Child Care and the American Workforce: Removing Barriers to Economic Growth

AI in Education and WorkforceHouse Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education · June 24, 2025 · 119th Congress
The Subcommittee on Early Childhood, Elementary, and Secondary Education held this hearing to examine the affordability and availability of child care and its effects on parents' workforce participation and the broader economy. Begins at ▶ 0:08:52
Transcript
Highlights

Title

Addressing the child care affordability and workforce crisis

Purpose

The Subcommittee on Early Childhood, Elementary, and Secondary Education held this hearing to examine the affordability and availability of child care and its effects on parents' workforce participation and the broader economy. Members heard from policy and industry witnesses on the Child Care and Development Block Grant (CCDBG), local public-private partnerships, and proposals such as the Child Care for Working Families Act, alongside sharp disagreement over the effects of federal deregulation, Head Start funding, and reconciliation-bill cuts to Medicaid and SNAP. Begins at▶ 0:08:52

Who spoke

• Chairman Aaron Bean / "Chairman Kylie" (per transcript)▶ 0:08:52: Opened by citing that California's infant care costs $22,628/year▶ 0:09:16 and that a 31.2% national child care gap exists per BPC's 2019-based estimate▶ 0:10:07; argued no single entity, including the federal government, can close the affordability gap alone and called for public-private partnerships▶ 0:12:39▶ 0:13:08; closed by summarizing takeaways on choice, flexibility, and bipartisan opportunity▶ 1:58:41.

• Ranking Member Suzanne Bonamici (D-OR)▶ 0:13:38: Said childcare challenges cost the economy $122 billion/year, with Oregon losing $1.4 billion▶ 0:16:05▶ 0:16:36; argued the private market alone cannot solve the crisis and urged passage of the Child Care for Working Families Act capping costs at 7% of income▶ 0:20:10; later questioned Dr. Friedman on immigration enforcement's effect on the child care workforce▶ 0:48:48.

• Mrs. Caitlin (Cadella) Low, Bipartisan Policy Center▶ 0:22:38: Testified two-thirds of families already pay the maximum they can afford▶ 0:23:07 and the economy loses over $120 billion/year to child care breakdowns▶ 0:24:02; described child care as a "three-legged stool" of access, quality, and affordability▶ 0:26:24 and touted BPC's Commission on the American Workforce▶ 0:25:56.

• Mayor Todd Barton, Crawfordsville, Indiana▶ 0:27:19: Said his community was losing nearly $8 million annually in business impact from child care gaps▶ 0:27:50 and described the $5 million, 16-partner Montgomery County Early Learning Center that added 124 seats and boosted capacity over 30%▶ 0:28:51▶ 0:29:22; stressed local business buy-in and flexibility as keys to replicability▶ 1:39:18.

• Dr. Ruth Friedman, The Century Foundation▶ 0:30:39: As former director of HHS's Office of Child Care, said the market cannot solve the crisis because true care costs exceed what parents can pay▶ 0:32:32; warned the reconciliation bill, a threatened repeal of the 2024 CCDF rule, and DOGE cuts (halving Office of Child Care staff) would all worsen the crisis▶ 0:34:41▶ 0:35:11; said cutting Head Start would immediately strip child care from 750,000 families▶ 0:59:59.

• Ms. Celia Sims, The Abecedarian Group▶ 0:35:42: Argued CCDBG should remain the hallmark program and that parent choice across center-, home-, and faith-based providers is paramount▶ 0:38:02; said a rural North Carolina county lost over half its center-based care and 80% of family child care homes post-COVID▶ 0:36:42; raised concern that CCDF grant/contract requirements could limit provider choice▶ 1:48:28.

• Rep. James Moylan (Guam)▶ 0:40:36: Asked how Congress can reform assistance thresholds on Guam so aid doesn't discourage work▶ 0:41:08.

• Rep. Mark Messer (R-IN)▶ 0:21:08: Introduced Mayor Barton, praising Crawfordsville's model▶ 0:21:08.

• Rep. Ryan Mackenzie (R-PA)▶ 0:50:39: Cited his bill H.R. 1426 expanding the child and dependent care tax credit and asked witnesses about flexibility and provider supply▶ 0:51:22.

• Rep. Summer Lee (D-PA)▶ 0:56:47: Said Pennsylvania infant/toddler care averages $14,000/year, less than a third of eligible children in her district receive subsidies, and the average child care worker earns under $30,000▶ 0:57:17▶ 0:57:46; traced Head Start's civil-rights-era origins and asked Dr. Friedman about impacts of a proposed elimination▶ 0:59:36.

• Rep. Addison "Mac" Harris? / Rep. Harris (R-NC)▶ 1:02:13: Asked Mayor Barton whether the federal government can spend or regulate its way out of the crisis; Barton said no, it requires combined federal, state, local, and business effort▶ 1:02:42▶ 1:03:23.

• Rep. Alma Adams (D-NC)▶ 1:08:00: Cited average child care worker pay of $33,140/year▶ 1:09:08 and asked about impacts of Medicaid/SNAP cuts on the workforce and of DOGE cuts to the Office of Child Care▶ 1:11:01▶ 1:12:20.

• Chairman Aaron Bean (self-recognized)▶ 1:13:13: Asked about delayed family formation due to child care costs and job-retraining opportunities for the child care workforce▶ 1:14:07▶ 1:15:01; questioned Mayor Barton on the business community's role▶ 1:16:28.

