Who Can Afford Child Care? A National and State Analysis of Affordability for Working Parents

Many working parents struggle to afford child care. After historic federal investment during the COVID-19 pandemic, temporary relief funds have expired, and prices are rising faster than family incomes. While child care affordability is a widespread challenge, some groups face even steeper barriers. 

This brief estimates child care affordability for full-time working parents with children under age 14 by income, race/ethnicity and immigrant status. Using the Current Population Survey and child care price data from the U.S. Department of Labor, we compare the median price of center-based and family/home-based care to family income. We assess child care affordability using the 7% federal benchmark that child care should cost no more than 7% of family income. This threshold is used in the federal child care subsidy program to cap the amount that lower income working families pay for child care. 

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National estimates of child care affordability

Child care is a necessity for many working families. Overall, 75% of working parents with at least one child under age 14 work full time, year round. However, even though so many working parents require child care, the price of care often exceeds what’s affordable, consuming a large portion of their paycheck. We find that most working parents (68% for center-based care and 63% for home-based care) would spend more than the 7% federal benchmark. Virtually all (99%) of low-income parents would make more than federal affordability standard. Even among only higher income working families, more than half would still pay more for child care than the federal affordability standard. 

While all parents may face unaffordable care, some racial/ethnic groups are more likely to encounter barriers. We find that 73% of Black and 81% of Hispanic parents working full time and year round would spend more than 7% of their income on center-based care. While White and Asian parents are more likely to be able to afford child care at current median market prices, more than half would still exceed the 7% affordability threshold, underscoring that high prices are a widespread challenge across groups. Immigrant working parents, who are more likely to be low income, also face steep affordability barriers: 71% would pay more than the federal affordability benchmark for center-based care, and 66% for home-based care. Family child care prices pose similar patterns of unaffordability across groups. 

State estimates of child care affordability

Across states, center-based care is unaffordable for most working parents. While the median price of child care as a share of family income varies across states, the 7% affordability benchmark is met in only three states for center-based care. Across states, the median price of center-based child care would consume a substantial share of family income, ranging from a low of 6% in Hawaii to a high of 17% in Vermont. 

In some states, the price-to-income ratio of center-based child care is particularly high. The median working parent would need to devote at least 14% of their income to pay for center-based care in five states, with Vermont, Minnesota, Nevada, Wisconsin and Montana having the highest center-based child care burdens. For the median low-income working parent, the burden is much higher. In 31 states, the child care price-to-income ratio for low-income parents is more than 30%; in Vermont and New Hampshire, it is more than 50%. Home-based child care is overall less expensive, although the median price as a share of income still exceeds the 7% benchmark in 46 states. State-level estimates by race/ethnicity and nativity are consistent with national patterns, with burdens highest for Black and immigrant working parents.