Report: It takes a $180,000 salary to comfortably afford U.S. childcare

The cost of childcare has been climbing precipitously for the past decade, with some families spending about a quarter of their yearly income—or more—on those expenses. As federal funding and pandemic-era relief has disappeared, many providers have struggled to keep their doors open, making it even more difficult for families to find affordable care.

By federal standards, families should only be spending 7% of their annual income on childcare. A new analysis by the National Women’s Law Center (NWLC) finds that as of 2025, the average family would need to earn at least $180,000 annually to comfortably afford the national cost of infant care, which is around $12,655. (Childcare costs tend to be steepest for infants and children under the age of two.) In states with a higher cost of living, like California and New York, the annual income required to ensure childcare is affordable is over $250,000.

The NWLC analysis indicates that, based on the affordability standard set by the Department of Health and Human Services, childcare is out of reach for families in every state across the U.S. In South Dakota, a state where the cost of care is below the average, a family’s annual income would still need to be nearly $98,000; on the other end is a region like Washington, D.C., where families need to earn $330,000 annually to easily afford the cost of care for one child.

Childcare advocates have long argued that it’s impossible to address the affordability crisis without public investment and additional federal funding, given the high labor costs associated with this care. Many centers already operate with tight margins, as evidenced by the challenges some providers are currently facing after President Trump’s proposed funding freeze—which has since been rescinded—derailed payments for those in the Head Start program, which subsidizes childcare costs for low income families.

Some providers have reportedly been unable to pay staff and were forced to temporarily close their doors, and according to the National Head Start Association, nearly 20,000 children and families could be impacted if those programs continue to be unable to access funding.

Given Trump’s track record, it’s also possible that childcare providers and parents may have to contend with further cuts to federal programs that help support low-income families—rather than the additional funding that the childcare industry sorely needs.