The COVID-19 pandemic had a significant impact on child care, with nearly 4.5 million child-care slots lost nationwide. Prior to COVID-19, Harris County experienced a significant shortage of affordable child care options. According to a February 2021 report, 25% of all child-care centers in Texas closed due to COVID-19. Many child-care programs are not licensed and only 43% of licensed child-care providers accept subsidies, resulting in a lack of affordable, quality child care. Moreover, many families suffered financial hardship during the pandemic and child care is the second most expensive item in the family budget, falling just behind housing.
During the pandemic, fewer families enrolled their children in child-care programs, which resulted in the closure of many child-care facilities. Child-care facilities also saw an increase in employee shortages and turnover during the pandemic, which created challenges for ensuring child-care centers were adequately staffed. As families returned to work, they experienced obstacles in finding child care. Working families need access to culturally competent, accessible, and affordable child care. The RAND Policy Research Corporation will be evaluating Early Childhood Impact Fund investments, including Home-Based Child Care Entrepreneurship.