Washington, DC – Last night, The House of Representatives passed the Childcare is Essential Act and the Childcare for Economic Recovery Act. These bills are essential to providing immediate relief for suffering childcare centers and providing long-term stability to the industry.
While many childcare centers have remained open during the pandemic, new regulations requiring increased safety procedures and limiting the number of children cared for have increased cost while decreasing revenue. One estimate by the Minneapolis Federal Reserve reports that most childcare centers are currently operating at a loss. Only 6% of childcare centers were able to secure a Paycheck Protection Program (PPP) loan, and more than 240,000 childcare workers have lost their jobs or been furloughed.
“Childcare centers across the country, including here in Connecticut, are in immediate danger of closing their doors for good,” said Congressman Jim Himes (CT-04). “This would have devastating consequences as countless jobs would be lost and the essential workers and medical professionals who rely on childcare could be left with no options and forced to abandon their jobs to care for their children.”
"Currently only about half of CT's childcare centers are open,” said Merrill Gay, Executive Director of the CT Early Childhood Alliance. “Those that are open are at reduced capacity and losing money every day. Without assistance many will close their doors forever."
The Child Care Is Essential Act, led by Congresswoman Rosa Delauro, creates a $50 billion stabilization fund so child care providers can remain open during a period of increased costs and low enrollment over the next five to six months while the Child Care for Economic Recovery Act includes policy fixes to ensure the longer-term survival of childcare providers.
For more information on the bills or with questions, contact Patrick Malone at Patrick.malone@mail.house.gov.
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