Biden Releasing $39 Billion for Early Childhood Educators and Care Providers

The Biden Administration has announced the release of $39 billion of American Rescue Plan funds to states, territories, and tribes to address the child care crisis caused by COVID-19. 

The $39 billion will be divided into two funds, a $24 billion stabilization fund for providers and a $15 billion flexible fund that would expand the Child Care and Development Block Grant. With this funding, states can provide direct subsidies for the cost of care to more than 800,000 families earning below 85 percent of the median income.

According to this article in The Hill, the administration is expected to release guidance to states on these funds, which will vary by the states’ population, in the coming weeks.