The Problem

The costs of raising a child, especially when they are not yet school-age, are extremely high. By one estimate, it adds up to more than $15,000 a year. Since 2000, childcare has roughly doubled in cost, well outpacing the increase in hourly wages.

We are not just failing to help parents, we are also failing to invest in our children. When children grow up to lead productive, ambitious, prosperous lives, that reverberates to the benefit of everyone – but only if children are provided the opportunities they need to thrive.

Recommendations

• The State Department should rescind its 2019 moratorium on growth of the au pair program. To allow au pairs to stay in the United States for up to four years, Congress should amend the J-1 visa section of the Immigration and Nationality Act and the State Department should amend 22 U.S. Code § 62.31 subsection (o).
• States should consider how tightening occupational licensing of childcare workers can constrain supply and contribute to shortages.
• States should ensure that zoning codes do not unnecessarily prevent the establishment of new childcare centers.
• States should create an expansion to the Child Tax Credit that provides a refundable credit of $300 per month to the parents/guardians of all children under the age of six.
• Congress should create Medicare for Kids, bringing coverage to the 3.8 million children who do not currently have health insurance.
• Congress should pass the Universal School Meals Program Act of 2023 to provide universal free school meals, improving health and educational outcomes for children.
• Congress should also eliminate all tariffs on baby formula and update standards to match those of the European Union to allow for more competition in the formula market.

For a more detailed analysis of the problems facing housing and our proposed solutions,
read the full Democratic Cost-of-Living Report.