The Trump administration is reportedly considering a proposal that would provide subsidies to married couples where one parent stays home, potentially using a Health and Human Services fund established in the 1990s. That fund, originally designed to help lower-income families afford child care, currently offers roughly $9,000 per child annually. While details remain unconfirmed, the idea has already sparked debate, with Republicans divided over the plan's scope and funding.
Against this backdrop, a new analysis by SmartAsset, using data from MIT's Living Wage Calculator, sheds light on the financial realities of single-income households. The analysis calculates how much a working parent would need to earn to support a partner and one child across all 50 states.
The Cost of One Income
Unsurprisingly, coastal states with high living costs demand the most. In Hawaii and California, a working parent would need to earn over $100,000 annually to cover basic expenses for a family of three. Hawaii tops the list at approximately $105,000, edging out California by about $5,000.
At the other end of the spectrum, Arkansas stands out as the most affordable state for a single-income family. There, a working parent could support a family of three on just $68,869 per year—the only state where the threshold falls below $70,000.
Two Incomes, New Costs
When both parents work, the combined salary needed is lower, but families then face the significant expense of child care. SmartAsset's analysis found that in Massachusetts, which has some of the highest child care costs in the nation, two working parents would need to earn a combined $131,000 or more to cover child care and other expenses.
Across 18 states, a household income exceeding $100,000 is necessary when both parents work and pay for child care for one child. Mississippi is the only state where a household income under $80,000 suffices.
Policy Implications
The proposed subsidy program, which some see as a nod to traditional family structures, has drawn both support and criticism. Vice President Vance has championed the idea, arguing it empowers families to choose one parent staying home. However, skeptics question the cost and whether it effectively addresses child care affordability.
Meanwhile, the existing child care system remains strained. An Associated Press analysis found that hundreds of thousands of eligible children are on waitlists for child care assistance in 23 states and the District of Columbia. In three additional states, eligible families were turned away outright. Many of these waitlists began after $28 billion in pandemic-era aid expired in late 2024.
As the Trump administration weighs its next move, the data underscores the geographic disparities in family economics. For now, the proposal's fate remains uncertain, but the debate over how to support families—whether through subsidies or broader child care investments—is far from settled.
