Three million children set to lose child care with expiration of federal funding

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Three million children set to lose child care with expiration of federal funding

Ashleigh Proctor and Josephine Kalipeni, executive director of Family Values at Work, join 'FOX & Friends' to discuss the impact of high child care costs on families as federal funding is set to expire Saturday. 

Families across the country are bracing for the end of pandemic-era programs that, for many, are the only things keeping child care affordable.

Federal funding from President Biden's American Rescue Plan expires this Saturday — the end of fiscal year 2023. 

One key area in which U.S. families could see the most immediate effect is child care.

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President Biden speaks in the Rose Garden of the White House in Washington during an event to highlight the American Rescue Plan funding. (AP Photo/Susan Walsh)

According to research by the Century Foundation, the approaching end of the American Rescue Plan funding could affect the care of over 3 million children.

"More than 70,000 child care programs—one-third of those supported by American Rescue Plan stabilization funding—will likely close, and approximately 3.2 million children could lose their child care spots."

The reported added, "The loss in tax and business revenue will likely cost states $10.6 billion in economic activity per year."

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The child care industry is in a uniquely compromised position following the yearslong pandemic.

While other sectors have bounced back, childcare services remain understaffed and prohibitively expensive for many families.

"The reality is the child care industry was already suffering before the pandemic. It was already under-invested in. Many families could not afford child care," Family Values at Work Executive Director Josephine Kalipeni told "Fox & Friends" in an interview. "These dollars are set to expire if Congress doesn't act, putting many families […] in crisis."

Josie Kalipeni of Family Values at Work speaks at a press conference supporting investments in home care, childcare, paid leave and expanded CTC payments in front of the Capitol Building in Washington, D.C. (Photo by Paul Morigi/Getty Images for MomsRising Together)

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In approximately 28 states, child care has become functionally more expensive for families than college tuition.

"When the ARPA stabilization funds cease, child care will be starved of resources," the Century Foundation claims. "The child care staffing shortage that preceded and continued through the pandemic will return with a vengeance, putting upward pressure on prices as child care businesses choose between raising wages to attract early educators—or going out of business."