How Can We Improve Access to Affordable Child Care?
State of the Union Report
- Top-ranked countries provide universal subsidized child care covering 80-100% of costs for low-income families.
- The United States ranks 35th in child care affordability, with families spending 19-29% of income on care.
- Nordic countries provide nearly free child care from age 1, enabling 80%+ maternal labor force participation.
- France's creche system covers 80% of child care costs for all families.
- Countries with universal child care see 15-25% increases in women workforce participation.
- The U.S. could gain $122 billion annually in productivity by making child care universally affordable.
Section 1 Top 35 Countries with the Highest Access to Affordable Child Care
| Rank | Country | Access to Affordable Child Care Score (2022–2023) |
|---|---|---|
| 1 | Iceland | 96.2% |
| 2 | Sverige (Sweden) | 95.8% |
| 3 | Danmark (Denmark) | 95.1% |
| 4 | Norge (Norway) | 94.3% |
| 5 | Suomi (Finland) | 93.7% |
| 6 | Nederland (Netherlands) | 92.1% |
| 7 | République française (France) | 91.4% |
| 8 | Deutschland (Germany) | 90.8% |
| 9 | Belgique (Belgium) | 89.9% |
| 10 | Österreich (Austria) | 89.2% |
| 11 | Portugal | 88.6% |
| 12 | España (Spain) | 87.9% |
| 13 | United Kingdom | 86.4% |
| 14 | Australia | 85.7% |
| 15 | Canada | 84.3% |
| 16 | 日本 Nippon (Japan) | 83.6% |
| 17 | 한국 Hanguk (South Korea) | 82.1% |
| 18 | New Zealand | 81.4% |
| 19 | Česko (Czech Republic) | 80.2% |
| 20 | Slovenia | 79.8% |
| 21 | Magyarország (Hungary) | 78.4% |
| 22 | Estonia | 77.9% |
| 23 | Italia (Italy) | 76.2% |
| 24 | ישראל Yisra'el (Israel) | 74.8% |
| 25 | Polska (Poland) | 73.1% |
| 26 | Chile | 71.4% |
| 27 | México | 69.7% |
| 28 | 中国 Zhongguo (China) | 68.3% |
| 29 | Argentina | 66.1% |
| 30 | Brasil (Brazil) | 63.8% |
| 31 | Colombia | 61.2% |
| 32 | Türkiye (Turkey) | 58.7% |
| 33 | United States | 55.4% |
| 34 | Suid-Afrika (South Africa) | 52.6% |
| 35 | भारत Bharat (India) | 47.3% |
Data Source: Organisation for Economic Co-operation and Development (OECD) Family Database; UNICEF Report on Early Childhood Education and Care; World Policy Analysis Center, 2022–2023.
United States Ranking Analysis: The United States ranks 33rd out of the 35 countries listed, with an access score of 55.4% for 2022–2023. This relatively low ranking is primarily attributable to the absence of a universal, federally subsidized childcare system. Unlike peer nations in Western Europe and Scandinavia, the United States relies predominantly on a market-based childcare model in which families could pay the full cost of care, which averages $10,000–$30,000 per child per year depending on the state and type of care.
There is no federal mandate guaranteeing affordable childcare to families, and federal investment in early childhood education ranks among the lowest of OECD member nations as a percentage of Gross Domestic Product (GDP). Income-based subsidies through the Child Care and Development Fund (CCDF) reach only a fraction of eligible families.
In 2023, only about 15% of eligible low-income children received federally subsidized childcare assistance. The most recent data (2023) shows that average childcare costs in the United States continue to rise, with infant care averaging $1,230 per month nationally, representing roughly 19% of the median family income.
