Child care costs have surged past general inflation, with families now spending far more than the 7% of income federal guidelines consider affordable. Nationally, child care prices rose 8% between June 2024 and June 2025, compared to just 4% inflation for all goods and services. In many states, child care now costs more than in-state college tuition.

Rising costs stem from multiple pressures on providers. Wages constitute the largest expense, with child care workers earning a median $13 per hour while competing against fast-food jobs paying $20. Supply and food costs have also climbed, with 90% of providers reporting increases in the past year. The labor-intensive nature of child care, with strict state-mandated child-to-worker ratios, leaves little room to absorb higher costs without raising fees.

Government support has dwindled just as expenses have climbed. Many states cut funding for child care subsidies and reimbursement rates amid budget constraints, while pandemic-era federal aid has ended. Providers like Sherry Picha in Wisconsin face losing $13,000 in monthly state payments this summer. With 97% of costs going to wages and benefits, Picha and her daughter split a $47,000 salary and both work second jobs. As one provider put it: 'Being rich is not a part of it. I continue to do it because of my love of working with kids.'