The Real Cost of Raising a Child in America—And Why a One-Time Bonus Won’t Fix It
- Erika Lucas
- 2 days ago
- 3 min read
The U.S. is facing a record-low birth rate, and policymakers are starting to take notice. Among the proposals surfacing to address this decline is a $5,000 “baby bonus” floated by former President Donald Trump—an incentive for women to have children at a time when the cost of parenting continues to rise and support systems remain inadequate.
While financial incentives might sound appealing on the surface, they barely scratch the surface of the real challenges many women—particularly those with limited means—face when starting or growing a family.
The Price Tag of Birth
Let’s start with the basics. In the U.S., the average cost of giving birth with insurance is about $3,000 to $5,000 out of pocket. For those without insurance, that number can soar to $18,000 to $20,000 or more, depending on complications and location.
A one-time $5,000 check might help cover part of the delivery bill—but what happens after?
Raising a Child: A Long-Term Investment
The average cost to raise a child from birth to age 18 is $310,000 according to Brookings. That doesn’t include college. These expenses cover housing, food, childcare, healthcare, clothing, and education—all of which are rising steadily, especially childcare.
What the U.S. Doesn’t Offer
What makes parenting in the U.S. uniquely difficult—especially for women—is the lack of foundational support. Unlike many other developed nations:
There is no guaranteed paid family leave at the federal level.
Childcare costs are among the highest in the world and often exceed rent or mortgage payments.
Access to subsidized or public childcare is limited, inconsistent, and often comes with long waitlists.
Women face the “motherhood penalty”—a measurable drop in earnings and career opportunities simply because they have and care for children.
In addition, women today are navigating a deeply uncertain reproductive healthcare landscape. Pregnancy in the U.S. is more medically and legally precarious than ever. The U.S. continues to have the highest maternal mortality rate among developed countries, particularly impacting women of color. Compounding this reality is the growing number of state-level policies that have introduced criminal penalties around pregnancy outcomes, including miscarriages. These developments have added another layer of fear and hesitation for women considering motherhood—especially those already facing limited access to healthcare.
A Childcare System on the Brink
To make matters worse, the Trump administration has proposed cutbacks to programs like Head Start, which provides early education, parental support, and employment for thousands of caregivers across the country. Reducing investment in early childhood education now will only widen the gap for families already struggling to keep up. Meanwhile, policymakers like Senator JD Vance have suggested families rely more on grandparents or post-menopausal women for childcare—a suggestion that ignores the reality that many older adults are already working, have health concerns, or simply lack the capacity to provide full-time care.
What Real Support Could Look Like
If we’re serious about supporting families and addressing declining birth rates, we need long-term, sustainable solutions—not just one-time payments. Here are a few that could make a difference:
1. Paid Family Leave
Mandating a national paid leave policy would allow new parents time to recover and bond with their child without risking their income or job.
2. Affordable, High-Quality Childcare
Investing in public childcare infrastructure, including early childhood education and subsidies for working parents, would ease one of the biggest financial burdens families face.
3. Tax Credits and Wage Protections
Expanding the Child Tax Credit and enforcing wage equity can help reduce the financial penalty many women face simply for becoming mothers.
4. Flexible Work Policies
Corporate leaders can play a key role by offering flexible hours, remote work options, and reentry programs for parents returning after career breaks.
5. Caregiving Support for All
Recognize caregiving as essential labor and provide benefits or stipends to those who take on this role—whether they’re parents, grandparents, or others.
A one-time bonus might grab headlines, but it won’t solve the deeper, structural issues women and families face in raising children in America. If we want to build a future where more people feel secure in choosing parenthood, we have to create systems that make it possible—not just momentarily affordable.
