MODERATE IMPACT

Will daycare and childcare costs go up because of the Iran war?

Quick answer: Childcare costs are likely to increase. Daycare centers face higher energy bills for heating and cooling, increased food costs for meals and snacks they provide, and higher transportation costs for field trips and supply deliveries. Staff may demand wage increases to keep up with inflation. The Child Care and Development Block Grant (CCDBG) provides subsidies for qualifying families -- check childcare.gov for eligibility. Some employers are expanding childcare benefits in response to the economic pressure.

Last updated: 2026-03-13

What’s Happening

Childcare costs are likely to increase. Daycare centers face higher energy bills for heating and cooling, increased food costs for meals and snacks they provide, and higher transportation costs for field trips and supply deliveries. Staff may demand wage increases to keep up with inflation. The Child Care and Development Block Grant (CCDBG) provides subsidies for qualifying families — check childcare.gov for eligibility. Some employers are expanding childcare benefits in response to the economic pressure.

What You Can Do

Check our complete money-saving guide for detailed tips on reducing costs across all categories.

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Related Questions

How does the Iran war affect parents and families with children?

The war is increasing the cost of raising children through higher gas prices (up 17%), rising grocery bills, and potential childcare cost increases as providers face higher operating expenses. Military families face additional stress from deployments. Budget experts estimate the conflict could cost the average U.S. family thousands of dollars.

Will baby formula and diapers cost more because of the Iran war?

Yes. Baby formula relies on complex global supply chains for ingredients like whey protein and vegetable oils. Diapers use petroleum-based materials. Both are already seeing price pressure from rising energy and shipping costs. Parents should stock up on essentials now.

How does the Iran war affect teachers and schools?

Schools face higher energy bills, rising food costs for cafeterias, and increasing transportation costs for buses. Teachers on fixed salaries are squeezed by inflation. Schools may need to cut programs or raise fees. The war is also creating new classroom challenges around student anxiety.