Here’s why childcare is getting more unaffordable and forcing families to make ‘heartbreaking choices’

The affordability crisis hitting consumers has not spared childcare providers, further adding to the financial burden on families.

According to a survey last month from the National Association for the Education of Young Children (NAEYC), the cost pressures are similar to what’s giving sticker shock to many Americans.

For example, 68% saw liability insurance costs increase in 2025, up from 46% in 2024, and 66% saw property insurance hikes versus 45% a year earlier. And like many renters, 44% of childcare providers saw rent or lease costs rise, up from 32%. They are also facing more wage pressure as well as higher expenses for food, supplies, and facility maintenance—all while public funding is down.

“When these costs rise without a simultaneous increase in public funding to fill the gap, programs are faced with difficult decisions,” the report said. “They can either take on the costs themselves, risking their business stability given already low operating margins, or pass them on to families in the form of higher tuition jeopardizing enrollment if families can no longer afford care.”

A majority of programs have raised tuition to cover the growing expenses, with 65% of childcare centers and 51% of public school-based programs r...