Child Care Funding Released in American Rescue Plan

April 15, 2021
ACF Issues:

Today, President Joe Biden announced the release of $39 billion in child care relief funds to provide relief for child care providers and provide support for families that need help affording child care.

Many child care providers face the possibility of permanent closure due to decreased enrollment and to the higher costs of mitigating the coronavirus spread. Child care offers families the dual benefit of early childhood education for young children and support for working parents. As many mothers have been forced out of the labor force in the wake of the COVID-19 health emergency, child care is a critical support for our economic recovery.

On March 11, 2021, the president signed a $1.9 trillion emergency relief bill - t
he American Rescue Plan Act (ARPA) - aimed at providing economic relief to the nation’s families, workers and businesses.  

The child care grants will be awarded on a formula basis to states, territories, and tribes for two types of ARPA child care funding: 

Today’s release marks the single largest investment in child care in our nation’s history. “This is a momentous and long overdue investment in our nation’s child care providers and families. Child care providers have worked on the frontlines during the COVID-19 pandemic,” said JooYeun Chang, acting assistant secretary and principal deputy assistant secretary at HHS’ Administration for Children and Families.   “This Administration is focused on providing financial relief to this critical sector which includes many women of color. We also want to lay a foundation to build a system that meets the needs of children, families, and child care providers.”

Funds will support stabilization grants to child care providers to cover their operating expenses as they face less revenue and higher expenses during the pandemic. In addition, states, tribes and territories have the flexibility to fund child care assistance for low-income families and essential workers and make quality investments needed to address recovery from the pandemic. 

“These funds are absolutely vital to support child care providers and families and our country’s economic recovery,” said Katie Hamm, acting deputy assistant secretary for HHS’ Office of Early Childhood Development. “We finally have the resources to invest in child care in smarter ways, and that includes supporting parents in accessing convenient child care options in their community that aligns with their job schedule and paying child care providers fair rates to support quality child care.”

 

Quick Facts

  • The child care grants will be awarded on a formula basis to states, territories, and tribes for two types of ARPA child care funding.
  • Includes $24 billion in Child Care Stabilization Grants.
  • Includes also $15 billion in supplemental Child Care and Development Fund (CCDF) monies.

Quotes

“This is a momentous and long overdue investment in our nation’s child care providers and families."
— JooYeun Chang, acting assistant secretary and principal deputy assistant secretary at HHS’ Administration for Children and Families
“This Administration is focused on providing financial relief to this critical sector with an equity lens that recognizes the importance of this sector led by women, and especially women of color."
— JooYeun Chang, acting assistant secretary and principal deputy assistant secretary at HHS’ Administration for Children and Families
"We also want to lay a foundation to build a system that meets the needs of children, families, and child care providers.”
— JooYeun Chang, acting assistant secretary and principal deputy assistant secretary at HHS’ Administration for Children and Families
“These funds are absolutely vital to support child care providers and families and our country’s economic recovery.”
— Katie Hamm, acting deputy assistant secretary for HHS’ Office of Early Childhood Development
“We finally have the resources to invest in child care in smarter ways, and that includes supporting parents in accessing convenient child care options in their community that aligns with their job schedule and paying child care providers fair rates to support quality child care.”
— Katie Hamm, acting deputy assistant secretary for HHS’ Office of Early Childhood Development

Contact

Administration for Children & Families
Office of Communications
330 C Street, S.W.
Washington, D.C. 20201

Phone: (202) 401-9215
Fax: (202) 205-9688
Email: media@acf.hhs.gov