Child care received $52.5 billion in temporary federal relief funding to help the sector recover and rebuild in the wake of the pandemic. Research shows that the investments have made a difference in lowering prices for families and increasing child care employment and wages, which helped stabilize the market in a time of turmoil. This funding, especially stabilization grants made available under the American Rescue Plan Act (ARPA), gave each state an opportunity to make much-needed improvements to their child care system. States are required to spend any remaining amounts by September 2024 and, unfortunately, further federal investments have not been made.