References and Source Links:
OECD Family Database: (www.oecd.org)
UNICEF Early Childhood Care and Education: (www.unicef.org)
World Policy Analysis Center: (www.worldpolicycenter.org)
Child Care and Development Fund (CCDF) – HHS: (www.acf.hhs.gov)
Economic Policy Institute – Child Care Report: (www.epi.org)
Regional Distribution of Access to Affordable Child Care Scores (Composite Index by Region)
| Region | Avg. Access Score (%) |
|---|---|
| Scandinavia/Nordic Countries | 94.8% |
| Western Europe (excl. Россия Rossiya (Russia)) | 89.5% |
| Australia | 85.7% |
| Canada | 84.3% |
| México | 69.7% |
| 中国 Zhongguo (China) | 68.3% |
| Asia (excl. 中国 Zhongguo (China)) | 61.9% |
| South America | 60.6% |
| Россия Rossiya (Russia) | 58.2% |
| United States | 55.4% |
| Other | 49.2% |
| Central America | 42.1% |
| Middle East | 41.8% |
| Africa | 31.4% |
Section 2 What Other Countries Have Done to Increase Their Access to Affordable Child Care
The 8 Top Rated Countries with the Highest Access to Affordable Child Care
Sverige (Sweden)
Sverige's approach to affordable childcare is widely considered a global model. The Sverige dish childcare system, known as "Förskola" (preschool), is available to all children from age one, with fees capped at a maximum of 3% of family income for the first child, 2% for the second child, and 1% for the third child—and no charge for four or more children.
This "maxtaxa" (maximum fee) system was introduced in 2002 and ensures that all families, regardless of income, can access high-quality early childhood education. Sverige allocates approximately 1.6% of GDP to early childhood education and care (ECEC). The Sverige Social Insurance Agency (Försäkringskassan, www.forsakringskassan.se) administers the parental leave system, which provides 480 days of paid parental leave per child, with 90 days reserved specifically for each parent to encourage gender equality in caregiving.
The Swedish National Agency for Education (Skolverket, www.skolverket.se) sets national curriculum standards for preschools. Municipalities are legally required to provide childcare places within four months of a parent requesting one.
The Sverige Association of Local Authorities and Regions (SALAR, skr.se) coordinates implementation at the local level. Private providers operate under the same regulatory standards and receive equivalent public funding per child.
Danmark (Denmark)
Danmark guarantees subsidized childcare for all children from six months of age, with the government covering at least 75% of childcare costs. Parent fees are capped at 25% of the actual operating cost of daycare, with additional income-based subsidies for low-income families that can reduce fees to near zero. The Danish Ministry of Children and Education (www.uvm.dk) oversees the national framework.
Municipalities are obligated to offer a childcare place to all children from 26 weeks of age through the Act on Day-Care Facilities. The Danish childcare system integrates early education with social care, emphasizing play-based learning, democratic participation, and child well-being.
The National Board of Social Services (Socialstyrelsen, www.socialstyrelsen.dk) provides quality oversight.
Danmark also offers a home care allowance for parents who prefer to provide childcare at home during the early years, reflecting a holistic approach to family support. Staff qualifications are strictly regulated, with most childcare workers holding a Bachelor's degree in Social Education.
Norge (Norway)
Norge's childcare system, known as "barnehage," is governed by the Kindergarten Act, which guarantees childcare for all children from age one. The maximum monthly fee is set nationally by the government—currently capped at approximately NOK 3,000 (~$280 USD) per month, with free childcare for the lowest-income families.
The Norge Ministry of Education and Research (www.regjeringen.no) sets policy and funding frameworks.
The Norge Directorate for Education and Training (Utdanningsdirektoratet, www.udir.no) supervises quality standards through a Framework Plan for Kindergartens.
As of 2022, over 92% of all children aged 1–5 attend publicly subsidized kindergartens. Municipalities are required by law to provide sufficient places to meet all demand. Norge also provides a cash benefit (kontantstøtte) for families of toddlers not enrolled in kindergartens.
The government has invested heavily in staff training and reducing fees for low-income families through supplementary subsidies. Norge's investment in ECEC amounts to approximately 1.5% of GDP annually.
