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Opinion | A blueprint to expand child care for Michigan families, providers, employers
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For years, Michigan families have struggled to secure the high-quality early childhood experiences their children need to thrive. At Pulse at the W.E. Upjohn Institute, we see the consequences of those challenges every day. Since 2012, our work has centered on a child-focused approach to expanding equitable access to the learning environments and support systems that lay the foundation for healthy development.
A key part of that mission is ensuring working families have access to quality, affordable child care. Without it, parents face difficult tradeoffs between earning a paycheck and ensuring their children are in safe, nurturing environments. When families cannot find or afford care, the consequences ripple through the community, affecting workforce participation, business productivity and the long-term well-being of Michigan’s economy.
Today, however, child care in Michigan is under severe strain. Rising costs have taken a stranglehold on household budgets, making affordability top of mind for Michigan families, providers and employers alike. Last year, the average price of center-based child care in our state approached $13,500, or more than $1,000 per month, higher than the average cost of rent in some Michigan cities.
Affordability is only part of the challenge. Michigan also faces a significant shortage of available child care. This has created a “child care gap,” which refers to the difference between the number of children who need care and the number of available slots, and it currently stands at 28%.
Taken together, these pressures leave many families with few options and place immense strain on providers trying to keep their doors open. But there is good news: a meaningful solution is already on the table.
The United States Senate is currently considering the Child Care Modernization Act, a bipartisan proposal that offers a comprehensive approach to addressing the child care crisis. The team at Pulse at the Upjohn Institute has reviewed the legislation, and we find that it is well designed to help meet the needs of working families and children. We urge Senator Elissa Slotkin and Senator Gary Peters to support the bipartisan Child Care Modernization Act.
The bill would reauthorize the Child Care and Development Block Grant (CCDBG), the primary federal program to help families afford child care, for the first time in a decade. For more than 30 years, this program has helped millions of families access care while supporting providers across the country.
The legislation would also expand access by creating new grants to expand the supply and capacity of child care providers. For many parents today, choices are limited to only a few options — or none at all. By investing in new capacity, the bill would help ensure families have a range of high-quality child care options that support both parents’ ability to work and children’s early development. Importantly, the legislation would give states flexibility to strengthen mixed child care delivery systems, allowing families to choose the type of care that works best for them.
At the same time, the Child Care Modernization Act includes critical provisions to support providers. One of the most significant changes would update how CCDBG reimbursement rates are calculated. Instead of relying on outdated benchmarks, the legislation would incorporate a cost estimation model that more accurately reflects the real cost of providing high-quality care and ensures states regularly adjust rates to match those costs.
This change matters. Despite CCDBG being the primary program supporting child care providers, reimbursement rates have historically fallen short of covering the true cost of care. Updating the formula would help stabilize providers and ensure they are adequately compensated for the essential work they do.
States would be required to review health and safety regulations to identify redundancies or conflicting requirements that make compliance unnecessarily complicated. Reducing duplicative rules would allow providers to focus more fully on what matters most, which is caring for children safely and effectively.
In addition, the bill would address regulatory barriers that disproportionately affect rural communities by restricting home-based child care providers. Removing these obstacles would help expand options in areas where families often face the greatest shortages.
In summary, our analysis finds that the Child Care Modernization Act would support families, stabilize providers, and expand access, helping young children thrive while parents participate fully in the workforce.
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