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Home » Report: Cost of child care is sapping economic growth

Report: Cost of child care is sapping economic growth

Kids outside playing lacrosse.

The Economic Policy Institute, a Washington D.C. think tank, says in a recent report that Washington state is the eighth most expensive state for child care in the country, with the cost of infant care costing more than 150% the cost of tuition at a public four-year university.

Courtesy Boys and Girls Clubs of Benton and Franklin Counties
March 12, 2025
TCAJOB Staff

What’s more expensive than sending your kid to college? Sending them to day care. 

A report from the Economic Policy Institute ranks Washington state as the eighth most expensive state when it comes to infant care, at an average cost of $1,723 per month, or $20,677 per year. Child care for a 4-year old comes in at an average of $1,201 per year. 

Along with costing 154% more than tuition at a public four-year university, child care costs barely less than the average rent bill. 

It’s a problem that hampers economic growth in the short and long term, the think tank says, by limiting the ability for parents to work and shortchanging the ability for children to receive quality education and care that prepares them for the future. 

“Given the critical importance of high-quality early care and education for all children, many peer nations provide universal affordable child care through subsidies, universal high-quality prekindergarten programs, and paid family leave,” the think tank writes in its Policy Agenda report. “In contrast, the American system for the provision of early care and education is deeply fragmented and severely under-resourced, and the cost of early care and education is borne primarily by parents and by the early childhood workforce in the form of their low wages, all of which leads to vastly uneven quality of, and access to, services.” 

Efforts in the Legislature to address the need for accessible and affordable child care have been a mixed bag. In 2024 more money and support were directed toward the state’s struggling child care system, looking to give providers a boost and expand access to day care and pre-K programs for families, according to the Washington State Standard. At the same time, many child care-related bills proposed in the 2025 legislative session have failed to move forward. 

Currently, families earning at or below 60% of the state median income can get subsidies for child care and early learning through the Working Connections program, Northwest Public Broadcasting recently reported. That percentage was set to increase to 75% on July 1. That would mean a family of four bringing in around $91,000 would be eligible for the program. 

However, Gov. Bob Ferguson wants to delay that expansion over the next four years to save $296 million, with exceptions for families where one parent works for a small business, according to his budget priorities. 

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