Ohio’s economy is losing out on billions thanks to insufficient childcare infrastructure, according to the state’s chamber of commerce.

President and CEO Steve Sivers called on the legislature to invest in the system, while urging the state to utilize tools to “detect, track and eliminate fraud and waste.”

The losses drawing concern from the chamber are largely leaking from gaps in the workforce created by parents and caregivers who are unable to afford care, electing to stay home with children.

Stivers noted that the cost was “found to be $5.48 billion annually, including $1.52 billion in missed annual tax revenue and $3.97 billion in childcare-related employee turnover and absenteeism costs.”

“As all industries struggle to attract and retain talent, the costs and scarcity of childcare services are robbing our labor force of an entire demographic of skilled, educated and hardworking Ohioans,” said Stivers. “Ohio needs to continue exploring new ways to make childcare more affordable for working families, grow the supply of options throughout the state and entice people to enter the early childhood caregiver vocation.”

The problem is especially pronounced among women, whose numbers as full-time workers have dropped dramatically since the pandemic. According to advocacy group Groundwork Ohio, 61% of mothers with young children who are not currently working full time would opt to work full-time given childcare solutions.

The industry has been under intense scrutiny since allegations of fraud in Minnesota led to a federal crackdown, both on funding from the Department of Health and Human Services and on immigration from the Department of Homeland Security.

Wednesday, U.S. senators held a panel in which they fixed their sights on Somali immigrants who have been accused of abusing the system.

“In Minnesota, a welfare system designed to uplift the most vulnerable children was treated like an open ATM, exploiting both taxpayers and the public trust extended to immigrant communities,” Sen. Ted Cruz, R-Texas, said.

In January, the federal government froze funds to California, Colorado, Illinois, Minnesota and New York over the controversy.

“Families who rely on childcare and family assistance programs deserve confidence that these resources are used lawfully and for their intended purpose,” said HHS Deputy Secretary Jim O’Neill.

Childcare advocates have been critical of the wave of rhetoric coming out of Washington and its impact on the profession, which has struggled to lift up wages and pull in workers. They say that the industry is already in crisis and cannot withstand additional financial pressures.

Groundwork Ohio signed on to a letter alongside dozens of organizations across the country asking the federal government to maintain funding.

“Across Ohio, nearly 9,000 licensed center-based, in-home, preschool, and school-age childcare providers are providing quality services to families,” said Stivers. “Now is the time to rally behind our trusted providers to ensure Ohio’s infants, toddlers and preschoolers have enriching learning environments while their parents contribute to our workforce needs.”