Exclusive: More parents lack child care after federal funding 'cliff'

The child care industry is in crisis.

Data: National Women's Law Center analysis of Census Bureau data; Note: Alaska, California, Illinois, Kentucky, Maine, Massachusetts, Minnesota, New Hampshire, New Mexico, Vermont, and D.C. have additional funding; Chart: Axios Visuals, the date last year when pandemic-era federal funding for the industry ran out, according to an analysis of census data shared exclusively with Axios.

You can see that play out in the analysis. In states that provided additional child care funding, the share of women who said they couldn't work because they had to care for a child out of school or without child care fell to 32% from 45%. In states without additional funds, the number only moved to 39%, from 45%, a change that the National Women's Law Center said was "not statistically significant."The child care industry was never really the picture of financial health before the pandemic — it's a low-margin business with a customer base that has limited means to spend — but the pandemic

$24 billion from the Biden administration's massive COVID relief bill in 2021 helped stabilize the situation. The money went to providers, which used it to pay workers bonuses and cover rising expenses for rent, mortgages, utilities and supplies. Now without that money shoring up their operations, in a post-pandemic world of higher costs and a tighter labor market, an increasing number of centers are struggling.

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