Kaine, Britt, Carbajal, Lawler Lead Introduction of Bipartisan, Bicameral Proposal to Make Child Care More Affordable

WASHINGTON, D.C. – Yesterday, U.S. Senators Tim Kaine (D-VA) and Katie Britt (R-AL) and U.S. Representatives Salud Carbajal (D-CA-24) and Mike Lawler (R-NY-17) introduced the Child Care Availability and Affordability Act and the Child Care Workforce Act—bipartisan, bicameral legislation that form a bold proposal to make child care more affordable and accessible by strengthening existing tax credits to lower child care costs and increase the supply of child care providers. Over the last few decades, the cost of child care has increased by 263%, forcing families to make impossible choices. More than half of all families live in child care deserts. Meanwhile, child care workers are struggling to make ends meet on the poverty-level wages they are paid and child care providers are struggling to simply stay afloat. The crisis—which was exacerbated by the pandemic—is costing our economy, resulting in $122 billion in economic losses each year.

“The child care crisis is holding our families and economy back. I hear from Virginia parents all the time about how hard it is to find affordable child care, from child care providers who are forced to leave their jobs because of low wages, and from businesses who are having trouble finding the employees they need,” said Kaine. “I’m proud to join my colleagues in introducing this bipartisan legislation, and I hope more of my colleagues will join us in passing this comprehensive proposal to support child care providers, make it easier for families to access the care they need, and boost economic growth by providing parents with the opportunity to get back into the workforce.”

“We applaud Sens. Britt and Kaine and Reps. Lawler and Carbajal for their bipartisan, bicameral efforts to identify innovative and impactful policy solutions that will increase access to quality child care for America’s working families, bolstering the workforce and economy. These two bills mark a major milestone to begin addressing employer and employee needs, as well as supply-side issues that impact the availability of care," says Bipartisan Policy Center Action President Michele Stockwell.

“The Child Care Availability and Affordability Act and the Child Care Workforce Act is forward-thinking legislation that will tackle the child care challenges plaguing too many working parents, employers, and providers,” said First Five Years Fund Executive Director Sarah Rittling. “By refining tax credits and expanding access, this plan will deliver real relief to countless families. We’re grateful to Senators Britt, Kaine, Ernst, and Shaheen for their leadership in finding bipartisan and practical solutions that put working families first.”

Kaine has long been pushing to expand access to child care. In 2023, he introduced the Child Care Stabilization Act to expand vital child care funding to help providers keep their doors open, and has championed the Child Care for Working Families Act to expand access to child care, raise wages for providers, and lower costs for families by ensuring no family pays more than 7% of their income on child care. He has also introduced bipartisan legislation to develop, administer, and evaluate early childhood education apprenticeships.

The proposal contains two bills because one proposes changes to existing tax credits, falling under the jurisdiction of the Senate Finance Committee, and the other authorizes a new pilot program, falling under the jurisdiction of the Senate HELP Committee.

Child Care Availability and Affordability Act

The Child Care Availability and Affordability Act would make child care more affordable by:

• Increasing the size of the Child and Dependent Care Tax Credit (CDCTC) and making it refundable, allowing lower income working families with out-of-pocket child care expenses to benefit from the credit for the first time. The proposal substantially expands the maximum CDCTC to $2,500 for families with one child and $4,000 for families with two or more children.
• Strengthening the Dependent Care Assistance Program (DCAP) to allow families to deduct 50% more in expenses (up to $7,500).
• Allowing eligible families to benefit from both the DCAP and the CDCTC when their child care expenses exceed the DCAP threshold. This will have big benefits for middle income families who currently do not access the CDCTC but have particularly high child care costs.
• Radically bolstering the underutilized Employer-Provided Child Care Tax Credit—commonly referred to as 45F—to encourage businesses to provide child care to their employees. The Kaine-Britt plan would increase the maximum credit from $150,000 to $500,000, and the percentage of expenses covered from 25% to 50%. The legislation also includes a larger incentive for small businesses—a maximum credit of $600,000—and allows for joint applications for groups of small businesses who want to pool resources.

The Child Care Availability and Affordability Act is cosponsored by Senators Joni Ernst (R-IO), Jeanne Shaheen (D-NH), John Curtis (R-UT), Angus King (I-ME), Shelley Moore Capito (R-WV), Kirsten Gillibrand (D-NY), and Susan Collins (R-ME).

