New report highlights economic losses, affordability concerns and access to care
LINCOLN, Neb. (KLKN) — A new report released Wednesday shows that inadequate child care is costing Lancaster County millions of dollars each year, while families continue to face challenges finding affordable care.
The “Growing with Care: Child Care and Economic Opportunity in Lancaster County” report, produced by First Five Nebraska, estimates that inadequate child care results in $288.8 million in lost business output annually.
The report also estimates those challenges contribute to 1,115 fewer jobs in Lancaster County, $264.2 million in lost labor income and $10.44 million in lost state income tax revenue.
For families, the financial burden is significant.
“The average annual cost of care for one child in our community is $15,392,” said Anne Brandt, executive director of Lincoln Littles. “Nearly half of Lancaster County parents who use child care pay for more than one child, bringing their average annual cost to nearly $28,000.”
The report found that nearly one-third of parents who need child care experience at least some difficulty finding it, with cost being the most frequently cited barrier.
Families earning less than $100,000 annually face additional challenges. According to the report, those families are more than three times as likely to say finding child care is very difficult compared to households earning more than $100,000.
Beyond affordability, the number of licensed child care programs in Lancaster County has declined nearly 26% since 2019, dropping from 442 programs to 329 in 2026.
Much of that decline comes from home-based child care providers, which have decreased by 35.2% during that period.
Child care providers are also facing rising operating costs, staffing challenges and paperwork requirements.
“So there’s a real consequence there when providers who are offering quality care at the lowest price point are closing at the fastest rate,” said Katie Bass, director of policy research at Early Futures Partnership, which includes First Five Nebraska.
Despite the decline in programs, the total licensed child care capacity in Lancaster County has remained relatively stable, increasing slightly from 15,226 spots in 2019 to 15,331 in 2026.
However, the report estimates the county still needs enough child care capacity for an additional 736 children to meet potential demand within a reasonable driving distance.
Local leaders say addressing affordability, access and quality will require continued investment and cooperation.
The City of Lincoln has directed more than $2 million in local and federal funding toward early childhood care, education and workforce initiatives.
Lincoln Littles has also invested more than $5.1 million since 2019 to help families access quality child care, while Lancaster County’s Childcare Grant Program provides financial assistance to families and supports improvements at child care facilities.
The report was sponsored by the City of Lincoln, Lancaster County, the Lincoln Chamber of Commerce and Lincoln Littles.
Local leaders hope its findings will help guide future investments, partnerships and policy decisions aimed at strengthening the child care system and supporting Lancaster County’s workforce.
Categories: Lancaster, News
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