The COVID-19 pandemic has forced child and day care center closures, which has put a huge strain on both working parents and child care workers, but there may be an even bigger crisis looming on the horizon. A recent study by the National Association for the Education of Young Children (NAEYC) finds 40% of U.S. child care centers are at risk of permanently closing due to financial woes caused by the pandemic. Now, the NAEYC and many parents are calling on Congress to save the child care system from total collapse.
The NAEYC surveyed over 5,000 child care providers from all 50 states between June 19 and June 30. Their findings show that U.S. child care enrollment is down 67% on average, meaning many providers are bringing in less money. At the same time, the majority of providers are also incurring hefty new costs for things like personal protective equipment, an expanded arsenal of cleaning supplies and additional pay for staff. According to the report, large child care centers are spending an average of $3,136 additional dollars per month on increased expenses; small child care centers report $868 more per month; and family child care providers report $500 more per month.
So far, 18% of U.S. child care centers and 9% of family child care providers have been forced to shut down at some point during the pandemic and remain closed. Without help from the government, many in the industry say they’ll be forced to join those ranks. Two out of every five child care providers who responded to the NAEYC survey say they’ll have to close permanently if they don’t receive public assistance, and only 18% of respondents predict their businesses will be able to survive for longer than a year.
Without federal assistance, recovery isn’t a guarantee for the child care industry. The U.S. unemployment rate is currently 11.1%, which means many parents may be unemployed and unable to afford child care until they find work again. Additionally, many parents are simply nervous to send their kids back to day care. According to the Care.com 2020 Cost of Care survey, 63% of respondents who use day care say they are somewhat or very uncomfortable returning their children to day care as states reopen, and 52% of respondents don’t anticipate returning to their normal routines until next year or until a COVID-19 vaccine is found.
In March, Congress passed the Coronavirus Aid, Relief and Economic Security (CARES) Act, which provided U.S. states with $3.5 billion in assistance through the Child Care and Development Block Grant, but the grant wasn’t enough to keep most providers afloat. An analysis by the Center for Law and Social Policy (CLASP) and the National Women’s Law Center shows the child care system could need as much as $9.6 billion per month to survive the ongoing impacts of COVID-19.
Child care is essential for many parents, but it hasn’t been treated that way during the pandemic. Not only did Congress fail to provide enough funding to prevent an impending child care crisis, but many providers were denied additional help. According to the NAEYC report, only 29% of small child care centers and 17% of family child care providers were granted loans from the Paycheck Protection Program (PPP), a part of the CARES Act intended to help small businesses stay open and prevent layoffs.
For a lot of parents, finding affordable, quality child care was already a struggle before the pandemic started. Over 70% of respondents to the Care.com 2020 Cost of Care survey report spending more than 10% of their income on child care, and 54% say the high cost of child care impacts their career choices. A 2018 report by the Center for American Progress found that 51% of Americans already live in child care deserts, or areas with an insufficient supply of licensed child care providers. The permanent closure of additional child care centers would mean working parents have even fewer affordable care options, and some may be left without any child care at all.
Congress is currently embroiled in a battle over a new $1 trillion COVID-19 relief package, which could include additional stimulus money for individuals, as well as funding for education and miscellaneous funding to be allocated by state governors. On July 16, the NAEYC began an online campaign using the hashtag #SaveChildCare to put pressure on Congress to also provide $50 billion in emergency child care funding.
.@RhianNAEYC talks to @GMA about how #childcare programs are barely hanging on. With the number of permanent closures growing every day, it’s time for #Congress to act to stabilize and #SaveChildCare. https://t.co/ZVqAQmslBs
— NAEYC (@NAEYC) July 17, 2020
“As a country, we have a choice to make,” Rhian Evans Allvin, the CEO of the NAEYC, says in the organization’s report. “Are we going to continue to underfund and undervalue a system that is the backbone to the rest of the economy, or are we going to make the necessary investments that recognize the essential nature of child care?”
