Rising prices for many key services helped deliver the White House for President Donald Trump in 2024, and the Trump administration recently touted falling rents and gas prices as part of its affordability agenda. But child care costs, on the other hand, continue to rise.
Child care has become one of the fastest-rising household expenses in the United States. Since 2010, the cost of daycare and preschool has increased by 61%, outpacing the rise in food prices, college tuition, and medical care. As child care costs climb, many families are forced to make difficult trade-offs, often pushing parents, especially women, out of the workforce or into less stable care arrangements.
These pressures extend beyond individual households. When parents leave the labor force or reduce hours because child care is unaffordable or unavailable, employers lose workers, communities lose economic activity, and long-term earnings trajectories are permanently altered.
The cost of child care is expensive for several reasons, including labor intensity and safety requirements. But one factor stands out as both significant and fixable: Stringent regulation.
A recently published report by the Archbridge Institute compiled child care facility regulations for every state and computed a unique overall ranking of state regulations. The results show striking differences.
Idaho has the least restrictive regulations in the country, followed by South Carolina, Arizona, Alabama, and Florida, while Vermont has the most restrictive child care regulations.
Continue reading at The Washington Examiner.
Ricky Feir is a research specialist for the Challey Institute for Global Innovation and Growth at North Dakota State University. His research aims to highlight issues affecting the Midwest and inform policy discussions with data-driven insights. He holds a master’s degree in applied economics from North Dakota State University. Prior to his current position, he taught high school economics, government, and history.
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
Economics of Flourishing
Rising prices for many key services helped deliver the White House for President Donald Trump in 2024, and the Trump administration recently touted falling rents and gas prices as part of its affordability agenda. But child care costs, on the other hand, continue to rise.
Child care has become one of the fastest-rising household expenses in the United States. Since 2010, the cost of daycare and preschool has increased by 61%, outpacing the rise in food prices, college tuition, and medical care. As child care costs climb, many families are forced to make difficult trade-offs, often pushing parents, especially women, out of the workforce or into less stable care arrangements.
These pressures extend beyond individual households. When parents leave the labor force or reduce hours because child care is unaffordable or unavailable, employers lose workers, communities lose economic activity, and long-term earnings trajectories are permanently altered.
The cost of child care is expensive for several reasons, including labor intensity and safety requirements. But one factor stands out as both significant and fixable: Stringent regulation.
A recently published report by the Archbridge Institute compiled child care facility regulations for every state and computed a unique overall ranking of state regulations. The results show striking differences.
Idaho has the least restrictive regulations in the country, followed by South Carolina, Arizona, Alabama, and Florida, while Vermont has the most restrictive child care regulations.
Continue reading at The Washington Examiner.
Ricky Feir
Ricky Feir is a research specialist for the Challey Institute for Global Innovation and Growth at North Dakota State University. His research aims to highlight issues affecting the Midwest and inform policy discussions with data-driven insights. He holds a master’s degree in applied economics from North Dakota State University. Prior to his current position, he taught high school economics, government, and history.
Edward Timmons
Edward Timmons, PhD, is Vice President of Policy at the Archbridge Institute. He leads the institute's economic policy strategy, identifying focus areas and disseminating work to key stakeholders and policymakers. His own research focuses on labor economics and regulatory policy; he is regularly asked to provide expert testimony to U.S. states on occupational licensing reform and the practice authority of nurse practitioners. Dr. Timmons received his Ph.D. in economics from Lehigh University and his B.A. in economics and actuarial science from Lebanon Valley College. He publishes a weekly newsletter on Substack with the latest research and policy insights surrounding occupational licensing.
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