Despite Historic Funding, Early Childhood Educators Continue to Struggle, Report Finds

The billions of federal dollars pumped into the field in recent years — including $39 billion from the American Rescue Plan Act — are widely seen as having been successful in helping stabilize programs and prevent massive waves of closures. However, most of those dollars expired in September 2023, while the remainder expired about two weeks ago.

Absent ongoing funding and a more permanent solution for the field, ARPA dollars seem not to have meaningfully moved the needle. New data in the Workforce Index underscores that reality.

“The funding was not about making the ideal child care system,” McLean said. “It was about preventing the utter collapse of the system we had.”

Corrine Hendrickson’s situation illustrates why the funding stopped short of transforming the field and the lives of those who work in it.

Direct-to-provider payments from ARPA allowed Hendrickson to make changes to her licensed home-based child care program in rural Wisconsin and spend money that she’d never had. She hired an employee for the first time, allowing her to step away for personal appointments. She made repairs and improvements to the building. She increased her own wages from $8 an hour to $12, which she said gave her enough extra money to buy her own kids clothes and pay monthly bills on time.

“Without the ARPA funding, I would’ve closed and never reopened,” she said, adding that as a home-based provider, “if I closed, I would’ve lost my home.”

But then ARPA funding expired last year, and she was forced to make hard decisions just to maintain her new hourly rate of $12. She has raised tuition rates on families three times in the past year, she shared, for a total increase of $70 per week. Some families, she added, have reached out to inquire about her program but then backed off when they learn she charges $259 to $281 per week, depending on the child’s age. It’s just too expensive, they tell her.

“Right now, it does not feel like a sustainable career,” Hendrickson said, “and it really isn’t.”

Nationally, wages for early childhood educators have increased by 4.6 percent in the last few years, after adjusting for inflation, according to the Index. That’s still less than the overall workforce, whose wages have increased by an average of 4.9 percent, as well as those of fast food workers (5.2 percent) and retail workers (6.8 percent). The latter two occupations are relevant because many educators have left their positions in recent years for jobs in food and retail, where wages are similar or higher and stress is much lower.

The national average, though, is just an average. About a dozen states have stepped in with their own investments in early care and education since ARPA dollars expired, helping programs and staff to avoid the so-called “child care cliff” that others have endured.

Some states have seen much bigger wage increases for early educators; in nine states, plus Washington, D.C., early educators experienced wage increases of more than 10 percent. The highest gains were in D.C., with an average 27.1 percent wage increase for educators.

‘This Is a Serious Job’

Lida Barthol is an infant and toddler teacher in Washington, D.C., where her salary has soared in the last few years.

Barthol entered the field in 2016, when she was earning about $11 an hour. Now a lead teacher with a bachelor’s degree, and with help from the District of Columbia’s targeted compensation program for early childhood educators, she is making the equivalent of about $36 an hour.

In 2021, after the DC Council approved a tax increase on the city’s highest-income residents, the District launched the Pay Equity Fund, an effort to increase the compensation of early childhood educators so that it better aligned with that of K-12 teachers with similar qualifications and experience.

“Which is insane,” Barthol said. “It’s unheard of.”

In the program’s first year, educators received one-time payments of up to $14,000. Barthol remembers calling her friend, another early childhood educator, in disbelief over the state of her bank account. “We just sat there and cried,” she said. “It was a really big moment.”

Now, the District funnels Barthol’s wage supplement through her employer, so it is reflected in her regular paychecks. The program — which has led to higher recruitment and retention in the field — shows what is possible if early childhood educators are paid a livable wage.

“It really changed everything about my life,” Barthol said. It gave her and her partner of seven years the financial security to get engaged and plan a small wedding, which is set to take place next month. It’s a “cultural milestone,” she said, that she didn’t feel stable enough to have before.

It has also made her feel that her work — her career path — is valued.

“I used to say, ‘There’s no reason to get a master’s degree in early education because you’ll never earn that money back.’ But really, I love this field. I love learning. I love thinking deeply about the work I’m doing,” said Barthol, who graduated in the spring with her master’s degree in human development.

“It gave me the confidence to be like, ‘This is a serious job,’” she said. “You don’t need a degree to do an amazing job, but it is just that affirmation that this is serious work, and [with] young children, there’s complexity there.”

With federal pandemic relief now gone and a new presidential administration set to begin in a few months, the field is at a “crossroads,” the authors of the report wrote.

Barthol has been attuned to the candidates this election cycle, she said. The nominees of both major parties have mentioned child care at a number of campaign events and even during the recent vice presidential debate.

They’re not always getting it right, Barthol noted. She cited a recent interview with Republican vice presidential candidate JD Vance, who argued that the solution to sky-high child care costs for families was, first, to lean more on “grandma and grandpa” for care, and then, if that option isn’t available, to reduce regulations and lower qualifications for entering the workforce.

Vance suggested that the problem with the field is that the barrier to entry is too high, Barthol said, and that plenty of people want to work in early childhood education but can’t get a degree.

“What barrier to entry? You don’t need a degree,” Barthol said. “The issue is the pay being so low and the unpredictability of benefits.”

She’s seen many young people enter the field, enthusiastic about working with kids, only to realize how “physically, mentally and emotionally demanding it is,” then receive that first paycheck and decide, nope, this isn’t going to work for them.

“It’s not that the barrier to entry is so high,” Barthol reiterated. “It’s that the system is not built to support young families and the people who care for their children.”