1 in 4 providers say they are likely to close or significantly reduce services; tuition increases of $1,300–$2,600 per child annually expected without sustained state investment

FITCHBURG, Wis. — Wisconsin Early Childhood Association (WECA) recently released After the Bridge: The High Cost of Ending Child Care Stabilization in Wisconsin, a research and data analysis examining the impact of pandemic-era stabilization funding on the state’s early care and education (ECE) system and the risks facing providers, families, and employers as that funding ends on June 30, 2026. 

The brief finds that federal stabilization funding prevented the collapse of an already fragile child care system, supporting 5,762 programs, 75,740 educators, and more than 430,000 children. It also helped reverse a decade-long decline in licensed child care across Wisconsin. With the program now scheduled to end and no state replacement in place, providers report immediate and severe consequences. 

KEY FINDINGS

  • Pandemic damage was severe. Provider revenues fell 36% in 2020, and the ECE workforce shrank at twice the rate of job losses in other sectors. 
  • Stabilization payments worked. The early educator workforce in group programs grew by roughly 17%, and Wisconsin saw approximately 4% growth in licensed programs from 2020 to today after a 30% decline between 2013 and 2020. 
  • The 2023 funding cut offered a preview. After payments were cut by 50%, 75% of providers said they could no longer pay competitive wages, infant tuition rose 11–14%, and 33,000 child care seats sat empty due to staffing shortages. 
  • Without replacement funding, families and providers will absorb the loss. Roughly three-quarters of providers say they will raise tuition, many by $25–$50 per child per week. One in four providers report they are likely to close or significantly reduce services. 

VOICES FROM THE FIELD

“Let me be honest, bridge payments are helping. They are helping providers keep our doors open. They are helping us hold on to staff a little longer. They are helping us breathe in a system that has been suffocating us for years. Now what are we going to do?” — Group child care director 

“This support is not supplemental — it is foundational. The Bridge Payments helped balance pressures so that I could stay focused on providing quality care instead of constantly worrying about whether I can sustain the program week to week.” — Family child care provider 

A PATH FORWARD

The brief highlights that as federal stabilization funding ends, other states are making sustained investments to retain educators and stabilize care. Minnesota established ongoing state-funded monthly compensation supports through its Great Start Compensation Support Payment Program. Washington, D.C. raised early educator compensation to match K–12 teacher salaries through the Early Childhood Educator Pay Equity Fund. Massachusetts converted its pandemic stabilization program into a permanent operational grant program. Evidence from these states shows reduced turnover, expanded capacity, and preserved affordability for families. 

Wisconsin continues to trail its Midwest neighbors in ECE spending. WECA is calling on the Wisconsin Legislature to establish sustained, dedicated state funding for the ECE workforce before the June 30 deadline. 

ABOUT THE BRIEF

After the Bridge: The High Cost of Ending Child Care Stabilization in Wisconsin was prepared by the WECA Center for Policy, Research and Engagement, drawing on data from the Wisconsin Department of Children and Families, the Institute for Research on Poverty at UW–Madison, the U.S. Bureau of Labor Statistics, and direct testimony from Wisconsin providers. The full brief is available at here. 

ABOUT WECA

Wisconsin Early Childhood Association (WECA) is a leading statewide non-profit organization, founded in 1971, that advances comprehensive and transformational support of the early childhood workforce in Wisconsin. Its work is in service to the vision of a just Wisconsin where early care and education is viewed and invested in as a public good so all early educators, young children, families, and communities thrive.