Childcare providers are worried that new tariffs could put a squeeze on their businesses at a time of already inflated prices.
Some California daycare providers rely on state subsidies that only pay about $7 to $10 per hour – a rate that hasn’t been adjusted for years. According to Heidi Escobar-Rocha, who operates a daycare out of her home in Van Nuys, it’s no longer nearly enough to keep business afloat.
“We're still getting paid 2018 living wages,” Escobar-Rocha told KNX News’ Jon Baird. “So we've been feeling this inflation of over 30% already, and now with these new tariffs that are gonna be put in place, we've already gonna have a wider gap.”
As President Donald Trump imposes new tariffs expected to drive up the price of essential goods like gas and groceries, Blanca Gallegos with SEIU Local 99 said the rising costs could force some childcare providers to close their doors.
“Already they've been operating on low pay and high inflation, and they're very concerned that increased costs for things like transportation and housing and groceries, even toys, will really impact their businesses,” she said.
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SEIU Local 99 Childcare Providers United is hoping the state will increase subsidies to help daycares keep up with inflation.
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