Report Finds Improved Access to Child Care, but Parents Still Struggling

The average cost of child care for an infant may top the cost of tuition and fees at a public university in 31 states and Washington, D.C., but it’s not all bad news. According to a new report, Turning the Corner: State Child Care Assistance Policies 2014, from the National Women’s Law Center (NWLC), low-income families in many states–33, to be exact–have greater access to child care between 2013 and 2014. Still, that progress is relative.

Despite more than $5 billion spent annually by Congress on federal child care subsidies, state policies are particularly relevant to child care. There are currently few strings attached to those billions of dollars, which means the feds have few opportunities to ensure families in neighboring states have access to the same level of services. Additionally, states provide substantial supplemental funding to ensure access to child care for more families, providing even more opportunities for disparities in access across the country.

So because child care policy is directed largely by the states, families across the country trying to access child care benefits often find themselves with very different circumstances. For starters, the federal government sets the income eligibility limits for federal child care subsidies at 85 percent of state median income–in 2013, that figure ranged from $58,149 for a family of four in Arkansas to $107,360 for the same-sized family in Connecticut. But states are allowed to define the limits within that amount, and they typically set it much lower. The limit was set at or below 200 percent of the federal poverty level ($47,700 for a family of four) in 38 states in 2014, and at or below 150 percent ($35,775 for the same-sized family) in 15 states. Still, the report notes, most states–44–have increased the dollar-amount of the limits since 2001 (albeit not quickly enough to keep pace with the federal poverty level for 18 states). And 34 states have increased the limits since just last year.

Families across the country trying to access child care benefits often find themselves with very different circumstances.

Under the federal law, states also have the flexibility to establish copayments for families receiving subsidies. For a family of three earning at 150 percent of the federal poverty level ($29,685), most states didn’t make any changes to the parents’ copayment as a share of income from last year. But families’ share of the costs have increased in 25 states since 2001. In 28 states, the copayment for that family of three tops $178 per month.

Perhaps one of the biggest problems for families, though, is an inflexible approach some states take to helping parents care for their children when they’re not working. Depending on how frequently states verify that parents are working (a requirement to be eligible for federal child care subsidies), parents who lose their jobs or who are looking for work can lose access to their care. This disrupts children’s daily lives and makes it more difficult for parents to continue their job search. According to the NWLC report, five states allow no amount of continued child care for parents who are looking for work; while 19 states provide up to 30 days or four weeks and 10 states allow up to two months. For most of those states, the policies haven’t changed since last year — but in a few states, it’s lengthened. Increasing the minimum length of time parents would remain eligible to 12 months is a hallmark of recent federal legislation to update the law; if it passes, states will be required to reset the floor of their redetermination policies to a year.

Finally, the report examines state policies on reimbursements for the child care providers who accept vouchers for low-income families. The news isn’t quite as good there: While the federal government recommends that states set reimbursements at the 75th percentile of market rates, just one state does so, down from three states last year and way down from 22 in 2001. Given those low reimbursement rates and the high costs of providing care to young children, maybe it’s no surprise that child care workers earn distressingly low salaries in their jobs. Low wages also make  recruiting high-quality teachers with knowledge and experience in child development  exceptionally hard. (For more on this, check back with New America soon for details on an upcoming event that will explore salaries for early childhood teachers 25 years after the Child Care Staffing Study by Marcy Whitebook, Deborah Phillips, and Carollee Howes.)

The NWLC annual report provides some of the most comprehensive information in the field on states’ child care policies. And those data have proved especially important leading up to the reauthorization of the federal Child Care and Development Block Grant program–coming soon to a lame-duck session near you. (The House and Senate are tantalizingly close to agreement on an update to the federal law. But what was promised to be a speedy vote in the Senate was held up by a single senator immediately before the midterm elections.) Check out NWLC’s full report for an update ahead of the Senate vote next month. And check back with EdCentral for more updates and analysis on child care policy.