America is imminently facing a ‘child care cliff’ that could cost families an estimated $9 billion a year — while 3.2 million children are at risk of losing their daycare spots

But with this program set to expire on Sep. 30., more than 70,000 child care programs — or one-third of those supported by federal stabilization funding — will likely close, and approximately 3.2 million children could lose their spots, according to June analysis from think tank The Century Foundation.

Here’s why the “child care cliff” could pose a real problem for working parents — and the economy as a whole.

Parents may take a step back from the workforce

The Century Foundation says in six states — Arkansas, Montana, Utah, Virginia, West Virginia and Washington, D.C. — the number of daycare programs could be slashed by half or more, and in another 14 states, the supply could be reduced by about a third.

While millions of children may lose access to care, their parents will be forced to make some hard choices to fill the gaps. The think tank projects families could lose $9 billion each year due to parents having to work reduced hours or leave the workforce entirely.

And research shows the crisis disproportionately impacts women, who are typically more likely to make career sacrifices and become unpaid caregivers for their children.

The child care industry — a sector that predominantly employs women — could also face a loss of around 232,000 jobs.

Altogether, The Century Foundation estimates the total loss in tax and business revenue could cost states $10.6 billion in economic activity each year.

The costs of child care are escalating

American parents have already been contending with the soaring costs of child care and the remaining programs that are able to withstand the loss in funding could become even more expensive.

The average cost of child care stands at over $10,000 a year for one child — increasing to as much as $15,000 to $20,000 a year in certain states, according to Child Care Aware of America, a national network of child care resources and referral agencies.