As federal aid ends, Wisconsin childcare providers warn of closures and higher costs
CBS 58 WAUNAKEE, Wis. (CBS 58) -- As schools close for the summer, childcare facilities typically see an increase in demand. As the seasons change, so will many of the prices for childcare facilities, some may even close in June due to federal funding for the facilities ending. It comes at a time when the average cost of childcare is over $15,00 a year for one child under 5. With Wisconsin's childcare Bridge Program ending in June, providers say prices are going to increase.
“Up until COVID
Heather Murray has owned her childcare facility for 19 years. Thanks to federal funding from the American Rescue Plan under then President Joe Biden, she says she was able to pay her employees more. Previously, she paid about $14.50 an hour thanks to the funding, she increased the rate to $18.50 an hour. Murray was also able to keep her tuition costs for parents at a lower rate. That is all about to change. After she gets her last payment in June, she says she will have to increase her prices.
Heather Murray
“I always hate to do that. Last time I lost two families when I raised tuition, so we are basically pricing families out of childcare,” Murray said.
When a family loses access to childcare, one parent often must stop working. Amanda Sherer knows that reality all too well.
“It was no way that we could afford to of them in full time childcare, so I decided to stop working again because it was just the only thing that made sense,” said Amanda Sherer, a mom of two.
When parents make that decision, it impacts the economy. According to the Wisconsin Department of Children and Families, the state loses out on at least $1.1 billion a year in lost economic productivity, earnings and revenue.
“I don’t know is winning,” Sherer said. Nobody is winning here ad when we chose to not go and quit our jobs or whatever that’s not a win either.”
According to the Bipartisan Policy Center there are over 104,000 kids in the state who lack childcare. That number could grow, as predictions indicate nearly 30 percent of facilities in the state could close due to the loss of funding come June. That’s why these parents and providers are hoping the state will find a permanent solution.
“We need a real long-term solution instead of keep putting a Band-Aid on a problem,” Murray said.
Providers like Murray say using some of the state surplus to fund childcare could be a solution but also points to states like Vermont who have created a payroll tax to help fund childcare in the state. A 2025 study by the nonpartisan First Five Years Fund found that in Wisconsin, federal and state early learning programs serve more than 84,645 children and families about 22% of children age 5 and under.
