More than seven months after $24 billion in federal funding that bolstered our nation’s child care sector during the pandemic expired, newly analyzed Census data underscores the critical importance of stronger state-level investments in child care to support struggling families and providers.
At least 11 states and the District of Columbia have pumped new state funding into child care in the aftermath of last fall’s budget crunch, but Michigan is not among them. And in states like Michigan that didn’t deploy this vital support, families are faring much worse, a new study finds. Analysis by the National Women’s Law Center (NWLC) Census Household Pulse Survey Data.
Two Michigan lawmakers attend White House summit on child care
In states without significant additional investments in child care, the percentage of households with children under 12 who reported a lack of child care in the past four weeks jumped from 17.8% to 23.1% from fall 2023 to spring 2024, according to an analysis of NWLC survey data.
Here in Michigan, the percentage of households with children under 12 who reported having trouble arranging child care in the past four weeks rose from 19.6% to 22.3% over that same period—a 14% increase. By comparison, in states that have made stronger investments, the increase in child care shortages is smaller and statistically insignificant.
Additionally, among Michigan households that reported child care issues in the spring survey, 36% cut back on their work hours, 34% took unpaid leave, 31% had to care for children while at work, and 26% left their jobs due to child care interruptions.Meanwhile, the NWLC analysis found that the share of female respondents who wanted to work but were unable to work because they had to care for young children fell from 45.3% to 31.9% in states with significant new child care funding.
Affordable, quality child care remains out of reach for many Michiganders while the child care funding cliff looms once again with federal funding expiring in September 2024. However, there are some exciting opportunities in the proposed fiscal year 2025 state budget that could go a long way to strengthening Michigan’s child care sector.
These include increased child care provider reimbursement rates, child care provider start-up and stabilization grants, and a pilot program to automatically provide child care subsidies to child care workers. While budget discussions are ongoing, these are all promising investment proposals supported by the Michigan League for Public Policy and our partners.
We can also help more families have access to affordable, quality child care by waiving family contributions for child care subsidies and providing presumptive eligibility to families who apply for child care subsidies even if their application is pending. We can also stabilize Michigan’s child care system and address the issue of low wages for child care workers by investing in efforts to improve child care worker recruitment and retention.
These workers are essential to the raising, protection and care of Michigan’s infants and young children, yet they are among the state’s lowest paid workers, earning an average of less than $14 an hour (about $28,870 per year).
This matters to all of us. By one estimate, Michigan loses $2.88 billion in economic activity annually due to unavailable and expensive child care, including $576 million in direct revenue impacts. Making child care more affordable for families and ensuring income stability for child care providers will help parents stay in work, benefit our state’s economy, and lower Michigan’s child poverty rate and provide access to quality child care for young children.
In the face of federal inaction, investing additional state funding in child care is the smart, common-sense choice for Michigan that will result in better outcomes for families and workers, brighter futures for our children, and a stronger state for everyone.
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