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'This is the worst I've seen it in 30 years:' Federal funding for childcare services ends this month, but the system is still struggling

Federal funding for childcare services from the American Rescue Plan Act ends on Sept. 30.

PENNSYLVANIA, USA — Federal funding for childcare services provided by the American Rescue Plan Act (ARPA) is set to expire on Sept. 30.

But childcare professionals say they're still struggling to survive in a broken system.

"It's not pretty out there right now," said Diane Barber, executive director of the Pennsylvania Childcare Association (PCCA). "This is the worst I've seen it in 30 years."

ARPA provided nearly $40 billion to the states to help with childcare services during and after the COVID-19 pandemic. Pennsylvania received more than $700 million.

Childcare professionals fear without the funding, their current system is only going to get worse.

According to The Century Foundation, 3,000 childcare centers are expected to close in Pennsylvania once federal aid dries up. They also estimate more than 150,000 kids will lose childcare services and 11,000 childcare workers will lose their jobs.

But even with a job, childcare professionals say they're not fully compensated. While federal aid helped pay workers during and after the pandemic, it didn't solve the problem of low wages. 

Earnings failed to meet the cost of living in 100% of Pennsylvania counties, according to a 2023 report from Children First PA. Many workers left childcare entirely for other industries during the pandemic.

When the federal aid ends, childcare professionals say the staffing shortage is going to be at its worst. But their biggest concern is what happens to the children left behind.

"My biggest fear is that children are placed in unsafe environments," said Barber. "If a family, out of desperation, responds to a Craigslist ad, but it doesn't say anything about who else lives in that household or whether they have child abuse clearances. My biggest fear is the child will get hurt."

Barber says five childcare centers closed in the past two weeks because of staffing shortages. She also says many childcare centers have extremely long waiting lists. Some centers have over 30 kids waiting for only one spot.

Federal aid for childcare services will end on Sept. 30.

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