The Impact of Pandemic Relief Funds on California’s Early Care and Education Programs and Workforce

Date published: February, 2025 (36 pages)
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Cover of report titled "The Impact of Pandemic Relief Funds on California’s Early Care and Education Programs and Workforce" with an image of children playing and wearing masks

This report explores the impacts of COVID-19 on California’s child care businesses and the role of pandemic relief funding, drawing from our 2023 California ECE Workforce Study. It covers the period from 2021 to 2023 when the state received its largest share of federally allocated funds. 

Findings show that: 

  • Short-term pandemic funding did not fully address the chronic funding issues plaguing early care and education. Only 19 percent of FCC providers and 28 percent of center directors reported no pandemic-related business challenges.
  • The challenges were not felt equally among programs and providers. FCC providers were four times more likely than center directors to report being unable to pay themselves and to have taken on personal debt to cover program operations.
  • Programs used pandemic funds mostly to sustain operations. The majority of FCC providers (78 percent) and center directors (70 percent) used pandemic funds to cover staff salaries, compared to only 24 percent and 33 percent, respectively, who used it to increase staff salaries or wages.