Whitmer announces $1.4 billion in federal aid to boost child care access in Michigan

Jun. 14—TROY — Citing the "unprecedented opportunity created by a once-in-a-lifetime pandemic," Gov. Gretchen Whitmer announced Monday the state would spend $1.4 billion in federal COVID-19 stimulus funds to bolster its child care industry in three areas: affordability, availability and quality.

"Where and how children spend their time, it matters," Whitmer said during a news conference at Babes in Toyland, a child care center in Troy. "We have to understand just how essential child care is."

The state of Michigan typically spends about $250 million annually on child care; the stimulus, Whitmer said, offers a "one-time injection" of nearly six times that amount.

The effort is part of the administration's Economic Jumpstart Plan, which aims to help Michigan residents return to work and support their families.

While child care is essential to both families and businesses that need workers, child care workers are "underpaid and undervalued," Whitmer noted. The governor said she intends to provide more financial support and security to child care providers.

Twice during the hour-long press event, Whitmer used President Joe Biden's slogan, "build back better."

Congresswoman Haley Stevens, D-Rochester Hills, joined in the Monday announcement, hailing the spend as "the largest investment ever" on child care.

"We all want to get back to work," Stevens said. "But it's not possible until we solve this daycare challenge."

The initiative will expand income eligibility for low and no-cost child care to aid about 150,000 more children in Michigan. There also will be additional access to child care subsidies as well as premium pay for child care professionals.

"We have a chance to make a generational investment," added Lt. Gov. Garlin Gilchrist II.

Whitmer said Monday the state would allow people collecting enhanced unemployment to continue receiving the $300-a-week federal bonus through September, if they return to the work force. These people can take any job, not just the one they had before the pandemic, she said.

"That's a great way for working people to get back in without paying a price or having to make an unconscionable decision, 'do I stay out and make a little more, or do I jump back in and get the benefit of both?'" Whitmer said.

For a few months, they can do both.

"I'm not a parent," said Oakland County Executive Dave Coulter. "But I know that expanding access to child care, reliable, affordable child care is critical not only to the peace of mind of our parents, the well-being of our children, but also to the economy of our county and our state."

While one speaker, Brad Williams of the Detroit Regional Chamber, said that 89% of Michiganians who were employed prior to the pandemic have jobs now, Coulter noted that according to the Michigan League for Public Policy only about 60% of child care businesses in Oakland County are "fully" back in business.

"When you wonder why women aren't back in the workforce, or why people aren't back to work like we thought, we now have the data to suggest this is a major issue to getting folks back," Coulter added.

Whitmer said Michigan has a $3.5 billion surplus, due in part to the federal stimulus funds. The $1.4 billion comes from the American Rescue Plan federal stimulus package, part of $39 billion nationwide.

"We're now in a position where we can make some fundamental investments," Whitmer said.

The hope, Whitmer said, is that the standard set by the stimulus spend will become an "expectation" of Michigan's people.

"Once people see that we can do this as a society, we're going to expect that it continues to happen," Whitmer said. "That's the longer-term opportunity."

jdickson@detroitnews.com

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