Senate Finance Committee examines the State of Child Care

On July 9, 2024, the Senate Finance Committee held a hearing titled "Examining the State of Child Care: How Federal Policy Solutions Can Support Families, Close Existing Gaps, and Strengthen Economic Growth." This hearing addressed the urgent child care crisis in the United States. The panel of expert witnesses included

• Fatima Goss Graves, the CEO and President of the National Women's Law Center

•  Dr. Megan Pratt, an Assistant Professor of Practice at the College of Health, Oregon State University

• Dr. Katherine B. Stevens, the Founder and President of the Center on Child and Family Policy

• Ryan Page, the Director of Child Care at the Iowa Department of Health and Human Services. 

Throughout their testimonies, these experts delved into the challenges and potential solutions for enhancing the state of child care in the country, with a focus on supporting families and strengthening economic growth.

During the finance committee hearing, Chairman Ron Wyden (D-Oregon) opened the session by expressing deep concern about the challenges faced by millions of hardworking families in meeting their tax obligations while still struggling to afford essential needs like child care. He specifically drew attention to the introduction of the Building Child Care for a Better Future Act, a bill that he has co-sponsored with Senator Warren (D-Mass.). This proposed legislation is geared towards improving the accessibility and affordability of child care services. The bill seeks to allocate an additional $6.45 billion in mandatory child care funding to the states, bringing the total guaranteed yearly funding to $10 billion.

Fatima Goss Graves opened her testimony with appreciation for the lawmakers' diligent leadership in addressing the pressing issue of child care reform. She emphasized that while some measures have been put in place, they have not adequately tackled the complex and enduring structural flaws that undermine the child care system. Graves highlighted that these flaws perpetuate deep-seated inequalities, disproportionately impacting vulnerable families and children across the nation. She stressed the urgent need for comprehensive reforms that go beyond short-term fixes, advocating for policies that address accessibility, affordability, and quality of child care services. She stated, “ It does not have to be this way. We can and must do better.” As an example, Grave’s written testimony highlights the challenge of a mother in South Carolina, with school-aged children including one with special needs. The mother had to refuse a job opportunity due to lack of available and affordable afterschool care. “Having two additional hours of care between 3 p.m. and 5 p.m.,” Graves noted, “can be the difference in taking a better-paying, career-aligned job.” While expressing her concern on these matters, she proposes an additional $16 billion in child care stabilization funds.Graves underscored the importance of an approach that considers the diverse needs of families, supports child care providers, and ensures equitable opportunities for all children to thrive. 

Dr. Megan Pratt shared her deep-rooted appreciation for the vital work of child care providers, drawing from her first hand experiences in the field. She emphasized her unwavering commitment to nurturing and supporting the families and children under her care, underscoring the passion that drove her work. Dr. Pratt described the grueling and exhausting hours that she and her fellow child care providers faced, along with the significant wage disparity when compared to other departments in their professions. Expanding on the pressing issues facing the child care industry, Pratt elaborated on the critical shortage of accessible child care services. She added a personal perspective on her own challenges with navigating and obtaining summer care for her 7-year-old child, finding despite her privilege as an expert in the child care field, she also could not access the coverage she needed. She emphasized the urgent need for substantial federal and state investments to bolster the industry and stressed the importance of government-funded contracts, as well as the provision of vouchers (i.e. certificates) support to alleviate strain on families.

Ryan Page emphasized the important role of Iowa HHS in providing excellent programs and services that significantly improve the well-being of individuals, families, and communities. During her testimony, she specifically mentions before and afterschool programs. In 2021, Iowa’s Governor Kim Reylonds initiated a Child Care Task Force to address the issues contributing to the child care barrier to work in Iowa. Page said  23% of Iowans live in a “child care desert,” primarily in rural areas. Additionally, she pointed out that Iowa has recognized workforce-related concerns and consequently piloted a program enabling child care providers to access free child care regardless of their income, in efforts to address these challenges. The state is also working on a number of innovative practices around supporting high school students with child care credentials, developing shared service frameworks to support streamlined business practices, and leveraging business and community investments to increase provider wage enhancements.

Dr. Kathleen B. Stevens underscored the importance of shifting the perspectives when addressing child care disparities. She contended that it is imperative for the state, rather than the federal government, to take the main responsibility for children’s education. According to Stevens, the current federal funding mechanisms are obstructing state-driven initiatives aimed at enhancing access to early care and education (ECE) for children. Furthermore, she highlighted that the ECE market is fundamentally flawed as it fails to provide lower-income families with access to high-quality care and education. Stevens advocated for a solution that does not involve replacing the existing child care market, but rather making the market function in a way that serves the needs of lower-income families, especially those who require most require access to quality education.

The Senate Finance Committee’s hearing on the state of child care in the United States underscored the profound challenges facing families and children, while also highlighting potential pathways toward meaningful reform. The testimonies from experts such as Fatima Goss Graves, Dr. Megan Pratt, Ryan Page, and Dr. Kathleen B. Stevens illuminated issues ranging from accessibility and affordability to the quality of child care services nationwide. The link to the full hearing and witness testimonies can be found on the U.S. Senate Committee on Finance’s website.