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COVID relief package includes about $40 billion in child care funding - Marketplace

On Tuesday, the House is set to start consideration of the $1.9 trillion COVID relief package the Senate passed over the weekend. It contains about $40 billion in funding for child care.

Nearly $15 billion would help fund child care for low-income families, and about $24 billion would go to child care providers to help cover operating expenses.

“That includes rent, utilities. It includes all of the types of payments that providers have to make to stay open,” said Rhian Allvin, CEO of the National Association for the Education of Young Children.

She said this funding will be essential for child care providers who operate on thin margins.

“A provider is able to stay open based on the provider’s ability to maintain really high enrollment,” Allvin said. “And that is the part of the system that flipped upside down when COVID hit.”

Many providers have closed, at least temporarily, or gone into debt, said Christine Johnson-Staub at the Center for Law and Social Policy.

“We were at risk of really losing a large portion of our child care capacity,” Johnson-Staub said.

This money, she said, would help stabilize child care programs and make the system stronger going forward.

When are we going to see more COVID relief direct payments?

Those stimulus checks, as they’re commonly referred to, are for $1,400, but if you got one last time that doesn’t mean you’ll get one this time. Now there’s a hard cutoff for single people making more than $80,000, or married couples who make over $160,000. From the time the COVID relief bill passes and gets signed into law by President Joe Biden, you’ll probably start seeing the payments show up in bank accounts within a couple weeks. That’s for direct deposit. Paper checks take a little longer.

I’m hearing a lot about interest rates. Is it getting more expensive to borrow money?

Expectations of higher inflation as the economy rebounds have investors demanding higher yields to compensate. In turn, the recent surge in bond yields is pushing up the interest rates consumers pay on mortgages and other loans. Economist Scott Hoyt with Moody’s Analytics said rising rates could dampen demand for housing a little and refinancing a little more. Other kinds of consumer spending are less likely to be affected. Interest on auto loans and credit cards are pegged to shorter-term rates, which haven’t been rising as much.

How will the latest round of pandemic relief from the federal government help women?

More than 2 million women have left the workforce since 2020. Many of them did so initially to care for children. The American Rescue Plan, poised to be passed this week, is offering an expanded child tax credit that could give up to $300 a month per child under the age of 6. It also includes nearly $15 billion to help support child care facilities. Even so, experts say child care is still the primary stumbling block for many women who want and need to get back to work.

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