Shaheen, Gillibrand, Schatz Introduce 'Right Start' Bill to Expand Child Care Tax Credit for Working Families

(Washington, D.C.) – U.S. Senators Jeanne Shaheen (D-NH), Kristen Gillibrand (D-NY), and Brian Schatz (D-HI) introduced the Right Start Child Care and Education Act, legislation that would expand the child care tax credit and provide other assistance to help families afford child care. The legislation would expand the Child and Dependent Care Tax Credit (CDCTC), which was first enacted in 1976 to help working families pay for child care. The tax credit does not reflect the current costs of child care, which have risen since the CDCTC was first enacted and can exceed $10,000 annually. In New Hampshire, the cost of child care is nearly $12,000 for a single child.

“The rising costs of child care is a real burden on families in New Hampshire and across the country, and the Right Start Child Care and Education Act would provide much-needed relief for parents working to make ends meet,” said Senator Shaheen. “Making child care more affordable will help parents, especially working mothers, re-join the workforce, and strengthen our economy.”

“This bill would help reduce the enormous financial burden that comes from paying for child care,” said Senator Gillibrand. “Child care is essential for many families with new babies and young children, but in some states, including New York, it costs as much as college tuition. This legislation would go a long way toward making child care more affordable for families, and I will continue urging all of my colleagues to support it in the new Congress.”

“Increasing the Child and Dependent Care Tax Credit will provide much-needed assistance for working families,” said Senator Schatz. “In Hawai‘i, child care can cost more than $10,000 per year, and nationally costs are rising. This tax credit will help provide economic security for families and allow parents to go back to work.”

The Right Start Child Care and Education Act would increase the Child and Dependent Care Tax Credit, making it equal to 35 to 50 percent of eligible expenses, up significantly from the current range of 20 to 35 percent, and increase the maximum eligible expenses from $3,000 per child to $6,000 per child. The bill would also improve assistance for lower-income families by making the credit refundable, and make it easier for employers to provide working parents with childcare by increasing the tax credit for employer-provided childcare.  It also aims to improve the availability of high-quality child care by adding a new tax credit for college graduates who become childcare professionals.

The Right Start Child Care and Education Act was introduced in the 113^th Congress, and again in the 114^th Congress, by fmr. Senator Barbara Boxer (D-CA) and co-sponsored by Senators Shaheen, Gillibrand and Schatz.