Research suggests that the high cost of child care can lead many parents to limit their participation in the workforce, resulting in negative repercussions for families and the economy. Though increased public investment is needed to fully address the child care crisis, several state leaders are exploring partnerships with employers as an avenue for lowering child care costs for families and increasing child care supply.
State policymakers are considering a few common policies to promote employer-supported child care:
- Cost-sharing models that split the cost of care between employers, employees, and the state.
- Employer tax credits that offset the cost of employer contributions to employees’ child care needs.
- Grant programs that support public-private partnerships and child care supply expansion.
This brief provides an overview of these policy options, examples of state action within each, and considerations for policy design and implementation—including the need for more research to determine the effectiveness of these approaches.
