Rising child care costs are starting to bite US families
FOX Business correspondent Lydia Hu has the latest on issues parents face when entering the workforce on 'The Big Money Show.'
The overall pace of inflation has fallen considerably over the past year, but millions of families with young children are facing a new headwind: the rising cost of child care.
The average child care payment per household has steadily marched higher over the past three years, with middle- and upper-income families seeing the biggest increase, according to a new Bank of America analyst note based on internal customer data.
As of September, the average American family spent more than $700 per month on child care costs – a 32% spike from the typical level in 2019.
The problem may soon get worse.
FED'S FIGHT AGAINST INFLATION IS WEIGHING ON MIDDLE-CLASS AMERICANS
Congress allocated $24 billion in emergency funding to help keep child care providers afloat as part of the American Rescue Plan, passed in 2021. But that pandemic-era program officially expired at the end of September, leaving child care providers in a lurch; experts have warned that without the funding, the industry may see a spate of tuition hikes, layoffs and closures.
Harper Quinn, 6, who attends Mar Vista Elementary School, enjoys her day off at the Mar Vista Recreation Center in Los Angeles on Aug. 21, 2023. (Genaro Molina / Los Angeles Times via Getty Images / Getty Images)
Left-leaning think tank the Century Foundation estimated that 70,000 child care programs will close as a result of the funding expiration, resulting in 3.2 million children losing access to care.
"[Child care] prices could rise further," the Bank of America analyst note said. «This could have a meaningful impact on consumers because over 12% of US households
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