Louisiana, January 17, 2026
News Summary
Louisiana parents are experiencing a significant rise in child care costs, which have nearly doubled in 2024. This surge is creating financial strain for families and impacting businesses in cities like Shreveport and Bossier. The Louisiana Policy Institute for Children estimates an annual loss of $762 million for employers due to child care challenges, with many early education providers struggling to cover operational costs. Legislative efforts are underway to introduce tax credits for businesses supporting child care, yet a child care shortage persists with over 100,000 children lacking access to affordable care.
Louisiana parents are facing a staggering increase in child care costs, which have nearly doubled in 2024 compared to the previous year. This significant rise in expenses is putting considerable financial strain on families across the state, particularly affecting business owners in cities like Shreveport and Bossier who are dealing with employee child care issues.
According to the Louisiana Policy Institute for Children, the state is losing an estimated $762 million annually in employer costs and a total of $1.3 billion in economic losses due to child care challenges. These figures do not account for the decreased consumer spending resulting from parents missing work as they struggle to secure affordable child care.
In response to this pressing issue, legislative measures have been introduced to provide support. The state has increased the Workforce Child Care Tax Credits for businesses that assist their employees with child care needs since January 1. Under the new regulations, companies can access additional credits if they build or improve in-house child care facilities or pay eligible child care providers on behalf of their employees. A business can claim up to $100,000 per year for supporting child care and an extra $10,000 annually for parent employees. Furthermore, businesses may reserve up to $100,000 each year for child care slots at qualified facilities.
However, these tax credits do not extend to family hiring of nannies or relatives; they specifically target qualified educational child care facilities. The intent behind this initiative is to encourage more widespread adoption of these credits to alleviate the burden on working families.
Currently, approximately half of Louisiana’s early child care providers report that their monthly revenues fail to cover operational expenses. A recent survey conducted by the Louisiana Policy Institute for Children found that nearly 80% of providers are concerned about their business sustainability within the next six months, primarily due to escalating operational costs. Factors impacting costs include increases in food prices, cleaning supplies, classroom materials, and insurance premiums, which have surged by over $7,000 in the past year.
In addition to these challenges, Louisiana’s Legislature has cut early childhood funding, resulting in the loss of 720 state-funded slots for child care in 2024. The state currently faces a child care shortage, with more than 100,000 children lacking access to affordable care. Furthermore, two-thirds of early childhood providers report having waitlists, and many are experiencing high staff turnover due to inadequate pay. The average salary for early education teachers in Louisiana is around $28,000 per year, significantly lower than what K-12 teachers earn.
Families are finding it increasingly difficult to afford child care, with average yearly costs reaching $14,000 per child without subsidized care. A large number of families are currently on waiting lists for state tuition assistance through Louisiana’s Child Care Assistance Program. Recent legislative efforts aim to enhance child care access and reduce costs, including the reauthorization of the Workforce Child Care Tax Credits. However, communities are witnessing increased aftercare fees, reflected in Jefferson Parish, where fees for aftercare programs have risen from $35 to $45 per week.
The economic pressures faced by child care providers necessitate heightened funding from state and federal levels for assistance programs. Notably, child care costs in Louisiana can surpass in-state college tuition, posing a substantial challenge even for families earning up to $150,000 annually.
| Feature | Details |
|---|---|
| Cost Increase | Nearly doubled child care costs in 2024 |
| Economic Impact | $762 million annual losses to employers; $1.3 billion economic impact |
| Tax Credits | Up to $100,000 per year for businesses supporting child care |
| Child Care Shortage | Over 100,000 children lack affordable care |
| Average Child Care Cost | $14,000 per child annually without subsidies |
| Staff Salary | Average early education teacher salary: $28,000 |
FAQ
- What percentage of parents in Louisiana reported child care costs doubling in 2024?
- Parents in Louisiana reported nearly doubled child care costs compared to the previous year.
- How much does Louisiana lose annually in employer costs due to child care issues?
- The Louisiana Policy Institute for Children calculates $762 million in annual losses to employers and $1.3 billion to the state’s economy due to child care issues.
- What are the new tax benefits for Louisiana businesses related to child care?
- Companies can now access additional credits for building or improving in-house child care or for paying eligible child care providers on behalf of employees.
- What is the average annual salary for early education teachers in Louisiana?
- The average salary for early education teachers in Louisiana is only $28,000 per year, significantly less than K-12 teachers.
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Additional Resources
- Shreveport Bossier Advocate
- Wikipedia: Child Care in the United States
- Louisiana Radio Network
- Axios
- NOLA
Author: STAFF HERE SHREVEPORT WRITER
The SHREVEPORT STAFF WRITER represents the experienced team at HEREShreveport.com, your go-to source for actionable local news and information in Shreveport, Caddo Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Mudbug Madness Festival, Red River Revel Arts Festival, and Independence Bowl. Our coverage extends to key organizations like the Shreveport-Bossier Chamber of Commerce and Shreveport Regional Arts Council, plus leading businesses in gaming, healthcare, and energy that power the local economy such as Horseshoe Casino, Ochsner LSU Health, and Atmos Energy. As part of the broader HERE network, including HEREBatonRouge.com and HERENewOrleans.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
