More Families Are Paying Over $2,000 a Month for Childcare

If your childcare bill has started to feel like a second rent payment, you’re not imagining it, and you’re far from alone.

A new report from the Bank of America Institute, which tracks the bank’s payment data along with government figures, found that the share of households paying more than $2,000 a month for childcare has more than doubled since 2023. So far in 2026, it’s 7.7% of households that pay for childcare.

The federal government considers childcare affordable when it costs no more than 7% of a family’s income. In September, the average family paying for care was spending 8%. The squeeze was tighter for lower- and middle-income households, at 8.6% of their pay, compared with 7.3% for higher-income households.

There’s also a quieter trend in the data. The median childcare payment rose just 1% from last year, but the number of households paying for childcare fell 1%, and 2% among lower-income families. The report suggests some families may be turning to relatives, changing their work schedules, or leaving the workforce to make it work.

Costs are also climbing unevenly across the country. Among major cities, Nashville saw the fastest growth in childcare payments over the past year, followed by Jacksonville and Phoenix, a sign that the pressure isn’t limited to expensive coastal cities anymore. New York and Washington, D.C., saw the biggest slowdowns, and the report points to added supply, like New York City’s universal pre-K, as one possible reason.

If you’re feeling this, there are a few things worth looking into. Many states offer childcare assistance, and the income limits may be higher than you’d expect. The federal Child and Dependent Care Tax Credit can offset some of what you pay. And some employers offer a dependent care FSA, which lets you pay for childcare with pre-tax dollars. Child Care Aware of America has links to each state’s resources.

Something to carry into this week: every family making childcare work right now, whether that’s grandparents, swapped shifts, a nanny share, or one parent stepping back, is solving a hard problem. However you’re piecing it together, it counts.

Sources: Bank of America Institute childcare payments report, October 2026, as reported by Benzinga, October 22, 2026. This article is for information only and is not financial advice.