Maria Hernandez places her mother’s medication into the weekly pill organizer, a ritual that begins her 16-hour day as her mother’s primary caregiver. At 57, Maria left her accounting career three years ago when her mother’s dementia worsened.
“I never expected to drain my retirement savings this quickly,” Maria says, glancing at unpaid medical bills on her kitchen counter. “The home health aide costs alone are pushing us toward bankruptcy.”
Maria’s story echoes across American households where family caregivers face unprecedented financial strain. Recent data from the National Alliance for Caregiving reveals average out-of-pocket caregiving expenses jumped 26% in 2025, reaching $8,900 annually per caregiver—a staggering increase from $7,050 in 2023.
This spike coincides with significant cuts to federal and state caregiver support programs, creating what experts call a “perfect storm” for families already stretched thin. The Home and Community-Based Services program saw a 17% reduction in funding this year, eliminating respite care options for approximately 230,000 families nationwide.
“We’re witnessing a troubling shift of healthcare costs from institutions to families,” explains Dr. Eleanor Rubin, Director of Gerontology at Columbia University Medical Center. “Most caregivers don’t realize they’re subsidizing our healthcare system with unpaid labor valued at nearly $600 billion annually.”
Financial consequences extend beyond immediate expenses. A study published in The Journal of Aging and Health found caregivers lose an average of $303,000 in lifetime wages and benefits when leaving the workforce to provide care—a reality facing 32% of current caregivers.
The economic impact disproportionately affects women and minorities. Census data indicates 67% of primary caregivers are women, who typically sacrifice peak earning years to provide care. For minority communities, where multigenerational households are more common, the financial burden often spreads across fewer wage earners.
“When I tally everything—medications not covered by insurance, specialized foods, transportation to appointments—it’s easily $1,200 monthly,” explains Terrence Jackson, who cares for his father with Parkinson’s disease in Detroit. “The tax credit covers barely a fraction of actual expenses.”
The Caregiver Tax Credit, which provided modest relief previously, remained unadjusted for inflation despite rising costs. Advocacy groups pushed for expansion in 2025 but faced congressional gridlock.
Some employers have recognized the crisis. Companies like Microsoft and Prudential introduced paid caregiver leave policies and flexible scheduling. However, these benefits remain unavailable to most American workers, particularly those in service industries or gig economy jobs.
“The corporate response has been encouraging but insufficient,” notes Janice Chen, policy director at the Family Caregiver Coalition. “Without comprehensive public support systems, we’re essentially asking families to choose between financial security and caring for loved ones.”
Innovative community-based solutions have emerged to fill gaps. The “Time Banking” program in Minneapolis allows caregivers to exchange services, creating a network where members earn and spend “time dollars” for tasks like grocery shopping or companion care.
Financial experts recommend caregivers explore overlooked benefits, including state-specific programs and Veterans Administration aid. “Many caregivers don’t realize they qualify for existing benefits,” explains financial advisor Marcus Thompson. “Even partial assistance can prevent complete financial devastation.”
For Maria Hernandez, the future remains uncertain. “I wouldn’t change my decision to care for Mom, but I wish the system acknowledged what families sacrifice. Who will care for caregivers when we need help?”
As 2025 progresses, finding sustainable solutions to America’s caregiving crisis has become not just a matter of compassion, but economic necessity.
