The Child Care Stabilization Act
WASHINGTON, D.C. – House Democratic Whip Katherine Clark (MA-5), Senator Patty Murray (D-WA), Chair of the Senate Appropriations Committee, Senator Bernie Sanders (I-VT), Chair of the Senate Health, Education, Labor, and Pensions (HELP) Committee, Representative Rosa DeLauro (CT-3), Ranking Member of the House Appropriations Committee, Representative Bobby Scott (VA-3), Ranking Member of the House Committee on Education and the Workforce, and Representatives Suzanne Bonamici (OR-1), Mikie Sherrill (D-NJ-11), Sara Jacobs (CA-51), Jimmy Gomez (CA-34), and Jamaal Bowman, Ed.D. (NY-16) introduced the Child Care Stabilization Act to extend vital federal child care stabilization funding—which is set to expire at the end of this month—and ensure that child care providers can keep their doors open and continue serving children and families in every part of the country.
When the pandemic pushed the already-fragile child care sector to the brink of collapse, Democrats in Congress responded by delivering historic federal investments to save the sector from collapse and prevent families from losing their child care spots—including $24 billion in child care stabilization funding. The funding has made an enormous difference for families across the country—keeping 220,000 child care providers afloat over the last few years and saving child care slots for up to 10 million kids nationwide—but it is set to run out on September 30, 2023, threatening to once again push the sector to the brink, with dire consequences for families and our nation’s economy.
The Child Care Stabilization Act would prevent a potential crisis when funding expires at the end of the month by providing $16 billion in mandatory funding each year for the next five years to continue the successful Child Care Stabilization Grant program. This investment would ensure child care providers continue to receive a stable and reliable source of funding to help them deliver high-quality and affordable child care for working families across the country.“During the pandemic, Democrats answered the call of parents and providers and invested $39 billion into our child care system. This historic relief funding allowed parents to return to work, businesses to survive, and our economy to recover,” said Democratic Whip Clark. “We can’t turn back now. Child care is economic infrastructure—it is critical to growing the economy by growing the middle class. We must urgently enact the Child Care Stabilization Act to protect the financial security of families and workers and maintain our progress in the fight for affordable, high-quality care for all.”
“There was a child care crisis even before the pandemic—and failing to extend these critical investments from the American Rescue Plan will push child care even further out of reach for millions of families and jeopardize our strong economic recovery,” said Senator Murray. “This is an urgent economic priority at every level: child care is what allows parents to go to work, businesses to hire workers, and it’s an investment in our kids’ futures. The child care industry holds up every sector of our economy—and Congress must act now.”
“We have a child care crisis in America that we have got to address. If Congress does not act soon, over 3 million kids are in danger of losing their child care slots, over 230,000 child care workers could lose their jobs, and child care facilities all over our country could be forced to close their doors,” said Senator Sanders. “That would be unacceptable. In the richest country in the history of the world, we can and we must make sure that every kid in America has access to high quality, affordable child care. If we can afford to spend over $1 trillion on tax breaks for the top one percent and large corporations making record-breaking profits, we can afford to provide working class families with the child care they desperately need. This legislation is needed now more than ever.”
“America’s families are facing a child care crisis – and is imperative that we step up to stop it. Ensuring access to affordable and accessible child care is essential; as our economy strengthens under President Biden, we need to continue to ensure all Americans – especially women – can access the workforce, a critical aspect of which is reliable access to dependable child care,” said Leader Schumer. “The Child Care Stabilization Act will avert the nightmare scenario too many American families stay up at night worrying about by providing mandatory funding to support high-quality childcare. As Majority Leader, I will always fight for America’s children and families.”
“Too many families are struggling to find reliable, affordable child care or preschool and feel like they’re on their own. The child care crisis predated the pandemic, but the funding provided in the American Rescue Plan kept centers afloat during their darkest hours,” said Senator Casey. “Without new investments, parents will have a harder time finding care, which in turn impacts businesses and local economies. It’s time for the government to step up and set up our kids and families for success by making a meaningful investment in child care and the child care workforce.”
“The lack of affordable child care in America is holding our families, workers, and economy back,” said Senator Kaine. “Parents are locked out of the workforce because they can’t find care for their kids. Workers who are passionate about child care are being squeezed out of their field because they can’t pay their bills. If we let critical child care stabilization funding expire, things are only going to get worse. Millions of families who will otherwise lose their child care are depending on Congress passing this legislation to extend these urgently-needed funds.”
“Across the country, affordable child care is out of reach for too many families, stopping parents from getting back to work, hurting our economy, and preventing kids from getting the strong start they deserve,” said Senator Baldwin. “I was proud to help address this crisis and expand access to child care with the American Rescue Plan, delivering long-overdue relief for providers and middle-class families. But now, that progress is on the line. We must pass this legislation to lower costs for working families, help Wisconsin businesses meet the demand for workers, and grow our economy.”
“When parents go to work, they need affordable and reliable child care,” said Ranking Member DeLauro. “As the Top Democrat on the Labor Health and Human Services Subcommittee on Appropriations, I understand this intimately and have worked hard to increase the annual appropriation to the Child Care and Development Block Grant by more than 52 percent over the last 4 years. We must work to safeguard and strengthen these investments so families can thrive. That is why I am proud to join my colleagues in introducing the Child Care Stabilization Act, legislation that will extend grants to help support the child care industry and ensure that children and families have access to the child care they need.”
“In response to the COVID-19 pandemic, Congress provided critical funding to save the child care sector from collapse and ensure access to affordable child care for working families. This essential relief was a powerful reminder that, when we invest in affordable child care, we improve the strength and future of children, workers, and our economy,” said Ranking Member Scott. “Regrettably, the lack of affordable child care often forces Americans to choose between their careers and caring for their children. The most recent poverty data from the Census Bureau underscore the importance of continuing policies that help families make ends meet. Now is not the time for Congress to abandon the federal investments that kept child care centers afloat and helped families find affordable care. We must pass the Child Care Stabilization Act and provide sustained funding that will support child care workers, expand access to high-quality learning, and empower parents to pursue rewarding careers.”
Unless action is taken to extend funding for the child care sector, families, providers, and our entire economy will feel the consequences—with fewer families able to find and afford the child care they need to go to work and thrive. A report
released by Senators Sanders and Murray in May details how, when stabilization funding expires at the end of the month, child care programs may have to serve fewer children or be forced to raise tuition for families or cut wages for child care workers, who are already paid poverty-level wages.
A separate analysis from The Century Foundation finds that if Congress does not provide additional funding for the nation’s child care sector, more than 70,000 child care programs—one-third of those supported by stabilization funding—could close, causing approximately 3.2 million children to lose their child care spots and jeopardizing jobs for 232,000 child care workers. The loss in tax and business revenue could cost states $10.6 billion in economic activity per year. Additionally, millions of parents will likely leave the workforce or reduce their hours, which could cost families an estimated $9 billion each year in lost earnings.
A one-pager on the Child Care Stabilization Act is available HERE
Legislative text is available HERE
# # #
(Press Release: Democratic Whip Katherine Clark)
