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. 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.

In this report, we explore trends in self-employment among parents before and during the COVID-19 pandemic. We find that for mothers of young children in particular, self-employment has increased at a notable rate over pre-pandemic levels. As entrepreneurs who are mothers face unique challenges, including intertwined financial considerations, caregiving responsibilities, and time demands, these findings highlight the need for policies, programs and practices aimed at better supporting entrepreneurs who are parenting.

Join The Century Foundation on Thursday, June 22, 2023 from 1:30 to 2:30 PM ET, exactly 100 days from when federal funds sunset, to learn about TCF’s groundbreaking new study about the looming child care cliff and what we can do to avoid it.

For two years, the United States has been effectively running an experiment in federally funding child care providers. The $24 billion disbursed in pandemic relief has been the largest investment in child care in U.S. history. Child care providers have used the money to raise teachers’ pay, buy supplies and pay mortgages.

Beginning September 30, 2023, states will face a steep dropoff in federal child care investment. Without Congressional action, this cliff will have dire consequences.

Child care is an essential service that parents rely on so they can work, attend school, or participate in training while knowing their children are well cared for in a stable and nurturing environment. For too long, child care has been out of reach for many families due to the lack of available care and the high price.

The COVID-19 pandemic upended life for countless families and brought heightened attention to the plight of working parents. Recent IWPR studies find that during the pandemic, young mothers—especially those who are socioeconomically disadvantaged—experienced a sharp decline in employment and prolonged economic hardship for their families.

MomsRising member Deborah Purce and her husband live in Seattle with their three children. At the height of the COVID-19 pandemic, their child care program closed for several months and Deborah had to find a way to manage her job while caring for her children, since her husband’s essential health care job did not have any flexibility.

Comprehensive child care and early learning policy is a “win for all” policy: a pathway to progress on gender, racial, and income equality; healthy child development and family well-being; improved educational outcomes; and economic growth and prosperity.