I2D2’s Post

"Meanwhile, the burden created by our collective failure to build a truly supportive and community-nurturing child care system will grow heavier. And that is how and why pillars crumble." The crumbling childcare system in New Hampshire is not just a crisis for parents—it’s a crisis for our entire community. Without a robust childcare system: 1. Workforce productivity suffers: Parents, especially mothers, are forced to leave the workforce or reduce hours, creating talent shortages across industries. 2. Economic stability falters: Businesses lose valuable employees, and communities lose the economic contributions of working parents. 3. Future generations are at risk: High-quality early education is foundational for children’s development, impacting their lifelong ability to succeed and contribute to society. Strong childcare systems are the pillars of thriving economies and healthy communities, and when they crumble, so do the structures that hold us together. Parents, employers, and community leaders alike need to advocate for policies and investments that prioritize childcare. When families thrive, communities flourish, and together, we can strengthen the future of New Hampshire.

Did you know that the annual cost of infant care exceeds the expenses of attending a four-year public university in North Carolina by a staggering 56%? This financial strain not only impacts families but also presents barriers to workforce participation and economic advancement. In response, the Centralina Economic Development District facilitated a collaborative discussion among economic developers, child care providers, and local government officials. Together, they developed a toolkit that includes actionable solutions and best practices to address this pressing challenge, titled "Child Care: Nurturing Growth - Strategic Recommendations for Economic Development and Local Government." Learn more and access the toolkit here:https://loom.ly/JLAMcTA

Affordable, high-quality child care enables parents to work and pursue career opportunities, contributing to economic growth. However, the current state of child care remains challenging, with costs significantly exceeding the federal affordability benchmark and limited access to subsidies due to stagnant funding. Recent progress, such as the Biden-Harris Administration’s rule capping family spending on child care of 7% of income, is a positive step. Yet, with pandemic relief funds expiring in September 2024, these gains are at risk. Creating a well-resourced, publicly funded child care system that is universally accessible and affordable is a crucial path forward. This system should address systemic inequities and ensure fair wages and benefits for providers. Robust funding and transformative legislation will support parents, children, and providers, fostering a stronger economy and a brighter future for all. https://brnw.ch/21wMsIz

In partnership with the NC Chamber and NC Child, we researched how a lack of child care access hurts the state’s economy. According to our Senior Director Aaron Merchen, “The child care challenge that we have right now is akin to quicksand. If you notice you’re in quicksand right away, you can take a low-level intervention and get out of that situation. The longer you wait, the more serious the situation becomes, the harder it gets to get out of that quicksand.” Read more about the $5.65 billion annual loss here: https://lnkd.in/eyeXE3hB Learn more about our Untapped Potential reports here: https://lnkd.in/e2XnchbS

The First Five Things to Know About: The Kaine-Britt Bipartisan Child Care Plan The Child Care Availability and Affordability Act and the Child Care Workforce Act make up a bipartisan package that would update current tax provisions to help more parents afford the child care they need, while also addressing child care workforce challenges by creating a pilot program to boost the supply of child care workers. https://lnkd.in/gus7JJxs

TODAY’S MUST READ: Jessica Grose's latest piece in The New York Times highlights the grim reality of child care challenges… and the hope for the future. From bipartisanship to incremental change, read about what it's going to take to address child care challenges: https://lnkd.in/dJxP-yWY

Should the federal government invest in child care so that it is free and universally accessible? The biggest argument against it is the cost, with a hint of: aw shucks we'd love to but deficits are high and we need to be responsible. But the lack of investment in child care isn’t free. It's not as if the decision is $0 versus $50 billion a year. The government *loses* money from our market child care system, and I argue in my latest column, that's like the government investing in not having affordable child care. A new study on the the effect of a universal preK program in New Haven, CT makes clear why. Parents who had access to the free, full-day program earned on average $6000 more a year every year their kid was in preschool and for another six afterwards. Six!!!! It all comes from labor market dynamics. Part of it is really simple: preK is full-day with aftercare, so parents had more hours to work during the day. More hours equals more money. But the other part is more nuanced. Parents often have to pull back from the labor market to accommodate the hours or cost of care, like taking a less competitive job or stepping off a career track for a bit. Stepping back has a long tail of consequences on their career and earnings. So ignore how amazing it would be for children and their parents if the government could step up and increase income for millions of families, and think about the federal budget. The primary source of revenue is income taxes. Lower income equal lower tax revenue. This isn't a low-stakes or marginal tradeoff, because parents are working: 70% of women and 95% of men with children under 5 in their household are working. The BLS estimates that there are 12 million families with children of child care age that are working. Now give those 12 million families $6,000 a year of earnings and that's $72 billion higher income. And that's just earnings of current workers, and doesn't include earnings of parents who decide to work. And when people earn more money, they lose eligibility for public programs, another cost saver. The government is spending a lot of money every year to keep child care expensive and inaccessible. It's a loss in so many ways, but especially to their bottom line. https://lnkd.in/eWqnuQ5e

A message from FFYF Executive Director Sarah Rittling: Child care in the United States remains unaffordable, inaccessible, and in short supply. As we look to the new Congress and Administration, First Five Years Fund remains focused on the need for federal priorities that address these challenges for children, their families, employers, and providers.  America’s working families and employers have been very clear that access to affordable, quality child care is essential for economic stability and a reliable workforce. This need is felt deeply in communities in every state, underscoring why candidates across the political spectrum elevated child care as a critical issue in debates, town halls, and campaign ads. It’s also why Members of Congress — Republicans and Democrats — have introduced a series of bills aimed at reducing costs, expanding access, and addressing workforce challenges in the child care sector. Now it’s time to turn this momentum into action. Families can’t push pause on their child care needs; the challenges they face are urgent and immediate. As we move into 2025, we urge Congress and the Administration to recognize the vital needs of America’s children, families, employers, and child care providers by prioritizing child care and early learning. 

Child care is infrastructure and Democratic Whip Katherine Clark has a legislative package to make essential investments in facilities and workforce. Here are the first 5 things you need to know about her child care package: https://lnkd.in/eywndMQG

Many families face considerable barriers to accessing child care and early education (CCEE) that is affordable and meets their families’ needs. In a new report prepared for OPRE, Child Trends' Patti Banghart Gottesman, Ashley Hirilall, Gabriella Guerra, Katherine Paschall, and Dana Thomson identify actionable steps that state and territory child care administrators, local CCEE leaders, and researchers can take to advance measurement of equitable CCEE access by centering families’ child care needs and preferences. https://lnkd.in/eXWAn5vk