The Economic Impact of Family Caregiving in the United States

In 2024, approximately 59 million Americans provided care for adult family members, friends, or neighbors, contributing an estimated 49.5 billion hours of unpaid labor valued at $1.01 trillion annually, according to a report from the AARP Public Policy Institute. This figure surpasses total federal, state, and local Medicaid spending, highlighting the critical role family caregivers play in the U.S. economy and healthcare system. The average hourly value of caregiving work was calculated at $20.41, reflecting a significant increase from previous years.

AARPAARPFamily Caregivers Provide $1.64 Billion in Unpaid Care Each Year in Washington, D.C.Rhode Island’s family caregivers provide $2.8 billion in unpaid labor each year, AARP report findsCNBCAARP

The report, titled "Valuing the Invaluable 2026," indicates that if family caregiving were recognized as a formal sector, it would rank among the largest labor forces in the country, equating to the work done by approximately 23.8 million full-time workers. The caregiving responsibilities often include managing medications, coordinating appointments, and assisting with daily activities such as bathing and dressing. Many caregivers balance these duties alongside full-time employment and family responsibilities.

AARP

In Washington, D.C., family caregivers contribute an estimated $1.64 billion in unpaid care annually, while Virginia's caregivers provide $27 billion worth of labor. New Jersey's caregivers contribute approximately $28 billion, and Rhode Island's caregivers add $2.8 billion to the economy. Each of these states reflects the broader national trend of increasing reliance on family caregivers, who often face significant challenges related to their own health and financial security.

AARPRhode Island’s family caregivers provide $2.8 billion in unpaid labor each year, AARP report findsFamily Caregivers Provide $1.64 Billion in Unpaid Care Each Year in Washington, D.C.AARPAARPCNBC

In response to the growing demands on family caregivers, various legislative proposals have emerged. The bipartisan Credit for Caring Act aims to provide a $5,000 tax credit to families to help offset caregiving expenses. Additionally, the Lowering Costs for Caregivers Act would allow caregivers to utilize health savings or flexible spending accounts for qualified medical expenses incurred on behalf of their loved ones. Both bills are currently under consideration by the House Ways and Means Committee.

Family Caregivers Provide $1.64 Billion in Unpaid Care Each Year in Washington, D.C.

Despite the recognition of the economic value of caregiving, experts like Carolyn McClanahan, a physician and financial planner, argue that the $1 trillion figure may still underestimate the true extent of personal caregiving in the U.S. She describes the situation as "almost like an epidemic," emphasizing the unpredictable nature of caregiving needs and the increasing complexity of care required as chronic illnesses rise.

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The AARP's findings underscore the essential role of family caregivers in maintaining the health and well-being of millions of Americans while also contributing significantly to the economy. As the demand for caregiving continues to grow, there is an urgent need for policies that recognize and support these individuals, ensuring they receive the necessary resources to manage their responsibilities effectively.

Family Caregivers Provide $1.64 Billion in Unpaid Care Each Year in Washington, D.C.