New Report Shows Growing Economic Toll of $172 Billion Per Year Due to the Child Care Crisis

Research released by the business-leader group ReadyNation shows that the crisis costs the national economy $172 billion every year

WASHINGTON, DC, UNITED STATES, February 11, 2026 /EINPresswire.com/ -- The lack of action by federal, state, and local policymakers has caused the economic impact of the child care crisis to escalate since 2018. The crisis now costs businesses, parents, and taxpayers $172 billion nationwide in lost productivity, earnings, and revenue every year. Worse, this problem will continue to grow unless policymakers address the fragile infrastructure of the child care sector.

That was the top-line message from a new report, “The Child Care Crisis Costs the U.S. Economy $172 Billion Each Year,” released by the business-leader organization ReadyNation at a Capitol Hill briefing Wednesday morning. ReadyNation is a national membership organization of more than 2,000 executives who work to build a skilled workforce by promoting evidence-based solutions that prepare children to succeed in education, work, and life.

The event panel included four prominent ReadyNation members, Kelly Davydov, Government Solutions Consultant, TOOTRiS; Robert S. Carl, Jr., President and CEO, Schuylkill Chamber of Commerce; Samantha Chivinski, Executive Vice President, Schuylkill Chamber of Commerce; and Calvin Calhoun III, Senior Vice-President, Truist, and Board Chair, Institute for Child Success. They were joined by LaWanda White, Public Relations Consultant, The I-PR Agency, Elected Member of EduCare DC’s Parent Council Committee, & EduCare DC Parent Ambassador, and economist Kathryn Edwards Ph.D., Senior Fellow, Capita and National Academy of Social Insurance, as well as a columnist at Bloomberg News, to release the report. Barron’s senior economics reporter Megan Leonhardt moderated the panel discussion, and ReadyNation National Director Nancy Fishman offered introductory and closing remarks. ReadyNation is a part of the Strong Nation Initiative.

The new report shows that a lack of access to affordable, quality child care costs the economy $172 billion each year. Previous ReadyNation research that focused on families of infants and toddlers (children under age 3) found economic tolls of $57 billion in 2018 and $122 billion in 2022. This new study expanded to families of children under age 5, to determine the current economic toll of insufficient child care for the full range of children below kindergarten age.

Nancy Fishman opened the briefing by telling the audience the new ReadyNation report found that the lack of action by policymakers has only exacerbated the impact the child care crisis is having on parents, businesses, and taxpayers.

“ReadyNation’s data from the past seven years shows that the failure to strengthen the country’s fragile child care infrastructure has led to escalating economic damage to employers, workers, and taxpayers. In short, insufficient child care acts as a drag on the U.S. economy. The business leaders of ReadyNation call on federal, state and local policymakers to better-support families’ ability to find affordable, high-quality child care.

Effective, well-funded policy initiatives that address child care supply, worker compensation and training, and affordability at the federal, state, and local levels, will yield a child care system that will improve life outcomes for millions of children today and strengthen the workforce and economy both now and in the future.”

Kathryn Edwards began the discussion by addressing several of the key findings from the report and how the child care crisis impacts parents, businesses, and taxpayers.

"In the U.S., child care is one of the best investments we don't make. We often discuss child care in terms of the foregone returns, but this report puts that in terms of what the lack of investment costs families, businesses, and the economy."

The discussion then turned to the four business leaders on the panel and how the lack of available, affordable, quality child care reduces the productivity of their workforce and hurts their bottom-line.

Calvin Calhoun stressed that accessibility, affordability and quality are hurdles parents face in finding care for their children.

“Recent analysis has shown there is a 28 percent gap, nationwide, between the supply of child care and the number of children who need child care. This leaves millions of children without available care within a reasonable distance of their home. Further, if a parent can find care, often the price tag is out of reach for most working parents. In most states, the cost of care is more than the cost of in-state, public college tuition.

Even if a parent can find an affordable child care slot it’s often of low quality, which means that young children in these settings may miss out on many benefits that high-quality care can provide.”

Robert S. Carl, Jr. said that he hears from businesses in Schuylkill, PA, that the lack of affordable child care impacts their ability to grow their business because workers are less available to work when they do not have adequate care.

"The learning that happens in quality child care settings is the bedrock of a child’s education. It sets the stage for success in Kindergarten and everything that follows. Consistency is vital in these years, and a revolving door of teachers and unstable programs is a disservice to our children’s long term success and an insurmountable challenge for many working families. This is why chambers of commerce are working to bring stability to this sector."

As an early childhood systems strategist, Kelly Davydov was unsurprised by the report findings.

“More employers are recognizing the cost of doing nothing.

When child care is unreliable, parents are forced into impossible decisions and businesses lose people they can’t afford to lose. That’s why it’s imperative employers be part of the solution. Employer-sponsored child care benefits that help working parents find and pay for care are one of the clearest returns employers can make, driving retention and strengthening recruitment.

Real progress happens when leadership shows up across sectors. Employers, providers, and state and federal partners all have a role to play. When we move together, we can build a child care system that actually works.”

LaWanda White closed out the discussion by providing the perspective of a mother of a young child, a small business owner, and an elected member of Educare DC’s Parent Policy Council. She shared her personal story of experiencing work disruptions until she was finally able to secure quality child care that allowed her to thrive at work.

“Investing in child care is one of the most practical economic decisions policymakers can make. Access to reliable, high-quality child care has directly shaped my ability to grow my small business. With consistent care in place, I’m able to pursue professional opportunities and prospect new business - activities that were limited when child care was inconsistent. Those constraints reduced my ability to compete and limited my earning potential. If we fail to address the child care crisis now, its economic damage will only deepen for decades to come.”

Read the report: https://www.instituteforchildsuccess.org/cost-child-care-crisis/

###

ReadyNation is a national, bipartisan membership organization that leverages the experience, influence, and expertise of more than 2,000 business executives to promote public policies and programs that build a stronger workforce and economy.

Josh Spaulding
ReadyNation
+1 202-415-6867
email us here

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.