Research in Action: Child Care at the Second GOP Debate
Author: Jessica Milli
October 2, 2023
In June 2023, we released a report in collaboration with The Century Foundation, which estimated that when American Rescue Plan Act (ARPA) stabilization funds expire at the end of September 2023, as many as 70,000 child care centers could close and 3.2 million children and their parents would lose access to their child care spots as a result. While some states have acted to stave off some of the worst effects of the expiration of the stabilization grants by injecting their own funds into early childhood initiatives, the majority of the nation faces a looming “child care cliff” in which many child care providers may have to raise rates, reduce staff and slots for children, or even close altogether, sending ripple effects throughout the economy. Now more than ever, urgent action is needed to both address affordability and access concerns, but to also create a more sustainable industry that can sustain the wages needed to attract and retain qualified educators.
As evidence of the importance of this issue to millions of Americans, the estimates provided in our report were referenced in a question posed by the moderator during the second GOP Primary Debate held on September 27, 2023. The video embedded below begins with the moderator citing several statistics which characterize the current child care crisis, her question to Senator Scott, and his response.
Senator Scott’s response largely centered around cutting taxes, which would theoretically increase the resources that parents have at their disposal to devote to child care. However, there are many reasons to believe that tax cuts alone are not going to solve the child care crisis. Even before the pandemic, employment in the child care sector was on the decline and this trend was only exacerbated in the pandemic’s wake. This decline was largely brought about by low and stagnant wages paid to child care providers, causing many to leave their jobs in favor of higher-paying jobs in other industries.
ARPA stabilization funds helped child care providers stay afloat during the pandemic by providing them resources that they could use to cover operating costs, increase wages, and invest in increased health and safety measures. But a significant number of providers expect that they will have to raise rates, roll back pay increases, or reduce staffing in order to make up the shortfall. Tax cuts for parents will not do much to alleviate these larger-scale issues. Even if some parents may be able to afford to pay higher rates as a result of proposed tax cuts, providers worry that these rate increases may price out the most economically vulnerable families. For an excellent summary of the issue, check out this article in Mother Jones by Abby Vesoulis, which discusses why we need to think bigger than tax cuts if we are really going to tackle the looming child care crisis.
