Briefing on Childcare Funding and Policy Considerations in Response to COVID-19

Sloane Kaiser &
Community and Economic Development Childcare Work Group

September 2020

COVID-19 response and recovery efforts have underscored both the importance and fragility of childcare. This brief was developed by a Federal Reserve System work group to provide context on childcare system challenges and considerations for addressing the needs of working families with young children.

Background: The childcare industry is largely made up of small private businesses.¹ COVID-19 has taken a toll on small businesses, particularly those with small profit margins. which means that the infrastructure of the childcare industry is being challenged. Continuation of childcare services is critical for essential service workers and is imperative to economic recovery as working parents return to the workplace and as parents who have lost their jobs seek job training or new employment.

Read the full brief on the Federal Reserve Bank of Atlanta's website.

Early care and education include a variety of program types, such as center-based childcare, home-based or family childcare, private pre- school, public preschool, and Head Start and Early Head Start. This briefing focuses on childcare centers and family childcare providers.