Childcare Costs Average $13,000 a Year. Here Are the New Plans to Bring Them Down

For many families, childcare is one of the biggest bills they pay. The average U.S. family spends about $13,000 a year on care, according to reporting by The 19th. Center-based care for two children costs more than median yearly rent in 47 states and more than the median mortgage payment in 39 states, according to the advocacy group Child Care Aware.

Most Americans want more help

A poll from The 19th and YouGov, published Oct. 2, 2026, found that 52% of U.S. adults think the federal government should spend more on childcare. Support came from 73% of Democrats, 38% of Republicans and 50% of independents. It was highest among Gen Z, at nearly 60%.

The federal government currently spends about $12.4 billion a year on childcare, mostly for low-income families.

Plans on the table

States and Congress are floating very different ideas:

• Oklahoma: On Oct. 14, lawmakers held a study on a three-way cost-sharing model in which the state, employers and parents each cover about a third of costs. It's based on a Michigan program that has worked with 310 employers, served over 1,100 children and saved families an estimated $14 million over four years, according to KOCO News.
• New York City: City Council Speaker Julie Menin said on Oct. 14 she would support a tax increase to fund universal childcare, lining up with Mayor Zohran Mamdani, Politico reported.
• Congress: Rep. Ro Khanna introduced the Free Child Care for America Act in late September. The $80 billion-a-year plan would make care free for most families with kids under 6, letting parents choose daycare, paid care from relatives or friends, or a $1,000 monthly payment, according to Vox.

Other plans from groups like Project 2029 and Third Way have also been proposed. None of these is law yet.

Why childcare costs so much to provide

Childcare is labor-intensive and tightly regulated, which keeps costs high no matter who is paying. States set staff-to-child ratios, especially for infants and toddlers, meaning a center can't simply add more children to lower its per-child cost the way many other businesses can scale down expenses. Facilities also need licensed staff, background checks, safety equipment and liability insurance. Because wages for childcare workers are relatively low despite these demands, many centers struggle to hire and retain staff, which can limit how many families they're able to serve even when demand is high.

This combination, high costs for parents and low pay for workers, is often called the childcare affordability paradox. It's a big reason why most proposals to fix the system involve some form of public subsidy, since purely market-based pricing tends to leave both sides squeezed.

What parents can do now

1. Use a Dependent Care FSA if your employer offers one. It lets you pay for childcare with pre-tax money.
2. Claim the Child and Dependent Care Tax Credit when you file your taxes.
3. Ask your employer about childcare benefits. Some offer subsidies, backup care or partnerships with local centers.
4. Check your state's childcare assistance program. Income limits vary and may be higher than you expect.
5. Compare options. Home-based daycares and nanny shares can sometimes cost less than centers.

Build childcare into your budget

Treat childcare like a fixed bill, as you would rent. If you're expecting a child, start a sinking fund months ahead so the first bills don't land on a credit card.

The bottom line

Childcare now costs more than rent in most states, and support for more help is growing. New proposals could change the picture in a few years, but for now, use the tax breaks, employer benefits and state programs already available to lower your costs.

Sources: https://19thnews.org/2026/10/poll-gen-z-federal-government-childcare-costs/, https://www.koco.com/article/oklahoma-lawmakers-childcare-cost-sharing-model-interim-study/74137401, https://www.vox.com/policy/506026/child-care-universal-daycare-parents-children-2028-democrats