The Child Care Availability and Affordability Act is endorsed by A+ Education Partnership, Abriendo Puertas/Opening Doors, Alabama Arise, Alabama School Readiness Alliance, American Hotel & Lodging Association (AHLA), Arizona Early Childhood Education Association, Big Blue Marble Academy, Bipartisan Policy Center Action (BPCA), Bright Horizons, Business Council of Alabama, Busy Bees North America, Care.com, Chamber of Progress, Chamber RVA, Child Care Aware of America (CCAoA), Child Care Aware of Virginia, Child Development Schools, Children's Institute, Cincinnati Regional Chamber, Council for Professional Recognition, Early Care & Education Consortium (ECEC), Early Learning Policy Group, LLC, Eastern Shore Chamber of Commerce, Educare Learning Network, First Five Years Fund (FFYF), Gingerbread Kids Academy, Hampton Roads Chamber, Healthy Families America, Healthy Kids Alabama, Independent Restaurant Coalition, Jesuit Conference of the United States, Kaplan Early Learning Company, Kiddie Academy, KinderCare Learning Companies, Learning Care Group, Lightbright Academy, Low Income Investment Fund (LIIF), Manufacture Alabama, Metrix IQ, Mobile Area Education Foundation, Moms First, National Association of Women Business Owners (NAWBO), National Child Care Association (NCCA), North Carolina Licensed Child Care Association, Northern Virginia Chamber of Commerce (NVC), Ohio Association of Child Care Providers, Parents as Teachers National Center, Prevent Child Abuse America, Primrose Schools, Santa Barbara South Cost Chamber of Commerce, Small Business Majority, Small Business Majority, Start Early, Solvang Chamber of Commerce, Teaching Strategies, Texas Licensed Child Care Association, The Nest Schools, Third Way, U.S. Chamber of Commerce, Ventura Chamber of Commerce, Virginia Beach Vision, Virginia Chamber of Commerce, Virginia Early Childhood Foundation (VECF), VOICES for Alabama's Children, Voices for Virginia's Kids, and YMCA of the USA.

Full text of the Child Care Availability and Affordability Act is available here.

Child Care Workforce Act

Because many child care providers are forced out of the industry by low wages—which makes it even harder for families to find affordable child care—the Child Care Workforce Act would make it easier to access child care, by establishing a competitive grant program for states, localities, Tribes, and Tribal organizations that are interested in adopting or expanding pay supplement programs for child care workers to increase supply and reduce turnover. Within that program:

• Grantees would provide supplements, paid out at least quarterly, directly to both home-based and center-based licensed child care providers licensed by the state.
• There would be a required evaluation of impacts on turnover, quality of child care, availability of affordable childcare, and alleviating the financial burden on child care providers. Model programs exist in Virginia, Nebraska, Oklahoma, Maine, and the District of Columbia, with evaluations demonstrating large effects on the supply of workers, educator turnover, and worker well-being and satisfaction.

The Child Care Workforce Act is cosponsored by Senators Jeanne Shaheen (D-NH), Angus King (I-ME), and Kirsten Gillibrand (D-NY).

The Child Care Workforce Act is endorsed by A+ Education Partnership, Abriendo Puertas/Opening Doors, Alabama Arise, Alabama School Readiness Alliance, Arizona Early Childhood Education Association, Big Blue Marble Academy, Bipartisan Policy Center Action (BPCA), Bright Horizons, Business Council of Alabama, Busy Bees North America, Care.com, Chamber of Progress, Chamber RVA, Child Care Aware of America (CCAoA), Child Care Aware of Virginia, Child Development Schools, Children's Institute, Cincinnati Regional Chamber, Council for Professional Recognition, Early Care & Education Consortium (ECEC), Early Learning Policy Group, LLC, Eastern Shore Chamber of Commerce, Educare Learning Network, First Five Years Fund (FFYF), First Focus Campaign for Children, Gingerbread Kids Academy, Hampton Roads Chamber, Healthy Families America, Healthy Kids Alabama, Independent Restaurant Coalition, Jesuit Conference of the United States, Kaplan Early Learning Company, Kiddie Academy, KinderCare Learning Companies, Learning Care Group, Lightbright Academy, Low Income Investment Fund (LIIF), Manufacture Alabama, Metrix IQ, Mobile Area Education Foundation, Moms First, National Association for Family Child Care (NAFCC), National Association for the Education of Young Children (NAEYC), National Association of Women Business Owners (NAWBO), National Child Care Association (NCCA), National Council of Jewish Women, National Women’s Law Center (NWLC), North Carolina Licensed Child Care Association, Northern Virginia Chamber of Commerce (NVC), Ohio Association of Child Care Providers, Parents as Teachers National Center, Prevent Child Abuse America, Primrose Schools, Santa Barbara South Cost Chamber of Commerce, Small Business Majority, Small Business Majority, Start Early, Teaching Strategies, Texas Licensed Child Care Association, The Nest Schools, Third Way, UVentura Chamber of Commerce, Virginia Beach Vision, Virginia Chamber of Commerce, Virginia Early Childhood Foundation (VECF), VOICES for Alabama's Children, Voices for Virginia's Kids, YMCA of the USA, and ZERO TO THREE.

Full text of the Child Care Workforce Act are available here.

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