Child Care Cliff's Looming Threat To US Families: Aftermath of ARPA Fund Expiration

Child care cliff threat to families ARPA Fund Expiration

By E.Baloyo , Parent Herald Sep 30, 12:04 pm

Photo: (Photo : Tasos Katopodis / Getty Images)

As the September 30th deadline nears, millions of American families face the possibility of the child care cliff, directly attributed to the ARPA Fund Expiration. Without this lifeline, the nation risks not only the closure of thousands of child care centers but also the very fabric of working families.

The Crucial Role of ARPA in Sustaining Child Care

The American Rescue Plan Act, more commonly known as ARPA, was signed into law by President Joe Biden as a response to the debilitating impacts of the pandemic.

This $1.9 trillion stimulus plan, of which nearly $40 billion was channeled to the child care industry, has been the backbone supporting countless child care centers throughout the nation. Before ARPA, the child care sector was a predominantly underserved industry.

With the introduction of ARPA funding, centers could afford to offer competitive wages, preventing staff from migrating to higher-paying sectors, especially during a time when employers are aggressively ramping up wages to lure new hires.

These funds have been instrumental in not only maintaining operations but also in suppressing the surging costs for parents, who on average shoulder an annual expense of $15,000 for just one child's care.

Julie Kashen from The Century Foundation stated that over 220,000 child care programs received funds. It showcased a level of federal support that the country had never seen before, making a monumental difference.

Imminent Threat to Families and The Larger Workforce

However, the looming ARPA fund expiration is casting an ominous shadow over this progress. Kashen's projections paint a grim picture: the potential closure of up to 70,000 child care centers.

The immediate threat to families is evident, with an estimated 3.2 million children poised to miss out on essential child care services. Beyond the immediate repercussions, the long-term effects of this child care cliff are equally dire.

Parents, especially those in the workforce, stand at a precipice. The lack of accessible child care might compel many to make heart-wrenching decisions, toggling between their profession and their child's welfare.

This threat to families isn't just emotional but also financial. Kashen estimates parents might grapple with a combined loss of $9 billion in earnings. This crisis also highlights the glaring disparities between the U.S. and other affluent countries regarding child care support.

For instance, Denmark, a nation where the government covers 75% of child care costs, annually allocates an impressive $14,000 per child, dwarfing the U.S.'s meager $500.

A Glimpse into the Trepidations of Child Care Centers

The uncertainties trailing the ARPA Fund Expiration are palpable among child care centers. At the helm of Greenway Learning Center in Maryland, Patti Smith gives voice to these concerns.

Smith stated that the possible fee increments post-ARPA's expiration are daunting. She fears many parents won't be able to cope, resulting in many children being left without care. This could be the unfortunate prologue to shutting down classrooms or, worse, entire centers.

Echoing this apprehension, Amanda Cavaness from the Dr. Jerry Hamm Early Learning Center emphasized how ARPA funds empowered her establishment to enact pivotal upgrades and improvements.

While the shadows of the child care cliff grow longer with each passing day, there's a glimmer of hope.

The proposed Childcare Stabilization Act, championed by Senators Patty Murray and Bernie Sanders, among others, aspires to bridge the impending funding void. Its fate remains uncertain. However, the message is crystal clear: child care isn't merely an individual's concern but a national priority.

In the face of the ARPA Fund Expiration, the looming child care cliff serves as a stark reminder of the interconnectedness of policy, family welfare, and the economy. The imminent threat to families necessitates swift, decisive action.