There is no such thing as ‘free childcare’

Few household expenses cost as much as childcare. In North Dakota, for instance, center-based care for infants consumes over 10 percent of the median household income. That’s higher than in-state tuition at a public university, and in many cases, even the cost of rent. For young families trying to build stability, the price tag is not just high — it’s daunting.

Yet while something clearly must be done about the crushing cost of childcare, what gets done matters just as much. With New York City mayoral candidate Zohran Mamdani championing “free childcare” — a proposal likely to gain traction elsewhere if enacted — it bears repeating that appealing policy proposals often come with significant costs that shouldn’t be ignored.

The not-so-hidden costs of “free childcare”

First, and most importantly, nothing, least of all a government-run program, is truly free.

State and local governments must levy taxes to pay for public services. Taxes are a cost on households, both directly and indirectly. Directly, taxes reduce take-home pay and make goods and services more expensive. Indirectly, taxes discourage investment, limiting job opportunities and income growth.

Second, governments must also balance limited tax revenues among competing needs. Each dollar invested in childcare is not available for other public services, such as roads or the police. In the long run, prioritising childcare over more essential services could lead to societal decline.

In places where they have been enacted, “free” universal childcare programs have also been associated with negative outcomes in children. Quebec, for instance, started offering low-cost ($5 per day) childcare to all families in 1997. Yet in addition to costing billions, the program has been plagued with shortages and low-quality care. Among participants, research has documented:

significantly worse health and social development outcomes.

Similar results have also been recorded in the U.S.

In Tennessee, children enrolled in the state Pre-K program “had lower state achievement test scores in third through sixth grades than control children, with the strongest negative effects in sixth grade.” Moreover, the children were also more likely to misbehave and face disciplinary action, and more likely to need special education.

Therefore, while improvements are needed to enhance childcare affordability and availability, families would be better served by solutions that are effective and financially sustainable, rather than promises of “free childcare.”