Lower income households and Black and Latino communities will be hit hard when a confluence of U.S. economic events kick off next week, including a sharp drop in childcare funding, economists, analysts and government officials said.
The average member of the American Federation of Government Employees earns between $55,000 and $65,000 a year, but thousands of hourly workers earn much less, about $31,200 a year. These workers will all get back pay after the furlough or shutdown is over, but contract workers, who earn even less, are not eligible for the back pay.for nearly 7 million low-income women and children on the Special Supplemental Nutrition Program for Women, Infacts and Children, or WIC, U.S. officials said Tuesday.
More than 40 million Americans relied on SNAP to make ends meet in 2022; inflation has put new pressure on household budgets, with prices higher since the COVID-19 pandemic for goods from bread to fresh vegetables and baby formula.that the shutdown would hit Black Americans disproportionately hard, including by reducing nutritional benefits, cutting inspections of hazardous waste sites and lack of enforcement of fair housing laws.
The AFL-CIO estimates that more than 3 million children will lose access to quality childcare and thousands of providers will be forced to close, lay off childcare workers or reduce slots for children. The end of the freeze also expected to hit Black Americans harder, since they have higher federal student loan debt on average - $44,480 per borrower versus $40,170 for white borrowers, according to a recent Federal Reserve study.
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