WASHINGTON, DC – On April 14, President Joe Biden delivered remarks from the Treaty Room at the White House regarding the withdrawal of U.S. troops from Afghanistan. In addition to this significant announcement, he revealed a crucial initiative aimed at addressing the child care crisis exacerbated by the pandemic.
The administration is allocating $39 billion, part of what it calls the American Rescue Plan, to support states, territories, and tribes in tackling the ongoing child care challenges brought on by COVID-19. This funding is intended to aid early childhood educators and family child care providers, helping them to keep their services operational. The issue of child care is particularly pressing for essential workers and caregivers, a situation that disproportionately affects mothers who are eager to return to work.
Statistics indicate a stark disparity: while many fathers have resumed their jobs, mothers, especially those without college degrees, have not returned to work at the same rate. This gap is projected to widen the gender income disparity by 5 percentage points. As women strive to regain their footing in the workforce, families with young children—especially those in communities of color where mothers often serve as the primary earners—are likely to face additional long-term financial hardships.
The White House emphasized the vital role women play in the economy, noting that they have contributed 91 percent of the income growth for middle-class families over the past four decades. However, since the pandemic began, around 2 million women have exited the labor force, largely due to caregiving responsibilities. Experts fear this trend could undo years of progress in increasing the number of women participating in the workforce.
The child care sector itself has been severely impacted, with many small businesses—primarily owned by women and people of color—struggling to stay afloat. Providers have faced declining enrollment and rising costs, with the expenses for personal protective equipment and cleaning supplies estimated to be up to 47 percent higher than before the pandemic.
The Biden administration cited a December survey revealing that approximately one in four child care providers that were operational at the pandemic’s outset had to close, further limiting access for families, particularly those of color. Those that have remained open are making difficult decisions, with many reporting debt incurred through personal credit cards to manage increased costs. Consequently, three in five programs have resorted to layoffs, furloughs, or salary reductions. Alarmingly, one in six child care positions—commonly held by women of color—have yet to return, a significantly higher rate than the overall job losses in the economy.
To address these challenges, the $39 billion fund includes $24 billion designated for child care stabilization, aimed at helping providers reopen safely, maintain healthy environments, keep staff employed, and offer mental health support for both educators and children. The remaining $15 billion is set aside for flexible funding to states, improving affordability for families, increasing access for those receiving subsidies, enhancing pay for early childhood workers, and addressing other regional care needs.
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In summary, President Biden’s recent announcement underscores the critical need for financial support in the child care sector to facilitate economic recovery and promote gender equity in the workforce. The $39 billion investment aims to stabilize child care providers, ensuring they can continue to offer essential services that enable working parents, particularly mothers, to return to their jobs.