Federal officials have announced they are exploring offering $5,000 “baby bonuses” to incentivize parents to have more children. Yet a one-time payment of $5,000 is unlikely to cover even a fraction of the costs parents would face in their baby’s first year of life alone.
The average cost of pregnancy, birth, and postpartum care is about $18,865. People with health insurance will likely pay much less, about $2,854 on average. Because most workers do not have paid family leave to care for a new baby, they must find childcare soon after bringing home their newborn. In Missouri, families spend on average $13,173 per year on infant care—about $1,098 per month. After paying for their hospital bills, parents would not even have enough left to cover two months of childcare.
In addition to the cash incentive, officials have floated the idea of a national “Medal of Motherhood” to honor women who have multiple children, reserving 30% of Fulbright scholarships for married parents, and menstrual cycle classes. Such proposals are aimed at raising the U.S. birth rate, which has been in decline since 2007. It is true that Americans continue to have fewer babies than necessary to replace the number of people who die each year, and births reached a historic low in 2023. The problem of a low birth rate is an important one that can lead to a shrinking workforce and increased strain on the health system. Yet these proposals, like the bonus, do nothing to ease these financial pressures for most Americans and are unlikely to influence family planning in any meaningful way. Symbolic gestures do not address the core economic and structural barriers that influence people’s decisions about having children.
If we want to support higher birth rates in the U.S., we need to implement policies that are designed to help families thrive after welcoming a child. Research has demonstrated that in countries that have stabilized or increased birth rates, governments have invested in supports like paid family leave, quality affordable childcare, and accessible healthcare. These kinds of structural supports influence childbearing decisions far more than one-time incentives or medals.
While some American families have access to these supports, most do not. In 2023, just 27% of workers had access to paid family leave. Offering paid leave following the birth or adoption of a new child helps parents stay in the workforce and combats worker shortages. Paid leave is good for babies, too. When parents are able to take paid leave, babies have improved health, decreased risk of infant death, and more time for crucial bonding that boosts brain development.
But that is not all these policies would accomplish. Affordable childcare and paid leave are not just good for families, they are good for businesses and the economy. Missouri’s economy loses $1.35 billion annually due to workers being absent from their jobs or quitting because of childcare challenges. When employees choose to leave work to care for family, businesses pay around 20% of the employee’s salary to recruit and train their replacement. These policies keep parents in the workforce, increase productivity, and reduce costly turnover.
In other words, solving our population challenges is not about handing out a check or awarding medals. It is about building the infrastructure that makes raising children possible and sustainable. Parents do not need baby bonuses and symbolic honors. They need paid leave, affordable childcare, and the peace of mind that comes with knowing they have the means to provide for their child’s well-being.
Learn more: Read our policy brief Paid Leave: Good for Families, Businesses, and the Economy.
Reference:
Andersen, S & Parker, G. (2025). Parents Need Affordable Childcare, Paid Leave, not Baby Bonuses. St. Louis, MO: Clark-Fox Policy Institute, Brown School at Washington University in St. Louis.