Report predicts state loss of $232M in parent wages with federal child care fund cutoff

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According to a recent press release, a national report found that when the federal funds that have stabilized Wisconsin’s child care industry end, the state will be at risk of losing 2,110 programs.

Those programs serve more than 87,000 children; their closure could mean parents will have to leave the workforce. That could cost Wisconsin more than $232 million in parental wages, found a report from the Century Foundation, a New York-based progressive think tank.

Despite the workforce implications, Wisconsin Manufacturers & Commerce, a statewide business lobbying group, has been vocally opposed to funding Child Care Counts.

A total of $24 billion was distributed during the pandemic through the American Rescue Plan to stabilize the child care industry. The money was distributed to states and then providers based on how many children they care for.

Data published by the Wisconsin Department of Children and Families shows that through Feb. 18, 2021, 4,892 participating child care providers across the state received an average of $116,816 each.

According to an October 2022 survey by the National Association for the Education of Young Children, more than a quarter of child care providers said they would have shut their doors without the Child Care Counts programs. A majority surveyed — 60.6% — reported they will have to increase tuition when the program expires.

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