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Child care in the US is a 'broken market,' Treasury report finds

Added 09-17-21 03:04:02pm EST - “The average American family with at least one child under age 5 uses 13% of their income to pay for child care, or nearly double what's considered affordable.” - News.yahoo.com

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Posted By TheNewsCommenter: From News.yahoo.com: “Child care in the US is a 'broken market,' Treasury report finds”. Below is an excerpt from the article.

A Treasury Department report this week characterized the U.S. child care system as “unworkable” as Democrats push reform that experts say is an “overdue and critical investment.”

The average American family with at least one child under age 5 uses 13% of their income to pay for child care, according to the report, nearly double the 7% that the U.S. Department of Health and Human Services considers affordable.

Additionally, less than 20% of the children eligible for the Child Care and Development Fund — a federal assistance program for low-income families — are getting that funding.

“Child care is a textbook example of a broken market, and one reason is that when you pay for it, the price does not account for all the positive things it confers on our society,” Treasury Secretary Janet Yellen said in a statement on Wednesday. “When we underinvest in child care, we forgo that; we give up a happier, healthier, more prosperous labor force in the future.”

One failure, according to the report, is that parents must pay for care early in their careers when they are earning less and shouldering student loan and mortgage payments. Additionally, child care providers are challenged by low revenue and high turnover of low wage workers.

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