Davids (D-KS), Molinaro (R-NY) Introduce Bipartisan Package to Help Working Families Access Quality, Affordable Childcare

Today, Representative Sharice Davids (D-KS-03), along with Representative Marcus Molinaro (R-NY-19), introduced the bipartisan Affordable Childcare Act to help hardworking families access quality and affordable childcare. 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 childcare, prompting urgent action to lower childcare costs.

“Childcare is crucial for setting children up for success, but the high costs force many families to go without it, leading parents to work fewer days or incur unnecessary debt," said Davids. "Growing up with a single mom and limited resources, I understand how much of a difference extra budget flexibility can make. I’m proud to join Representative Molinaro in introducing this bipartisan bill to ensure hardworking families in Kansas and across the country can more easily afford childcare.”

“Growing up, my family struggled to make ends meet. So, I understand the difficult choices working families have to make to access quality childcare when costs keep rising,” said Representative Marcus Molinaro (R-NY-19). “That’s why I introduced this bipartisan bill to put more money in the pockets of working families and help them afford the childcare services they deserve.”

Specifically, this bill would:

• Double the Child and Dependent Care Credit, whichhelps families offset the cost of childcare and dependent care expenses, allowing them to claim a percentage of these expenses on their federal income tax return.
  • The Affordable Childcare Actdoubles the Credit to $6,000 for one dependent and $12,000 for two or more, helping working families afford childcare as costs rise.

• Double the Employer-Provided Childcare Credit, which allows businesses to claim a credit for providing childcare facilities or services to their employees, encouraging employers to support their workers' childcare needs.
  • The Affordable Childcare Actdoublesthe Credit to $300,000 per year, covering 25 percent of qualified childcare facility expenses and 10 percent of childcare resource and referral expenses, to encourage businesses to invest more in childcare.

• 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 Childcare Act doubles the account contribution limit to $10,000, enabling parents to save and utilize more pre-tax dollars for qualifying caregiving expenses.

Davids has worked diligently to bring down childcare costs and improve childcare access in Kansas. This year, she voted to support legislation that would expand the Child Tax Credit, direct payments to parents benefiting 136,000 children in Kansas. She also toured a local childcare facility to highlight how federal investments have supported the workforce and daily operations of local childcare small businesses. Finally, she has visited and announced federal resources for multiple Head Start programs in Kansas’ Third District, including Kansas City Kansas Public School's Successful Beginnings, The Family Conservancy, the University of Kansas Medical Center's Project Eagle, and Growing Futures Early Education Center.

This bill has been endorsed by The Early Care & Education Consortium and the First Five Years Fund.