Key facts
- Democratic senators accuse Trump administration of worsening childcare crisis.
- Childcare costs rose faster than overall inflation in 2025.
- Daycare and preschool costs increased by 3.5% in the year to May 2026.
- Over 400 daycare centers closed in Oklahoma since November.
- More than 300 programs closed in Indiana since September last year.
- ACF froze $2.4bn in Child Care and Development Fund grants for five states in January.
Democratic senators have accused the Trump administration of exacerbating the nation's childcare crisis, citing rising costs and daycare closures that limit affordable options for families. In a letter addressed to Alex Adams, assistant secretary of the Administration for Children and Families (ACF), senators led by Elizabeth Warren of Massachusetts argued that federal cuts and changes to programs like Head Start have destabilized the childcare system.
The senators noted that childcare costs outpaced overall inflation in 2025, with daycare and preschool expenses rising 3.5% in the year leading up to May 2026. They stated that increased costs for essential services like food, supplies, insurance, and rent are forcing providers to either raise tuition fees or shut down. The letter highlighted that over 400 daycare centers in Oklahoma and more than 300 programs in Indiana have closed since late last year.
The senators also criticized the administration's management of Head Start, a federal program for low-income children. They pointed to a Department of Health and Human Services (HHS) decision to freeze program funding shortly after President Trump took office, which they claim led to temporary closures and uncertainty for thousands of vulnerable families. The letter also mentioned an ACF decision in January to freeze $2.4 billion in Child Care and Development Fund grants for five states, a move that was later rescinded following legal challenges.
Furthermore, the senators expressed concern that regulatory changes could increase costs for families. They cited a finalized ACF rule in May that rescinded Biden-era requirements, including a cap on childcare co-payments at 7% of income for eligible families and provisions for paying providers based on enrollment. The senators warned these changes could make childcare more expensive and lead to provider closures. They also raised alarms about proposed changes to Head Start, such as loosening child-to-teacher ratios and reducing wage and benefit requirements for staff, which they believe could worsen staff turnover and reduce access to quality care.
The senators have requested that ACF provide data by October 14 on the number of childcare centers that closed since January 2025, changes in average childcare costs, and monthly data on Head Start and Child Care and Development Fund grants. They also seek details on support for centers facing closure and an analysis of the impact of recent regulatory changes on costs and provider numbers, specifically asking if ACF calculated the potential cost increase for families due to the removal of the 7% co-payment cap and the number of centers that might close as a result.