WASHINGTON, DC – MARCH 14: U.S. President Jordan Biden addressed the nation from the Oval Office regarding the crucial withdrawal of U.S. troops from Afghanistan on March 14, 2021, in Washington, DC. President Biden revealed his intention to withdraw all remaining U.S. forces from Afghanistan by September 11, 2021, marking a pivotal step in concluding the nation’s longest conflict.
The administration asserts that this financial support is vital to stimulate economic recovery and foster a more equitable future for women. The pandemic has taken a toll on nearly every profession; however, data indicates that working women have faced the brunt of the impact. Parents find themselves in a tough spot when their preferred child care options are no longer available. Without child care, many are unable to work.
The White House has outlined a substantial $39 billion allocation as part of the American Rescue Plan, directed towards states, territories, and tribal nations to address the child care crisis exacerbated by COVID-19. These funds aim to support early childhood educators and family child care providers, ensuring they can sustain their operations. Child care remains a critical issue for essential workers, particularly for mothers who are also primary caregivers for elderly family members.
Statistics reveal that while many fathers have successfully returned to work, mothers, especially those without college degrees, have not seen similar success. This disparity is projected to widen the gender income gap by 5 percentage points. As women strive to regain their footing in the workforce, families with young children, particularly families of color where mothers are often the sole or primary earners, may experience prolonged financial hardships.
The White House emphasized the significant contributions of women to the workforce, noting that they have accounted for 91 percent of income increases among middle-class families over the past four decades. Yet, since the pandemic began, approximately 2 million women have exited the labor market, many due to caregiving responsibilities. Experts warn this could undo decades of progress in increasing women’s workforce participation.
In essence, without child care, many women are unable to return to their jobs. Compounding the challenge is the fact that a majority of early childhood and child care providers, primarily small businesses largely owned by women and people of color, have been severely impacted by the pandemic. These providers are facing diminished earnings due to decreased enrollment while incurring up to 47 percent higher costs for necessary supplies and safety measures.
The Biden administration acknowledged that child care providers were already operating on razor-thin margins before the pandemic. A December survey indicated that about one in four child care facilities was closed during the early pandemic, limiting access to care, especially for families of color. The closures have intensified existing challenges, as half of all Americans live in areas classified as child care deserts. Providers that have remained operational have reported taking on debt to cover rising costs, with two in five utilizing personal credit cards to stay afloat. The resulting ripple effect has led to three in five programs making cuts through layoffs, furloughs, or pay reductions. Alarmingly, one in six child care jobs, predominantly held by women of color, has yet to return, a rate that far exceeds the overall job loss in the economy.
The White House has allocated $39 billion to assist child care professionals. This includes $24 billion for stabilization funding to help providers reopen or remain operational, maintain safe learning environments, keep staff employed, and offer mental health support for educators and children. The remaining $15 billion will be disbursed to states for flexible funding aimed at making child care more affordable for families, enhancing access for those receiving subsidies, increasing compensation for early childhood workers, and addressing other local care needs.
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Summary
President Biden recently announced a $39 billion initiative as part of the American Rescue Plan to support the struggling child care industry, significantly impacted by the COVID-19 pandemic. The funding aims to help child care providers stay afloat, enhance access for families, and address the disproportionate impact on women, particularly mothers of color, in the workforce.