Making Child Care "Affordable" in the United States

Abstract

Two alternative federally financed plans are presented as models for a program that would make child care of acceptable quality "affordable" for millions of American families. Taking a cue from currently operating state programs, care is defined as "affordable" if it costs parents no more than 30 percent of the amount by which their income exceeds the poverty line. The first plan would cost the government $25 billion per year and would concentrate help on families with incomes up to twice the poverty line. The second would cost $39 billion per year, would provide higher-quality care, and would allow all U.S. families to have access to care that was "affordable" by the definition. Costs of these magnitudes preclude financing of any significant part by employers or philanthropies.