U.S. Rep. Brian Fitzpatrick (R-PA) introduced bipartisan legislation that seeks to help families access quality and affordable child care.
The bill, the Affordable Child Care Act, would double three key tax credits, putting money directly back in parents’ pockets at a time when child care costs have soared. According to a recent report, working parents with young children spend about 24 percent of their income on child care.
Along with Fitzpatrick, the bill was introduced by lead sponsor Rep. Sharice Davids (D-KS) and original cosponsors Reps. Ryan Mackenzie (R-PA) and Suzanne Bonamici (D-OR).
The Affordable Child Care Act would help families by doubling the Child and Dependent Care Credit, which helps families offset child care expenses. This credit would double to $6,000 for one dependent and $12,000 for two or more.
It would also double the Employer-Provided Child Care Credit, which encourages businesses to invest in child care for their employees. It would double the credit to $300,000 per year, covering 25 percent of the qualified child care facility, and 10 percent of child care resource and referral expenses.
Further, it would double the Dependent Care Flexible Spending Account Contributions, which empowers parents to save more pre-tax dollars for child care. The bill would raise the contribution limit to $10,000.
“The skyrocketing cost of childcare impacts not only the budgets but choices of working families in PA-1,” Fitzpatrick said. “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.”
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.
“Childcare is critical for both our kids’ futures and our workforce. High costs force many parents to cut back on work or go into debt,” Davids said. “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 childcare more affordable for families.”