Pennsylvania's coming child care crisis
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Child care in Pennsylvania is on the cusp of a crisis as pandemic-era funding for providers and parents expired last weekend.
Why it matters: The industry has been on the edge for years and the loss of funding could make the situation worse, especially for working mothers.
What's happening: More than 152,000 children in Pennsylvania are at risk of losing care and upwards of 2,800 programs could close without additional funding, per an estimate from the Century Foundation.
- Plus: As many as 11,374 child care jobs in the state could be lost.
Catch up quick: The 2021 American Rescue Plan earmarked $24 billion for the industry — to help boost pay for staff and to lower costs for families nationwide.
- Pennsylvania received nearly $729 million.
Between the lines: Day care providers in the state most commonly used the pandemic funding for personnel costs, while families primarily used it for rent and mortgage payments, per the U.S. Department of Health & Human Services.
- Pennsylvania has received an additional $455.7 million in rescue funds, the majority of which will go to the child care industry over the next 12 months, Brandon Cwalina, spokesperson for the Department of Human Services, tells Axios.
- Yes, but: Whereas the previous appropriation allowed child care providers to spend the federal money how they pleased, the new rescue funds are limited to a trio of programs.
Zoom out: This "child care cliff" is approaching just as women are hitting their stride in the U.S. labor market — with workforce participation at new highs and the employment gap between men and women at record lows, Axios' Emily Peck writes.
- If the dire forecasts prove true, millions of parents — particularly mothers — are going to be left with hard choices.
- Their child care provider could shut down or raise prices past affordable levels, which is widely expected — and many parents could exit the job market entirely.
🧠 Be smart: The estimated annual cost of center-based child care for toddlers in Pennsylvania was more than $11,300 last year, and $8,947 for family- or home-based care, according to the Annie E. Casey Foundation.
- An estimated 68% of Pennsylvania children under the age of 6 live in households where both parents work.
What's next: Child care centers aren't going to suddenly close. Experts say it'll take time for the funding loss to have an effect.