WASHINGTON, D.C. — U.S. Sen. Martin Heinrich (D-N.M.) has joined a group of legislators to introduce a bill aimed at reducing the cost of child care through permanently expanded child tax credits. The proposed legislation seeks to make permanent the temporary expansion of the Child and Dependent Care Tax Credit that was implemented as part of the American Rescue Plan.
The temporary expansion of the Child and Dependent Care Tax Credit quadrupled the average family’s credit from $593 to $2,158, while also making low-income families eligible for the credit for the first time through its refundable nature. The Child and Dependent Care Tax Credit Enhancement Act seeks to make this expansion a permanent feature.
Sen. Heinrich emphasized the importance of providing all children with opportunities for success and commended New Mexico for setting a national example by expanding its state-level Child and Working Families Tax Credits. He stressed the need to make the expanded federal investment in children and their families permanent.
The proposed bill, led by Sens. Bob Casey (D-Penn.) and Ron Wyden (D-Ore.), Chair of the Senate Finance Committee, along with Sen. Patty Murray (D-Wash.), Chair of the Senate Appropriations Committee, would increase the maximum credit amount to $4,000 per child, automatically adjust it for inflation, save costs by phasing out the credit for families earning over $400,000, and make it refundable for low-income families, allowing them to receive up to $8,000 each.
Several organizations, including First Five Years Fund and KinderCare Learning Companies, have expressed support for the bill, highlighting the potential benefits it could bring to families struggling with child care expenses.
If passed, the legislation aims to provide financial relief to families by making child care more affordable and accessible. It seeks to address the significant burden of child care costs faced by families across the country. The bill is currently cosponsored by a group of senators and has received endorsements from various organizations advocating for children and families, including the National Women’s Law Center and Child Care Aware.
The Child and Dependent Care Tax Credit Enhancement Act represents an effort to prioritize the needs of working families and provide support to ensure child care costs do not hinder economic opportunities for parents. By permanently expanding the child tax credits, the proposed legislation aims to create a more equitable system that eases the financial strain on families and promotes the well-being of children.
As the bill makes its way through the legislative process, proponents will continue to advocate for its passage, emphasizing the benefits it could bring to families nationwide. The legislation aligns with the goal of providing affordable child care to all families while addressing the economic challenges associated with childcare expenses.
The proposed legislation signifies a step forward in addressing the child care crisis. If successful, it could bring relief to families struggling with the high cost of child care and ensure that child care is more affordable and accessible for everyone.
