Summary
New research shows that many American families struggle to afford child care. The cost of child care is much higher than what many families can pay based on federal guidelines. Some states have started offering free child care options to help families.
Key Facts
- Child care should cost no more than 7% of a household's income, according to federal guidelines.
- The average cost of child care for one infant and a 4-year-old is $28,190 per year.
- To afford this under the guidelines, a family would need an income of $402,708, but average family income is $145,656.
- American Indian and Black families would need to earn over 300% more to meet the affordability standard.
- In 20 states, required income for affordable care is over three times higher than what families earn.
- Hawaii has the highest gap, needing a household income of $544,386 for affordable care.
- South Dakota is closest to affording care, but still needs over 95% more income than the average.
- New Mexico will offer free child care starting in November 2025 without income limits for families.