• Rep. Juan Ciscomani (R-AZ)▶ 1:18:24: Noted Arizona center-based care for two children costs over $27,000/year against an $87,000 average household income▶ 1:18:48; asked about family child care versus center-based care and HOA-driven licensing barriers▶ 1:19:18▶ 1:22:19; entered a "Marshall Plan for Moms" report into the record▶ 1:23:34.

• Rep. Mary Miller (R-IL)▶ 1:24:13: Cited her district's $70,000 median income against $8,000–$10,000 per-child care costs▶ 1:24:57; asked about faith-based child care and competition driving quality up and prices down▶ 1:25:58▶ 1:27:07.

• Rep. Jahana Hayes (D-CT)▶ 1:28:58: Noted child care employment fell from over 1 million to ~670,000 between Feb.–April 2020▶ 1:29:25; questioned Dr. Friedman on private-equity-backed chains like KinderCare closing 380 "underperforming" centers 2012–2017▶ 1:30:23 and on repealing the 2024 CCDF rule▶ 1:32:41.

• Chairman Tim Walberg (Full Committee)▶ 1:34:13: Asked how federal funds can be used more efficiently, citing Michigan's TriShare program as a model of braided funding▶ 1:35:44▶ 1:36:14.

• Rep. Glenn "GT" Thompson (R-PA)▶ 1:39:46: Asked Mayor Barton about rural-urban child care disparities and population retention▶ 1:40:14▶ 1:42:10; raised a USDA rural home-loan rule that bars operating a business, including family child care, in a mortgaged home▶ 1:43:41.

• Rep. Burgess Owens (R-UT)▶ 1:44:57: Asked about economic stakes of unaffordable child care and how Barton engaged local businesses▶ 1:45:26▶ 1:46:46.

• Ranking Member Robert "Bobby" Scott (Full Committee)▶ 1:49:31: Asked Mayor Barton for cost/enrollment details on Camp Milligan (~$10,000, ~40 students)▶ 1:49:53▶ 1:50:52; had Dr. Friedman confirm faith-based providers have always participated in Head Start and CCDBG▶ 1:51:20 and that deregulation would reduce child safety▶ 1:53:14.

• Ranking Member Bonamici (closing)▶ 1:53:47: Reiterated the $122 billion annual economic loss and urged passage of the Child Care for Working Families Act and paid family leave▶ 1:57:14.

• Chairman Bean (closing)▶ 1:58:41: Summarized themes of choice, flexibility, bipartisan opportunity, and adjourned the hearing▶ 2:01:11.

Key moments

• BPC's Caitlin Low said two-thirds of families are already paying the maximum they can afford for child care▶ 0:23:07, and the U.S. economy loses over $120 billion annually to child care breakdowns▶ 0:24:02.

• Mayor Barton detailed Crawfordsville's $5 million Early Learning Center, built via a 16-entity public-private partnership, which added 124 seats and raised capacity over 30%▶ 0:28:51▶ 0:29:22.

• Dr. Friedman testified that DOGE cut half of the federal Office of Child Care staff this spring, and warned that HHS leadership has signaled intent to repeal the 2024 CCDF rule requiring timely, fair provider payment▶ 0:34:41▶ 0:35:11.

• Rep. Lee said cutting Head Start would strip care from 750,000 families and traced the program's roots to Mississippi civil rights leaders who defied segregationist opposition to federal Head Start grants▶ 0:58:43▶ 0:59:59.

• Rep. Hayes cited a New Republic report that the top 11 for-profit child care chains serve only 12% of children in center-based care, and that KinderCare closed 380 "underperforming" centers between 2012 and 2017▶ 1:30:23▶ 1:30:53.

• Ms. Sims and Dr. Friedman offered differing views on the CCDF grants/contracts requirement: Sims called it a threat to parental choice▶ 1:48:28, while Friedman said states are using it appropriately to address supply gaps▶ 0:47:32.

• Ranking Member Scott had Dr. Friedman confirm faith-based providers have always participated fully in Head Start and CCDBG, rebutting claims of discrimination▶ 1:51:49.

• Rep. Thompson raised a USDA rural-home-loan rule barring in-home businesses, which Sims said effectively blocks some family child care providers from operating out of USDA-financed homes▶ 1:43:41▶ 1:44:11.

• Dr. Friedman said infant care requires a 1-to-4 teacher-child ratio in most states, meaning each child effectively funds a quarter of a teacher's salary, underscoring why subsidies are necessary▶ 1:52:16▶ 1:52:45.

• Bonamici and several Democratic members linked reconciliation-bill cuts to Medicaid and SNAP — programs relied on by roughly 30-43% of child care workers — to workforce attrition and reduced care supply▶ 1:11:01▶ 1:56:04.

Metadata

CommitteeHouse Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education
Chamber / CongressHouse · 119th Congress
DateJune 24, 2025
TypeHearing
Witnesses
Mrs. Caitlin Low — Managing Director of Human Capital, Bipartisan Policy Center
The Honorable Todd Barton — Mayor, City of Crawfordsville
Dr. Ruth Friedman, Ph.D. — Senior Fellow, The Century Foundation
Ms. Celia Sims — President and Founder, The Abecedarian Group
Dr. Ruth Friedman — Senior Fellow, The Century Foundation
Mrs. Caitlin Low — Managing Director of Human Capital, Bipartisan Policy Center
The Honorable Todd Barton — Mayor, City of Crawfordsville
Ms. Celia Sims — President and Founder, The Abecedarian Group
Videoyoutube
Transcript257 caption blocks · 19,431 words · 2:01:34 runtime
EventCongress.gov 118406