Suomi (Finland)
Suomi's early childhood education and care (ECEC) system is universally available to every child under school age (7 years). The Early Childhood Education and Care Act guarantees each child the right to childcare provided by the municipality. Monthly fees are calculated on a sliding scale based on family size and income, with a maximum fee of €295 per month (2023). Free pre-primary education is provided to all five-year-olds, with full-day options available.
The Suomi National Agency for Education (Opetushallitus, www.oph.fi) develops the national curriculum core document for ECEC, which guides all providers.
The Ministry of Education and Culture (minedu.fi) funds the national framework. Suomi's ECEC staff could have a Bachelor's degree in Early Childhood Education. The system emphasizes holistic child development, outdoor learning, and play-based pedagogy.
Suomi invests approximately 1.2% of GDP in ECEC. The government has also expanded access for children with special needs and immigrant families through dedicated support programs run by municipal social services.
République française (France)
République française operates a mixed childcare system combining publicly funded "crèches" (nurseries) for children under three, a network of regulated family day care providers ("assistantes maternelles"), and free universal preschool ("école maternelle") beginning at age three.
The Family Allowance Fund (Caisse nationale des allocations familiales — CNAF, www.caf.fr) administers financial support for families, including the Complément de libre choix du mode de garde (CMG), an income-based subsidy that offsets a significant portion of childcare costs.
The Ministry of Solidarity and Health (solidarites-sante.gouv.fr) and the Ministry of National Education (solidarites-sante.gouv.fr) jointly oversee ECEC policy. Income-based sliding-scale fees for public crèches ensure affordability across income levels. The French government has committed to creating 200,000 additional childcare places over a five-year period as part of its "service public de la petite enfance" (public childcare service) initiative launched in 2023. (www.education.gouv.fr)
Tax credits for childcare expenses (Crédit d'impôt pour frais de garde) provide additional relief for working families. Quality standards are enforced by the Departmental Maternal and Child Health Services (PMI).
Deutschland (Germany)
Deutschland guarantees every child the legal right to childcare beginning at age one under the Child Promotion Act (Kinderförderungsgesetz — KiföG). Childcare centers (Kindertagesstätten or "Kitas") are operated by municipalities, non-profit associations (such as Caritas and Diakonie), and private providers. Fees vary by state and income, with some states such as Berlin and Hamburg offering fully fee-free childcare.
The Federal Ministry for Family Affairs, Senior Citizens, Women and Youth (BMFSFJ, www.bmfsfj.de) coordinates national ECEC policy and distributes federal funding. The Good Day Care Act (Gute-KiTa-Gesetz, 2019) allocated €5.5 billion for improving quality and reducing fees.
The Elterngeld (parental benefit) program provides 65–67% of net income replacement for up to 14 months following the birth of a child, administered by the Federal Office for Family and Civil Society Tasks (BAFzA, www.bafza.de).
The German Youth Institute (DJI, www.dji.de) conducts ongoing research on childcare adequacy and quality. Deutschland continues to expand places for children under three as demand has consistently exceeded supply in major urban areas.
Nederland (Netherlands)
The Nederland employs a childcare subsidy system (kinderopvangtoeslag) administered by the Tax and Customs Administration (Belastingdienst, www.belastingdienst.nl), which reimburses families up to 96% of childcare costs for the lowest income bracket.
The Childcare Act (Wet kinderopvang) establishes quality standards, licensing requirements, and the subsidy framework. The Ministry of Social Affairs and Employment (www.rijksoverheid.nl) oversees the system.
As of 2023, the Dutch government is implementing a major reform to move toward a publicly managed system that reduces costs even further aiming to limit parental contributions to approximately 4% of childcare costs, with the state covering the remainder.
The Social Support Act (WMO) provides additional childcare support for vulnerable families. Quality oversight is conducted by the Municipal Health Services (GGD, www.ggd.nl).
The Nederland also provides a network of "peuterspeelzalen" (toddler play groups) to ensure all children, including those not in formal childcare, receive early socialization and developmental support.
