Objective <p>To document the impact of diaper banks’ provision of free diapers on diaper dermatitis incidence and related treatment, as well as quantify the societal burden of diaper insecurity and the cost of addressing it.</p> Methods <p>The present study was a cross-sectional study of diaper bank recipient households. Data were collected from July 2021 to April 2022. Participating diaper banks (<i>n</i> = 65), located across the United States, were members of the National Diaper Bank Network. A sample of parents/caregivers (<i>n</i> = 5,598) receiving free diaper bank products for a child in their home completed anonymous surveys in English and Spanish.</p> Results <p>Children’s ages ranged 0–47 months old, average 23.9 months. Most children had Medicaid healthcare coverage (80.7%; <i>n</i> = 5,154) or were uninsured (9.4%; <i>n</i> = 647). Fewer children experienced diaper dermatitis after receiving diaper bank products (<i>p</i> &lt; .001) resulting in fewer healthcare visits and treatments (<i>p</i> &lt; .001). Overall, participants reported children receiving diaper bank products experienced 41% fewer cases of diaper rash and 50% fewer cases of severe diaper rash. The annual cost of providing each child with a supplemental supply of diaper bank diapers ($211.56) is smaller than the annual societal cost of diaper insecurity ($659.10).</p> Conclusions for Practice <p>The distribution of diapers by community diaper banks reduces the burden of pediatric illness and associated healthcare costs. Pediatric healthcare professionals and public practitioners are in an optimal position to screen for diaper need and refer to local diaper banks and diaper resources. Addressing diaper insecurity has implications for reducing the burden of social isolation and caregiver mental health.</p>