The High Cost of Child Care: Navigating Challenges in Portland

Child care costs can be overwhelming for many families, particularly for working parents. For Natalie Kiyah, a single mother of four in Portland, gaining access to public child care funds through Oregon’s Employment Related Daycare Program (ERDC) was life-changing. However, after losing that support once, she now faces a new set of worries.

Kiyah explains, “I understand now why people stay in the cycle — it’s such a cycle of poverty. You can’t get too far over the limit or else you lose all support.” In March 2023, Kiyah received an exit letter from the state because her annual income exceeded the program’s salary cap by $2,000. The loss of the child care subsidy was devastating. With over $1,600 of her paycheck going toward child care each month, she moved her family into a homeless shelter to regain stability.

To requalify for the ERDC program, Kiyah switched from running her own photography business to working at the Oregon Food Bank, reducing her income. Now, the subsidy covers 100% of her daycare needs, which includes infant care for her youngest daughter, preschool for her son, and after-school care for her eldest children, twin second graders. Without this support, child care would consume 75% of her monthly take-home pay.

Oregon offers various state-supported child care programs, such as Preschool Promise, Oregon Head Start, Early Head Start, and Baby Promise, which provide government-subsidized child care with low copays. These programs have eligibility requirements, similar to the ERDC, which is available to families who are working, in school, or receiving federal Temporary Assistance for Needy Families (TANF). To qualify, families must earn less than double the federal poverty level and maintain eligibility by earning less than 250% of this level, approximately $105,686 for a family of five.

Kiyah hopes to break the cycle and eventually move out of the homeless shelter. However, she relies on the subsidy to survive. “If I get kicked off ERDC again, I don’t know what I will do,” she says.

Candace Vickers, director of Family Forward Oregon, advocates for universal child care. “We need a universal solution to child care in Oregon that has dedicated revenue and doesn’t have to wait every two years to figure out its funding,” she says. ERDC currently supports nearly 16,446 low-income families, with 2,800 on the waitlist. In January, the Department of Early Learning and Care projected a funding shortfall by January 2025, six months before the next budget cycle.

In response, Oregon lawmakers approved $171 million for ERDC in the latest legislative session. Additionally, Multnomah County is exploring the Preschool For All program, approved by voters in 2020, which aims to create a public school network for early education. The program began offering free preschool to 3- and 4-year-olds in 2022 and aims to create 11,000 publicly funded preschool slots by 2030.

Audreona Mullens, another Portland mother, expressed gratitude for Preschool For All. Before the program, she and her husband could only afford part-time daycare for their son, limiting her work hours. With Preschool For All, Mullens can work full-time and improve her family’s financial situation.

Unlike ERDC, Preschool For All has no income eligibility limits. Children must be 3 or 4 years old by September 1 and have a parent or guardian living in Multnomah County. Despite some challenges, such as infrastructure and workforce issues, the program is expanding and prioritizing families who struggle to access child care.

In addition to state and county programs, employer-based solutions are also emerging. The Biden administration’s CHIPS and Science Act requires companies receiving over $150 million in federal funding to provide affordable child care for employees. With semiconductor companies expected to add 3,000 jobs in Oregon, this requirement could alleviate some pressure on the child care system.

Navigating the complexities of child care subsidies and eligibility can be challenging.  Portland Family Law Attorneys can provide invaluable assistance to families like Kiyah’s. They can help interpret eligibility criteria, assist with appeals if support is lost, and advocate for clients’ rights to access these essential programs. Attorneys can also guide families through legal processes related to housing stability and employment changes, ensuring they have the support needed to secure and maintain child care subsidies. By working with a family law attorney, parents can better navigate the system and secure the resources they need for their children’s care and their family’s well-being.