Davids Introduces Bipartisan Package to Help Working Families Access Quality, Affordable Child Care

Today, Representative Sharice Davids (D-KS-03) introduced the bipartisan Affordable Child Care Act to help hardworking families access quality and affordable child care. The bill doubles three different tax credits, putting money directly in parents’ pockets. According to a report, working parents with young children are spending 24 percent of their income on child care, prompting urgent action to lower child care costs. She was joined by Representatives Brian Fitzpatrick (R-PA-01), Ryan Mackenzie (R-PA-07), and Suzanne Bonamici (D-OR-01) in introducing today’s bill.

“Child care is critical for both our kids' futures and our workforce. High costs force many parents to cut back on work or go into debt,” said Davids. “As someone who grew up with a single mom, I know how important every dollar is. I’m proud to work with my colleagues on this bipartisan effort to make child care more affordable for families.”

Specifically, this bill would:

• Double the Child and Dependent Care Credit, which helps families offset the cost of child care and dependent care expenses, allowing them to claim a percentage of these expenses on their federal income tax return.
  • The Affordable Child Care Act doubles the Credit to $6,000 for one dependent and $12,000 for two or more, helping working families afford child care as costs rise.
• Double the Employer-Provided Child care Credit, which allows businesses to claim a credit for providing child care facilities or services to their employees, encouraging employers to support their workers' child care needs.
  • The Affordable Child Care Act doubles the Credit to $300,000 per year, covering 25 percent of qualified child care facility expenses and 10 percent of child care resource and referral expenses, to encourage businesses to invest more in child care.
• Double the amount a person can contribute to a dependent care flexible spending account, which is an employer-sponsored benefit that allows employees to set aside pre-tax money to cover eligible dependent care expenses.
  • The Affordable Child Care Act doubles the account contribution limit to $10,000, enabling parents to save and utilize more pre-tax dollars for qualifying caregiving expenses.

“The skyrocketing cost of childcare is suffocating working families — not only in PA-1 but nationwide,” said Representative Brian Fitzpatrick (R-PA-1). “No parent should be forced to choose between their family’s financial security and a quality future for their children. Our bipartisan Affordable Child Care Act delivers a bold solution by overhauling critical tax provisions — doubling three key tax credits — to ease this burden and empower families with the financial freedom they need to secure high-quality childcare.”

"Working families are facing record-high costs for childcare, putting an enormous strain on parents throughout our country,” said Representative Ryan Mackenzie (R-PA-07). “My wife and I both work full time and as new parents we are acutely aware of the challenge facing millions of working families when it comes to finding affordable childcare. That’s why I’m proud to join this bipartisan effort to deliver real relief for working families and create new opportunities for parents and children in the Greater Lehigh Valley and throughout the country."

“Caring for and investing in children results in positive, long-term benefits for their overall health, well-being, and economic mobility,” said Representative Suzanne Bonamici (D-OR-1). “Doubling the Child and Dependent Care Tax Credit, Dependent Care Assistance Program, and the Employer-Sponsored Tax Credit is good policy that will create more opportunities for America’s families to thrive.”

Davids has worked diligently to bring down child care costs and improve child care access in Kansas. Last year, she voted for legislation that would expand the Child Tax Credit, which benefit 136,000 children in Kansas. She also toured a local child care facility and visited multiple Head Start programs to highlight how federal investments have supported the workforce and daily operations of local child care small businesses and education centers.

“High quality child care continues to be out of reach for many American families, yet tax credits that could improve access and affordability have not been updated in decades,” said Radha Mohan, Executive Director, Early Care & Education Consortium. “While the Child Tax Credit helps families offset the general costs of raising a child, only the Child and Dependent Care Tax Credit helps working families directly offset the cost of child care, allowing them to participate in the workforce knowing their children are in a safe and healthy environment. Expansions of the long-outdated Child and Dependent Care Tax Credit, Employer-Provided Child Care Tax Credit, and Dependent Care Assistance Program are critical pieces of a holistic child care solution. The Early Care and Education Consortium commends Congresswoman Davids and Congressman Fitzpatrick for introducing this important legislation.”

“The high cost of child care in the U.S. puts a strain on families, children and the economy,” said Christy Gleason, Vice President of Policy, Advocacy and Campaigns for Save the Children. “Families need more affordable options, and employers need better ways to support working parents. The Affordable Child Care Act takes important steps to expand access to high-quality early education. That’s why Save the Children supports this bipartisan effort from Representatives Davids, Bonamici, Fitzpatrick, and Mackenzie — to help families manage the cost of care and make it easier for parents to stay in the workforce.”

“The U.S. tax code contains three provisions designed to help parents afford child care expenses, but they haven’t been updated in over twenty years to keep up with the rapid escalation in the cost of quality care,” said Sarah Rittling, Executive Director, First Five Years Fund. “The Affordable Childcare Act would update and expand each tax provision to ensure employers who are eager to play a more significant role can and that more hardworking families could find and afford the child care options they need. We are so grateful to Rep. Davids, Rep. Fitzpatrick, Rep. Bonamici, and Rep. Mackenzie for their bipartisan leadership on this important bill.”

This bill has been endorsed by Child Care Aware America, Early Care & Education Consortium, First Five Years Fund, Learning Care Group, and Advocacy and Campaigns for Save the Children.