AUTHORS: Kristy Sheffler, Ana Katrina Aquino, and Juliet Bromer
June 2026
HBCC Research Essentials Toolkit: Fact Sheet
Family child care (FCC) is a regulated subset of the broader home-based child care (HBCC) sector. FCC providers are small business owners whose child care services meet the needs of many working families by offering flexible, community-based, and individualized care that may support families’ employment, self-sufficiency, and long-term well-being. FCC is a widely utilized care arrangement for infants, toddlers, and working families needing nontraditional-hour child care.5 However, the sector faces challenges that threaten its stability and the adequate supply needed to meet families’ needs.4 National data indicate a significant decline in the number of small FCC programs across the United States. In some states, up to half of FCC programs closed between 2005 and 2017, and declines continued in at least 26 states between 2024 and 2025.8,27 The following key challenges reflect the most frequently cited factors affecting FCC stability based on a synthesis of research conducted with national- and state-level samples of providers. Targeted strategies are drawn from reports and recommendations reviewed in the research synthesis.