FACT SHEET: Historic Biden-Harris Administration Investments in Youngster Care Restoration Lowered Prices for Hundreds of thousands of Households, Helped Velocity the Return to Work of Lots of of Hundreds Moms, and Grew the Youngster Care Workforce

FACT SHEET: Historic Biden-Harris Administration Investments in Youngster Care Restoration Lowered Prices for Hundreds of thousands of Households, Helped Velocity the Return to Work of Lots of of Hundreds Moms, and Grew the Youngster Care Workforce

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New CEA evaluation reveals that American Rescue Plan help for baby care helped decrease baby care prices for a typical household with younger youngsters by over $1,200 per baby per yr

President Biden and Vice President Harris know that youngsters, their dad and mom, and the financial system are all made stronger by accessible, reasonably priced, high-quality baby care. That’s why from day one, the Biden-Harris Administration has targeted on methods to decrease baby care prices for hardworking households and enhance wages for baby care employees.

The American Rescue Plan’s (ARP) Youngster Care Stabilization program delivered historic help to over 225,000 baby care packages serving as many as 10 million youngsters throughout the nation, serving to hold their doorways open for hundreds of thousands of working households who depend on them. A brand new report launched by the President’s Council of Financial Advisers (CEA) gives proof of this important help:

  • Saved households with younger youngsters who depend on paid baby care roughly $1,250 per baby per yr by slowing the rise of kid care costs.
  • Helped a whole lot of hundreds of ladies with younger youngsters enter or re-enter the workforce extra shortly, growing the labor power participation and employment of moms of younger youngsters by an extra 3 proportion factors.
  • Boosted the kid care workforce and helped increase the true wages of kid care employees, growing the supply and reliability of kid care choices and guaranteeing the employees who handle our youngsters obtain fairer pay.

Taken collectively, these investments had a benefit-cost ratio of about 2:1, which means the advantages of those funds for the broader financial system outweighed the prices of the funding.

With the top of the Youngster Care Stabilization program this fall, proof of the Youngster Care Stabilization program’s success makes clear the necessity for Congress to ship additional funding within the baby care sector.

The President and Vice President have known as on Congress to supply an extra yr of kid care stabilization funding to assist be certain that baby care suppliers can stay afloat. On the similar time, the President and Vice President have known as for sustained, transformative investments to make sure that all households can entry reasonably priced, high-quality baby care and all baby care employees are compensated in a manner that displays their worth.

Because the Division of Treasury made clear of their 2021 report on the economics of kid care provide within the U.S., the kid care sector is an important a part of the American financial system that suffers from persistent underinvestment, hindering dad and mom’ means to contribute to our financial system and make a strong dwelling. Merely returning to the pre-pandemic establishment will damage households and our financial potential.

Right this moment, the Division of Well being and Human Companies can also be releasing new knowledge on the ARP Youngster Care Stabilization program exhibiting its broad attain in serving to suppliers in each nook of the nation:

  • All 50 states, Washington, D.C., and 4 US territories operated Youngster Care Stabilization packages. Nationwide, suppliers in over 96% of counties acquired help.
  • Greater than 8 in 10 licensed baby care facilities nationwide acquired help.
  • About 30,000 baby care packages in rural counties acquired helpserving to small companies and households in a few of the locations the place baby care was already troublesome to return by even previous to the pandemic.
  • Help was supplied to baby care suppliers in 98% of persistent poverty counties in most states. These are counties the place not less than 20% of residents have lived in poverty over the previous 30 years.
  • Over 44% of packages that acquired help have been owned or operated by individuals of colour.
  • 53% of suppliers receiving stabilization funds have been working in probably the most racially various counties.

The Youngster Care Stabilization program was important to serving to baby care facilities and household baby care suppliers, that are principally very small women-owned companies, stay open or reopen and hold the kid care workforce, disproportionately girls of colour, on the payroll. Roughly 87 % of kid care facilities reported utilizing stabilization funds to assist pay personnel prices and hold packages staffed whereas roughly 87 % of household baby care packages – sometimes very small companies working out of a house – reported utilizing stabilization funds to assist cowl hire or mortgage funds, normally their largest working expense.

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