The Child Care Crisis and Its Impact on Hispanic Families

An Excerpt: “The Child Care Crisis and Its Impact on Hispanic Families

BY KATIE BOGLE AND ABBY FOREMAN, PH.D.

Katie Bogle was a 2020 recipient of the Center for Public Justice’s Hatfield Prize. Bogle (Dordt University ‘21) and faculty advisor Abby Foreman, Ph.D., researched barriers to affordable child care for Hispanic families in their community of Sioux Center, Iowa.

DISCOVER

Angelica Lopez, a single mother, lives in a small town in the Midwest. Every morning, she wakes her two-year-old daughter Camila up at 5:30 a.m. in order to drive the 25 miles to the nearest child care center. More than a third of her paycheck goes to child care, but in this rural community, it’s her only option. She drops off Camila and spends the next 12 hours working a factory shift during the day and waitressing in the evening to provide for her daughter. The daycare closes at 6 p.m., and Angelica’s mother or sister, each of whom have also worked all day, pick Camila up and watch her until her mother returns home. Angelica’s work schedule varies from week to week, making child care scheduling an ongoing challenge. She arrives home exhausted and wishing she had more time to spend with her daughter.

While Angelica’s story is a fictional account, this picture of fatigue and limited options due to a lack of affordable and accessible child care is reality for many families. Quality, affordable child care in the United States is out of reach for many families, especially for parents who do not have the option to stay home with their children because of financial constraints. More than half of American families currently live in a child care desert, meaning that there are more than three times the number of children as licensed care providers within an area. Researchers refer to this lack of available, affordable child care as the “child care crisis,” as years of increasing care costs and barriers to accessibility have put strains on families and child care providers.

While the child care crisis has touched nearly every corner of America, impacting families of diverse racial, cultural and socioeconomic backgrounds, this report will examine its impact on the Hispanic community. With a population of 59.9 million, Hispanics are the largest minority population in the United States and contribute to the rich and diverse fabric of American life. The U.S. Office of Management and Budget defines Hispanic as “a person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin regardless of race.” Hispanic families in the United States, made up of both immigrants and native-born citizens, disproportionally lack access to a varied array of affordable child care providers. Nearly 60 percent of Hispanic families reside in a child care desert.

Quality, affordable child care in the United States is out of reach for many families.

Child care is especially important for families for whom having both parents in the workforce is not a choice, but a necessity. As of 2018, 15.5 percent of Hispanic families were living in poverty. Hispanic children make up one-fourth of all children in the U.S. and yet are more than twice as likely to be living in poverty as compared to their non-Hispanic peers. Hispanic workers are disproportionately represented in low-wage jobs, and more than half of Hispanic workers are employed at workplaces with irregular or non-standard work schedules. This presents significant challenges for parents with young children who must remain in the workforce, but are limited in their ability to afford the rising costs of child care. Even when child care is affordable, non-standard work schedules often leave families constantly putting together a patchwork of care. Irregular and non-standard work schedules combined with low wages can make it difficult for families to grow and develop, and can hinder a family’s long-term economic mobility.

Child Care in America

Child care within this report is defined as care for children ages zero to five that is provided by an adult who is not the child’s parent or legal guardian. This definition includes for-profit center-based care, nonprofit and faith-based center-based care, licensed in-home providers, and informal care provided by a friend or family member. This report will explore the child care needs and preferences of Hispanic families with children ages zero through five years old, with a focus on government-subsidized care available to low-income families.

High-quality child care refers to a healthy and safe environment in which children are encouraged to learn and grow in a developmentally appropriate manner. It promotes positive socialization for children under the supervision of competent, qualified care providers. The United States Department of Health and Human Services defines affordable child care as care that is seven percent or less of a family’s total annual income. However, the average cost of child care in the United States is between 9 to 15 percent of a family’s income and can be as much as 35 percent for those living at or below the poverty line. Available child care is defined within this report as care providers with open slots, meaning a family will not have to be put on a waiting list, and that are in reasonable geographic proximity to the families in need of care.

However, the quality, cost, and availability of care are not the only factors that should be considered when evaluating the landscape of care. The diversity or range of providers within a given region, as well as the cultural competency of providers, must also be examined. Cultural competency is defined here as not only an awareness of cultural differences, but as ongoing and intentional efforts to ensure that programming is attentive to and informed by cultural norms and preferences of those served. Every family has unique needs and preferences for child care, and necessarily, the landscape of child care options in America is diverse. This report will discuss child care within two broad categories: government-subsidized and non-government subsidized child care. Subsidized child care includes for-profit centers, secular and faith-based nonprofit centers, and licensed in-home care providers. Non-government subsidized care includes any kind of care not subsidized by government, whether in a for-profit or nonprofit (secular or religious) center, in-home care providers, or informal care by relatives or friends.