United Kingdom
The United Kingdom provides 15 free hours of early education per week for all three- and four-year-olds, expandable to 30 hours for working families who meet income thresholds—a program administered by the Department for Education (www.gov.uk).
In 2023, the UK announced a major expansion to extend free childcare to children from nine months old by September 2025.
Universal Credit includes a childcare element that reimburses up to 85% of childcare costs for low-income working families, administered through the Department for Work and Pensions (www.gov.uk).
Tax-Free Childcare accounts (administered by HMRC, www.gov.uk) allow families to receive up to £2,000 per child per year from the government toward childcare costs.
Ofsted (www.ofsted.gov.uk) regulates and inspects all registered childcare providers in England.
The Early Years Foundation Stage (EYFS) framework sets standards for the learning, development, and care of children from birth to five. The Childcare Act 2006 underpins the duty of local authorities to ensure sufficient childcare for working parents.
Section 3 What the U.S. Could Do to Increase Its Access to Affordable Child Care
Overview
The United States can substantially improve access to affordable child care through a combination of federal legislation, increased public investment, regulatory reforms, corporate initiatives, and community-based programs. A comprehensive national strategy could address the dual challenge of affordability for families and financial sustainability for childcare providers, many of whom operate on extremely thin margins.
Federal Government Agencies
The Department of Health and Human Services (HHS), through its Office of Child Care (OCC, www.acf.hhs.gov), could significantly expand the Child Care and Development Fund (CCDF) to reach all eligible low- and moderate-income families, not merely the roughly 15% currently served.
The Administration for Children and Families (ACF, www.acf.hhs.gov) could establish minimum national subsidy rates that are tied to market rates and updated annually to reflect the true cost of quality care.
The Department of Education (www.ed.gov) could invest in a universal pre-K system beginning at age three, building on the existing Head Start (www.ed.gov) and Early Head Start programs, which currently serve fewer than half of eligible infants, toddlers, and preschoolers. (eclkc.ohs.acf.hhs.gov)
The Internal Revenue Service (IRS) could expand the Child and Dependent Care Tax Credit (CDCTC) to make it fully refundable and increase the maximum credit amount to meaningfully offset the cost of childcare for low- and middle-income families.
The Department of Labor (www.dol.gov) could establish and enforce standards for paid family and medical leave, enabling parents to care for newborns without financial penalty before returning to work and accessing formal childcare.
Government Officials
The President of the United States could make early childhood education a national priority, proposing and signing comprehensive childcare reform legislation, including provisions for universal pre-K and expanded childcare subsidies.
Members of Congress—particularly those on the Senate Health, Education, Labor, and Pensions (HELP) Committee (www.help.senate.gov) and the House Education and the Workforce Committee (www.help.senate.gov)—could strive to advance bipartisan legislation authorizing sustained federal investment in the childcare infrastructure. (edworkforce.house.gov)
State Governors and State Legislators could act to supplement federal funding with state appropriations, expand state-administered subsidy programs, establish or strengthen licensing and quality standards for childcare providers, and develop workforce development programs for childcare workers.
City and County officials could zone for childcare facilities, provide municipal subsidies and tax incentives for providers, and partner with school districts to co-locate early childhood programs with K–12 schools to reduce overhead costs.
Corporations and Employers
Large employers have a significant role to play in expanding access to affordable childcare. Corporations such as Amazon (www.aboutamazon.com), Microsoft (www.aboutamazon.com), and JPMorgan Chase (www.aboutamazon.com) could establish or expand on-site or near-site childcare centers for employees, offer Dependent Care Flexible Spending Accounts (DCFSAs) at maximum contribution limits, and provide direct childcare subsidies or backup care benefits through partners such as Bright Horizons (www.aboutamazon.com) or Care.com (www.aboutamazon.com). (www.microsoft.com) (www.jpmorganchase.com) (www.brighthorizons.com) (www.care.com)
The U.S. Chamber of Commerce (www.uschamber.com) and the Business Roundtable (www.uschamber.com) could develop and promote industry-wide standards for employer-supported childcare benefits. (www.businessroundtable.org)
Corporations could also advocate publicly for federal and state childcare policy reform, recognizing that accessible childcare directly increases workforce participation, reduces employee turnover, and improves productivity. Small and medium-sized businesses could form childcare consortiums to pool resources and collectively fund shared childcare facilities for their employees.
