Childcare costs and waitlists drive financial distress for U.S. families

High childcare costs are creating significant financial distress for American families and impacting labor force participation. A Brookings report indicates that in 2024, approximately 16 million families—representing 59% of households with children under 12—experienced financial hardship, with 4 million citing childcare expenses as the primary cause.

In states like Louisiana, families without subsidies report paying an average of $11,000 annually per child. While federal and state-funded assistance exists for low-income and vulnerable families, hundreds of thousands of children remain on waitlists across 23 states and the District of Columbia. In Louisiana specifically, the number of eligible children on waitlists rose by 70% in a single year.

Policy discussions are also evolving. Sarah Rittling of the First Five Years Fund noted discussions regarding the potential expansion of federal childcare subsidy eligibility to include married couples where one parent remains at home.