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Childcare: What Will Happen if American Rescue Plan Act Ends?

How the end of American Rescue Plan Act will affect childcare? (Photo: Early Childhood Development)

The American Rescue Plan Act, which is federally funded during the pandemic, is about to end this September. What will happen to around 3.2 million kids in the country?


How the end of the American Rescue Plan Act will affect childcare? (Photo: Early Childhood Development)

The End of American Rescue Plan Act

A new report from the think tank “The Century Foundation” revealed the effect and impact once the American Rescue Plan Act (ARPA) ends this September. This will heavily affect around 3.2 million kids and families across the country.

In a published article in Yahoo News, the states of Texas and New York could potentially experience the negative effect of this federally funded program. It is projected that there will be around 305, 976 kids who will lose spots once the ARPA ends.

What the Report Revealed?

According to a published report in Business Insider, the report stated, “The ARPA stabilization funds that staved off the child care sector’s collapse will come to an abrupt end in September 2023. When these resources swiftly and suddenly disappear, this funding cliff will once again place the sector in danger, as it will be forced to contract, shedding caregivers and care slots in a cascade that will not only upend millions of families’ childcare arrangements but also hurt regional economies.”

Furthermore, there have been moves from Congress on long-term funding for childcare as part of the Build Back Better. However, this did not progress due to some opposing views among the lawmakers.

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