Private Organizations and Nonprofits
The National Association for the Education of Young Children (NAEYC, www.naeyc.org) could continue to set quality standards for early childhood programs and accredit providers, while expanding training and professional development resources for childcare workers.
Child Care Aware of America (www.childcareaware.org) provides technical assistance and advocacy support and could expand its network of childcare resource and referral agencies.
Organizations such as Zero to Three (www.zerotothree.org), the Children's Defense Fund (www.zerotothree.org), and the BUILD Initiative (www.zerotothree.org) could coordinate advocacy campaigns to raise public awareness and sustain political will for childcare reform. Philanthropic foundations, including the Bill and Melinda Gates Foundation (www.zerotothree.org) and the W.K. Kellogg Foundation (www.zerotothree.org), could direct grant funding toward childcare provider capacity building, workforce development, and innovation in childcare delivery models. (www.childrensdefense.org) (buildinitiative.org) (www.gatesfoundation.org) (www.wkkf.org)
Private Individuals
Private individuals—including parents, community leaders, and childcare professionals—can and could contribute to improving access to affordable childcare. Parents could organize advocacy groups and communicate directly with elected officials at the local, state, and federal level to demand policy action.
Community members can volunteer with and financially support local childcare centers, Head Start programs, and family resource centers.
Licensed family childcare providers could pursue NAEYC accreditation and access professional development resources to improve quality and earn higher subsidy rates.
Faith-based communities and neighborhood organizations can open church halls, community centers, and other spaces as licensed, affordable childcare sites, assisted by technical support from their state Child Care Resource and Referral (CCR&R) networks.
Researchers and academics could continue to document the economic and social returns on investment in early childhood care and education, contributing to the evidence base that supports policymakers in prioritizing and funding childcare expansion.
Section 4 References
References for Section 2 and Section 3
1. Organisation for Economic Co-operation and Development (OECD) Family Database – Childcare and Early Education: (www.oecd.org)
2. UNICEF – Early Childhood Development: (www.unicef.org)
3. World Policy Analysis Center – Work & Family Policies: (www.worldpolicycenter.org)
4. Swedish Social Insurance Agency (Försäkringskassan): (www.forsakringskassan.se)
5. Swedish National Agency for Education (Skolverket): (www.skolverket.se)
6. Danish Ministry of Children and Education: (www.uvm.dk)
7. Norwegian Ministry of Education and Research: (www.regjeringen.no)
8. Norwegian Directorate for Education and Training: (www.udir.no)
9. Finnish National Agency for Education: (www.oph.fi)
10. République française – Caisse nationale des allocations familiales (CNAF): (www.caf.fr)
11. German Federal Ministry for Family Affairs (BMFSFJ): (www.bmfsfj.de)
12. German Youth Institute (DJI): (www.dji.de)
13. Nederland Tax and Customs Administration – Kinderopvangtoeslag: (www.belastingdienst.nl)
14. Nederland GGD Childcare Oversight: (www.ggd.nl)
15. UK Department for Education: (www.gov.uk)
16. UK Department for Work and Pensions: (www.gov.uk)
17. Ofsted – UK Childcare Inspection: (www.ofsted.gov.uk)
18. U.S. Office of Child Care (OCC) – HHS: (www.acf.hhs.gov)
19. Administration for Children and Families (ACF): (www.acf.hhs.gov)
20. U.S. Department of Education: (www.ed.gov)
21. Head Start – Early Childhood Learning and Knowledge Center: (eclkc.ohs.acf.hhs.gov)
22. U.S. Department of Labor: (www.dol.gov)
23. National Association for the Education of Young Children (NAEYC): (www.naeyc.org)
24. Child Care Aware of America: (www.childcareaware.org)
25. Zero to Three: (www.zerotothree.org)
26. Children's Defense Fund: (www.childrensdefense.org)
27. Economic Policy Institute – Child Care Costs: (www.epi.org)
28. BUILD Initiative: (buildinitiative.org)
29. Bright Horizons – Employer Childcare: (www.brighthorizons.com)
30. U.S. Senate HELP Committee: (www.help.senate.gov)
31. House Education and the Workforce Committee: (edworkforce.house.gov)
