Child care programs face massive hit as American Rescue Plan funds dry up

Yahoo Finance Video
8 個月前

About $24 billion dollars of funding from President Biden's American Rescue Plan will dry up this weekend. According to research from the Century Foundation, more than 70,000 childcare programs will likely close, resulting in up to 3.2 million children potentially losing their child care spots. Chloe Gibbs, University of Notre Dame Department of Economics Assistant Professor tells Yahoo Finance that those estimates likely reflect more of a "worst case scenario," but that the U.S. "will experience some contractions in the supply of childcare."

Gibbs explains the rough road ahead for childcare programs. Gibbs says that to fill the gap created by loss in revenue they may have "to increase the prices that families face, another [option] might be to contract in terms of the number of hires... which would mean a reduction in slots [available for kids] in the child care centers." Gibbs warns this may have "overall effects on economic growth" as parents may be "less able to engage in the labor market."

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