Subcommittee examines employer roles in solving U.S. child care shortages

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Lori Chavez-DeRemer Secretary | US Department of Labor (DOL)

Subcommittee examines employer roles in solving U.S. child care shortages

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At a hearing titled "Who's Watching the Kids? How Employers, Innovators, and Parents Are Solving America’s Child Care Crunch," Kevin Kiley, Chairman of the Early Childhood, Elementary, and Secondary Education Subcommittee, addressed the challenges facing child care in the United States.

Kiley referred to an earlier subcommittee hearing that discussed why child care is crucial for working parents and local economies. He noted that the Child Care and Development Block Grant (CCDBG) serves as the main federal program supporting child care for low-income families but does not reach all those in need. According to Kiley, "CCDBG exists to help working parents access affordable child care so they can stay in the workforce and pursue economic opportunities. At that hearing, we heard from witnesses about the importance of preserving parental choice while giving value and dignity to working parents."

Kiley highlighted data showing that CCDBG assists about 1.5 million children, whereas there are roughly 12.6 million children with nonparental care arrangements each week. He said this gap points to a significant role for private-sector employers in addressing child care costs and availability for workers.

He also cited the high cost of child care nationwide: "The national average is $13,128 annually, and while recent unprecedented federal spending in the child care sector may have propped up providers for a short time, it has not solved the long-term challenges of affordability for families or sustainability for providers."

Emphasizing collaboration between public programs and private innovation, Kiley stated: "That is why we heard strong agreement that meaningful progress requires a public-private approach. Employer engagement is a critical leg in the three-part support system holding up our child care market: families, government, and employers each play a role." He added that today’s hearing would include testimony from companies innovating in this area.

Kiley explained how employer investment can complement CCDBG efforts: "CCDBG helps ensure a supply of high-quality licensed providers that families can access. Employer investment can strengthen the stability of those providers and ease child care pressures across communities. We’ll discuss both of those dynamics today."

He stressed accountability: "At the same time, protecting the integrity of child care funding is essential because families depend on it. When bad actors exploit the system, scarce resources are diverted away from the parents and children these programs are meant to serve."

Concluding his statement, Kiley said: "CCDBG, while vital, cannot shoulder the full burden of America’s child care needs alone. It is part of a broader support system that thrives when public funds are safeguarded and private innovation steps in to fill the gaps.

"Employers who invest in child care are demonstrating what long-term commitment can look like—not because government funding is guaranteed forever, but because supporting child care strengthens their workforce, improves productivity, and fuels local economic growth. Their examples show what is possible when innovation and responsibility meet—and why we should not allow fraud or mismanagement to undermine solutions that working families urgently need."

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