15% of Income. The Federal Standard Is 7%.
Childcare costs consume 15.2% of household income nationally. The federal affordability standard is 7%. No state meets it for center-based infant care.
For single parents, the burden reaches 32-41% of income. Childcare prices have increased at roughly twice the pace of overall inflation.
15.2% of income on childcare. Only 16% of eligible children receive help. New Mexico made childcare free for all families. 16,706 children enrolled in the first months. Indiana has 31,000 children on its waitlist.
Only 16% of 12.5 million federally eligible children receive assistance through the Child Care and Development Fund. Since peak participation in 2006, 335,200 children have lost CCDF-funded care. The provider count dropped 68% between 2006 and 2022.
The Waitlists
Indiana has 31,000 children on its waitlist with no new vouchers available until 2027. Provider reimbursement rates were cut 10-35%. Arizona has 8,092 families and 11,824 children waiting. Tennessee reimplemented waitlists in August 2025 after a $44.5 million CCDF cut.
Federal childcare stabilization funding ended in September 2024. Centers closed. Tuition rose.
Parents, disproportionately mothers, left the workforce. Labor force participation for college-educated mothers with young children fell from 80% to 77% between 2023 and August 2025.
New Mexico Proved It Can Work
New Mexico became the first state to offer universal no-cost childcare on November 1, 2025. Open to all working or student families regardless of income or immigration status. In the first months, 16,706 new children enrolled across 12,666 families. Sixty-three new providers registered.
The cost is approximately $463 million in FY2026, funded by $700 million from the Early Childhood Trust Fund and Land Grant Permanent Fund. Governor Lujan Grisham signed it into permanent law in March 2026. Enrollment scaled faster than projected. The program may run $50 million over budget in its first year.
One state decided childcare is infrastructure. The results suggest the investment works.
What you can do now
- Call your U.S. senators and representative and demand full funding for the Child Care and Development Fund. Only 16% of the 12.5 million eligible children receive assistance, and 335,200 children have lost CCDF-funded care since 2006. Use Resist Bot to send a message.
- Contact your state legislators and ask them to follow New Mexico’s model. New Mexico made childcare free for all working and student families regardless of income on November 1, 2025, enrolling 16,706 children in the first months. Ask what your state’s childcare subsidy eligibility threshold is and whether the legislature plans to expand it.
- Check your state’s childcare waitlist status and share it with your representative. Indiana has 31,000 children waiting with no new vouchers until 2027. Arizona has 11,824 children waiting. Tennessee reimposed waitlists after a $44.5 million CCDF cut. Find your state page for local details.
- Ask your U.S. representative to restore childcare stabilization funding that ended in September 2024. Since that funding lapsed, centers have closed, tuition has risen, and labor force participation for mothers with young children fell from 80% to 77%.