On March 11, President Biden signed the American Rescue Plan into law.
The American Rescue Plan includes the $39 billion advocates asked for together, to stabilize child care. The $39 billion invests in two ways: $15 billion for the Child Care and Development Block Grant (CCDBG) and $24 billion for a child care stabilization fund. This is for centers,for family child care and for families.
Jerletha McDonald, NAFCC’s Senior Manager of Membership and Volunteer Affairs, and Mary Beth Testa, NAFCC’s policy consultant, got together to discuss the passing of the American Rescue Plan.
“This investment is to recognize that you’ve been there every day. Your work is worthy of investment. Your work makes all other work possible across our economy,” Jerletha shared.
Check out the short video update and read NAFCC’s statement below.
Child Care Sector Receives Biggest Federal Investment in U.S. History in America Rescue Plan
National Association for Family Child Care supports $50 billion investment that will stabilize the sector
WASHINGTON, D.C. – The U.S. House of Representatives passed the American Rescue Plan Act, a $1.9 trillion coronavirus relief package to stabilize the economy and help millions of families struggling in the pandemic. The legislation now goes to President Biden to be signed into law.
The bill includes $39 billion to stabilize the child care sector and provide the long-needed relief to the child care workforce and families.
The historic investment includes:
- American Rescue Plan: $15 billion for the Child Care and Development Block Grant
- American Rescue Plan: $24 billion for a child care stabilization fund
- December 2020 COVID-19 Relief Package: $10 billion in the Child Care and Development Block Grant
According to the Bureau of Labor Statistics, the child care industry lost roughly 171,000 jobs between February 2020 and December 2020 which still have not been recovered. The Center for American Progress found that home-based family child care providers are facing a 70% increase in operating costs. Coupled with a decrease in enrollment, providers are struggling to stay open. Since family child care providers operate business in a home setting, the pandemic has hit them on a personal and economic front – inhibiting their ability to do business while also putting themselves and their own families at risk for COVID-19 as they opened their doors each day, or made the difficult decision to be closed.
This federal support will provide financial assistance to the child care workforce across settings. Soon, state leaders will have the crucial work of ensuring equity of distribution, removal of barriers, and investment of funds to meet the needs family child care – a majority women workforce – to avoid permanent closure, job loss and additional loss of income.
Thanks to this investment too, families will be able to afford family child care child care, ensuring parents are able to go to work every day with dependable care options. Without this support, more parents may be forced to leave the workforce.
Statement from Lanette Dumas, executive director of the National Association for Family Child Care:
“The pandemic has made it very clear how our economy is dependent on child care, and highlighted the role of and choice for small, home-based child care. Existing issues with lack of access and affordability grew worse in the past year, severely impacting families and the family child care workforce. The historic investment made in the American Recovery Plan prioritizes child care in a way that’s never been done before and shifts the focus on a workforce that makes other work possible. This bill is a way to make whole a significant loss of earnings in 2020.
“We can do more to protect the well-being of children in all child care settings. And, family child care educators will be able to continue working and take care of their own families.
“Thank you to the Biden-Harris Administration for leading with a child care relief proposal and to Congress for making this critical investment. This is an incredible step in securing the vitality of the child care industry and helping families recover during this public health crisis.”