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5.01.2025

The Rising Cost of Child Care in Nevada: An In-Depth Look at the Economic Impact

Child care is a critical issue for working families across the United States, and Nevada is no exception. Over the years, the cost of child care in the state has steadily risen, creating a significant financial burden for many parents. This issue is not only an economic concern for families but also a public policy challenge that has broad implications for the state's economy and workforce. 

In this article, we will explore the rising cost of child care in Nevada, including recent findings from the Economic Policy Institute (EPI), and discuss the consequences for families, employers, and policymakers.

The Growing Financial Strain of Child Care in Nevada

Child care is an essential service for working families, yet it has become increasingly unaffordable in many parts of the country, including Nevada. According to the U.S. Department of Health and Human Services (HHS), child care is considered affordable when it costs no more than 7% of a family's income. However, in Nevada, many families find themselves paying significantly more than this threshold.

In March 2025, the Economic Policy Institute (EPI) published a report that highlighted the rising cost of child care across the United States, including in Nevada. The report revealed that the average cost of child care in Nevada for an infant in a child care center is approximately $15,950 per year ($1,329 per month). For a toddler, the cost was slightly lower but still significant, averaging around $13,268 annually. These costs represent a large portion of a typical family's budget, especially for those with lower or moderate incomes.

For comparison, the median household income in Nevada is approximately $87,250 per year. For many families, this means that child care expenses can take up 18.3% or more of their income. This disproportionate financial burden can lead to a variety of challenges for parents, from sacrificing basic necessities to limiting career opportunities.

The Economic Policy Institute's Findings

The EPI's report on child care costs provides a sobering view of the situation in Nevada and other states. According to the data, Nevada's child care costs are among the highest in the nation, particularly for infants and toddlers. The report also highlights the impact of child care costs on different income groups.

For low-income families, child care costs are even more burdensome. Families earning at or below the federal poverty line face the highest percentage of their income going toward child care expenses. In some cases, these families may be forced to make difficult decisions, such as reducing work hours, relying on informal care arrangements, or even leaving the workforce altogether.

One of the most troubling aspects of the child care crisis in Nevada is the lack of affordable child care options. The state's child care system is strained, with many centers operating at full capacity and unable to meet the demand for services. This has led to long waitlists and, in some cases, a lack of quality care options in certain regions of the state.

The EPI's report also points out that Nevada's child care system is primarily dependent on the private sector, which has led to a lack of standardized pricing and variability in the quality of care. This means that families with limited financial resources may struggle to find affordable care that also meets their quality standards.

The Impact on Nevada's Workforce

The high cost of child care has significant implications for Nevada's workforce. For many parents, the expense of child care is a barrier to full-time employment or career advancement. Parents, particularly women, often face difficult choices when it comes to balancing work and family responsibilities. In some cases, parents may choose to leave the workforce altogether or reduce their work hours in order to care for their children.

The impact of child care costs on women's workforce participation is particularly noteworthy. According to the EPI report, child care costs are one of the primary reasons why women in Nevada and across the nation are more likely to scale back their careers or leave the workforce entirely. This not only affects the economic security of individual families but also has broader implications for the state's economy. When women are unable to fully participate in the workforce, it limits the overall productivity and economic growth of the state.

Additionally, the high cost of child care can create a ripple effect throughout the broader economy. Employers may struggle to retain employees who are facing significant child care challenges, and businesses may find it difficult to attract new talent, particularly in industries that rely on a strong, diverse workforce. The lack of affordable child care can also worsen issues related to employee absenteeism, as parents may need to take time off work to care for sick children or navigate child care disruptions.

The Role of Public Policy in Addressing the Child Care Crisis

The issue of child care affordability is not one that can be solved by families alone. Public policy plays a critical role in addressing the rising cost of child care, and there have been some recent efforts to improve the situation in Nevada and beyond.

One potential solution is to increase the availability of state-funded child care subsidies. These subsidies can help lower-income families offset the high costs of care and ensure that children have access to quality early education. 

Another possible approach is to provide tax credits for families that face high child care costs. The federal government currently offers a Child and Dependent Care Tax Credit, but many families find that the credit is insufficient to cover the full cost of care. 

Investing in child care workers is another important policy consideration. Child care providers, who are predominantly women, are often underpaid and undervalued. The EPI report highlights the low wages of child care workers, which are often not appropriate to the level of education and training required for the job. By increasing compensation for child care workers, Nevada could improve the quality of care while also ensuring that workers are fairly compensated for their important role in the state's economy.

The rising cost of child care in Nevada is a pressing issue that affects families, employers, and the broader economy. As the Economic Policy Institute's recent report demonstrates, many families are struggling to afford the high costs of child care, which can have long-term consequences for their financial stability and workforce participation. 

To address this challenge, Nevada must consider a variety of policy solutions, including expanding child care subsidies, offering tax credits, and investing in the child care workforce. By taking action, the state can help ensure that all families have access to affordable, high-quality child care, which in turn will support the economic well-being of the state and its residents.

Additional Resources:

First 5 Nevada Eligibility Screener

Nevada Child Care Resource Checklist

First 5 Nevada Child Care & Early Education Programs, Services, and Resources