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A Historic Federal Investment in Child Care, Explained

by Lynette M. Fraga and Casey Peeks
May/June 2021
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Article Link: http://exchangepress.com/article/a-historic-federal-investment-in-child-care-explained/5025908/

It is difficult to put into words the losses and hardships experienced by so many over the last year due to COVID-19. Child care has not been immune to its devastating blows and, in fact, we have seen an already broken child care system shatter. However, in March 2021, Congress passed and the president signed into law the American Rescue Plan, a $1.9 trillion COVID-19 relief package. This package includes $39 billion in dedicated child care relief funding, the largest one-time federal child care investment in U.S. history. This is cause for optimism. 

$24 billion of this relief goes to a child care stabilization fund for qualified providers that are either open or temporarily closed, to help support their pandemic operations. This fund will also help providers pay for rent, utilities, payroll and mental health services for children and staff, as well as increased costs associated with the pandemic.

The other $15 billion in dedicated relief is emergency funding for the Child Care and Development Block Grant program, to rebuild the supply of quality child care and help the disproportionate number of women who have left jobs to take on caregiving duties reenter the workforce. It also provides support to help essential ...

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