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Charlotte, NC — One of the more expensive and potentially transformational provisions included in the $2.5 trillion reconciliation package now before Congress: a new child care entitlement that would pay for 100 percent of child care costs for families making less than their state’s median income (about $100,000 nationwide). Families making up to 2.5 times their state’s median would pay no more than 7 percent of their income toward child care.
With subsidies topping out at $429,000 of income for a family of four living in D.C. — and lawmakers removing a provision that would have prevented millionaires from receiving subsidies — nearly every family in America would be eligible.
By establishing a new right to “top tier” child care, it may seem that the program will make child care accessible and affordable.
Not so fast. A lot of strings are attached to the new program — strings that will drive up costs — and, ironically, prevent the majority of current child care providers from qualifying for government subsidies.
While unlimited taxpayer spending would cover higher costs — potentially leading to new child care programs — few providers would be willing to establish child care programs that would be unaffordable to families once the subsidies run out in 2027. The program’s requirements, including paying a “living wage” that equals over $39 per hour for a single mom in Boston, could double child care costs.
Perhaps the biggest failure of the new child care entitlement is that it treats providers that accept subsidies as recipients of federal financial assistance.
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That’s a really big deal because unlike current child care grants, it means that faith-based providers can’t operate their programs or hire their staff based on their beliefs and mission statements. No more prayers of thanks before meals, no talking about the Judeo-Christian account of creation, and no religious foundations included in teaching kids about sharing, telling the truth and being kind to others.
Since the mission of most faith-based child care programs is to practice their core beliefs in service to parents and children, few providers will be willing to compromise their missions to […]
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