Opinion: Federal funding for child care is about to fall off a cliff. Why that’s a disaster

Sustainable Development Goals (SDGs) and the Expired Federal Child-Care Funds

Introduction

On Saturday, $39 billion in federal child-care funds made available through the American Rescue Plan Act are set to expire. As a result, close to 3.2 million children could lose their spots in early education programs. Congress can solve this problem. So far, however, it has declined to do so, starting with deciding not to pass the Build Back Better provisions in 2022 that would have made child-care funding permanent.

Consequences of Inaction

Inaction has consequences. Families who have relied on this assistance since the COVID-19 pandemic will face tough choices. They could see their child-care costs increase by 15% or more. Instead of paying these fees, they might have to choose to reduce their work hours or leave the workforce altogether.

This will come as a second blow to families who lost a measure of financial stability when Congress allowed the Child Tax Credit to expire in 2022, a decision that caused the rate of child poverty to more than double in one fell swoop — the largest year-to-year increase in U.S. child poverty on record.

The Impact on Early Education Programs

The American Rescue Plan Act supported child care in two ways: It allowed states to expand financial support to families directly, and it provided funding to early education programs to stay open amid economic instability. When these funds run out, more than 70,000 programs across the country are likely to close, according to an analysis by the Century Foundation.

Throughout the pandemic, states additionally used American Rescue Plan Act funds to increase the salaries of early educators, who are often paid poverty wages. We have long known that the early education sector is a failed market endeavor — treating it like a private good has neither yielded a profit for programs nor made it less expensive. The cost of care outpaces what families can afford and what providers can pay their staff.

The cliff effect from this funding’s expiration may exacerbate this problem, as some programs will have to choose between closing entirely, cutting staff wages and increasing the costs families pay by thousands of dollars per year.

The Impact on Workforce and Economic Productivity

For the workforce and economic productivity at large, the lack of a solid child-care infrastructure introduces more instability, particularly for women. Early education is already an understaffed field of primarily female employees; these workers often leave the profession because they make on average about $13 an hour and can’t support themselves on such unjust wages. Beyond the field, many workers in general can’t find safe and affordable child care that meets their children’s needs, and so they — again, most often women — must opt out of the workforce.

None of this is good for the economy or our shared prosperity, and other recent decisions by the federal government have made the lives of working families more difficult.

A Solution: Investing in Early Education

This crisis is not without a solution. Child care is a linchpin of our economy and modern society, and understanding that early education is essential infrastructure illuminates a path forward. We can in turn build an equitable, affordable and high-quality early education system in this country. This agenda is supported by the 93% of voters who believe it’s important for working parents to be able to find and afford quality child care for their young children.

There are multiple viable proposals before Congress to stabilize the sector. Democratic and independent lawmakers introduced a bill in the House and Senate that would provide $16 billion in mandatory annual funding for five years to continue the grants implemented by the American Rescue Plan. Republicans have proposed to double the Child Care and Development Block Grant, the primary federal funding stream that helps families afford child care, over five years, which would increase this funding stream to $16 billion by 2028.

These ideas are strong starting points — but insufficient on their own. This country is in dire need of a permanent federal policy on early education, as Build Back Better was intended to be. Congress should invest in families and workers now by recognizing early education as essential infrastructure for our success as a nation.

Rebecca E. Gomez is a program officer at the Heising-Simons Foundation.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities

2. What specific targets under those SDGs can be identified based on the article’s content?

• SDG 1.2: By 2030, reduce at least by half the proportion of men, women, and children of all ages living in poverty in all its dimensions according to national definitions.
• SDG 4.2: By 2030, ensure that all girls and boys have access to quality early childhood development, care, and pre-primary education so that they are ready for primary education.
• SDG 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure, and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate.
• SDG 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
• SDG 10.4: Adopt policies, especially fiscal, wage, and social protection policies, and progressively achieve greater equality.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 1.2.1: Proportion of population living below the national poverty line, by sex and age.
• Indicator 4.2.1: Proportion of children under 5 years of age who are developmentally on track in health, learning, and psychosocial well-being, by sex.
• Indicator 5.4.1: Proportion of time spent on unpaid domestic and care work, by sex, age, and location.
• Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities.
• Indicator 10.4.1: Labour share of GDP, comprising wages and social protection transfers.

SDGs, Targets, and Indicators

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Source: latimes.com

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