Shaheen, Colleagues Introduce Legislation to Expand Child Care Relief to Families

(Washington, DC) — U.S. Senator Jeanne Shaheen (D-NH) introduced theChild and Dependent Care Tax Credit Enhancement Act, legislation to help more working families cover a greater share of the high cost of child care. Shaheen was joined by Senators Tina Smith (D-MN), Raphael Warnock (D-GA), Patty Murray (D-WA) and Ron Wyden (D-OR).
“No matter where I go in New Hampshire, families tell me about how much they struggle to access affordable child care,”said Senator Shaheen.“The Child and Dependent Care Tax Credit is a proven and effective tool for bringing quality, affordable child care within reach for more families. Expanding this credit to keep up with the rising cost of child care is the right thing to do for workers, families and our nation’s economy.”
TheChild and Dependent Care Tax Credit Enhancement Actwould permanently expand the Child and Dependent Care Tax Credit (CDCTC). This bill would help ease the burden of high child care costs on working families by increasing the maximum tax credit to $4,000 per child, allowing families to receive up to $8,000 in tax credits to offset up to $16,000 in expenses. It would also make the credit refundable to ensure low-income working families can benefit. The credit would also be indexed to inflation to retain its value over time.
Senator Shaheen has been a leader in advocating for more affordable and accessible child care, including by delivering more than $77 million to New Hampshire through theAmerican Rescue Planand other COVID relief laws to the Granite State. In March, Shaheen introduced theChild Care Availability and Affordability Act and the Child Care Workforce Act—bipartisan, bicameral legislation that together 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. The bill includes language from Shaheen’sRight Start Child Care and Education Actlegislation. In August, Shaheenvisited Colebrook Community Child Care Centerto discuss challenges and solutions to the child care crisis in rural communities, and in OctoberShaheen hosted Acting Secretary of Labor Julie Sufor a discussion on child care and workforce challenges in Brentwood.
In addition to Senators Shaheen, Smith, Warnock, Murray and Wyden, theChild and Dependent Care Tax Credit Enhancement Actis cosponsored by Senators John Fetterman (D-PA), Brian Schatz (D-HI), Tammy Duckworth (D-IL), Mazie Hirono (D-HI), Chris Van Hollen (D-MD), Dick Durbin (D-IL), Amy Klobuchar (D-MN), Martin Heinrich (D-NM), Maria Cantwell (D-WA), Angus King (I-ME), Jeff Merkley (D-OR), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Elissa Slotkin (D-MI), Jack Reed (D-RI), Michael Bennet (D-CO), Chris Murphy (D-CT), Peter Welch (D-VT), Ruben Gallego (D-AZ), Chuck Schumer (D-NY), Adam Schiff (D-CA), Tammy Baldwin (D-WI), Kirsten Gillibrand (D-NY) and Sheldon Whitehouse (D-RI).
The bill is also endorsed by the National Women’s Law Center Action Fund, Child Care Aware of America, Save the Children, First Focus Campaign for Children, First Five Years Fund, Center for Law and Social Policy (CLASP), Moms Rising, National Association for the Education of Young Children (NAEYC), Zero to Three, Society for Human Resource Management (SHRM) and the Early Care and Education Consortium (ECEC).
Read more about theChild and Dependent Care Tax Credit Enhancement Acthere.
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