Billions of Covid aid funds flow into childcare. Here’s why proponents say more needs to be done to resolve the crisis
FatCamera | E + | Getty Images
There was already a childcare crisis in America. Then Covid struck.
Day care centers closed. Working parents lost care and childcare workers were unemployed. Parents, namely mothers, left their work or reduced working hours to fill the gap.
The von Biden government and Congress responded with $ 39 billion to childcare workers, who were enlisted into law last week under the American Rescue Plan Act. This is in addition to the $ 10 billion Congress envisaged in the December aid package.
“Before the pandemic, the US childcare system was in trouble,” said Mario Cardona, director of policy and practice at Child Care Aware of America, an advocacy group that works with local and state childcare and referral agencies.
More from Invest in You:
Lost jobs, lower wages, no childcare: a year after the pandemic started, women are not okay
More than half of US women are burned out. Here’s how to deal with it
Suze Orman: Here’s what to do with your stimulus check
“In addition, Layer has Covid and the system in its current form no longer works well for anyone.”
Childcare workers can use the new funds for expenses such as payroll, rent and sanitation. They also need to provide financial relief to families in difficulty. In addition, the new law provides $ 1 billion for the Head Start program.
However, childcare advocates believe that more needs to be done.
“The relief package was about getting us back to the pre-pandemic starting point, which was showing its shortcomings,” said Melissa Boteach, vice president of income security and childcare / early learning at the National Women’s Law Center.
“To rebuild, we need to address the underlying inequalities that made us so vulnerable to the pandemic in the first place.”
For one thing, there has been a lack of support for those who need it most. Only 1 in 6 children who are eligible for childcare allowance receive it, which means that many low-income families have difficulty paying for childcare.
There are also so-called child care deserts where the supply of licensed child care is insufficient to meet the demand. About half of American families with young children live in a childcare desert, according to a 2018 analysis by the Center for American Progress. It warned the pandemic would make it worse.
With less than 0.5% of the country’s gross domestic product spent on childcare, providers rely on tuition fees, but workers’ wages are low. They make an average of $ 11.65 an hour and often lack health insurance or paid family vacations.
“The system has to rely on a patchwork of funding flows that place a heavy burden on families to pay the price of care,” Cardona said.
Climb out of the pandemic
For Justin Pasquariello, executive director of the East Boston Social Center, the latest aid package will provide the much-needed help.
The center, a multi-service agency, operates four early intervention centers for children aged 2 months up to kindergarten. Approximately 90% of the children it serves receive public subsidies or vouchers based on family income, participation in the well-being of the children, or other family needs.
After closing in March, the centers were reopened in the summer – but only few enrollments and higher security hurdles had to be overcome.
Two preschoolers catch up during lunch at the Social Sprouts Preschool at the East Boston Social Center.
Source: East Boston Social Centers
“We had to get all the PPE for the staff,” said Pasquariello. “We had to have dedicated staff to check for health on the way into the house and to get the kids into the classroom from that screening because we couldn’t have parents to come into the building.”
In addition, adjustments were made in the classroom and in the transport system. He predicts a loss of around $ 170,000 this fiscal year.
However, state guidelines for the use of the new aid money have yet to be worked out, said Pasquariello. Fewer children in the centers mean less income, and he hopes the grants will help fill this gap. He also wants it to be used for immediate needs like air filtration systems and increase worker pay.
“We need to keep investing in employee compensation,” said Pasquariello, noting that recruiting and retaining workers was a major challenge for childcare workers even before the pandemic.
The pandemic has highlighted the need to address too long a crisis, proponents argue.
“As governments rebuild their economies, it is time to treat childcare as essential infrastructure – as financially as roads and fiber optic cables,” wrote Melinda Gates in January in the Bill and Melinda Gates Foundation’s annual letter.
“In the long term, this will help create more productive and inclusive economies after the pandemic.”
This week, Assistant House Speaker Katherine Clark, D-Mass., Reintroduced the Childcare Act. It would allocate $ 10 billion to childcare workers to help renovate facilities and improve infrastructure.
To rebuild, we need to address the underlying inequalities that made us so vulnerable to the pandemic in the first place.
Vice President at the National Women’s Rights Center.
It would also approve a student loan repayment program for eligible early childhood educators up to $ 6,000 annually for five years and up to $ 3,000 annually for eligible individuals seeking Childhood Development Associate certification or an associate degree.
“Childcare is part of the foundation of our economy,” said Clark at a press conference announcing the bill.
“The economic benefits of childcare are well documented, but so are the economic losses associated with its inaccessibility and our country’s repeated refusal to invest in childcare for the importance it deserves.”
Proponents believe that investing in the system will not only benefit children and their providers, but the economy as a whole.
According to Nobel Prize-winning economist James Heckman, high-quality, comprehensive early childhood programs offer a 13% return on investment. Research has shown that the return on investment is between $ 4 and $ 9 per dollar invested and between $ 7 and $ 12 per dollar invested.