NC Governor Launches Task Force to Tackle Child Care Crisis Amid $5B Annual Economic Loss

March 10, 2025
NC Governor Launches Task Force to Tackle Child Care Crisis Amid $5B Annual Economic Loss
  • Stein concluded his announcement by reiterating that investing in child care is crucial for child development, parental workforce participation, and overall economic growth.

  • The end of pandemic-related federal childcare subsidies has exacerbated the crisis, with many programs struggling after the expiration of $24 billion in stabilization grants from the American Rescue Plan.

  • Recent legislative proposals include tax exemptions for child care facilities and funding for Dolly Parton’s Imagination Library literacy program, aimed at supporting early childhood education.

  • The task force, co-chaired by Lt. Gov. Rachel Hunt and Sen. Jim Burgin, is tasked with assessing the current childcare system, recommending investments, and addressing workforce challenges.

  • A survey revealed that 32% of parents with young children are delaying their careers or education because of the high costs of child care, while 60% have missed work due to child care challenges.

  • Stein noted that approximately 40% of child care workers rely on public assistance due to low wages, which contributes to staffing shortages and limited availability of child care slots.

  • On March 10, 2025, North Carolina Governor Josh Stein announced the establishment of the Task Force for Child Care and Early Education, aimed at improving access to affordable, high-quality childcare in the state.

  • The economic implications of child care challenges are significant, with estimates indicating that North Carolina loses over $5 billion annually due to these issues.

  • Lt. Gov. Hunt highlighted the financial strain on families, noting that many are incurring debt due to high child care costs, often spending more on preschool than on rent.

  • He emphasized that child care should ideally cost only 7% of a family's income, yet four out of five families exceed this threshold, with the average cost of infant care reaching $12,000 annually.

  • This announcement came after a tour of Kate's Korner child care center in Durham, where Stein highlighted the critical shortage of available child care slots in North Carolina.

  • He called for collaborative policy solutions from both the state government and the business community to tackle these challenges and support working parents.

Summary based on 10 sources


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