As child care scholarships dry up in US, families are left to shoulder the soaring costs

For countless families across the United States, child care scholarships were never a luxury — they were the thin thread holding together work, stability, and hope. These subsidies acted as a fragile but essential bridge, allowing parents to pursue employment, maintain financial footing, and provide a safe, enriching environment for their children. Yet today, that bridge is splintering under the weight of expiring pandemic-era relief and shrinking federal support. As emergency funds dry up and access to assistance narrows, families are left scrambling — not only to cover rising costs, but to navigate the cascading consequences of disrupted routines, limited options, and growing economic pressure. What was once a matter of affordability has now become a test of endurance, forcing many to sacrifice time, career growth, and peace of mind in order to simply keep going.

The safety net is unraveling
During the COVID-19 pandemic, Congress recognized the child care sector’s essential role in economic recovery and injected more than $39 billion to stabilize providers and fund scholarships. This lifeline gave working parents a fighting chance — and in many cases, allowed them to remain employed.

But when that funding expired in September, Congress declined to renew it. The consequences are already reverberating across the nation: waitlists in Arizona, Colorado, and Texas are swelling; Idaho tightened eligibility so drastically that only families well below the poverty line now qualify; Nevada and Oklahoma raised co-payments for already-stretched families. The result is a nationwide contraction in access to child care — just as demand reaches a fever pitch.

When care becomes luxury

For many families, child care is no longer a manageable monthly expense — it has become a financial burden rivaling rent or mortgage payments. What was once viewed as a support service for working parents is now edging into the realm of luxury, with costs rising and assistance shrinking. In the absence of reliable subsidies, parents are being forced to make impossible trade-offs.

Some are cutting back on work hours, despite needing every paycheck. Others are turning to informal arrangements — relatives, friends, or unlicensed providers — just to keep their jobs. For single parents or households with multiple children, the cost of care can consume a disproportionate share of income, often leaving little room for other basic needs.

The loss of child care support has also led some families to defer educational or professional advancement. Evening classes, job training, or career moves are abandoned in favor of piecing together schedules around child supervision. Even those receiving discounts through employers or community programs find themselves stretched thin, navigating unpredictable hours and limited availability.

At its core, the child care crisis is not just about economics. It is about the emotional and psychological toll of constantly negotiating between providing for one’s children and being present for them. Parents are reporting rising levels of stress, fatigue, and guilt — symptoms of a system that demands too much and gives too little in return.

In this landscape, access to consistent, high-quality care is increasingly determined by income. For families unable to meet the costs, early childhood development opportunities are slipping out of reach. The divide between those who can afford care and those who cannot is becoming more pronounced — and with it, the risk of long-term educational and economic inequality.

Federal cuts deepen the crisis

Beyond the expiration of funding, the Trump administration has taken steps that further weaken federal oversight and implementation of child care programs. Key staff in the Office of Child Care — including those in five of ten regional offices — were laid off. These were the very people tasked with enforcing safety regulations, monitoring subsidy use, and assisting states in running these complex systems. Their absence raises urgent concerns.

The administration’s vague promise to offset costs through revenue from tariffs has drawn skepticism from economists and educators alike. Experts argue that tariffs are unlikely to generate sufficient or reliable funding, and may, in fact, inflate other household costs — leaving families in a deeper bind.

A sector still on the brink

Though the pandemic brought temporary attention and funding to early childhood education , the underlying fragility of the system remains. Providers still operate on razor-thin margins, and workers are often paid poverty wages. According to a 2022 Labor Department study, infant care in large counties now exceeds $15,600 annually — more than the median rent in many areas.

And while the Biden administration had attempted to increase reimbursement rates to providers accepting scholarships, that measure alone is insufficient without sustained funding and political will.


What’s at stakeThis is not merely a budget issue. It’s an issue of equity, of workforce participation, of child development and national economic health. When families lose access to affordable care, they don’t just lose convenience — they lose income, security, and the opportunity to break cycles of poverty.

In the end, child care is not a private problem. It is a public good — and its erosion comes at a cost the US can no longer afford to ignore.