The pandemic and related economic disruptions have simultaneously fueled a labor shortage and a loss of jobs in the United States. Early in the pandemic, the labor force participation rate dropped by 3.1 percentage points, with 50 million out of work due to business closures alone. Families are among the many groups harmed by the turbulence in the labor market. By May 2020, 55% of households with a child under 18 had experienced a loss of employment income. Among the factors hurting working parents most acutely are a lack of adequate child care and the shuttering of schools, forcing many parents—mostly mothers—to cut back or eliminate work outside of the home.  

Several states are using American Rescue Plan Act (ARPA) and other funds to provide additional support to families, including resources to address the child-care gap. For example, Connecticut has supported family well-being in several ways. The state allocated $3.5 million in American Rescue Plan Act (ARPA) funds to cover fees for children in the state-funded school readiness programs at state-funded child-care centers. Additionally, Connecticut set aside $5.3 million to pay for Care 4 Kids program fees and $120 million of ARPA funds to help 4,000 child-care facilities with operating expenses, budget deficits, and other COVID-related costs. The state provides many other forms of assistance to families, listed on the Connecticut State Department of Education and the Office of Early Childhood websites.  

Tennessee used ARPA funds to distribute stabilization grants to child care providers to provide relief for operational expenditures for three months. Another way the state has assisted vulnerable families is by partnering with the YMCA and the Boys & Girls Clubs in Tennessee to provide free childcare assistance to parents working in essential jobs during the COVID-19 state of emergency. Like Connecticut, the Tennessee Department of Human Services website provides parents and childcare providers information on state resources related to family assistance programs during the pandemic. 

Illinois used $331 million of federal relief funds to set up a Child Care Restoration Grants (CCRG) program. It will ensure the child-care network survives the pandemic so parents can resume work knowing there are safe spaces for their children. The CCRG program made Illinois a model for ARPA stabilization grants focusing on child-care. Like Connecticut and Tennessee, the Illinois Department of Commerce & Economic Opportunity and the Governor’s Office of Early Childhood Development use their websites to help connect families to various state-provided resources. 

The pandemic has emphasized how crucial it is for governments to create long-term structural responses that can effectively provide vulnerable families with the services they need during and after a crisis. Disrupted service providers working in silos can only offer limited resources. Connecticut, Tennessee, and Illinois show that states can use federal funds strategically, providing support to families so that parents can return to the workforce.