The Childcare Crisis: Rising Costs and Limited Access Are Holding Families Back

The Childcare Crisis: Rising Costs and Limited Access Are Holding Families Back

The Childcare Crisis is A Local and National Challenge

Across the U.S., families are facing a childcare crisis. Costs have soared, affordable options are scarce, and the impact ripples through every part of life — from parents’ ability to work to children’s chances at future success. Here’s a look at the numbers:

Nationwide

  • Average cost of center-based childcare for one child: $13,128 annually First Five Years Fund, 2025 – about 22% of household income on average, more than triple the federal “affordable” benchmark (7%) Care.com, 2025
  • Parents are tapping nearly a third of their savings just to cover costs Care.com, 2025
  • Mothers are most affected, with many cutting hours or leaving the workforce U.S. Census Bureau, 2025
  • Over half of Americans (51%) live in ‘childcare deserts’, meaning there are too few licensed childcare spots to meet local demand—especially in rural communities, where nearly 60% face critical shortages.
    urban.org
  • In 2022, 12.3 million children required childcare, but only 8.7 million licensed slots were available—a gap of 3.6 million rasmussen.edu

Virginia and locally

  • In Southwest Virginia, infant and toddler care costs about $13,000 annually, nearly 3× what’s considered affordable (WDBJ7, 2024)
  • Statewide, childcare program growth has been less than 1% in two years, adding only 23 new childcare programs – underscoring limited access (TCF, 2024)
  • Without new investments, staffing shortages and rising prices continue to limit access to care tcf.org

Why Quality Childcare Matters

High-quality early care and education doesn’t just keep children safe — it sets them up for success through school and beyond. Research shows it boosts academic performance, builds social skills, and improves lifelong outcomes (bipartisanpolicy.org).

For parents, access to childcare makes it possible to work, maintain income, and secure benefits like health insurance and paid time off (U.S. Department of Labor).


How United Way is Helping in Virginia’s Blue Ridge

At United Way of Virginia’s Blue Ridge, we know families can’t thrive without reliable, affordable childcare. That’s why, through the Ready Region West grant, we’re expanding access and raising quality across our communities.

In the past year, more than 5,500 children were cared for by qualified providers, while hundreds of classrooms and sites participated in Virginia Quality initiatives to ensure safe, enriching environments. Thanks to Mixed Delivery (a grant) funding, 160 families who normally don’t qualify for state subsidies were able to secure affordable childcare — giving parents the chance to stay in the workforce and provide stability at home.

We’re also investing in educators, the backbone of early learning. Nearly 2,000 teachers and caregivers received training, and more than 700 educators improved their programs through the Unified Virginia Quality Birth to Five System (VQB5), the state’s quality measurement and improvement system. This boosted both quality care and educator’s income. Meanwhile, children received critical health screenings and preventive care, and families were connected with services to address barriers outside the classroom.

These results show what’s possible when we come together: stronger families, supported educators, and children who are set on a path to thrive.


The Path Forward

The childcare crisis is real — but together, we can change the story. With your support, United Way is expanding affordable, high-quality care that allows families to work, children to thrive, and communities to grow stronger. Every investment helps close the gap and build a brighter future for families across Virginia’s Blue Ridge. foundation they need to succeed.

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