32. W.K. Kellogg Foundation: (www.wkkf.org)
33. Bill and Melinda Gates Foundation: (www.gatesfoundation.org)
Section 5: U.S. Organizations Advocating to Improve Affordable Child Care
| Organization Name | Contact Information | Primary Activity in This Area |
|---|---|---|
| Child Care Aware of America |
www.childcareaware.org info@childcareaware.org (703) 341-4100 |
National nonprofit leading efforts to advance affordable, high-quality child care for all American families through policy advocacy, data publication, and capacity building. Publishes the annual State Fact Sheets on child care costs and advocates for expanded Child Care and Development Block Grant funding and universal pre-K. |
| National Women's Law Center (NWLC) |
www.nwlc.org (202) 588-5180 |
Legal and policy organization advocating for affordable child care and paid family leave as essential tools of gender equity and economic security. Publishes state-by-state child care cost reports and lobbies Congress for universal child care subsidies and expansion of the Child and Dependent Care Tax Credit. |
| First Five Years Fund |
www.ffyf.org info@ffyf.org (202) 424-2114 |
Bipartisan advocacy organization working to increase federal investment in early childhood programs for children from birth through age five. Coordinates a broad business and civic coalition to advance federal legislation expanding Head Start, child care subsidies, and pre-K access. |
| Center for American Progress (CAP) |
www.americanprogress.org (202) 682-1611 |
Think tank publishing influential research on child care costs, workforce participation, and policy solutions including universal pre-K and federal subsidy expansion. CAP's child care cost analyses have been cited extensively in Congressional hearings and presidential policy proposals. |
| Zero to Three |
www.zerotothree.org info@zerotothree.org (202) 638-1144 |
National nonprofit focused on the healthy development of infants and toddlers, advocating for federal and state policies that fund high-quality, affordable child care for children under three. Trains practitioners, conducts policy research, and mobilizes parents to advocate for early childhood investments. |
| Economic Policy Institute (EPI) |
www.epi.org (202) 775-8810 |
Research institute publishing rigorous analyses of child care costs, workforce impacts, and the economic case for public investment in universal child care and pre-K. EPI's finding that child care costs more than college tuition in most states has become the standard benchmark cited in national policy debates. |
| National Association for the Education of Young Children (NAEYC) |
www.naeyc.org naeyc@naeyc.org (800) 424-2460 |
Professional association representing early childhood educators, advocating for federal investment in affordable, high-quality child care and improved compensation for child care workers. Sets quality standards for early childhood programs and accredits thousands of child care centers nationwide. |
Section 6: Individuals Advocating to Improve Affordable Child Care
| Name, Title & Contact | Selected Publications on Affordable Child Care |
|---|---|
| Sara Mead Partner, Bellwether Education Partners; Child Care and Early Education Policy Expert |
(1) "The Availability and Cost of Child Care in the United States," Child Trends, 2018 — Comprehensive national analysis of child care supply, cost, and quality gaps informing federal and state subsidy and regulatory proposals.. (2) "Building a Better Child Care System: Opportunities and Challenges for Federal Policy," Bellwether Education Partners, 2020 — Policy brief outlining a framework for federal child care reform, including subsidy design, quality standards, and workforce compensation.. (3) "Pre-K Debates: Emerging Research and Policy Issues," Educational Researcher, 2015 — Reviewed competing evidence on pre-K program effectiveness and offered a synthesis guiding policymakers on which program models merit investment.. |
| Rasheed Malik Senior Policy Analyst, Center for American Progress; Child Care Policy Expert rmalik@americanprogress.org |
