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CHICAGO 鈥� A bipartisan group of state lawmakers is calling for an overhaul of the nation鈥檚 childcare system, which they say is failing children, parents and providers. 

The group of 13 Republican and Democratic lawmakers, who have spent the last year studying childcare access and affordability problems, offered an array of policy recommendations during the National Conference of State Legislatures annual summit in Chicago this week.

During a panel discussion Monday, lawmakers underscored the persisting challenge with childcare that costs families too much and pays providers too little. That has led to vast access gaps in many parts of the country as demand for childcare far outstrips supply.  

鈥淓very state is experiencing a childcare crisis,鈥� said Jenna Bannon, associate director in the Children and Families Program of the National Conference of State Legislatures.

In its 33-page  laying out causes and potential solutions to childcare shortages, the lawmakers鈥� policy group  called for more private sector employer participation, higher pay for childcare providers and a reconsideration of childcare regulations that may be outdated.

鈥淭he childcare system is at a crossroads,鈥� the report says, 鈥渁nd decisions made now will shape how well systems meet the needs of families and economies in the years ahead.鈥�

Many of the policy prescriptions inherently cost money. But Maryland state Del. Aletheia McCaskill said states can鈥檛 go it alone. McCaskill, a Democrat and a childcare provider, said the issue requires investment from outside sources, including philanthropic organizations and businesses. 

鈥淚t鈥檚 going to take more than just taxes,鈥� she told Stateline. 鈥淚t鈥檚 going to take real investment by other folks. We have to do this with everybody playing their part. The government, absolutely, but we can鈥檛 do it all.鈥�

During the presentation, McCaskill urged other lawmakers to reframe childcare discussions in economic terms.

鈥淲hen you talk about childcare, you can鈥檛 talk about children. Imagine that,鈥� she said. 鈥淵ou have to talk about the economy, pockets and how all this works together.鈥�

South Dakota state Sen. Tim Reed, a Republican, said businesses are increasingly interested in assuring their employees have access to childcare. 

Reed was previously the mayor of Brookings, the state鈥檚 fourth most populous city. Before the pandemic, he said, businesses reported workforce challenges as their biggest constraint. And the lack of workers, they said, was directly linked to a lack of accessible childcare.

Reed pointed to a local bank that provided childcare for the children 鈥� and even grandchildren 鈥� of employees years before it became a prominent issue across the country.

鈥淎nd you know what? They鈥檙e the first place that people want to work because they have childcare,鈥� Reed said during Monday鈥檚 panel. 鈥淥nce you get businesses involved in this 鈥� because they do understand the economic realities of it 鈥� that鈥檚 when you can become successful.鈥�

In 38 states, the costs of childcare outpaces the average cost of in-state college tuition, according to , a nonprofit advocacy group. For 2025, that organization calculated an average annual cost of childcare of about $13,000, with average prices of infant care surpassing $15,000. Those costs vary widely by state, though, with center-based infant care ranging from $6,492 a year in Mississippi to $27,067 a year in Massachusetts. 

Monday鈥檚 discussion聽聽where Democratic Gov. Michelle Lujan Grisham last year announced the nation鈥檚 first free universal childcare system, funded by state investment earnings from oil and gas revenues. 

New Mexico state Sen. Linda Trujillo, a Democrat, said during the discussion that the new universal system doesn鈥檛 yet guarantee universal access. In her community of Santa Fe, for example, she said the city lacks about 1,200 spaces for infants to 5-year-olds. 

Several lawmakers noted the changing federal environment, which has raised funding questions about many social service programs, including healthcare and food assistance. 

Bannon, of NCSL, said the states are now leading the charge on childcare as Democratic and Republican state lawmakers increasingly explore new legislation to childcare access.

鈥淗istorically, the federal government played a really big role, and the states really kind of looked to the feds to guide them,鈥� she told Stateline. 鈥淎nd I think now there鈥檚 been kind of a role reversal and states are stepping more into the space, and the feds are watching them to see what they do.鈥�

is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Stateline maintains editorial independence. Contact Editor Scott S. Greenberger for questions: [email protected].

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