The Wisconsin Early Childhood Association released “After the Bridge: The High Cost of Ending Child Care Stabilization in Wisconsin,” and the conclusion of the report is not good.
When federal stabilization funding ends on June 30, WECA’s brief said there could be a collapse of the childcare system.
Revenue for childcare facilities fell 36% in 2020 at the start of the COVID-19 pandemic.
Stabilization payments were a solution that worked. From 2020 to 2026, there was a 4% growth in licensed programs in the state, ending a seven-year spell where licensed programs fell by 30%.
If there is no replacement funding, WECA found that about three quarters of childcare providers would have to raise tuition. About one in four providers said they would likely close.
WECA said it is imperative to look to other states like Minnesota that have state-funded compensation to find a solution.