Government-Subsidized Child Care

The federal government, through the Child Care and Development Block Grant, supports child care for low-income families through two mechanisms: vouchers (or certificates) given directly to families to use for subsidized care at the provider of choice, and grants or contracts awarded directly to child care providers to provide subsidized care. The Child Care and Development Block Grant (CCDBG), administered by the Office of Child Care within the Administration for Children and Families at the United States Department of Health and Human Services, provides funding to state governments which then administer funding to families and child care providers. In 2018, an average of 1.32 million children received CCDBG-funded child care each month.

The CCDBG prioritizes vouchers over grants and contracts to promote diversity and parental choice, and the majority of federally subsidized care is paid for via vouchers. Eligible families can apply for and use vouchers to subsidize their child care costs at the child care provider of their choice, including secular and faith-based centers as well as in-home care providers. Child care providers are also eligible to receive direct federal funding through the CCDBG via grants or contracts. This allows providers to subsidize the cost of care for families.

Every family has unique needs and preferences for child care, and necessarily, the landscape of child care options in America is diverse.

Secular and Faith-Based Nonprofit Providers

While some families choose for-profit center-based care options, other families may prefer to use secular or faith-based nonprofit child care in their community. Faith-based child care is defined as care that is affiliated with or housed within a church, synagogue, temple or other faith-based organization, or that provides explicitly religious instruction and programming.

Some nonprofit care providers are privately funded; however, many receive funding either directly or indirectly through the Child Care and Development Block Grant. Families are able to use a voucher at faith-based and nonprofit child care centers, which helps increase the diversity of affordable child care providers available to families. Faith-based organizations may compete for direct funding via grants or contracts to enable them to offer subsidized child care to low-income families. However, as a condition of accepting such direct funding (rather than being paid through a voucher or certificate brought by an eligible family), faith-based organizations must remove their faith-based practices, programming, and environment from the care being provided. This essentially disqualifies many faith-based organizations who view their faith-identity as inherent to their mission and care provided.

Licensed In-Home Care Providers

Licensed in-home child care centers provide care within a home setting. These providers are registered with the state and are required to follow health and safety guidelines. This form of child care is preferable for many families because it mimics a home setting and often offers more flexible hours of care. Families are able to use vouchers at in-home care providers, which helps to contribute to the diverse landscape of providers. It is estimated that nearly 25 percent of all vouchers are used on in-home care providers. Providers of subsidized in-home care, like providers of center-based care, may also receive federal support via the U.S. Department of Agriculture’s Food Reimbursement Program, which reimburses child care programs for healthy meals and snacks.

Headstart and Early Headstart

Headstart and Early Headstart are two government programs that provide eligible low-income families with subsidized early childhood education, and, as part of that, child care. Early Headstart serves families with children ages infant to two years and Headstart serves three to five years olds. These programs operate out of local child care centers, schools, nonprofits, and churches, and receive funding through the Headstart Act, which is reauthorized each year by Congress and administered by the Department of Health and Human Services. The Headstart and Early Headstart programs also provide other services, including education and mentoring for new mothers and bilingual in-home consultation programing. In 2017, the Headstart programs served approximately one million low-income children.

Non-Government Subsidized Care

While the government subsidizes a diverse range of child care providers, many families also use non-subsidized child care options. Unsubsidized child care providers supply care that is either entirely paid for by other sources, such as the parents or a church, or through unlicensed care from a friend or family member.

Informal Child Care

Informal child care, sometimes called kinship care, is defined within this report as consistent care provided by friends, neighbors, or relatives for more than five hours per week. This type of care is very common but is generally exempt from licensing by state governments. Because many of these care providers are not officially licensed with the state, families do not have access to state resources, and there are no state regulations on quality of care. In the U.S., an estimated 42 percent of families consistently use an informal child care provider. Informal child care is often more affordable, mimics an in-home care setting, and has flexible hours, making it preferable for many families.

Hispanic Families and Child Care Barriers

The child care preferences of the Hispanic community are unique and should be considered when looking at the utilization of and barriers to care. Research shows that Hispanic families tend to rely more heavily on informal care provided by a family member or friend as opposed to formal, center-based care options. It may appear that the Hispanic community utilizes informal child care options simply because that is their preference due to cultural, religious or other reasons, and for some families this may be true. However, a National Survey of Early Childhood conducted in 2016 found that Hispanic families look just as favorably on center-based child care as their non-Hispanic peers. This suggests that the lack of center-based child care utilization within the Hispanic community may be due to other factors and barriers in place, rather than a choice based on preferences.

Nearly 60 percent of Hispanic families reside in a child care desert.

Low-income Hispanic families face several key barriers to high quality, affordable child care. Cost, convenience of location, availability of child care during irregular hours, inadequate information, and a lack of cultural competency within the care system all contribute to the child care crisis among Hispanic families.