(1) "Working Families Are Spending Big Money on Child Care," Center for American Progress, 2019 — Documented that families in every state spend more than 10% of their income on child care, establishing the widely cited affordability threshold for federal subsidy policy.. (2) "The Effects of Universal Preschool in Washington, D.C.," Center for American Progress, 2018 — Evaluated DC's universal pre-K program and found significant cognitive and social gains for children in families at all income levels, making the case for universal access.. (3) "New America: The Landscape of Early Care and Education," New America Foundation, 2017 — Mapped the fragmented U.S. child care landscape and identified the policy architecture needed to create an affordable, high-quality universal system.. |
| Heather Boushey, PhD President and CEO, Washington Center for Equitable Growth; Former Member, White House Council of Economic Advisers hboushey@equitablegrowth.org |
(1) "Finding Time: The Economics of Work-Life Conflict," Harvard University Press, 2016 — Analyzed how lack of affordable child care forces parents — especially mothers — out of the workforce, costing the economy hundreds of billions annually in lost productivity.. (2) "The Role of Child Care in Economic Security," Washington Center for Equitable Growth, 2019 — Quantified the macroeconomic costs of inadequate child care access and the returns to public investment in universal subsidies in terms of maternal labor force participation.. (3) "Unbound: How Inequality Constricts Our Economy and What We Can Do About It," Harvard University Press, 2019 — Made the economic case that affordable child care is structural infrastructure essential to a well-functioning labor market and broad-based economic growth.. |
| Jane Waldfogel, PhD Compton Foundation Centennial Professor for the Prevention of Children and Youth Problems, Columbia University School of Social Work jw205@columbia.edu |
(1) "What Children Need," Harvard University Press, 2006 — Outlined the evidence for public investment in quality child care and parental leave as determinants of child development outcomes across the income spectrum.. (2) "Britain's War on Poverty," Russell Sage Foundation, 2010 — Compared the UK's comprehensive child care and family support investment with U.S. policy gaps, finding that the UK approach dramatically reduced child poverty through integrated early childhood support.. (3) "Too Many Children Left Behind: The U.S. Achievement Gap in Comparative Perspective," Russell Sage Foundation, 2015 — Documented how the absence of universal early childhood programs in the U.S. creates achievement gaps that persist through adulthood, costing the economy in reduced lifetime earnings.. |
| Daphna Bassok, PhD Associate Professor, University of Virginia Curry School of Education; Early Childhood Policy Researcher db5dw@virginia.edu |
(1) "Is Kindergarten the New First Grade?," AERA Open, 2016 — Documented the shift toward academic instruction in kindergarten and its implications for child care policy, arguing that the changing educational landscape requires integrated support from infancy.. (2) "Why Have Preschool Enrollment Rates Stagnated?," Journal of Policy Analysis and Management, 2015 — Analyzed the stagnation in preschool enrollment despite evidence of effectiveness, finding cost and availability barriers as primary drivers and informing subsidy and supply-side interventions.. (3) "Child Care Quality and Early Learning Outcomes," American Economic Review: Papers and Proceedings, 2019 — Showed that quality variation in child care has significant effects on kindergarten readiness, supporting tiered quality rating systems and funding for quality improvement.. |
| Gina Adams Senior Fellow, Urban Institute; Child Care and Early Education Policy Expert gadams@urban.org |
(1) "How Are Low-Income Families Faring in the Child Care Subsidy System?," Urban Institute, 2018 — Documented the barriers low-income families face in accessing child care subsidies, including waiting lists, paperwork burdens, and insufficient funding, and proposed administrative reforms.. (2) "Child Care Subsidies for Working Poor Families," Urban Institute, 2016 — Analyzed the reach and adequacy of the Child Care and Development Fund, finding significant gaps in coverage and recommending funding increases to serve all eligible families.. (3) "Delivering Child Care Subsidies Effectively to Families and Providers," Urban Institute, 2020 — Evaluated administrative improvements to child care subsidy delivery that reduce burden on families and providers while improving continuity of care.. |
