By CNBC
A groundbreaking new analysis reveals the immense, yet often invisible, economic contribution of family caregivers in the United States. According to a 2024 report from the AARP Public Policy Institute, approximately 59 million Americans provided unpaid care for an adult family member, neighbor, or friend. Their collective efforts totaled 49.5 billion hours of care, which the report estimates has an annual economic value of $1.01 trillion.
The report, the seventh in a series from AARP, underscores a growing crisis. The average hourly value of this uncompensated labor rose to $20.41 in 2024, up significantly from $9.63 in the organization’s first 2006 study. This work encompasses critical tasks like managing medications, coordinating medical appointments, assisting with bathing and dressing, and navigating complex insurance claims.
“Many are doing all of this while working, while raising children and trying to stay afloat, both financially and emotionally,” said Myechia Minter-Jordan, CEO of AARP, during a press briefing.
The Scale of Unpaid Labor
The $1.01 trillion figure is not just a statistic; it represents a cornerstone of the nation’s long-term care system. For context, this value exceeds the combined total federal, state, and local Medicaid spending ($932 billion) and surpasses all out-of-pocket health spending ($557 billion) in the U.S. This highlights how families shoulder a burden that would otherwise strain public and private health budgets catastrophically.
“Behind every data point in our report is a person, a daughter, a husband, a grandchild, a neighbor,” noted Nancy LeaMond, AARP’s chief advocacy and engagement officer. “They deserve some financial relief.”
Policy Responses and Proposed Solutions
The sheer scale of the $1 trillion figure has pushed caregiving into the political spotlight. Both Democratic and Republican presidential nominees in the recent election expressed support for financial assistance for family caregivers, LeaMond confirmed. AARP is now advocating for action ahead of the midterm elections.
At the state level, momentum is building. Following Oklahoma’s pioneering caregiver tax credit in 2023 and Nebraska’s in 2024, 12 states considered similar legislation in 2026. These credits aim to provide direct financial relief for caregiving-related expenses.
On the federal level, two bipartisan bills are pending before the House Ways and Means Committee:
- The Credit for Caring Act would establish a $5,000 tax credit to offset caregiving costs.
- The Lowering Costs for Caregivers Act would allow caregivers to use Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) for qualified medical expenses for their parents or parents-in-law.
An Underestimated Epidemic
Experts warn the official $1 trillion estimate may still be too low. “The amount of personal caregiving that happens, it’s almost like an epidemic,” said Carolyn McClanahan, a physician, certified financial planner, and member of the CNBC Financial Advisor Council. She notes that while many plan for potential care needs, the unpredictability of who will require care and for how long makes comprehensive preparation difficult.
McClanahan advises families to have proactive conversations about care preferences and financial planning in their late 50s or early 60s. “The thing for families to do is to talk about the possibility in advance,” she said, including discussing who will provide care and how they might be supported or compensated.
The AARP report crystallizes a fundamental truth: the U.S. long-term care system is largely sustained by the unpaid, often hidden, labor of millions. Translating this $1 trillion of familial devotion into tangible policy support represents one of the most significant financial and social challenges of the decade.
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