Senators supported a bipartisan, bicameral legislative package that combined two acts to make child care much more affordable and accessible.
Lawmakers are pushing the Child Care Availability and Affordability Act and the Child Care Workforce Act. Officials argue that the proposed bill is a "pro-family, pro-growth plan to unlock a brighter future for working parents."
Expanding Child Care Accessibility and Affordability
Parents typically want to make childcare choices that will best support their family's individual needs as well as their child's development. This is even more true for two-thirds of children aged five years and under, as their parents are typically working.
One of the reasons that lawmakers decided to support the proposed bill is because the cost of child care over the past few decades has risen by an estimated 263%. This, combined with low availability, forced families to make tough decisions for the benefit of their loved ones.
Many families have gone into debt or have had to take on considerable financial strain just to make ends meet. Furthermore, according to FFYF, the challenges brought by child care affect not only families but also employers, particularly small businesses.
Many employers reported that these have directly impacted their ability to recruit and retain workers for their businesses or companies. This has serious consequences for their daily productivity and ultimately affects their bottom lines. It also costs the national economy billions of dollars in lost revenue, earnings, and productivity every year.
The proposed bill would modernize three existing tax provisions to help more families afford child care. Lawmakers believe that strengthening existing federal tax provisions, such as the Child and Dependent Care Tax Credit (CDCTC) and Dependent Care Assistance Plans (DCAP), would benefit many families.
Addressing the Child Care Crisis
Sen. Katie Britt said that the commonsense proposal is more than just about addressing the nation's childcare crisis. She added that it is a direct investment in the hardworking families and local small businesses that work to make their American dream come true, the Carbajal House reported.
The combined efforts of lawmakers from both sides are a rare bipartisan action that benefits American families. The proposed bill also comes amid heated debates over what officials should do with Trump-era tax cuts that expire in 2025.
The bipartisan bill allows families to deduct up to $7,500 of their childcare expenses through the Dependent Care Assistance Program, 50% more than current laws allow. According to Axios, the most important part of the proposal is that it makes the tax credit refundable, which is especially useful for lower-income families.
