DeLauro Testifies in Support of $50 Billion in Relief for Child Care

July 17, 2020
Press Release

DeLauro: "And if we cannot make families feel that their kids are going to be safe and secure, in their child care setting, we are not going to get our economy on track."

WASHINGTON, D.C. — Congresswoman Rosa DeLauro (CT-03) delivered the following remarks before the Rules Committee in support of her legislation, the Child Care is Essential Act, to create a $50 billion Child Care Stabilization Fund within the existing Child Care and Development Block Grant (CCDBG) program. A video of DeLauro's remarks can be found here.

Thank you. It is an honor to be speaking to and alongside my colleagues on such a vital issue for our children, our working people, our communities, and so many small businesses: and that is child care.

First, let me thank Chairman Jim McGovern for this opportunity to testify about my $50 billion dollar bill for child care.

Second, I want to acknowledge my colleagues, namely Chairwoman Nita Lowey and Congresswoman Katherine Clark. Their bill is also a stand-alone emergency bill; in addition to increases in mandatory funding, the inclusion of my Child Care Flex Spending Act, which increases the amount that employees may exclude from their gross income for employer-provided dependent care assistance. Crucially in my view, it provides $10 billion for child care infrastructure—another critical component that I am also proud to support.

Let me quote the Washington Post from July 4, titled "Lack of child care slowing recovery, working parents swamped at home productivity slump pinned on school, center closures": "The child care crunch triggered by the pandemic has rapidly become a crisis for many workers and companies that is hindering the economic recovery, disproportionately harming women and threatening to leave deep scars for years to come."

As chair of the Labor, Health and Human Services, and Education Appropriations subcommittee, my committee has been central to our response to this pandemic and has provided much-needed funding to deal with the crisis—providing $3.5 billion for child care in the CARES Act and $7 billion in the House-passed Heroes Act.

But, to be frank, the $7 billion in the Heroes Act is not enough to save the child care sector. It could take at least $9.6 billion per month to keep current child care providers in business. This is a crisis. More than half of child care programs could close if we do not act quickly.

And if we cannot make families feel that their kids are going to be safe and secure, in their child care setting, we are not going to get our economy on track. Affordable child care was a significant and severe issue before the pandemic, and will be after this pandemic is over, so this is not about going back to normal. We cannot afford to do that either. We need to ensure we have high-quality, affordable providers to see families through the pandemic and afterward.

I introduced the Child Care is Essential Act with Congressman Bobby Scott and Senator Patty Murray. Creating a $50 billion Child Care Stabilization Fund within the existing Child Care and Development Block Grant (CCDBG) program, the bill will provide grant funding to child care providers to stabilize the sector and support providers so they can be safely reopening and running.

The new Child Care Stabilization Fund would provide grant funding to child care providers to stabilize the child care sector and support providers to safely reopen and operate. These grants would help child care providers and working families by:

  • Ensuring that the grants adequately support providers' operating expenses and funding gets to them quickly;
  • Requiring that providers continue to pay their staff;
  • Providing tuition and copayment relief for working families;
  • Promoting health and safety through compliance with public health guidance;
  • Prioritizing providers that serve underserved populations;
  • Ensuring grants are awarded equitably across child care settings;
  • And, Conducting oversight through robust reporting requirements.

We bailed out the airlines. Corporations got PPP loans. Hedge fund managers and real estate developers got a $170 billion tax break completely unrelated to the pandemic. We need to save the child care industry.

It is a matter of economic security for women and families. In fact, a lack of child care has been cited as a reason why women are still highly reflected in the unemployment rolls. In fact, employees' child care issues were named the second-most common concern among small business owners right now, after bringing in money, according to a recent survey.

And, it is a matter of addressing the racial disparities, which this virus has further exposed.

The Center for American Progress published a report about the state of child care, especially for African Americans, which highlighted what so many of us already know, but has only exacerbated by COVID-19, as Minority communities have fewer resources to pay for child care during economic recovery. And these are families that require child care to perform their jobs on the front lines.

Further, the report found particularly providers in communities of color may struggle to access small-business loans, like those through the PPP because of systemic discrimination in banking practices, the wealth gap, and higher debt.

We must do much more in this historic moment: for women, for families, for children, for these small businesses, for communities of color. So, let us stabilize the child care sector. Let us provide the $50 billion today. Thank you.