Giving Compass' Take:
- Millions of children are projected to lose childcare when the federal stabilization funds run out for childcare providers.
- Many programs are relying on federal support funding that might not ever come. What role can donors play in filling gaps and advocating for more state and federal funding?
- Read more about the U.S. childcare crisis.
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In Hopewell, Virginia, about 20 miles southeast of Richmond, Juanterria Browne spends her days providing child care for children with disabilities, a demographic for which it is notoriously difficult to find care. Browne, who opened Kidz with Goals Unlimited, LLC, in early 2020, was hit hard by the pandemic. Parents pulled their children out of care, leaving Browne, a nurse and mother of three, with nearly $15,000 in unpaid tuition bills. She borrowed money from her parents and paid herself a salary of just $500 that year, so she could continue to provide meals for the children in her care, afford rent and utilities for the center and make payroll for her employees. Even that wasn’t enough. Browne also started working night shifts at a nearby hospital, often going to her second job after spending all day at her center.
Then, in 2021, the American Rescue Plan Act was signed into law and $39 billion was sent to states to help stabilize the child care industry. Browne received a welcome influx of funds: nearly $83,000 to help keep her business open. Browne used the money to wipe out the debt owed to her by families who struggled to pay after losing their jobs and then had to pull their children out of care completely. She raised staff pay from $10 an hour to $15-$18 an hour. She gave herself a salary of $34,000, which allowed her to quit her night job and work full time at the center. She also used funds to upgrade her playground equipment, buy cleaning supplies and provide a scholarship to a family that was struggling to make ends meet.
Nationwide, ARPA funds helped steady a rocky industry that has historically been marked by poverty-level wages for educators and high staff turnover.
Read the full article about childcare funding by Jackie Mader at The Hechinger Report.