Payam Javan: Child care costs reached record highs during the peak of inflation, rivaling rent expenses for many U.S. families in 2022, according to the Labor Department’s newly updated National Database of Childcare Prices. Families spent between 8.9% and 16% of their median income on full-day care for one child, with prices ranging from $6,552 to $15,600 annually. For perspective, the average annual rent cost was $15,216 during the same year. Part-time care, including before and after-school programs, also posed significant financial burdens, consuming up to 9.4% of family income. Labor Department officials stressed that the rising costs disproportionately affect women and lower-income families, highlighting the need for increased federal investment in child care.

Child care affordability has become a focal point in political discussions, with candidates from both major parties addressing the issue. Former President Donald Trump, during his 2024 campaign, pledged to ease child care expenses, citing his 2017 child tax law that doubled the tax credit to $2,000 per child. Trump’s running mate, JD Vance, suggested further increasing the credit to $5,000 during an interview. Meanwhile, President Joe Biden emphasized his administration’s efforts through the 2021 American Rescue Plan (ARP), which allocated $24 billion in stabilization funding for child care providers and $15 billion in state-directed funding to make child care more affordable. Both sides underscored the need for reforms to ensure broader accessibility.

The Labor Department acknowledged that while ARP funding mitigated some of the financial strain, child care costs in 2022 remained prohibitively high for many families. Without the ARP, experts estimated a 10% price increase between June 2021 and June 2023. However, geographic disparities and the age of the child significantly influenced the costs, with lower-income families bearing the brunt of the impact. A 2022 Pew Research survey revealed that 38% of low-income parents faced times when they couldn’t afford child care, emphasizing the persistent challenges families encounter in balancing child care needs with financial stability.