Press Release

With Federal Funding For Child Care Providers Set To Expire, Gillibrand Announces Legislation To Avert Looming Child Care Cliff 

Sep 13, 2023

With Federal Funding Set To Expire On Sept. 30th, Over 250,000 New York Children Are Expected To Lose Access To Child Care;

Going Over The Cliff Would Cost Working Families In New York An Estimated $846 Million In Earnings

With federal funding for child care providers from the American Rescue Plan set to expire at the end of the month, U.S. Senator Kirsten Gillibrand held a video press conference to announce legislation to avert the looming child care cliff. The impending drop-off in federal funding, which helps child care providers pay their rents and mortgages and hire and retain personnel, would lead to an estimated 3.2 million children nationwide and over 250,000 children in New York State losing access to child care. It would force over 5,700 child care centers across the state to close, forcing parents to cut their work hours or leave the workforce entirely and costing them $846 million in earnings as a result. The Child Care Stabilization Act, of which Senator Gillibrand is an original cosponsor, would provide $16 billion in mandatory funding to child care providers each year for the next five years. 

A shortage of child care providers in our state means that too many working parents have to make the impossible choice between going to work and taking care of their kids,” said Senator Gillibrand. “A sudden lapse in federal funding that forces even more providers to close would be catastrophic for New York families. Today, I’m announcing legislation to continue giving child care providers the support they desperately need, and I’m determined to get it passed.”

In March of 2021, the American Rescue Plan established the Child Care Stabilization Grant program, which provided roughly $24 billion for states to subgrant to child care providers across the country. This funding was crucial in helping more than 220,000 child care providers, including over 15,000 in New York, stay open and operational. Funding for this program expires at the end of the month, meaning that thousands of child care providers will face a sudden loss of funds. If these providers are forced to close and the parents that rely on them have to leave the workforce, parents nationwide are expected to lose nearly $9 billion each year in earnings. The Child Care Stabilization Act would extend the Child Care Stabilization Grant program and provide $16 billion in mandatory funding to child care providers each year for the next five years. The money will help ensure that providers can cover the cost of wages, benefits, rent, utilities, and supplies. 

This bill is led by Senators Patty Murray (D-WA) and Bernie Sanders (I-VT) and cosponsored by Senators Tim Kaine (D-VA), Mazie Hirono (D-HI), Sheldon Whitehouse (D-RI), Chris Murphy (D-CT), Chris Van Hollen (D-MD), Ron Wyden (D-OR), Elizabeth Warren (D-MA), John Fetterman (D-PA), Tina Smith (D-MN), Jack Reed (D-RI), Tammy Baldwin (D-WI), Amy Klobuchar (D-MN), Peter Welch (D-VT), Richard Blumenthal (D-CT), Bob Menendez (D-NJ), Ed Markey (D-MA), Cory Booker (D-NJ), Tammy Duckworth (D-IL), Ben Cardin (D-MD), Bob Casey (D-PA), Jeff Merkley (D-OR), Alex Padilla (D-CA), Angus King (I-ME), Martin Heinrich (D-NM), Ben Ray Luján (D-NM), Jeanne Shaheen (D-NH), Chuck Schumer (D-NY), and Debbie Stabenow (D-MI).

The National Women’s Law Center (NWLC), Center for Law and Social Policy (CLASP), ZERO TO THREE, National Association for the Education of Young Children (NAEYC), Children’s Defense Fund, Save the Children, Service Employees International Union (SEIU), American Federation of Teachers (AFT), National Association for Family Child Care, Child Care for Every Family Network, Family Values at Work, Campaign for a Family Friendly Economy, MomsRising/MamasConPoder, Oxfam America, All Our Kin, Community Change Action, Prevent Child Abuse America, American Federation of State, County, Municipal Employees (AFSCME), AFL-CIO, Small Business Majority, First Focus Campaign for Children, Parents Together Action, Prevent Child Abuse America, United Parent Leaders Action Network (UPLAN), and YWCA-USA have endorsed the Child Care Stabilization Act