare, and other essential expenses, which can impact their well-being and economic stability.

4. What is being proposed as a solution to make child care more affordable?

   • Trump has mentioned tariffs as a potential source of funding, but economists warn this could lead to increased prices for household goods, further squeezing family budgets.
5. What is the long-term impact on the child care industry and families?
   • The crisis in child care affordability and accessibility is long-standing and requires comprehensive solutions to ensure all families can access the care they need without sacrificing their economic stability or the quality of care for their children.