Michigan’s child care crisis is acute, with families spending an average of 38% of their income on care according to the most recent information from the Policy Equity Group and Pulse at the W.E. Upjohn Institute, placing enormous strain on parents, especially those with children under five, and rippling through the state’s economy. At the same time, child care providers are grappling with chronic staff shortages, caused by the low wages they are able to pay for child care teachers and the high turnover they experience in qualified early educators as a result. When parents can’t afford to pay and teachers cannot afford to stay, child care businesses experience instability which further limits access to care.
The Early Childhood Investment Corporation (ECIC) is committed to ensuring all young children and their families in Michigan thrive. A key part of this vision is expanding access to high-quality, affordable child care. ECIC recognizes that high-quality child care must serve the needs of families; whether based on their geography, culture, work schedules, or their child’s developmental stage. That’s why ECIC supports a range of early care and education options, including center- and home-based care, Great Start to Readiness Program (GSRP), PreK for All, Head Start, and Early Head Start. Understanding that there’s no one-size-fits-all solution, ECIC focuses on both strengthening Michigan’s existing child care system and building new, innovative models that include fresh partnerships and ideas.
At the 2025 Michigan Economic Developers Association (MEDA) Spring Conference, ECIC’s Child Care Innovation Fund (CCIF) and Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP) highlighted cross-sector solutions to address systemic regional child care crisis. A central part of this strategy is the creation of Regional Child Care Coalitions (RCCCs). These Coalitions bring together economic development organizations, local governments and municipalities, workforce agencies, child care business owners and providers, employers, parents, and community business leaders to collaboratively address the child care crisis through community-based, cross-sector solutions to expand access to quality, affordable child care for working families. Two RCCCs have been highlighted in the news already as they undertake their region’s unique challenges and opportunities: Child Care Network and Ann Arbor Spark representing Washtenaw, Livingston, Hillsdale, Lenawee, and Monroe counties and United Way of Northwest Michigan and Networks Northwest representing Antrim, Benzie, Charlevoix, Emmet, Grand Traverse, Kalkaska, Leelanau, Manistee, Missaukee, and Wexford counties.
Another innovation designed to address the critical early educator shortage are Early Care and Education Registered Apprenticeship Programs (ECE RAPs). ECE RAPs offer structured, paid training for early childhood educators, combining on-the-job experience with mentorship and formal education. This “earn while you learn” model helps attract new talent to the field and retains staff by offering clear career advancement opportunities. ECE RAPs, supported by MiLEAP, ECIC’s CCIF, and the Michigan Department of Labor and Economic Opportunity (LEO), work locally with child care employers and communities to provide opportunities for child care professionals to attain or increase their professional credentials.
Michigan loses an estimated $2.88 billion annually in economic activity due to child care shortages. Programs like RCCCs and ECE RAPs are intended to help reverse this trend by making the child care system more resilient, accessible, and sustainable. In summary, ECIC’s approach; investing in workforce development and fostering regional cross-sector collaborations, is grounded in the recognition that child care is part of essential economic infrastructure. These innovations are striving to create new opportunities for community collaboration, education and support around diverse child care needs.