NEW REPORT: BIDEN’S CHILD CARE INVESTMENTS WILL LOWER COSTS FOR FAMILIES

According to the Department of Health and Human Services, child care should not exceed more than 7 percent of a family’s income. Yet today, the average family is spending nearly 10 percent of their income on child care. For lower-income families, child care costs can reach nearly 35 percent

The cost of raising a family is skyrocketing. In recent studies, 63 percent of working families and 95 percent of low-income families said that paying for full-time child care is difficult. 72 percent of parents say they spend 10% or more on child care. The good news for American families is that President Biden has a plan to lower costs and help keep families financially stable. 

Read our report today on how the Biden agenda will lower child care costs for American workers and families:

Ensure Child Care Costs Aren’t Higher than 7% of Income

Due to rising costs, many American families can’t afford quality child care. Here’s how President Biden’s agenda would help those families:

  • The average family will save $14,800 per year on child care expenses
  • The Biden administration would make sure no working family pays more than 7% of their income on child care
    • On average, working families paying for child care spend about 40 percent more than what is considered affordable. There is currently only one state in the nation, Louisiana, where infant care costs parents less than 7% of their income.
    • The White House proposal would limit child care costs for families to “no more than 7% of income, for families earning up to 250% of state median income.”

Affordable Child Care Would Let Parents – Especially Mothers – Enter The Workforce And Provide Broad Economic Benefits

  • Mothers disproportionately take on responsibilities when they can’t find affordable child care
    • According to a study, mothers were 40 percent more likely than fathers to report they had personally felt the negative impact of child care issues on their careers.
  • Parents, especially women, lose out on income due to lack of affordable child care
    • Before the pandemic, parents had to forgo roughly $30–35 billion in income because the high cost of child care required them to leave the paid labor force or reduce their hours.
    • Expanding child care would increase the number of women working full-time by about 17 percent, and 31 percent for women without a college degree. Access to affordable care could increase the lifetime earnings for women with two children by $94,000.
  • Affordable child care would spur economic growth