Quick Read
- In fiscal year 2022, over $29 billion was spent on childcare subsidies by federal and state governments across the U.S.
- New Mexico received the highest federal childcare subsidies per child under five at $1,782, while South Dakota received the lowest at $482.
- Median weekly infant care costs ranged from $108 in Mississippi to $462 in Massachusetts in 2022.
- New “flex-plex” childcare models, like one in Medicine Lodge, Kansas, establish multiple independent family childcare businesses in renovated commercial spaces.
- Kansas is one of seven U.S. states that permit family childcare providers to operate in non-residential settings.
WASHINGTON (Azat TV) – As federal scrutiny on childcare spending intensifies following recent fraud investigations and new city-level initiatives, a comprehensive look at federal and state childcare subsidies in fiscal year 2022 reveals a stark disparity in support across U.S. states. Simultaneously, innovative models like “flex-plexes” are emerging in communities such as Medicine Lodge, Kansas, offering a potential solution to the persistent challenges of childcare accessibility and affordability that continue to impact families nationwide.
According to data from the federal government’s Office of Child Care, a combined total of just over $29 billion was allocated to childcare subsidies from federal and state sources in fiscal year 2022. This funding supports various critical aspects of childcare, including program quality, staff training, and administrative overhead. The analysis, conducted by SmartAsset, ranked states based on federal dollars spent per resident younger than five years old, providing a clear picture of where taxpayer money is channeled.
Federal Childcare Subsidies: A State-by-State Breakdown
The data from fiscal year 2022 shows significant variations in federal childcare subsidies per child under five across the United States. New Mexico led the nation, allocating $1,782 per child, totaling $187.1 million in federal subsidies for its 104,994 young residents. West Virginia followed closely, with $1,651 per child for its 87,469 children under five.
Conversely, some states received considerably less federal support per child. South Dakota reported the lowest subsidies at $482 per child for its 57,246 children under five. Virginia ranked second-lowest with $546 per child, followed by Nevada at $564 and Minnesota at $629. These figures highlight a diverse landscape of federal investment in early childhood care across different regions.
The Economic Landscape of Childcare Costs
Beyond subsidies, the median weekly cost of childcare also varies dramatically by state and child’s age, further exacerbating the financial strain on families. Nationwide, weekly median costs ranged from $108 to $462. Infant care consistently proved to be the most expensive category.
Massachusetts and Minnesota were identified as having the highest median weekly costs for infant care, at $462 and $390, respectively. Toddler care in these states cost $409 and $348 per week, while preschooler care was $310 in Massachusetts and $309 in Minnesota. In stark contrast, Mississippi offered the most affordable childcare, with infant care at $119 per week and toddler or preschooler care at $108. Alabama was the second most affordable, with infant care at $136 per week.
Innovative Childcare Models: The “Plex” Solution
In response to these cost and accessibility challenges, particularly in rural areas, innovative childcare models are gaining traction. One such model, the “flex-plex” or “micro-center,” is exemplified by the Medicine Lodge Daycare in Medicine Lodge, Kansas. This facility transforms commercial spaces into a cluster of small, fully equipped childcare businesses.
LeyAnn Gehlen-Wampler, a childcare provider who opened her Shining Stars family childcare home within the Medicine Lodge Daycare, explained that the model made opening her business feasible. The building was renovated into five separate rooms, each with its own entrance and outdoor playground, ideal for independent family childcare providers caring for small, mixed-age groups. City Administrator Brian Withrow noted that this innovative approach allows providers to operate under family childcare licenses, which often have fewer restrictions and lower overhead compared to larger commercial centers that require a director, multiple teachers, commercial insurance, and expensive building upgrades like sprinkler systems.
Rural Revitalization Through Childcare Initiatives
The success of these “plex” models relies heavily on community support and strategic funding. Through a combination of local, state, and federal grants, Medicine Lodge covered startup costs, including furniture, curriculum materials, licensing support, and even the first year of liability insurance for providers. This financial assistance is crucial, as many potential providers, like Gehlen-Wampler, would otherwise be unable to afford the initial investment.
The Medicine Lodge model is particularly viable in Kansas, which is one of only seven states (including Alaska, Missouri, Idaho, Mississippi, Nevada, and Wisconsin) that permit family childcare providers to operate in non-residential settings. This regulatory flexibility allows for the conversion of underutilized commercial properties into vital community assets, breathing new life into Main Street businesses and ensuring that families have access to much-needed childcare services. City councilman Matt Forsyth highlighted the broader economic impact, stating that such initiatives help keep small-town Main Streets alive and enable business owners to find care for their own children, fostering local economic stability.
The varying landscape of federal childcare subsidies across states, coupled with significant differences in weekly childcare costs, underscores a persistent national challenge. The emergence of innovative, community-supported models like the “plex” in Kansas demonstrates a proactive approach to addressing this crisis, leveraging regulatory flexibility and grant funding to create accessible and affordable childcare options, particularly in underserved rural areas.