VIRGINIA BEACH, Va. — On September 30, American Rescue Plan funds— totaling $24 billion for child care stabilization— will expire.
An estimated 220,000 child care programs benefited from the $24 billion in funding, according to the Department of Health and Human Services. But now, an estimated 70,000 programs are projected to close, causing 3.2 million children to lose care, according to a new study by the Century Foundation.
That study says this could also result in tuition hikes or layoffs at daycare centers, potentially worsening the child care shortage and lessening access to affordable child care for many families.
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In Virginia, Senator Tim Kaine (D) is hopeful that despite this and a potential government shutdown, families will still get help.
“Last year in the year-end budget deal, we were able to significantly increase childcare funding and Head Start funding with Republican support because many of my colleagues are hearing about this not only from families, but hearing about it from businesses, that we need more high-quality affordable child care,” Sen. Kaine stated. “If we can do this short-term spending bill and then reach a full year, fiscal year ’24 budget deal by November 17, I am hopeful that in that deal, we will include the same kind of robust increases for child care funding that we were able to do in last year’s budget deal.”
News 3 talked with multiple daycares in Hampton Roads that said they are not planning to close. However, one which did not want to be named, received grant money, but said they’re still having trouble hiring more workers, so they’ve adjusted hours.
The YMCA of South Hampton Roads said it will not be closing any centers.
“Closing facilities is something we do everything we can to prevent, and it’s not on the horizon for us,” said Chief Operating Officer Adam Kahrl.
Kahrl said they anticipate getting even busier if some area daycare centers are forced to close.
“We do have some locations that have waitlists," said Kahrl. "And when that happens, we try to again make referrals to other locations or work with those families to find a way to provide them alternate care.”
