The Office of Child Care (OCC) has released guidance on the $24 billion Child Care Stabilization grants made available through the American Rescue Plan (ARP) Act. The purpose of the guidance is to help states quickly distribute the stabilizations funds to protect and support the existing child care market. As the guidance emphasizes, this funding represents an important opportunity for states to stabilize and rebuild a stronger child care system that meets the diverse needs of all children and families, and of the child care workforce.  

In the same way that the pandemic exacerbated the cracks in our child care system, COVID-19 also exacerbated the inequities that exist in our country and for children living in poverty. Data from the Children’s Defense Fund shows that children are the poorest age group in America, with nearly 1 in 6 children, about 11.9 million, living in poverty in 2018. Additionally, the youngest children tend to be the poorest and 73% of children living in poverty are children of color.

The good news is that change is coming. Earlier this month, Congress passed and the President signed into law the American Rescue Plan (ARP), a $1.9 trillion COVID-19 relief package.

Update: With news that the American Rescue Plan Act (ARPA) is now law, Child Care Aware of America is republishing this resource to support states as they consider spending child care relief funds. ARPA provides $39 billion in child care relief, of which $15 billion in additional funding is made available through the Child Care and Development Block Grant (CCDBG). These funds can be distributed like the December relief funds ($10 billion) and the CARES Act relief funds ($3.5 billion), including towards the proposed policies detailed in this resource. The remaining $24 billion under ARPA will be made available through a separate child care stabilization fund. 

Child Care Aware^® of America (CCAoA) recently joined over 300 local, state and national organizations in support of the Raise the Wage Act of 2021.

The Raise the Wage Act of 2021 would:

• Incrementally raise the federal minimum wage to $15 an hour by 2025 and
• After 2025, adjust the minimum wage each year to keep with growth in the median wage.

In September 2020, Child Care Aware^® of America (CCAoA) released a report entitled Picking Up the Pieces: Building a Better Child Care System Post COVID-19. We compared child care supply data pre-COVID-19 (December 2019) to supply during COVID-19 (July 2020). Unsurprisingly, we found that the supply of licensed child care declined dramatically after the pandemic began. When compared to December 2019, 35% of child care centers remained closed, along with 21% of family child care (FCC) providers in July 2020. 

On Wednesday, comedian and host of The Daily Show Trevor Noah devoted a portion of his nightly show to talk about – child care. He spent 10 minutes exploring the many flaws of our current child care system. But his most pointed criticism was aimed at the way child care in the U.S. is funded.