economy
Childcare doesn’t need more subsidies. It needs less red tape
Last week, a New Mexico judge upheld the state’s universal childcare program, a victory for those who see greater public spending as the key to making childcare affordable. But there is a better way to lower costs: Reducing the regulations that make childcare so expensive in the first place.
TL;DR
- Excessive regulations are a primary driver of high childcare costs.
- The Administration for Children and Families (ACF) has introduced reforms to increase flexibility for states and childcare providers.
- These reforms broaden the definition of eligible childcare providers and allow for more flexible use of funds.
- The article criticizes overly strict rules, such as those related to child-to-staff ratios and minor facility issues, as impractical and costly.
- Evidence from countries like Denmark, Spain, and Sweden suggests that childcare can be safe and effective without stringent staff-to-child ratios.
- Deregulation is presented as a clearer path to lower costs, wider access, and reliable care for families.