In Statewide Survey, Employers Say Virginia Child Care Crisis Negatively Impacts Businesses

Virginia’s employers say the lack of affordable, high-quality child care is hurting businesses, with 88% of survey respondents reporting employee lateness or absences, and 65% reporting reduced work hours, according to results published last month by the Virginia Early Childhood Foundation, the Richmond Fed and the Virginia Chamber Foundation.

The findings come as state lawmakers prepare to address child care and other issues facing the commonwealth during the 2026 General Assembly Session. VPM reported in October that nearly 14,000 children were on a wait list for the Child Care Subsidy Program alone.

Kathy Glazer, president of the Virginia Early Childhood Foundation, said the survey’s findings are a clear indicator of risks to Virginia’s economy and workforce. Results indicate that the highest disruption is to hospitality, food service, retail, trade, transportation, and health care industries.

“When child care is unaffordable or unavailable, it constrains our workforce, weakens productivity, and slows economic growth,” Glazer said in a statement. “Addressing child care access and affordability must remain a top priority if Virginia wants to stay competitive and continue attracting working families and top-tier businesses to our state.”

The survey gathered responses from 308 Virginia employers. More than eight in ten say that child care challenges hinder hiring and retention. Additionally, 41% report that employees turn down job offers or promotions because of child care concerns.

Other findings include families facing a severe shortage of available, affordable child care options, with 65% of employers saying their workers struggle to find open slots and more than 85% citing cost as a major burden.

Employers said they want to help, but cost is a barrier, with fewer than 20% of businesses currently offering support.

Results indicated that many employers are open to offering solutions like child care referral services, cost-sharing models, employer-sponsored care, and child care vouchers or subsidies.

“The lack of cost-effective childcare options in Virginia is a barrier to workforce participation, and employers want to be part of the solution,” said Keith Martin, interim president and CEO of the Virginia Chamber Foundation. “This was a consistent theme we heard from employers statewide while developing Blueprint Virginia 2035, which makes clear that strengthening our workforce requires solutions that include prioritizing state funding for quality, affordable childcare through efforts like the proposed Employee Child Care Assistance Pilot Program.”

Sen. Lashrecse Aird, D-Petersburg, is carrying the Employee Child Care Assistance Program proposal, otherwise known as Senate Bill 3. The program would allow employers to receive state matching funds to help pay for an employee’s child care.

Del. Adele McClure, D-Arlington, filed the companion measure, House Bill 18.

Also in the Senate, Sen. Mamie Locke, D-Hampton,  filed Senate Bill 20, expanding Virginia’s Child Care Subsidy Program so more families can qualify based on income. Under the proposal, the Virginia Department of Education would be directed to develop and implement a phased reduction model for the Child Care Subsidy Program that gradually reduces the amount of help a family receives as they start to earn more.

The bills closely align with Gov.-elect Abigail Spanberger’s plan to strengthen child care in the commonwealth. Her plan also seeks to help more Virginians enter the early child care sector and improve worker retention.

Lawmakers are likely to file additional bills and budget proposals to address child care this month.

The General Assembly Session begins on Wednesday in Richmond and will run until at least mid-March.

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