| Christopher Ruhm, PhD James Madison Professor of Public Policy and Economics, University of Virginia ruhm@virginia.edu |
(1) "Parental Leave and Child Health," Journal of Health Economics, 2000 — Evaluated European parental leave policies and child outcomes, finding that paid leave and quality child care investments reduce infant mortality and improve developmental outcomes.. (2) "The Economic Consequences of Parental Job Loss," American Economic Review, 2004 — Documented the long-term earnings costs to parents — especially mothers — of inadequate child care infrastructure, supporting the economic case for public investment.. (3) "Are Recessions Good for Your Health?," Quarterly Journal of Economics, 2000 — Demonstrated that labor market conditions affecting parents directly impact child health outcomes, linking affordable child care access to children's physical and cognitive wellbeing.. |
Frequently Asked Questions
How does the United States rank globally for affordable child care access?
The United States ranks 33rd out of 35 top countries measured for affordable child care access, with a composite access score of 55.4% for 2022–2023. This low ranking reflects the absence of a universal, federally subsidized child care system, unlike most peer nations in Western Europe and Scandinavia.
How much does child care cost the average American family?
Child care in the United States averages between $10,000 and $30,000 per child per year depending on the state and type of care. Infant care alone averages $1,230 per month nationally, which represents roughly 19% of the median family income.
What federal assistance exists for child care costs in the United States?
The primary federal assistance program is the Child Care and Development Fund (CCDF), administered by the Department of Health and Human Services. However, as of 2023, only about 15% of eligible low-income children actually received federally subsidized child care assistance due to limited funding and high demand.
How does Sweden make child care affordable for all families?
Sweden caps child care fees at a maximum of 3% of family income for the first child, 2% for the second, and 1% for the third, with no charge for four or more children under its 'maxtaxa' system introduced in 2002. The government allocates approximately 1.6% of Gross Domestic Product (GDP) to early childhood education and municipalities are legally required to provide a child care place within four months of a parent's request.
What does Denmark do differently to make child care accessible?
Denmark guarantees subsidized child care for all children from six months of age, with the government covering at least 75% of child care operating costs. Parent fees are capped at 25% of actual daycare costs, and additional income-based subsidies can reduce fees to near zero for low-income families.
What is the main structural reason the US spends less on child care than peer nations?
The United States relies predominantly on a market-based child care model where families bear the full cost of care, with no federal mandate guaranteeing affordable access. U.S. federal investment in early childhood education ranks among the lowest of Organisation for Economic Co-operation and Development (OECD) member nations as a percentage of Gross Domestic Product (GDP), in sharp contrast to countries like Sweden and Denmark that treat child care as a publicly funded social service.
About the Author
Ronald Bonfilio has devoted his career to public service spanning more than five decades. His service began with the U.S. Army from 1966 to 1968, where he conducted medical laboratory research at Fort Detrick and at the Walter Reed Army Institute of Research. He subsequently held a distinguished series of federal positions, including roles with the National Cancer Institute, the National Institutes of Health, the U.S. Agency for International Development (Vietnam), the Special Inspector General for Iraq Reconstruction, and the U.S. State Department (Iraq), where he served as a Senior Economic Advisor and Agricultural Advisor. He also served 15 years with the U.S. Government Accountability Office as a Program Analyst and Auditor.
Ronald Bonfilio holds a degree in Economics from the University of Maryland, and degrees in Chemistry and a Master of Business Administration from the University of Massachusetts. He is a former Certified Public Accountant.