As the U.S. government narrowly avoided a shutdown this weekend, a different kind of high-stakes shutdown occurred on Saturday.
In 2021, the U.S. government made its single largest investment in child care, committing $24 billion to fund the sector. However, that funding expired on Saturday, leaving more than 220,000 providers without financial support. This has been referred to as the “child care cliff”.
The child care shortage already costs families $78 billion per year and businesses another $23 billion per year. Approximately 30 percent of providers who received grants said they would not be able to continue without the funds.
Politicians from both parties express support for affordable child care, but there is disagreement on how to make it financially viable. Democrats have proposed committing $16 billion per year for the next five years to support child care providers, but without Republican co-sponsors, it is unlikely to pass. The Chamber of Commerce favors tax credits as a solution.
President Biden’s “Build Back Better” plan originally included near universal child care for children up to age 5, but that provision was cut. Biden has since taken smaller steps, such as directing federal agencies to find ways to make child care cheaper and requiring companies seeking significant funding to guarantee child care.
The child care crisis is likely to worsen. In 41 states, the average annual cost of care for two children exceeds the average annual mortgage payment. Wages remain low for child care providers, and about half of Americans live in “child care deserts” where there is insufficient supply to meet demand.
The expiration of funding will contribute to the continuing shortage of affordable child care services. Experts consider it a slow decline rather than a sudden shutdown of facilities.
On a different note, Taylor Swift’s appearance at a Kansas City Chiefs football game has created a collaboration between two major brands. Sales of Chiefs player Travis Kelce’s jersey increased by nearly 400 percent after the game, and the broadcast of the game dominated among female viewers. The NFL has embraced Swift’s fandom, and other brands are also trying to capitalize on the moment. However, there are some conservative football fans who are less enthusiastic about Swift’s presence.