"When these costs rise without a simultaneous increase in public funding to fill the gap, programs are faced with difficult decisions. They can either take on the costs themselves, risking their business stability given already low operating margins, or pass them on to families in the form of higher tuition jeopardizing enrollment if families can no longer afford care."
"As a child care provider, I see firsthand how unaffordable childcare is forcing families into heartbreaking choices. I hear parents tell me they want safe, licensed care but simply cannot afford it. At the same time, providers like me are doing everything we can to keep our doors open."
Childcare providers are experiencing significant cost pressures across multiple areas. Insurance costs increased for 68% of providers in 2025, up from 46% in 2024, while property insurance hikes affected 66% compared to 45% previously. Rent and lease costs rose for 44% of providers, up from 32%, alongside increased wage pressures and higher expenses for food, supplies, and facility maintenance. Public funding has simultaneously declined. Providers face a dilemma: absorb costs and risk business stability, or raise tuition and risk losing families who cannot afford care. Sixty-five percent of childcare centers and 51% of school-based programs increased tuition, while only 31% of home-based providers did so. Families simultaneously struggle with rising housing, insurance, food, and energy costs, creating impossible financial choices.
#childcare-affordability-crisis #rising-operational-costs #tuition-increases #public-funding-decline #family-financial-burden
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