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If child care costs are eating up your budget, a new proposal might help you keep more of your hard-earned cash. Senator Elizabeth Warren is pushing Democrats to deliver universal child care, highlighting the fact that child care costs are crushing families.
Here's what you need to know about how Warren's proposed plan might affect you and your family.
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Warren's Center for American Progress IDEAS Conference speech
On May 19, Warren spoke at the Center for American Progress' IDEAS Conference and emphasized the need for universal child care.
"As a nation, we support our economy by investing in roads and bridges and public education — all so that our businesses and our workers can prosper. It's time to do the same for child care — make this investment so that mamas and daddies can work," Warren said.
She criticized Democrats for previously not being willing to fight for universal child care and called on Democratic candidates to make universal child care a core part of their program in 2026 and 2028. "It would be political malpractice for Democrats not to be talking about child care every chance we get, going into the midterms and beyond," Warren said.
Warren's universal child care plan
Warren has partnered with Senator Patty Murray and Representative Alexandria Ocasio-Cortez to create legislation that would implement universal child care. She's also called on Democrats to pass that legislation on day one if Democrats win control of the Senate and House in 2028.
A hard look at child care costs
According to Warren, child care costs have risen twice as fast as inflation, and in 47 states, families pay more for child care for two children than rent for their entire family. Child care costs are unsustainable for many families.
Data from Child Care Aware indicates that full-time childcare for an infant at a center-based facility in the United States averaged $15,500, or approximately $1,300 a month, in 2024. When child care costs are 7% of a household's income, they're considered affordable, but the average for center-based childcare is approximately 15% of the median family income nationwide.
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The relationship between location and child care costs
Median family incomes and child care costs fluctuate in different locations, so child care may be even more unaffordable in some states than in others. In Hawaii, child care costs account for 21.9% of the median family income. The District of Columbia, California, New York, Maryland, and Massachusetts follow behind as the states in which child care costs account for higher percentages of household incomes.
Child care in New York City
Families may particularly struggle to pay for child care in high-cost metros like New York City. According to the Citizens' Committee for Children of New York, child care for preschool children aged three to five costs about $18,000 per year. The average cost of care for infants and toddlers aged zero to two is about $26,000 per year.
Approximately 80% of New York City families can't afford child care. To meet the recommendation that child care costs not exceed 7% of a household's income, a family with one child living in New York City would need to earn over $300,000 per year to meet that affordability threshold.
What universal child care might look like
A universal child care system might eliminate or drastically reduce child care costs. Warren has supported plans that approached child care in several ways. It's possible that a plan might cap child care costs based on a small percentage of a household's income. Low-income households might qualify for free or low-cost care. A plan might promote higher pay for child care workers and expand early education programs.
What universal child care might cost taxpayers
Universal child care plans come at a significant cost, and similar plans were estimated to cost approximately $600 billion over 10 years.
Warren's plan hasn't been released, and she hasn't yet identified how the country would pay for the plan. Taxes on wealthy households, potential defense program cuts, and higher corporate taxes might cover some of the expenses, but it's possible that other parts of the budget would need to be cut to pay for universal child care.
The argument for universal child care
During her speech, Warren argued that universal child care would be a smart investment, giving children a strong start in life, relief to families, and higher pay to child care workers. Her argument has support, especially as families feel increased economic strain and more Democrats are focusing on and discussing the issue.
However, the cost of such legislation is a major hurdle, and competing priorities, like affordable health care and the budget deficit, might detract from the issue's momentum.
Bottom line
Warren's proposal isn't law, and passing such legislation would likely require unified Democratic control of Congress. The push for universal child care is worth watching, though, especially as more conversation occurs around this important topic.
Keep an eye on how the 2028 candidates position themselves on the universal child care issue. It's important to understand what universal child care could mean for your budget and how it might help you eliminate some money stress.
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