National Policy

Congress has enacted an unprecedented $50 billion in emergency funding to stabilize the child care industry throughout the public health emergency. For a sector that has long been under resourced, this investment offers the chance to envision a more equitable, sustainable, and comprehensive early care and education (ECE) system.

At LIIF, we know that the availability of high-quality physical learning environments is one critical element of achieving this vision. Unfortunately, there is not nearly enough supply of quality care facilities to meet the demand. Many child care businesses have also downsized or closed throughout the pandemic, and others are in need of additional resources to make costly physical infrastructure upgrades to meet health and safety guidelines.

To support the field, LIIF and our partners developed a policy brief with facility investment recommendations for state and local decisionmakers to consider when implementing federal relief dollars. CDFIs can be an important partner to help identify and leverage diverse funding sources to help close the gaps in access to quality child care facilities.

Resources Enacted to Date

  • $28.5 billion for the Child Care and Development Block Grant (CCDBG)
  • $24 billion for a new Child Care Stabilization Fund
  • $2 billion for Head Start
  • $500 billion for state and local fiscal relief, which is broadly flexible and can be used to support child care businesses and pay essential workers
  • $806 billion for the Paycheck Protection Program (PPP), including $25 billion set-aside for community financial institutions

LIIF is also focused on advancing the long-term and holistic sustainability of the child care sector. This includes advocating for dedicated federal investments to improve the quality and expand the supply of early learning facilities. President Biden’s American Jobs Plan proposes a groundbreaking $25 billion investment to upgrade child care facilities, which builds on Congresswoman Katherine Clark’s Child Care Is Infrastructure Act.

LIIF strongly supports proposals to enact federal child care infrastructure grants and complementary technical assistance resources delivered through experienced intermediaries. As co-chair of the National Children’s Facilities Network (NCFN), LIIF will continue to amplify the importance of dedicated federal funding for child care facilities and the CDFI role in distributing these resources. Read more about our relief efforts in New York City, the San Francisco Bay Area/Los Angeles, and Washington, DC.

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