The True Cost of Child Care in North Carolina
High-quality child care is essential, but it’s out of reach for most North Carolina families.
In our state, the average cost to care for one infant in a center is more than $12,000 a year. That’s higher than in-state tuition at UNC-Chapel Hill. In Mecklenburg County, the average monthly cost for a toddler in a four-star center is $1,200—nearly 40% of a family’s gross monthly income.
And it’s not just low-income families who are struggling. Working- and middle-class parents are also pushed to the edge, often choosing between paying for care or staying in the workforce. For single parents, especially mothers, the numbers are devastating. In North Carolina:
- 31% of single mothers live in poverty, compared to 18% of single fathers.
- 39% of children under age 6 with single mothers live in poverty.
For these families, affordable child care is not a luxury; it’s a lifeline.
The Gender & Racial Wage Gaps Make It Worse
The child care crisis doesn’t affect all families equally. While mothers working full-time, year-round make just 70 cents for every dollar earned by fathers, the gap widens for women of color. Compared to white fathers:
- Black mothers earn 50 cents
- Latina mothers earn 45 cents
- American Indian mothers earn 47 cents
These inequities mean that over 70% of Black mothers and 40% of Latina mothers—many of whom are the main providers for their families—face overwhelming barriers to accessing care.
It’s Not Just a Family Issue—It’s an Economic One
The high cost of care doesn’t just hurt families—it’s holding our entire state back.
According to NC’s Department of Commerce, affordable, accessible child care could create 68,000 jobs, boost GDP by $7.5 billion, and increase annual economic input by $13.3 billion.
When child care is too expensive, parents—usually mothers—are pushed out of the workforce. This loss of talent, productivity, and economic mobility impacts everyone.
The Solution: Better Child Care Subsidies
Helping families pay for care isn’t a handout—it’s smart policy. Child care subsidies help working parents stay employed and allow children to attend safe, high-quality programs. These programs support early learning, improve school readiness, and help end intergenerational poverty.
But right now, the system isn’t working:
- Only 15% of eligible families in NC receive subsidies.
- Even with support, many parents still pay more than they can afford.
- Providers often don’t receive enough funding to cover the true cost of care.
That’s why we support a statewide floor for subsidy reimbursement rates, so child care centers in every county, especially rural ones, can afford to stay open, pay qualified teachers, and offer stable tuition rates.
Businesses Are Stepping Up
Employers across North Carolina are realizing that child care is a workforce issue. The NC Chamber of Commerce created a Coalition on Child Care, and the state appointed a child care business liaison to develop solutions with employers. Their recommendations include:
- Employer tax credits for child care support
- Lower property costs for child care providers
- Health plan options for small child care businesses
- Raising provider reimbursement rates
These changes would help providers stay open, support their staff, and serve more families.
Read our full brief: The Desperate Need for Affordable Child Care: The Numbers Tell The Story to get more facts and statistics.
Take Action: Help Build a Better Future for NC Families
This crisis is complex, but solvable. And you can help.
Here’s what you can do:
- Join our advocacy campaign: Sign up for our “Taking a Stand for Early Care and Education” series. Each month, we’ll dive into a key issue facing North Carolina’s early childhood system—and offer solutions. Join our email list now to receive updates and calls to action.
- Speak up for affordable child care: Contact your legislators and ask them to:
- Increase funding for child care subsidies
- Set a statewide floor for reimbursement rates
- Support public-private partnerships like the tri-share pilot
- Share this blog: The more people understand the stakes, the more momentum we build. Share this post with your network—families, businesses, and policymakers need to know the numbers.
Coming Next: Rural Families and the Fight for Child Care Access
Don’t miss the next article in our ten-part series: “Strengthening Child Care in Rural North Carolina: Why Your Voice Matters” Let’s build a stronger, fairer, and more affordable child care system for all.
Want to help shape policy and support early learning? Join our newsletter to get the latest news and advocacy alerts from the North Carolina Early Childhood Foundation.