Tennessee child care costs lead the Southeast, report finds
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The cost of child care in Tennessee and around the nation is skyrocketing, with a new report finding that it's outpacing overall inflation.
Why it matters: Rising child care costs put a huge financial strain on families, Axios' Emily Peck reports. They can force some parents — typically women — to either ratchet back their working hours or leave the labor force entirely.
- For single parents, the calculus can be even more painful.
Stunning stat: An annual report on Tennessee children found a year of infant care was more expensive than in-state tuition at all but one of the state's public universities.
By the numbers: The average annual cost of daycare tuition in Tennessee for two children — one toddler and one infant — rose to about $24,000 last year, according to data from Child Care Aware, an advocacy group.
- That's the highest price tag for child care in the Southeast.
- It's also a third of Tennessee's median household annual income, based on census data released in 2024.
What he's saying: Gov. Bill Lee acknowledged the burden in this year's State of the State address.
- "If we really want to create an environment for families to thrive, we have to find innovative ways to make child care more accessible and more affordable," Lee said.
State of play: This year's budget included $10.9 million to bolster child care programs at Boys and Girls Club locations. Lee said that would help educate thousands of kids.
- About $7.2 million will go toward growing a state program that offers supplemental income to child care workers in an effort to reduce turnover.
- Nearly $6 million was added to expand child care support for low-income families.
Zoom out: Federal grants help fund state support for kids from low-income families.
- The federal government also funds Head Start, the decades-old federal program that provides child care, nutrition assistance and other services to the nation's poorest families.
- There were worries that the White House would stop funding Head Start, but the administration has said that won't happen.
Yes, but: President Trump's budget proposals look to keep federal funding levels for child care flat next year. That's a troubling sign given continued inflation, says Anne Hedgepeth, senior vice president of policy and research at Child Care Aware.
- "Level funding in the current environment is essentially a cut, and that is really concerning," she says.