The high fees do not necessarily translate into strong finances for providers. Labor can account for as much as 80% of a center’s annual expenses, said state Sen. Scott Bright, a Platteville Republican who owns more than a dozen child care centers in Weld County. He said regulatory costs and property taxes add pressure; one of his facilities carries an $80,000 annual property-tax bill.

Because staffing is such a large expense, providers have limited options to control costs without affecting workers, said Maegan Lokteff, executive director of the Early Childhood Council Leadership Alliance. Low pay contributes to turnover in a field where workers need sustainable wages to stay, she said.

A 2020 University of California, Berkeley report found Colorado child care workers earned an average of $13.79 an hour, while preschool teachers averaged $15.25. Those figures are dated, but they illustrate the low-wage conditions that have long shaped the workforce.

The costs also come as Colorado’s Child Care Assistance Program, which helps eligible low-income families pay for care, struggles to meet demand. The program has served about 10% of eligible families per year on average since state lawmakers expanded income eligibility in 2018, despite receiving more than $140 million in state and federal pandemic aid.

Federal pandemic child care funding later expired, ending more than $450 million in support for Colorado. As costs rose, several large counties froze enrollment in the assistance program by early 2025. A 2024 federal rule limiting family copayments to 7% of income drew criticism from some state and industry representatives, who said it could shift costs to states without providing new money. The Trump administration proposed reversing the rule in January 2026.

The administration also froze child care funding for Colorado and three other states, citing concerns about fraud in Minnesota. A federal judge issued orders blocking the freeze, and the federal government lifted it in July 2026.

Colorado has expanded other forms of early-childhood support. The state’s universal preschool program provides up to 15 hours a week for 4-year-olds, with additional hours available to some children, including those from low-income families and children with disabilities. The latest annual report cited in the state’s account says the program saves families an average of $6,100 a year and serves about 70% of eligible 4-year-olds.

Lawmakers have also expanded property-tax exemptions for licensed child care providers, though only Douglas and Adams counties have opted into the latest exemption. A state family tax credit that supported more than 330,000 families in its first year will not be available for the 2026 tax year because of insufficient state revenue, according to the Colorado Department of Revenue.

Bright’s proposal to use certain state cash reserves for child care assistance failed to advance in the 2026 legislative session. A separate bipartisan measure changing licensing rules for providers was signed into law. Gov. Jared Polis said streamlining licensing could reduce delays and improve access, while advocates continue to argue that affordability depends on both reliable public funding and a child care workforce able to earn a living wage.

The debate reflects competing views about the role of government subsidies. Supporters say assistance helps parents stay in the workforce and reduces poverty. Critics argue broad subsidies could increase demand and costs for families who do not qualify, while adding to public spending. For families facing five-figure annual bills and providers struggling to retain staff, the effects of those policy choices are immediate.