Friday, January 10, 2025

Not enough child care spots pushes states to help care centers expand; some emphasis is on rural needs.

Helping child care centers expand means more
parents can stay on the job. (Adobe Stock photo)
The lack of available and affordable child care keeps many parents -- mostly women -- out of the U.S. workforce. The need for more spots has pushed state lawmakers to use novel strategies to help child care centers expand.

"Nationally, more than half of all Americans live in 'child care deserts,' and the need for child care is especially great among . . . low and middle-income families, families of color and families living in rural areas," reports Maggie Clark of Stateline. "A child care desert is a place where there are more than three children for every regulated child care spot."

The child care conundrum isn't just an issue for parents. The problem "costs the U.S. economy roughly $122 billion each year in lost earnings, productivity and revenue," Clark explains. "To create more child care slots and reduce prices, lawmakers are increasingly using economic development strategies to help child care businesses expand, similar to the support they’ve offered to attract and expand manufacturing facilities, technology startups or other types of businesses."

Advocates and lawmakers are particularly focused on addressing child care shortages in rural areas. Clark explains, "This year, Oregon is awarding its first batch of $50 million in grants and loans for new construction, expansion and renovation for child care businesses, with priority for child care providers in rural areas."

Lawmakers in Colorado, Nebraska, Oregon and Vermont had "local and state zoning regulations reviewed," Clark reports. They also "set up help centers where child care business owners can get help with navigating permitting and other business rules so that they can expand their businesses and care for more children, which will help more parents stay in the workforce."

States that are working to support child care businesses with infrastructure offerings that other sectors receive "send a powerful message that child care businesses and the people who operate them are valuable to their communities and economies," Clark writes.

Erin Roche, Vermont director of First Children’s Finance, which is helping the state administer its child care infrastructure grant program, told Clark, "It’s a lot about changing our cultural values of thinking of [child care centers] as businesses, and not just something little that mostly women do on the side."

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