Parents Sacrifice Careers and Raises to Access Affordable Child Care

Amy Lee Funes faced a daunting challenge while seeking affordable childcare in New York City. Despite her commitment to a nonprofit focused on children and families, her annual salary of $35,000 presented financial hurdles. The steep costs of child care in the city often exceed $(MACRO)50% of one’s income, prompting Funes to seek government assistance.

Having escaped an abusive relationship and moved into a Harlem homeless shelter, Funes was distant from her family support network. She arrived at a city office in Queens one winter afternoon in 2019, equipped with documentation of her low income and living situation. Instead of receiving the aid she desperately sought, she faced an unexpected denial.

Funes was told, “I know you don’t make a lot of money, but you make too much money to get a child care subsidy.” The only way to qualify, she learned, was to further reduce her income or seek public assistance. Feeling trapped, she resigned from her position to secure the help she needed for childcare, inadvertently prolonging her struggle for economic stability.

This experience reflects a broader systemic issue in New York and across the nation, where inadequate funding for childcare assistance often keeps families, particularly women, in cycles of poverty. Each state manages its childcare subsidy programs, a framework largely funded by the federal government, which mandates that assistance must go to families earning no more than 85% of their state’s median income. However, many states, including New York during Funes’ application, have instituted stricter eligibility criteria, limiting benefits to the lowest-income families.

As a result, only about 10% of families eligible under federal guidelines receive any subsidy, according to the Center for Law and Social Policy. Variations in state regulations mean that parents might qualify for assistance in one state but not in another. For instance, in 2023, family income eligibility for childcare assistance varied significantly, from less than $36,048 in Ohio to $53,161 in Arkansas.

Federal allocations for childcare assistance come from the Child Care and Development Fund, which received $8.74 billion this fiscal year. Advocates argue that this funding remains grossly insufficient to meet demand. Rachel Wilensky, a senior policy analyst, stated that the program has never been adequately funded to address the need effectively.

States are caught in a tough position, as they must allocate limited funds to either increase provider payments or widen family access. This often creates a dilemma: serve fewer families at higher rates or more families at lower rates. Stricter eligibility requirements can hinder upward mobility, as parents might have to choose between employment and subsidies, living in constant fear of losing assistance with any small increase in income.

In March, a federal rule mandated capping family co-payments at 7% of household income, only adding to the financial pressures without additional funding for states. During the pandemic, some states temporarily eased restrictions, but as programs reverted to pre-pandemic rules, many families found it harder to access and retain subsidies. Even those who qualified often faced long waitlists or outright enrollment pauses in various regions.

In her initial 2019 application, Funes narrowly exceeded the income cutoff for assistance in New York, which at that time was set at $33,820. Less than a year later, after leaving her job, she applied for a subsidy again and, after a brief hiatus due to pandemic lockdowns, accepted a cashier position in late 2021. This time, she received a voucher and enrolled her son, Leo, who has autism, in a supportive childcare program.

However, just as she began to see light at the end of the tunnel, she was notified her food and childcare assistance would be cut. Confused and frustrated, Funes noted, “That’s what the voucher is for, so you can go back to work.” The abrupt loss of assistance conflicted with federal requirements aimed at ensuring a smoother transition out of support programs.

Funes ultimately found herself unable to afford childcare with her minimum wage salary and decided to leave her job again. By early 2022, the family moved back into a homeless shelter. Advocates stress the urgent need for increased federal funding to serve all eligible families and fairly compensate childcare providers, which can be prohibitively expensive.

For many parents, the stakes are substantial. Families often fear any slight change in income or living conditions could disqualify them from vital support. As a single parent, Lucy Briseno turned down job offers that would disqualify her from childcare assistance, emphasizing the absence of a safety buffer in these programs. Alexis Jordan voiced similar concerns, stating she worries her family’s increased income could jeopardize their subsidy, trapping them in a cycle of anxiety.

While advocates call for states to increase their funding, some states have already made strides. New York has recently aligned its eligibility criteria with federal guidelines, now allowing families earning up to 85% of the state median income. Earlier this year, Governor Kathy Hochul allocated $1.8 billion to enhance the childcare assistance program, significantly increasing the number of children receiving aid.

Despite these commendable changes, experts emphasize that a deeper overhaul is essential. Without consistent federal funding, states will struggle to meet the needs of families struggling with childcare costs. “Without more sustained federal resources, this problem isn’t going away,” Wilensky cautioned.

For Amy Lee Funes, the tumultuous journey to secure affordable childcare has hindered her career and disrupted her aspirations for higher education. Currently involved with a nonprofit advocating for parents’ rights, Funes aims to return to school and re-enter the workforce as a social worker or therapist. She reflects on her experience with disbelief and frustration that navigating the childcare system proved so challenging, emphasizing, “No one should have to go through what I went through.”