Challenges in Navigating Childcare Costs in the U.S.

Jennifer Williams plays with her sons at home. She said leaving her job to care for her sons was a difficult call to make, but it was the right one for her family. Jennifer Williams always thought she would be a full-time working mom. But when her second son, Skyler, was born, her circumstances changed. Her first son, SJ, was not old enough for free public pre-K, and the cost of daycare for both children became unaffordable. Consequently, Williams decided to leave her school counseling job in Oklahoma City to care for her children full-time. She now works part-time at a childcare program while spending the rest of her weekdays with Skyler, 2, and SJ, 4. She acknowledged the challenging decision to quit her job, yet felt it was essential for her family’s well-being. Williams stated, “I can’t imagine anything different, but the financial constraints dictated my choice.”

Skyrocketing Childcare Costs Nationwide

Across the U.S., childcare costs have seen significant increases. According to Child Care Aware of America, a group that monitors childcare expenses, the national average cost soared over 20% from 2022 to 2025, reaching $13,184 annually. Similar rises occurred in infant care costs.

In Oklahoma, considered the fourth-most-affordable state based on U.S. News & World Report, childcare costs for a 4-year-old climbed 9%, while infant care went up 20% from 2022 to 2025. State statistics indicate an even more drastic increase: infant care costs rose 36% since 2022. In Louisiana, another affordable state, childcare for a 4-year-old increased by 21%, and infant care by 30%. Conversely, Washington, among the least affordable states, experienced a 41% hike in costs for both age groups.

Reasons Behind Rising Costs

Anne Hedgepeth, former senior vice president of policy and research at Child Care Aware of America, commented on the rising prices, stating that various factors contribute, including how states subsidize childcare for low-income families. States use regular market-rate surveys to determine subsidy amounts sent directly to providers. However, many states postponed these surveys during the COVID-19 pandemic, failing to adjust subsidies for inflation.

Hedgepeth explained, “Childcare programs face the same expenses that families do. They supply food, purchase supplies, and cover rent or mortgage costs, which could increase their fixed expenses.” Consequently, families have had to pay more, and childcare providers have faced cuts.

Subsidy Policies in Oklahoma

In Oklahoma, childcare subsidies are based on a 2017 survey. Katie Quebedeaux, a childcare center operator and board member of Oklahoma’s Licensed Child Care Association, shared the challenges posed by outdated reimbursement rates. “You can’t expect us to cover 2026 costs with 2019 reimbursement rates,” she said.

Moreover, Oklahoma recently altered income eligibility criteria, making fewer families eligible for aid. The state’s reimbursement system now requires providers to obtain national accreditation for the highest ratings, which Quebedeaux noted can cost thousands of dollars.

Oklahoma Human Services explained these changes aim to offer families more insight into childcare quality and encourage providers to enhance their services. Nevertheless, federal COVID-19 relief money had funded a $5 per-day, per-child subsidy rate add-on, which ended in April, impacting providers significantly.

Rachel Proper, president of Child Care Inc., which operates seven centers in Oklahoma, mentioned that the cessation reduced her revenue by 18%. She noted, “We’ve reduced staff benefits, shortened hours, and stopped providing dinners for children.” Even basic supplies, like baby wipes, became unaffordable.

Searching for Solutions

Federal help appears unlikely, with recent policy rollbacks. However, states are exploring alternatives. Michigan and Kentucky employ a “tri-share” model, dividing childcare costs between the state, employer, and family.

Hedgepeth praised tri-share models as temporary fixes but highlighted their limitations, emphasizing that long-term approaches should not depend on employment status.

In Iowa, the Statewide Child Care Solutions Fund partners private and state funds for childcare expansion projects, projected to create nearly 11,000 new childcare slots and enable 5,000 additional women to join the workforce.

Oklahoma recently launched a program to address daycare worker shortages and rising costs, providing subsidy access to childcare facility employees. New Mexico remains the sole state offering universal no-cost childcare.

Despite these state efforts, parents still face high childcare expenses. Child Care Aware of America reports that the median income of married couples goes toward 10% of childcare costs, while single parents allocate 33%. Hedgepeth acknowledged state efforts toward affordability, though parents still struggle.