Press Releases

Last week, the bipartisan Problem Solvers Caucus endorsed legislation written by Congressman Salud Carbajal (CA-24) and Congressman Lori Chavez-DeRemer (OR-05) to increase access to quality child care and lower cost of care for American families.

The Child Care Investment Act, which was introduced by the lawmakers last summer, has the support of the U.S. Chamber of Commerce, the New Democrat Coalition, and a range of child care advocacy groups.

“Child care is not just a family issue. It is an economic issue,” said Congressman Salud Carbajal (CA-24). “I’m proud to earn the support of the Problem Solvers Caucus as we continue to see there is growing need for updating our tax code to ensure every Central Coast family can get access to quality, affordable child care.”

“The soaring cost of child care has left it out of reach for too many families, which forces parents to make difficult financial and career decisions,” Congresswoman Lori Chavez-DeRemer (OR-05) said. “The Child Care Investment Act is not only an investment in hardworking families, but it’s also an investment in the future success and growth of our communities. I’m glad that my Problem Solvers Caucus colleagues see the value in this critical legislation and will continue working with Congressman Carbajal to build a strong coalition of support.”

The Problem Solvers Caucus, of which Carbajal and DeRemer are both members, has 64 Members evenly split between Republicans and Democrats. 14 members of the Caucus are co-sponsors of the Child Care Investment Act.

“We need to be focused on making life more affordable. Last year, Jersey was ranked the second most expensive state in the country for child care and parents are being forced to cut work hours or leave the workforce altogether to care for their children. That’s unacceptable,” said Congressman Josh Gottheimer (NJ-05). “I’m glad that the members of the Problem Solvers Caucus came together to endorse the bipartisan Child Care Investment Act to help hardworking families afford child care expenses.”

“Child care is far too expensive for many families across the country,” said Congressman Brian Fitzpatrick (PA-01). “The cost has become an impediment for parents who want to return to work after the birth of their child. As Co-Chair of both the Problem Solvers Caucus and the Congressional Pre-K and Child Care Caucus, I’m proud we’re endorsing this bipartisan legislation to help expand child care tax incentives and lower this burdensome expense for employers and parents. This will improve the lives of countless families across our country.”

“We’ve got to work together to make sure every single American parent can access the high-quality and affordable child care that fits their family’s needs. I’m proud to cosponsor this legislation and pleased to see so many of my Problem Solvers colleagues – from both sides of the aisle – endorse it. This is how we work together to build a better America for all our families,” said Congresswoman Angie Craig (MN-02). 

"To grow our economy, maintain a robust workforce, and improve the welfare of our children, it is essential to support initiatives that prioritize child care,” said Congressman Don Davis (NC-01). “With the support of small businesses and child care providers alike, we are bringing communities one step closer to enhancing our children's well-being and economic prosperity."

“The rising cost of child care poses a serious risk to both young families’ finances as well as the overall health of the economy due to lost earnings, and it is incumbent upon legislators from both parties to seek solutions to this pressing issue,” said Congressman Anthony D’Esposito (NY-04).  “I am proud to support the Child Care Investment Act – legislation that empowers the business community to open more in-house child care centers to serve the families of their employees through targeted tax credits, as well as innovative child-centered spending accounts for workers.”

“When parents can fully participate in our economy - America wins. One of the biggest barriers to making that happen is affordable, accessible child care,” said Congresswoman Chrissy Houlahan (PA-06). “I know because I, in part, left active duty in the Air Force due to the high costs and lack of child care options on and near my base. I'm proud to support the bipartisan Child Care Investment Act, which improves upon vital tax credits that address one of the biggest challenges of raising a family in Pennsylvania and across the country.”

“Finding affordable quality child care is becoming harder and harder. We must make it more accessible to working families and provide support to help businesses offer more options. I am proud to support the Child Care Investment Act and have the Problem Solvers Caucus endorse this beneficial bill. This legislation is a great investment in businesses to help their employees with essential child care services and provide more affordable options,” said Congressman Marc Molinaro (NY-19).

“We need to make it easier to raise a family in Alaska, and prospective parents see the cost of child care as a serious reason to hesitate. Alaskan parents deserve to be able to work if they want to,” said Congresswoman Mary Sattler Peltola (AK-AL). “This bill will help Alaskan businesses retain workers by providing child care, meaning more parents are working and more children are being taken care of. This is a win for Alaskan working families, Alaskan small businesses, and the overall economy.”

The bill is also backed by the Bipartisan Policy Center, First Five Years Fund, Early Care & Education Consortium, Learning Care Group, Save the Children, KinderCare, National Association of Women Business Owners, and the Santa Barbara South Coast Chamber of Commerce, Santa Maria Valley Chamber of Commerce, San Luis Obispo Chamber of Commerce, and Ventura Chamber of Commerce.

Background:

The Child Care Investment Act improves three existing child care tax incentives to ensure the federal tax code adequately addresses the current realities of child care costs and availability.

The bill expands a tax credit aimed at helping businesses provide child care to their workers by increasing the credit’s rate and caps, allowing businesses to jointly create and operate a child care facility for their employees, and adding in-home services as an eligible use.

Currently, the Employer-Provided Child Care Credit only allows for a business to receive tax credits for contracting with an existing child care provider or creating their own facility.

The bill doubles the amount of money that can be saved by a family in a tax-exempt Dependent Care Flexible Spending Account (DCAP) to cover child care expenses up to $10,000 annually, more accurately reflecting the average cost of child care in the U.S.

The bill also allows an additional $2,000 in DCAP savings per each additional dependent.

The current $5,000 annual cap has remained unchanged since the 1980s, when the dependent care savings account was first created.

The bipartisan proposal also improves the Child and Dependent Care Tax Credit, an existing tax write-off for Americans to offset child care expenses.

The current rates would be increased for all eligible incomes, with a family  with two children eligible to get up to $3,000 in credits for child care expenses.

The bill would also make the credit fully refundable and index the bill’s increased tax credits to inflation.

A more detailed summary of the bill proposed tax credit changes can be found HERE.

The inspiration for this bill came from roundtables held by Rep. Carbajal in July 2022 discussing the impacts of inflation with small business owners in Santa Barbara and San Luis Obispo County, who conveyed that child care was one of their top concerns when it came to current business and hiring conditions.