Wisconsin childcare providers brace for end of federal relief money

HUDSON, Wis. – Thousands of families in Wisconsin are close to a childcare crisis.

Critical funding is close to ending, and parents would be the ones paying the price.

Federal relief money for Wisconsin childcare providers that began during the pandemic will dry up in January.

Daycare owners say they use the money for rent, livable wages for staff, and equipment and supplies.

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“If it goes away, what will happen is we have to raise our rates on average about $50 to $75 a week,” said Angela Norvald, the owner of Simply Giggle Childcare in Hudson.

Shane Piringer picked up his son from Simply Giggle on Thursday. He says he and his wife are concerned about the potential price hike.

“You just start having to decide what’s more important, childcare or going out to dinner?” Piringer said.  

Wisconsin’s Department of Children and Families says more than 60% of the state’s childcare providers will raise tuition if the program ends.

More than 30% would consider simply shutting their doors.

“If your daycare suddenly goes away, what do you do?” Piringer said.

Gov. Tony Evers, a Democrat, wants to continue the funding. He’s called a special session for next month.

But Republicans control the legislature and already rejected the budget proposal earlier this year. They want tax cuts, not more government spending.

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“This extra money from the state was very helpful, and if that goes away, why am I doing this thankless job?” said Anna Smith, the owner of Fanfare Childcare in Hudson.

Smith says burnout in the childcare industry is common, as is feeling underappreciated.

“As people learned during the pandemic, without childcare, without us, you don’t have a workforce,” Norvald said.

Minnesota childcare providers are also losing federal funding, but investments made at the legislature this past session are helping make up for it.