California daycare providers are on the brink of disaster, and parents are scrambling for solutions. As new tariffs introduced by former President Donald Trump threaten to drive up the cost of everyday essentials, many childcare businesses say they may not survive the financial strain.
With state subsidies stuck at outdated rates—some as low as $7 per hour—daycare owners like Heidi Escobar-Rocha, who runs a home-based daycare in Van Nuys, are struggling to stay afloat.
“We’re still getting paid 2018 living wages,” Escobar-Rocha told KNX News. “We’ve already been dealing with over 30% inflation, and now with these new tariffs coming, the gap is going to get even wider.”
The looming price hikes on gas, groceries, and even basic daycare supplies like toys could push many childcare centers to shut their doors for good. Blanca Gallegos with SEIU Local 99 warns that many providers, already stretched thin by soaring costs, won’t be able to survive.
“Daycare businesses are barely holding on,” Gallegos explained. “With rising prices on transportation, food, and housing, many providers fear they won’t be able to continue.”
If closures continue, California parents could soon face a daycare shortage at a time when childcare is already hard to find.
