NASHVILLE, Tenn (WTVF) — Childcare facilities across the country already faced numerous challenges during the COVID-19 pandemic, now face an uncertain future as federal grants that have helped them stay afloat have now come to an end.
With Congress failing to extend the September 30 deadline, many childcare providers are grappling with the potential consequences of losing critical financial support.
One such provider is Bonnie Spear, the director of the Blakemore Children's Center in Nashville, who has spent 28 years in the childcare industry.
Spear has experienced both highs and lows throughout her career, but the pandemic posed unprecedented challenges.
"It's been a challenge to hire and retain staff. Until the pandemic, we had zero turnover. I mean, if somebody turned over every few years, that would have been a lot," Spear lamented.
However, federal assistance in the form of COVID relief funds provided a lifeline to childcare providers.
The historic $24 billion Childcare Stabilization Program was crucial in helping them keep their doors open during the pandemic.
Tennessee received around $554 million from this program, providing much-needed financial relief.
"It helped from a staffing standpoint because we were able to give the teachers a needed bonus. Nobody's had any raises in forever, and the cost of living still continues to go up. It has also enabled us to make improvements to our facility that really needed to be done," Spear said.
The expiration of these grants now leaves providers like Spear searching for alternative solutions to cover their costs.
"It will force us to consider a tuition increase before too long, probably. We generally don't do that more than once every year and a half or so, but to maintain staff salaries, we're going to have to do that," she said.
According to The Century Foundation, a progressive public policy group, Tennessee alone could see nearly 1,200 childcare programs on the verge of closure, leaving thousands of parents in a scramble to find alternative childcare options.
Additionally, around 90,000 children in the state are at risk of losing their care, and nearly 3,900 childcare workers could face unemployment.
To address this looming crisis, some federal lawmakers have proposed the Childcare Stabilization Act, which aims to fill the funding gap left by the expiring grants.
The proposed legislation would provide $16 billion in mandatory funding each year for the next five years, offering hope to childcare providers and parents alike.
