Throughout 2023, both policymakers and advocates warned that the labor force participation rate (LFPR) for women was about to drop. The main reason? Much of the American Rescue Plan’s (ARP) child care funding was slated to expire in September 2023. This “child care funding cliff” was expected to put 3.2 million children at risk of losing child care, which would subsequently cause many women to drop out of the workforce to take care of their kids.
Instead, the LFPR for prime-age women (ages 25 to 54) continued to rise after the funds expired and reached a record high of 78.4% in August 2024. While at first glance this challenges the hypothesis around the funding cliff and women’s LFPR, a closer look at the data by the JEC Dems finds a more nuanced conclusion. Among all prime-age women, those whose youngest kid is under age five saw both the largest increase in LFPR while the child care funds were available, and the largest decrease once the funds expired.
Instead, the LFPR for prime-age women (ages 25 to 54) continued to rise after the funds expired and reached a record high of 78.4% in August 2024. While at first glance this challenges the hypothesis around the funding cliff and women’s LFPR, a closer look at the data by the JEC Dems finds a more nuanced conclusion. Among all prime-age women, those whose youngest kid is under age five saw both the largest increase in LFPR while the child care funds were available, and the largest decrease once the funds expired.