How States Can Use ARPA Funds to Increase Pay and Benefits to the Child Care Workforce

THIS RESOURCE BROUGHT TO YOU BY THE CENTER FOR THE STUDY OF CHILD CARE EMPLOYMENT (CSCCE).

On May 10, the U.S. Department of Health and Human Services shared a memo with state and tribal lead agencies that further calls for using ARPA funds to raise wages:

“Raising the wages of child care staff is a central part of stabilizing the industry, and lead agencies are strongly encouraged to prioritize this use of funds. Other examples of allowable personnel costs include ongoing professional development or training, premium or hazard pay, staff bonuses, and employee transportation costs to or from work.”

The memo urges agencies to simplify the application process for providers and educators by providing helplines and written materials in multiple languages. It also suggests they partner with “culturally relevant organizations and trusted messengers who can support a diverse range of child care providers in navigating the application process.”

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