The child care field is experiencing a historic moment. After years of being chronically underfunded, the child care sector has received over $50 billion in dedicated funding from the federal government, thanks to the passage of three COVID-19 relief packages. It is the largest public investment in child care in our nation’s history and gives states a crucial opportunity to implement policies that will have long-lasting impacts to stabilize and transform the industry.  With the recent receipt of significant federal dollars, states are searching for effective and sustainable uses for these funds that have the power to transform the future of child care. The good news is that there are already success stories from policies implemented in the last year that states can learn from and replicate.

StoryCorps, a national nonprofit whose mission is to record, preserve and share the stories of Americans from all backgrounds, and Child Care Aware^® of America recently partnered on a project to interview child care providers. The providers were asked about their personal journey in the child care field and the impact of COVID-19 on their work and life. 

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.