Cost

Parents face many barriers to accessing child care for their children, but cost is often the most significant of these barriers. Child care is one of the leading household expenses in the U.S. for families with children under five years old. The Center for American Progress developed a 50-state cost model for center-based care that considered the cost of licensure, adult to child ratios, salaries, and benefits for employees. This study found that the average cost of running a licensed child care facility is approximately $15,000 annually for just one child. As a result, child care centers must charge high rates to be able to continue operating. In many parts of the country, child care costs as much as three times the amount that a family pays on rent or a mortgage. A national study by the National Women’s Law Center in 2017 concluded that over one-third of families have reported that child care has caused financial problems. This situation is in part due to the fact that the cost of child care in the U.S. has more than doubled in the last 20 years, while wages have remained fairly consistent. The lack of affordable child care is especially common in rural and low-income urban areas where fewer child care providers mean fewer available openings.

Geographic Location and Child Care Deserts

Geographic location can also affect the availability of child care options within a community. Rural and low-income urban communities often have fewer child care resources available. Hispanic families are more likely than any other minority group to live in a child care desert: more than 60 percent of the Hispanic population lives in such an area.

Employment in jobs with non-standard schedules, common among low-income Hispanic families, also presents challenges. Over half of Hispanic parents work irregular or non-standard hours. Many government-subsidized care options offer limited hours of care. These hours cater towards families working a standard nine to five schedule on weekdays and leave out families who are working non-standard or unpredictable hours. This reality has caused families to find alternative methods of care, such as leaving children with older siblings, relatives, neighbors or babysitters during the interim times when formal care is unavailable. This type of unpredictable and inconsistent patching together of child care providers makes scheduling care a perpetual challenge.

Underutilization and Inadequate Cultural Competency Among Providers

Historically, Hispanic families have underutilized government assistance, often due to cultural or religious preferences. Within the context of child care, only eight percent of eligible Hispanic parents are currently utilizing child care subsidies through CCDBG. Only one-third of children enrolled in Headstart are Hispanic, despite more Hispanic children living in poverty than children of any other race or ethnicity. While some families may have preferences that limit their utilization of assistance, for others, a lack of clear information contributes to low take-up rates. Many families may not know they are eligible or may not know how to access available subsidies. Vouchers through the CCDBG are available to immigrant families living in the U.S. and eligibility is dependent on the immigration status of the child. If a family has legally immigrated to the U.S., the child was born in the U.S., or the child is protected by the DREAM Act, then the child is eligible for federal child care assistance. They may also be unaware of the range of providers, including faith-based and in-home centers, that vouchers can be used at.

Language can also be a barrier for families seeking high quality and affordable child care. Applications for the voucher program and child care centers often have very technical language that is difficult to understand for families whose primary language is not English. Even when there is translated paperwork available, many child care centers, including Headstart, require an interview as a part of the acceptance process which presents a challenge for families trying to access care through a center that does not have bilingual staff.

Looking Ahead

In today’s society, work and family often compete instead of complement one another. For many Hispanic families, high quality, affordable, and culturally competent child care is a necessity, but is too often out of reach. Communities should strive to maintain a diverse range of high quality child care providers, including subsidized secular and faith-based care, that are both culturally competent as well as representative of Hispanic families themselves.

Read the rest of “The Child Care Crisis and Its Impact on Hispanic Families,” which includes the research team’s recommendations for addressing the child care crisis through public policy and civil society, and a case study of Sioux Center, Iowa.

Katie Bogle is a senior social work and Spanish major at Dordt University, and intends to pursue her master’s of social work upon her graduation in 2021. She completed her research for The Hatfield Prize during her junior year. She participates in athletics, musical theater and instrumental ensembles. Having lived abroad for three years, Katie’s passions lie in advocating for under-served and minority populations.

Abby Foreman, Ph.D., received her bachelor’s in social work from Dordt University, her master’s in social work from the University of Michigan and a Ph.D. in political science and public administration from the University of South Dakota. Prior to her current work as Professor of Social Work at Dordt University, she worked with senior citizens and as an organizer around hunger issues with church and campus groups. Her current research interests focus on nonprofit organizations and advocacy, contract-for-services relationships, and how church, state and communities respond to need in their communities. She currently serves as a Division Chair and also as Co-Director of the Kuyper Honors Program at Dordt University.


ADDRESS THE CHILD CARE CRISIS IN YOUR COMMUNITY

Inspired by what you’ve read? Consider starting a Political Discipleship group to address the need for diverse child care options in your community. The Center for Public Justice’s Political Discipleship is a praxis-based curriculum designed to equip small groups to practice civic engagement and empower them with skills and tools to shape policy and address inequality and injustice in their communities. To learn more about starting a group, visit our website or contact katie.thompson@cpjustice.org.

The Hatfield Prize is made possible through the generosity of the Annie E. Casey Foundation and the M.J. Murdock Charitable Trust. We thank them for their support, but acknowledge that the findings and conclusions presented in these reports are those of the authors alone and do not necessarily reflect the opinions of these foundations.