The past year showed just how essential child care is to the country and its economy. As the world reopens and parents return to work, policymakers are realizing that it is not sufficient to restore the child care sector to where it was prior to the pandemic.  

We have long known that despite the considerable investments that have been made for pandemic-related relief, the solution for an equitable and sustainable child care system lies in long-term, robust investment. Advocacy efforts over the past year made it clear that immediate relief was desperately needed. But we also need to keep in mind that the child care sector was broken long before COVID-19. What it requires is long-term investment to build a system that meets the needs of children, families and providers.  

Federal policymakers are stepping forward to champion child care. They are proposing big, long-term investments and identifying solutions that will transform the child care system.  

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.