This post is part of Back-to-School Week at the Center for Economic Opportunity. Each day, we feature commentary and analysis on affordability and other issues for families preparing for the new school year.
As the back-to-school season rolls around, millions of parents across the country are packing lunches, labeling backpacks, and dropping off their littles at preschool and day care. For many families, this time brings a mix of excitement for the kids and a quiet sigh of relief for mom and dad. But it also shines a light on one of the toughest realities facing American parents today: the near-astronomical cost of child care.
Nationwide, the average cost of day care runs about $13,000 to $17,000 per year for one child. Infant care is often even higher. For working families, particularly with young children, this expense can consume a huge portion of the household budget, forcing tough choices on everything from housing to savings to family size.
Progressives often push for “free” or heavily subsidized universal child care as the solution. The idea sounds compassionate because the government would step in, costs would disappear, and parents (especially moms) can work more freely. In practice, though, these large-scale programs come with hidden costs and unintended consequences.
“Free” care isn’t free. It’s paid for by taxpayers, often through higher taxes or deficits that hit middle-class families hardest. Subsidies boost demand without fixing supply shortages, leading to waitlists, quality concerns, and less flexibility. Many parents prefer options such as family-member care, home-based providers, co-ops, or adjusted work arrangements. Top-down universal programs risk crowding out those choices and creating more bureaucracy than real relief.
If we want child care to be more affordable and accessible, we need to address the root causes. One of the biggest drivers of high prices is excessive regulation, as we explained in our Reclaiming Affordability Report. Many states require strict staffing ratios, unnecessary credentialing requirements, and layers of red tape that limit the number of providers and drive up operating costs.
Research shows that states with lighter, more sensible regulations have dramatically lower childcare costs, sometimes by half, compared to heavily regulated states. Reforming overly burdensome rules while protecting basic health and safety would increase supply, encourage more providers, and bring prices down naturally through competition.
Other practical, parent-empowering approaches include:
- Expanding flexible tax credits or Education Savings Accounts (ESAs) so families can choose the care setting that works best for them—whether center-based, home-based, or with relatives.
- Offering incentives for businesses and communities to create more options.
- Prioritizing broad economic growth through lower taxes and reduced red tape, so families have more breathing room overall.
These solutions respect parental choice and address affordability concerns directly instead of masking high costs with government subsidies.
As we watch our children head back to school, this is the perfect moment to rethink how we support families. By cutting unnecessary regulations, enhancing choice, and growing the economy, we can make quality care more accessible for more families. That’s the kind of back-to-school win that benefits parents, kids, and our communities for years to come.