Think tank’s brief finds childcare costs a major challenge for both providers and parents, highlights policy options for improvement
NASHVILLE – Tennessee families are struggling to access affordable childcare, and providers are straining to manage their costs and pay their workforce living wages, finds a new policy brief released today from nonpartisan think tank ThinkTennessee. The brief includes an overview of the economic impact of affordable childcare access, childcare workforce challenges and opportunities, and new recommendations to increase childcare capacity and labor force participation in the state.
“Tennessee’s children are one of our state’s most precious assets,” said Erin Hafkenschiel, president of ThinkTennessee, “and ensuring that they and their caregivers can access affordable, high-quality childcare is both a moral and economic imperative. Our latest analysis joins a growing body of research that makes clear there is a cost to the state’s inadequate and under-resourced childcare sector and offers innovative, evidence-based ideas from around the country to address our growing crisis.”
In January 2025, the Tennessee Advisory Commission on Intergovernmental Relations (TACIR) issued a report with recommendations to reduce barriers for childcare businesses and support the state’s childcare workforce. The report’s proposals include coordinating licensing requirements across state agencies, facilitating faster state and local inspections, aligning state and local zoning regulations and fire codes, and offering salary supplement programs based on years of service.
This brief expands on the childcare policy discourse in Tennessee. Rooted in an analysis of best practices from other states, the report offers policymakers four additional recommendations to increase childcare capacity and better support Tennessee workers with children:
- Eliminate regulatory barriers to help childcare providers expand and increase availability while protecting health and safety.
- Encourage the business community to create more childcare slots and lower costs for their employees.
- Improve job quality for childcare workers to help recruit and retain the industry’s workforce.
- Invest in childcare for low-income families to help increase their ability to find and retain employment.
To read the full policy brief, The Early Years: Investing in Childcare Will Help Families and Our Economy, visit www.thinktennessee.org.
