Plootus Report: Infant Childcare Costs Now Exceed Public College Tuition in 38 States

NEW HAVEN, Conn. - EntSun -- Plootus today released its 2024-2025 Childcare Cost Analysis revealing that the financial burden of early childhood education has reached a critical tipping point for American families.

The report highlights a startling trend: annual infant care costs now exceed in-state public college tuition in 38 states plus D.C.—up from 33 states a few years ago. According to the Plootus Research Team, the national average for center-based infant care has climbed to $13,128 per year, a 29% increase since 2020.

"We're seeing a massive divergence between what the federal government considers 'affordable' and the reality on the ground," said the Plootus Research Team. "While the HHS defines affordable care as 7% of family income, no state in the U.S. currently meets this standard for infant center care."

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Key Findings:

• High Cost of Infant Care: Washington D.C. remains the most expensive market at $24,243 annually, followed by Massachusetts ($20,913) and California ($18,180).
• Single-Parent Burden: National average childcare costs now consume 35% of the median single-parent household income.
• The "Affordability" Leaders: South Dakota ($6,468), North Dakota ($6,396), and Mississippi ($5,436) rank as the most affordable states for center-based care.
• Nanny Premium: In-home care costs have surged to an average of $827 per week, totaling over $43,000 annually for full-time infant care.

The report also provides a roadmap for families to mitigate these costs, emphasizing the use of Dependent Care FSAs, which can save families over $1,250 in taxes annually, and the Child & Dependent Care Tax Credit.

"Most families don't realize that the 'true' cost of childcare includes the lost opportunity for compound growth in their retirement accounts," the Plootus Research Team added. "Choosing a family childcare home or utilizing a Nanny Share can save 10-50%, potentially preserving a family's ability to stay on track for retirement."

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The full report is available at https://www.plootus.com/childcare-costs/

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