North Carolina is experiencing a growing child care shortage that is limiting access for families and increasing financial strain across the state, according to a March 10, 2026 report by North Carolina Health News. The article highlights multiple data points related to closures, costs, workforce participation and economic impact.
Program Closures and Capacity Loss
The number of available child care programs has declined significantly in recent years. Since the state last passed a comprehensive budget in 2024, 262 child care programs have closed, according to Gov. Josh Stein.
Regional data shows similar trends. In western North Carolina during 2025, 13 child care centers opened while 26 centers and family child care homes closed, resulting in a net loss of 221 child care slots.
The closures have worsened access, particularly in rural areas, where families may have to travel long distances to find care.
Rising Costs for Families
The cost of child care in North Carolina continues to rise, making it difficult for families to afford services. According to the Economic Policy Institute, parents pay an average of $11,720 per year for infant child care in the state.
Families with multiple children face even greater costs. Child care for a 4-year-old averages an additional $7,744 annually, bringing total costs for two young children to nearly $20,000 each year.
Advocates say these expenses often rival housing payments or public college tuition, creating significant financial pressure for parents.
Economic Impact
Limited access to child care has broader economic consequences for the state. A 2024 report by the U.S. Chamber of Commerce Foundation, the NC Chamber Foundation and NC Child estimates that North Carolina loses $5.65 billion annually in economic activity because families cannot access affordable child care.
The shortage also affects workforce participation. North Carolina ranks 35th in workforce participation among young mothers, a statistic some policymakers attribute partly to the difficulty of securing child care.
Workforce and Funding Challenges
The loss of federal pandemic-era stabilization grants in 2025 has made it harder for providers to remain open. Those funds previously helped centers increase wages or offer benefits to workers, helping stabilize staffing.
Without the funding, many providers are struggling to cover operating costs, leading to additional closures and fewer available slots for children.
Child Development Implications
Research cited in the article notes that high-quality early childhood care is crucial to development. Early childhood experiences affect brain growth, language development and long-term health outcomes.
Studies such as the Abecedarian Project have shown that children who receive high-quality early care experience improved health and economic outcomes later in life.
Policy Considerations
Advocates and lawmakers have proposed several potential solutions, including increasing child care subsidies, stabilizing the workforce through better pay and benefits, and expanding public-private programs such as the Tri-Share Child Care pilot, which divides costs among employers, employees and the state.
Experts say meaningful investment and structural reforms will be necessary to address the ongoing child care shortage and improve access for families across North Carolina.
