Rep. Ro Khanna introduces legislation to provide for $10 a day childcare

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California Congressman Ro Khanna, a Democrat introduced the Child Care for America Act to October 1, offering incentives to providers to lower child care costs to $10 per day for families and increase the pay floor for child care workers to $24 an hour. Rep. Khanna is the Co-Chair of the Congressional Bipartisan Affordable Child Care Caucus.

As of 2021, the average annual cost of center-based infant care exceeded $12,000 nationwide — with costs in some states reaching over $20,000, noted a press release from the office of Rep. Khanna. At the same time, the wages for child care workers are in the lowest 5% of all occupations. Nationally, workers earn a median hourly wage of just $14.60, resulting in high turnover and staffing shortages, according to Khanna.

Khanna’s Child Care for America Act estimates around $780 billion would be needed over a 10-year span, for the federal government to create funding programs for traditional child care settings, grants for stay-at-home parents, and compensation programs for kin caregivers.

As an example, the Indian American lawmaker cites the example of Canada where a $10 a day nationwide system is being rolled out, as well as the bipartisan-passed Commonwealth Cares for Children grant program in Massachusetts.

“Child care is an essential need for almost all parents, yet it’s out of reach for the majority of hard-working Americans. With a perfect storm of high costs, limited access, and a shortage of child care workers, parents are struggling. We have to establish a child care model where parents are not forced to sacrifice their career or dip into their savings to pay and workers are paid a family-supporting wage. The Child Care for America Act will provide families with affordable, flexible options to meet their needs – whether that’s traditional child care settings, support for stay-at-home parents, or compensation for kin caregivers,” Rep. Khanna is quoted saying in the press release.

“Rep. Khanna has introduced the boldest federal child care plan to date,” Elliot Haspel, senior fellow at the family policy think tank Capita, said. “The Child Care for America Act hits the marks on affordability, accessibility, quality, and choice. It finally establishes child care as the critical social and economic infrastructure it is, reflecting the fact that all Americans –– whether or not they have children –– need the nation to have a strong child care system,” Haspel added.

The Child Care for America Act also includes:

• Child Care Facilities Fund: $2 billion annually to support improvements and expansion of child care infrastructure.

• Child Care Innovation Fund: provides $250 million annually to encourage creative approaches to increasing child care supply and quality, particularly in underserved areas.

• The Stay-at-Home Parent Child Care Stipend Program: allocates $6 billion annually to provide a monthly stipend of $300 per child under the age of 3 to eligible families who opt out of using external child care services.

• The Kin Care for Family, Friend, and Neighbor (FFN) Program: This program establishes a framework for compensating close family members – initially grandparents, aunts, and uncles – who regularly provide primary child care.