As families in Michigan face increasing challenges in obtaining licensed child care, many are turning to informal providers—often operating from their own homes or the child’s home—to supply care that has become difficult to access through the formal system. While these providers help fill a critical gap, the lack of regulatory oversight raises growing concerns about children’s safety and the quality of care.
Under state regulations, unlicensed caregivers are allowed to care for up to three unrelated children without needing a license, provided they pass a security background check if the care is offered in the child’s home. Exceeding this limit is a legal violation that can result in hefty fines or even criminal charges in some cases.
According to the State of Michigan website, the shortage of licensed child-care slots is one of the primary reasons families rely on unlicensed care. Estimates indicate there are four children for every licensed seat, leading to long waiting lists and making it difficult for parents to secure appropriate childcare.
Licensed care also represents a significant financial burden, especially for low-income families. Low wages in the sector and long working hours contribute to a shortage of qualified providers, in addition to the mismatch between center hours and parents’ work schedules—particularly those working evenings or weekends.
High Costs and Legal Barriers Strain Michigan’s Childcare System
Estimates from First Children’s Finance show that caring for one child in a licensed center can exceed $10,000 per year, an amount beyond the reach of many lower-income households.
In this context, community organizations such as “Congress of Communities” are working to support informal caregivers by providing basic training and connecting them with resources. However, they face legal barriers, especially regarding obtaining a license without a Social Security number. Program coordinator Elizabeth Gonzalez calls for adopting a more flexible model—similar to what other states have implemented—to allow these providers to operate within a legal framework that ensures safety while expanding childcare options.
Michigan is currently working to address this gap through a plan extending to 2027, which includes improving health and safety standards, expanding training programs, and increasing funding to open new centers. However, the greatest challenge remains developing a childcare model that balances flexibility with oversight and meets the diverse needs of families across the state.