WASHINGTON (AP) -- A new report shows child care providers charge more than federal subsidies provided to low-income parents in most states across the U.S.
The report, released Tuesday by the Department of Health and Human Services Office of the Inspector General, focuses on the Child Care Development Fund, an $8.2 billion block grant.
The Economic Policy Institute shows the average annual cost of infant care in Wisconsin is $12,567—that’s $1,047 per month. Infant care in Wisconsin costs $4,092 (48.3%) more per year than in-state tuition for four-year public college. That makes Wisconsin one of 33 states and DC where infant care is more expensive than college.
The federal recommendation is that states provide payment rates at the 75th percentile, which allows eligible families to access 3 out of 4 providers without paying more out of pocket. But the report shows most states set their rates much lower.
The Administration for Children and Families says it has placed 33 states on a corrective action plan to ensure they're complying with equal access requirements. ACF says it will provide states with training and guidance.
Click here to view the Economic Policy Institute report.