Ohio Economy Loses $5.3B Annually Due to Lack of Affordable Child Care

Business leaders urge policymakers to raise eligibility for publicly funded child care to address economic toll

Published on Feb. 27, 2026

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A new report from the bipartisan business group ReadyNation estimates that the lack of affordable child care costs Ohio's economy $5.3 billion each year in lost productivity, earnings, and revenue. The report calls on Ohio policymakers to raise the eligibility threshold for publicly funded child care from 145% to at least 200% of the federal poverty level, and to pay providers based on enrollment rather than attendance.

Why it matters

Insufficient and unaffordable child care has a significant economic impact, acting as a drag on businesses, workers, and taxpayers. Improving access to affordable, quality child care can boost workforce participation, productivity, and earnings, benefiting Ohio's overall economic health.

The details

ReadyNation calculated the economic impact in Ohio by projecting the costs of parents having to miss partial or full days of work due to child care struggles, leading to reduced work hours, declined promotions, demotions, or job loss. This lost wage-earning potential had cascading effects on business earnings and tax revenue. The $5.3 billion estimate is close to a previous 2025 report from the Ohio Chamber of Commerce, which found the state's economy was losing $5.5 billion annually due to insufficient and unaffordable child care.

  • The new ReadyNation report was released on February 27, 2026.
  • In 2023, cleveland.com and The Plain Dealer launched a 'Rethinking Child Care' series examining the struggle of finding quality, affordable child care and proposing solutions.

The players

ReadyNation

A national, bipartisan organization of more than 2,000 executives that promotes policies aimed at building a skilled workforce.

Jim Spurlino

President and owner of Spurlino Materials in Hamilton County and a member of ReadyNation's Advisory Board and CEO Taskforce on Early Childhood.

Mike DeWine

The Governor of Ohio who previously asked the legislature to increase the eligibility threshold for publicly funded child care.

Ohio General Assembly

The state legislature that rejected Governor DeWine's request to increase the eligibility threshold, but instead included child care aid for families earning 146% to 200% of the poverty level.

Nancy Fishman

The national director of ReadyNation.

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What they’re saying

“Here in Ohio, quality child care options lead to productive employees and an expanded parent workforce, helping businesses and families prosper.”

— Jim Spurlino, President and owner of Spurlino Materials, member of ReadyNation's Advisory Board and CEO Taskforce on Early Childhood (ReadyNation statement)

“ReadyNation's data from the past seven years shows that the failure to strengthen the country's fragile child care infrastructure has led to escalating economic damage to employers, workers, and taxpayers. In short, insufficient child care acts as a drag on the U.S. economy.”

— Nancy Fishman, National director of ReadyNation (ReadyNation report)

What’s next

The report calls on Congress to pass the bipartisan Child Care Modernization Act, which would update and strengthen the Child Care and Development Block Grant program to require states to use a 'cost estimation model' to set provider payment rates and create supply and facilities grants to expand access.

The takeaway

Improving access to affordable, quality child care is crucial for boosting workforce participation, productivity, and earnings, ultimately benefiting Ohio's overall economic health. Policymakers should heed the call from business leaders to raise eligibility for publicly funded child care and take other steps to strengthen the state's child care infrastructure.