For a moment, it seemed like the U.S. could finally have a functional child-care system, but the Build Back Better Act, which included $400 billion in funding to boost wages for child-care providers and cap costs for families, was ultimately killed by Senate Democrats and Republicans. The American child-care system remains trapped by a paradox where providers cannot pay staff well without increasing fees, rendering it too expensive for many families to afford. While the Biden administration and some states have turned to employers to fill the gap, these measures are quarter measures at best, leaving gig workers and millions of other families without benefits. The child-care system needs a large infusion of permanent public funds to support educators and meet rising demand for slots. The most effective solution is a publicly funded system that includes a payroll tax, similar to Vermont’s model, and provides stipends for stay-at-home parents and general child-rearing costs. A universal and free child-care plan, tied to pro-family policies like paid family leave, would enjoy broad support and be a powerful campaign issue.
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