From Urban Institute :: Greater DC Update <[email protected]>
Subject The benefits of DC’s Pay Equity Fund
Date June 4, 2025 1:56 PM
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Greater DC Update
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Greater DC Update







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Sustaining DC&rsquo;s Pay Equity Fund would stabilize families and child care centers
DC&rsquo;s Early Childhood Educator Pay Equity Fund serves as a national model for how states and localities can address the child care crisis by funding DC&rsquo;s child care directors to ensure competitive wages for their staff.

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Family perspectives about child care in DC
When asked for their perspectives, most DC families eligible for child care subsidies gave the highest ratings to access to quality child care but the lowest ratings to affordability.

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Wage enhancements promote high-quality child care in DC: Findings from licensing data and fall 2024 surveys
Because of their centers&rsquo; participation in DC&rsquo;s Pay Equity Fund, educators were &ldquo;somewhat&rdquo; or &ldquo;a lot&rdquo; more motivated (74 percent) and better able (72 percent) to pursue education, training, or other professional development opportunities.

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Wage enhancements support the financial well-being and mental health of early childhood educators
Educators whose employers participated in DC&rsquo;s Pay Equity Fund were 18 percent less likely to be at risk of food insecurity. They were also less likely to report depression or anxiety.

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Wage enhancements benefit child care staffing in DC: Workforce perspectives from fall 2024 surveys
More than two-thirds of DC child care educators agreed that the Pay Equity Fund contributed to their plan to continue working in their current job and in DC child care at large.

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Wage enhancements reduce educator turnover in DC&rsquo;s child care centers
Between March 2023 and March 2024, 64 percent of educators remained employed at the same licensed child care center. When educators left their jobs, most left the DC child care field altogether.

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The impact of lowering federal matching commitments to Medicaid in 10 states and DC
If DC&rsquo;s federal matching assistance were reduced from 70 percent to 50 percent, DC would have to increase its spending on Medicaid by 63.2 percent to maintain current Medicaid program support.
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