When the childcare cliff comes, moms will (literally) pay the price

Since the dawn of man, women have traditionally served the role of caregiver. In recent history, that stereotype has shifted, and now more than ever, mothers are making significant gains in the workforce. According to research conducted by Brookings, 2023 has seen prime-age women (ages 25 to 54) contribute to workforce participation in historic numbers, and of those it was women with young children (ages 0 to 4) who led the pack with a participation rate of 1.4% above its pre-pandemic high.

These numbers are promising; however, poor policies have always impacted moms the hardest. Most recently, the Great Resignation of 2021 made mothers question their place in the workforce, while last year’s infant formula shortage left parents resorting to unsafe feeding methods. Unfortunately, another economic shortcoming is looming—the childcare cliff—and once again, moms will be the ones paying the price (both figuratively and literally).

The childcare cliff is looming—and the burden will fall on moms’ shoulders

At the end of September, the $24 billion Child Care Stabilization Program will no longer be available to childcare providers. According to the U.S. Department of Health and Human Services, this pandemic-era government aid, which was passed through the American Rescue Plan of 2021, covered 9.6 million children and was awarded to more than 80% of licensed childcare centers, helping with expenses like staffing, utilities, rent and personal protective equipment.

As Bloomberg reports, the funding’s expiration endangers the future of an estimated 70,000 childcare centers that are struggling to keep up with inflated costs and staff shortages, which could leave 3.2 million children without a landing place. As if that’s not bad enough, the programs that do survive may be forced to cut hours, decrease staffing, or increase tuition prices (as if they’re not already high enough). This could also make the sometimes years-long waitlists of schools and centers potentially increase even more due to higher demand.

When centers inevitably “fall” off the childcare cliff, it will leave parents scrambling to figure out how and if they can provide care for their children and continue to work. And who does that burden fall on most? Women with children.

The cost of childcare is untenable

Even with federal funding, many mothers find the cost of childcare outweighs the benefit of working full-time. Motherly’s 2023 State of Motherhood survey showed some staggering realities for moms, despite an uptick in workforce participation this year. Of the nearly 10,000 paricipants, 52% of working moms said the cost of childcare has made them consider leaving the workforce. One in five mothers said they were unsatisfied with their childcare, and the overwhelming reason was cost (69%). Sixty-seven percent of moms in the survey are spending at least $1,000 a month on childcare, while 31% spend $2,000+ per month. As a result, the rate of stay at home moms has nearly doubled to 25% compared to 15% in 2022.

So what happens if women start leaving the labor force in droves? The Century Foundation predicts the upheaval could cost families $9 billion in annual earnings and could cost states $10.6 billion in tax and business revenue. 

“To maintain the labor force participation gains that we’ve made among prime-aged women, we need to ensure that women don’t lose access to child care,” Sara Estep, associate director of the Women’s Initiative at the Center for American Progress, told Bloomberg. 

Can the childcare cliff be avoided?

With the cliff on the horizon, what is the government doing to make sure childcare continues to be accessible? Legislators like Elizabeth Warren and Tina Smith are urging president Biden and Congress to continue funding childcare to help parents stay in the workforce. “Experts estimate that $16 billion would prevent the child care sector from falling off the pandemic funding cliff, giving child care providers support to retain their staffs and keep open the classrooms that parents rely on,” Senator Warren wrote in an op-ed. “In the longer term, Congress needs to pass the big structural reforms and long-term funding that will permanently fix our broken child care system. This will help to ensure that all families can find high-quality, reliable and affordable child care, and that child care workers are paid the wages they deserve.” Thirty members of Congress also signed a letter on July 31st advocating for the additional $16 billion in funding to “prevent a new emergency.”

Low income families will still be awarded financial support through the $15 billion Child Care and Development Block Grant, which was also passed through The American Rescue Plan, until September 2024; however, despite lawmakers’ pleas, a plan has not been put into place to stop the childcare cliff, and Congress has been unsuccessful at passing a bill to help aid the crisis. 

“As a country, we have to answer the question: How are we going to fix this broken child care business model? And what is the fair share for families, the public, businesses, communities?” Susan Gale Perry, CEO of the advocacy organization Child Care Aware, told USA Today. “That is a question we have not come to terms with as a country that we’re going to need to come to terms with.”

If you’re worried your local center could fall off the childcare cliff, Motherly came up with some ways to help prepare for the worst, including thinking through questions like “Would you consider quitting your job, changing jobs, or moving to find childcare access or to take care of your kids?” and “How much more would you be able to pay, if needed, if tuition increases at your current center?”

These aren’t pleasant things to think about, but until lawmakers find a way to aid in the ongoing childcare crisis, they’re questions every parent will have to ask themself to prepare for an uncertain future.