#United States #Washington, D.C. #Child Care #Family Assistance #Child Care Aware

Rising Child Care Costs in America

The Child Care Aware® of America (CCAoA) recently released a compelling report titled Child Care in America: 2025 Price & Supply. This document paints a sobering picture of the current state of child care across the United States, revealing an alarming trend where expenses are rapidly escalating, undermining the financial well-being of families.

The Financial Burden of Child Care

In 2025, the annual average cost of child care reached $13,184, marking a substantial financial strain on households. This figure consumes approximately 10% of the median income in two-parent families and a staggering 33% for single-parent households. The high costs lead many families to make tough decisions, weighing financial stability against their ability to participate in the workforce.

Further exacerbating the situation, in virtually every state analyzed, the expense of child care for two children in a center exceeds the costs for median rent. In numerous states, these costs surpass mortgage payments as well. Alarmingly, for most regions, the price for infant care is more demanding than in-state public college tuition fees.

CCAoA's findings illustrate that child care continues to outstrip other significant family expenditures, including transportation, food, and health care. Families are increasingly finding themselves at a crossroads, forced to choose between financial sustainability and securing quality child care.

Stagnant Supply Amid Rising Demand

The report reveals that, despite the escalating costs, the supply of licensed care facilities has stagnated. Between 2024 and 2025, the number of licensed child care centers declined by 1% for the first time after several years of growth, while family child care homes saw a minor increase of 1.4%. The overall steady state indicates that families continue to grapple with formidable barriers in accessing child care services.

Susan Gale Perry, the CEO of CCAoA, emphasizes that families are enduring financial pressures from costs that rival their largest monthly expenses. With the existing infrastructure unable to meet the increasing demand, the organization calls attention to the pressing need for increased federal and state funding. Perry asserts, “We urgently need increased funding and investments to support working families.”

The Call for Policy Reforms

As recommendations, CCAoA advocates for enhanced child care funding on both the state and federal levels to tackle the persistent high prices, stagnant supply, and widespread access gaps that families currently face. The shortfall in federal investments is stark, with only 15% of eligible children receiving federal subsidies. This discrepancy contributes to uneven resource distribution across various states, deepening the inequities in access to child care services.

Perry eloquently cautions that without concentrated investment in the overall supply, workforce stability, and child care system support, we risk degradation of an already tenuous framework. “Families deserve better than a child care market that becomes more unaffordable and less accessible every year,” she stated, underscoring the urgency for action.

About Child Care Aware® of America

Child Care Aware® of America stands as the sole national organization equipped with a comprehensive on-the-ground network supporting every sector of the child care landscape. CCAoA focuses on transforming a fragmented system into a cohesive, supportive framework that promotes families' workforce participation, nurtures children's development, and sustains economic growth. The organization’s mission underscores the belief that strengthening child care leads to a stronger, more resilient society.

This report serves as a crucial wake-up call about child care costs and accessibility in America, encouraging stakeholders and policymakers to take decisive measures toward reforming and revitalizing this essential service for families nationwide.