Coverage from Common Sense Institute states that Colorado is facing significant economic consequences as pandemic-era childcare assistance programs expire, leaving many families without affordable care options. The loss of this support is increasing out-of-pocket childcare costs for working parents, placing added strain on household budgets and making it more difficult for families to maintain consistent employment.
The reduction in childcare assistance is expected to impact workforce participation across the state, with many parents—particularly mothers—reducing hours or leaving their jobs entirely due to the high cost and limited availability of care. Businesses are also feeling the effects through increased absenteeism, reduced productivity, and challenges in hiring and retaining employees, particularly in industries already facing labor shortages.
The report estimates that the loss of childcare support could result in billions of dollars in economic impact statewide, driven by reduced earnings, lower business output, and decreased tax revenue. These findings underscore the role that accessible, affordable childcare plays not only in supporting families but in sustaining Colorado’s broader economy.