The end of the federal program to fund daycare centers could have an impact on the local economy

LIBERTY CITY – Day care centers are counting on losing critical funding, which could devastate South Florida’s economy.

Federal support through the American Rescue Plan injected $24 billion into the industry. The program ends at the end of September.

“It’s hard,” said Richard Rabb, who sends his one-year-old son to Liberty Academy in Miami. “That means a lot of mothers and families will be out of luck.”

Ninety-eight percent of families with children at Liberty Academy use subsidies to pay tuition, said the school’s owner, president and CEO, Sarah Brazier. But those subsidies don’t cover the entire cost of care, she said.

“The particular challenge (of losing ARPA funding) is making sure we can pay our employees and pay our bills,” Brazier said.

Rachel Spector, who runs programs for The Children’s Trust, said federal funding has helped early learning centers increase staffing levels and keep them away from other jobs in a competitive market.

The Trust spends millions of dollars on a variety of programs to help children and families in Miami-Dade County.

Without ARPA funding, many daycares will have to charge parents more or diversify their offerings, as Liberty Academy did years ago. They added an elementary school to meet demand and expand the school’s thin margins.

“It will be a significant challenge for the centers to provide the quality care our children deserve, whether they live in an underserved community or in another community,” Brazier said.

The problem could also impact the economy.

“If people are unable to have safe, high-quality early learning centers available for their children, they may choose not to go to work or make other arrangements or look for another job,” Spector said.

As minimum wages and rents rise and strain budgets, Brazier’s Academy has a waiting list.

“If you look at other places, it’s very expensive, especially for an annual,” Rabb said.

The academy has a 17-year history and its owner expects to survive the coming changes. Still, she and others worry that smaller daycare centers could be reeling from the budget crisis, leaving families desperate for quality child care in distress.

Larry Seward

Larry Seward joined CBS Miami in February 2023. He brings more than a decade of storytelling experience to South Florida.

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