Amid rising back-to-school expenses, Vice President Kamala Harris announces cap on childcare costs

Inflation, the cost of living, and childcare costs are all up. Kamala Harris says the Biden administration has a solution for some families this school year.

With inflation driving the costs of school supplies up, spending on back-to-school shopping in the average American household is expected to decrease this year. The Biden administration hopes to offer some relief. 

The Biden administration’s budget is up for approval by Congress and contains potential savings for American workers with families, as well as an expansion on Pre-K for all school-aged children. On Wednesday morning, in a video posted to social media, Vice President Kamala Harris highlighted crucial aspects of the administration’s budget that could impact families’ spending throughout the country. 

Back to school costs, Black families, Biden Administration childcare cap, Back to school shopping, theGrio.com
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“Hey, Everyone, we have announced that we are going to cap the cost of childcare to 7% of income for those who receive federal assistance for childcare,” Harris begins the 43-second-long video. “You know, the president and I feel very strongly about this issue when the cost of childcare is just too expensive for far too many working families.”

Harris added, “Congress needs to pass our budget, where we are outlining that most families should not have to pay more than $10 a day for childcare.”

She added that the administration is also fighting for universal Pre-K so children as young as 4 “can start their education,” regardless of family income. As Biden’s 2024 campaign begins to ramp up, Harris urged the American people to stick with the current administration because it intends to keep fighting. 

“We believe in families; we believe in supporting families. It is in the best interest of everyone in our country,” she said. 

While the administration’s new plan will alleviate costs for many low-income families, working and middle-class families may still struggle to cover basic childcare costs. In 2016, the Center for American Progress reported the average cost of center-based child care for an infant and a 4-year-old is roughly $18,000 annually, which amounts to 42% of an average American Black family’s median income. 

Seven years later, and expenses have become more dire for many families — and they’re pushing back. According to Deloitte’s annual back-to-school consumer report for 2023, which surveyed 1,212 parents with at least one child attending grades K-12 this fall, back-to-school spending is set to decline by 10% this year. While spending has steadily risen yearly since 2019, on average, parents are projected to spend roughly $597 per child this year, amounting to approximately $31.2B for the 2023 back-to-school market. 

Deloitte further reported that the cost of school supplies has increased by over 20% due to inflation. With costs climbing, families are also changing how they shop. Before, buying in bulk online was a reliable cost-saving step. However, this year, Deloitte found families are choosing to shop in person to score better deals than virtual shopping and to avoid shipping and handling costs. 

Almost a third of families surveyed by Deloitte reported they were in worse financial circumstances than in 2022, with 51% expecting the economy to continue to weaken throughout the course of 2023.

“This back-to-school season is all about economizing,” said Stephen Rogers, executive director at Deloitte’s Consumer Industry Center, per Reuters. “Consumers are looking to save by shopping early, searching out deals, prioritizing spend to essential school supplies … they’re on the hunt for those bargains.”


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