Arkansas daycare operator sheds light on childcare industry struggles amid federal funding cutbacks
NEW YORK CITY, NEW YORK: On the February 28 episode of 'Fox & Friends,' co-host Steve Doocy was joined by Rebecca Davis, an Arkansas daycare operator, to discuss the challenges facing the childcare industry due to the cessation of COVID-era federal funding last year.
The funding came from President Joe Biden's American Rescue Plan which expired at the end of the last fiscal year in September 2023, according to Fox News.
Rebecca Davis shares the struggles of the childcare industry
Davis informed Doocy that prices of goods were rising "across the board," expressing, "We're facing difficulties." She elaborated, stating, "The unpredictability of our enrollment fluctuates daily, compounded by the doubling prices of materials and food, leading to an overall rise in the cost of living."
Several problems were persistent within the industry even before the federal funding was stopped, which included staffing challenges.
Educators were making "pretty close to $2 an hour," revealed Davis, saying, "It is very, very well below minimum wage. After paying payroll and supplies, food, materials, utilities, insurance."
"You do not get into the childcare business to make money. You get into child care to provide quality care for children, so the pay is very, very low," she added.
Recent researches on childcare
In 2023, research conducted by the Century Foundation unveiled that the conclusion of the American Rescue Plan funding could potentially impact the care of more than 3 million children.
According to the report, "Over 70,000 child care programs—equating to one-third of those aided by American Rescue Plan stabilization funding—could face closure, potentially resulting in approximately 3.2 million children losing their child care spots."
"The loss in tax and business revenue will likely cost states $10.6 billion in economic activity per year," it added.
Another research revealed the hardships faced by parents and families, who are the service receivers in the industry.
According to a 2024 Cost of Care report from Care.com, parents were found to be spending nearly a quarter of their income on childcare costs, which is three times higher than what is deemed affordable by the US Department of Health and Human Services.
For certain parents, childcare expenses surpass even college tuition fees, with one-fifth of parents in certain regions spending over $36,000 annually. Moreover, more than one-third of respondents indicated that they must utilize funds from sources other than household income to cover these services.
"Back years ago, families had an extended family, grandmothers, aunts that could provide that care," explained Davis. "Then we have seen families be able to survive one income paying the child care. Now it's taking both parents to pay for the child care."
"Plus, they're having to work longer hours to make sure that they're taking care of their families on top of the child care tuition. It's hurting everybody," she added.
