Oklahoma daycares are so broke they've stopped providing baby wipes — and dinner. What happened?

And in one state, childcare providers say they’ve been struggling with state subsidies that are not keeping up with rising costs.

Why childcare costs are on the rise

According to a report from the nonprofit Child Care Aware of America (CCAoA), the national average annual cost for childcare in 2025 was $13,184. That’s up from $10,853 in 2022, an increase of 21.48%.

For a married couple with the median income, the average annual cost of childcare would amount to 10% of their income; for a single parent family, that rises to 33% of their income, the report says.

The report notes that “each state’s childcare landscape is unique and the national average price does not fully capture state and local nuances.” The figures are based on 47 states for which data was available and do not include Colorado, New Mexico, South Carolina and Washington, D.C, according to NPR.

In a majority of the states measured, childcare also surpasses many household expenses:

• For two children (an infant and a 4-year–old), the cost of childcare in a center is more than median annual rent costs for all 47 states.
• Childcare for two children in a center cost more than median annual mortgage payments for 39 states.
• In 38 states, the cost for childcare for one infant is more expensive than in-state, public college tuition.

According to a report from NPR, both inflation and the way that childcare is subsidized by states have contributed to the spike in costs.

Anne Hedgepeth, former senior vice president of policy and research at CCAoA, told NPR that states conduct market-rate surveys in order to allocate childcare subsidies, with states paying providers directly once rates are set. However, the pandemic delayed this process for many states and the ensuing spike in inflation has meant that subsidies haven’t kept pace.

“Childcare programs struggle with the same kinds of costs that families do,” Hedgepeth told NPR. “They’re providing food to children in their care. They need supplies in order to make their programs function. They’re grappling with rent or mortgages, depending on where they are, that could have an increase in their fixed costs.”