
Tennessee child care costs lead the Southeast, report finds
The cost of child care in Tennessee and around the nation is skyrocketing, with a new report finding that it's outpacing overall inflation.
Why it matters: Rising child care costs put a huge financial strain on families, Axios' Emily Peck reports. They can force some parents — typically women — to either ratchet back their working hours or leave the labor force entirely.
For single parents, the calculus can be even more painful.
Stunning stat: An annual report on Tennessee children found a year of infant care was more expensive than in-state tuition at all but one of the state's public universities.
By the numbers: The average annual cost of daycare tuition in Tennessee for two children — one toddler and one infant — rose to about $24,000 last year, according to data from Child Care Aware, an advocacy group.
That's the highest price tag for child care in the Southeast.
It's also a third of Tennessee's median household annual income, based on census data released in 2024.
What he's saying: Gov. Bill Lee acknowledged the burden in this year's State of the State address.
"If we really want to create an environment for families to thrive, we have to find innovative ways to make child care more accessible and more affordable," Lee said.
State of play: This year's budget included $10.9 million to bolster child care programs at Boys and Girls Club locations. Lee said that would help educate thousands of kids.
About $7.2 million will go toward growing a state program that offers supplemental income to child care workers in an effort to reduce turnover.
Nearly $6 million was added to expand child care support for low-income families.
Zoom out: Federal grants help fund state support for kids from low-income families.
The federal government also funds Head Start, the decades-old federal program that provides child care, nutrition assistance and other services to the nation's poorest families.
There were worries that the White House would stop funding Head Start, but the administration has said that won't happen.
Yes, but: President Trump's budget proposals look to keep federal funding levels for child care flat next year. That's a troubling sign given continued inflation, says Anne Hedgepeth, senior vice president of policy and research at Child Care Aware.
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Trump administration budget cut flip-flops leave southwest Georgia Head Start programs uncertain
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It's reliant on the Community Services Block Grant, which was zeroed out in Trump's proposed 'skinny budget.' No longer having these funds would mean a significant cut to council staffing and closure of local 'neighborhood service centers' where communities can access services. It would eradicate the council's ability to provide emergency housing, utility or health assistance. The Low Income Home Energy Assistance Program also seemingly was at risk of cuts, but Community Action Council staff were informed Thursday that additional funds were made available. The Community Action Council is already struggling as it loses COVID-19 recovery funding but still faces a pandemic-era need for its services. 'Since the pandemic, we've had people coming to us who've never had to come to us before,' Weldon said. 'We've gone back to pre-pandemic funding … so it's a little more difficult because folks are still … facing lingering effects.' 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