By Alyssa Fortner

Child care enables parents and caregivers to participate in the workforce, attend school and training programs, and take care of other responsibilities while their children are cared for in safe and stable early education programs. Despite its value, child care has historically been underfunded and inaccessible for the majority of those who need it. Because of this, the funding that states receive through the Child Care and Development Fund (CCDF), the main federal funding source to support families with low incomes in accessing child care, is a vital support for many across the country.

CCDF funding is provided through mandatory funding in the Social Security Act—referred to as the Child Care Entitlement to States—and discretionary funding in the Child Care and Development Block Grant Act (CCDBG) of 1990. States can receive additional child care funding through the Temporary Assistance for Needy Families (TANF) block grant and the Social Services Block Grant (SSBG). Under CCDF, the amount of money each state receives annually is calculated using a formula that considers factors like the number of children receiving free or reduced-price lunches, the state share of children younger than five, and the state’s per capita income.

However, Congress has never funded this program adequately to serve all eligible children. For example, in CLASP’s most recent estimate, only 14 percent—or 1 in 7 children—had access to a CCDF subsidy based on state income eligibility requirements. Limited federal investments in state child care systems mean that far too many families are not getting the critical support that they need. Additionally, the providers who accept these subsidies are receiving low reimbursement rates.

The historical inequities and systemic racism that plague the child care system creates additional barriers for eligible families of color. These barriers stem from a long history of policies and practices that often excluded, marginalized, or disproportionately harmed people of color. These impacts continue to be felt in many ways, including in the idea of who deserves care; difficult eligibility requirements; inequitable access to child care subsidies across racial and ethnic groups; and poverty-level wages for early educators of color, particularly Black and Hispanic providers. Working in child care often means low wages, a lack of benefits, and a physical and emotional toll, all of which have created retention and recruitment challenges. This, in turn, has led to a persistent shortage of the child care workforce—which further impacts access to care for families and the ability of providers to stay in a role they are passionate about. The impacts of this history have only continued to intensify and became increasingly evident due to the COVID-19 pandemic.