Apr 3, 2026
Iowa lawmakers have approved a plan to permanently help make child care more affordable for providers in an industry struggling with low pay and high turnover. This move could help address a broader $172 billion childcare US child care crisis.
Passed unanimously by the Iowa Senate on March 30, after passing through the House earlier in the year, the bill would make the Child Care Assistance (CCA) program law (1). It helps cover costs for people working at least 32 hours a week in the child care industry. All it requires now is Gov. Kim Reynolds’ signature.
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CCA is there to help income-eligible parents with children under the age of 13 (or those with special needs under 19) who are employed or participate in academic or vocational training (2) .
Lyndi McVey, owner of Primrose School of Ankeny Prairie Trail, told KCCI Des Moines 8 that staff members there use the Child Care Assistance program to cover their own costs, adding that it’s already making an impact (3).
“We see better academic outcomes with consistent staff. We see better social and emotional outcomes with consistent staff," McVey said. "When we lose those, we run the risk of these children not having as premium an experience as we want to provide."
The legislation could be used as a blueprint for other states dealing with child care workers not being covered by similar assistance programs.
Fixing a shortage in child care workers
The child care crisis in the US costs $172 billion in lost earnings, productivity and revenue each year, according to a report from Ready Nation (4). More than 60% of parents with children under the age of 5 report they have missed work days, left early or arrived late to their job because their child care fell through.
“If I don't have enough teachers, then I have to say children can't come for the day. If children can't come for the day, that causes the parent to then call out [sick]," McVey told KCCI.
Advocates for the bill, including Kim Scorza, CEO of Crittenton Center in Western Iowa, lauded efforts made by legislators in the House and Senate.
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"By being able to bring your children to work, and you'll be working in another room with other children, you're able to get high-quality childcare for yourself and your family," Scorza told KCCI. "It's a huge benefit because then they're not worried about their own child care costs."
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From tax credits to employer benefits
The bill addresses the reality that many child care workers struggle to find care for their own families.
A Bipartisan Policy Center (BPC) survey found that, in 2019 (their most recent data on this topic), more than 2 million child care workers, mostly women, were employed in programs nationwide, with an average hourly wage of $11.65 an hour, or $24,230 a year (5). That was below the national poverty rate for a family of four, which was $26,200 in 2020.
Furthermore, many child care workers do not have access to employer-based benefits, including paid vacation or sick days, or even health care, according to the BPC. About 47% of child care workers, and 37% of those working in home-based child care programs, receive employer-sponsored health insurance.
“Studies have shown that, after accounting for demographic differences between child care workers and other industries, the child care workforce is 27% less likely to receive health insurance than similar workers,” the report noted.
Once Gov. Reynolds signs the bill into law, it would make the pilot program permanent, provide a more dependable tool to recruit and retain staff, and help ensure Iowa families can find the care they need.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Iowa Legislature (1); Official State of Iowa Website (2); KCCI Des Moines (3); Institute for Child Success (4); Bipartisan Policy Center (5)
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Brian Baker is an Associate Editor with Moneywise. He has been a media professional for over 20 years.
