U.S. Sens. Shelley Moore Capito (R-WV) and Kelly Ayotte (R-NH) joined U.S. Rep. Mike Kelly (R-PA) in introducing bicameral legislation on Tuesday to make childcare more accessible for working families.
The Working Families Relief Act, H.R. 4867, would increase current caps on how much employers and employees can set aside through the Dependent Care Assistance Program (DCAP), which provides a pre-tax spending account to pay for childcare.
“As working mothers ourselves, we know firsthand the importance of giving families flexibility and options to balance their careers and personal lives,” Capito and Ayotte said in a joint statement. “The Working Families Relief Act will make it easier for small businesses to offer childcare to their employees on a pre-tax basis. This bill already has bipartisan support in the House, and we’ll push for its swift passage so we can better support working women and families all across the country.”
Under the bill, DCAP caps would be increased from $5,000 to $10,000, and contribution limits would be indexed for inflation.
The measure would also provide tax credits to employers that match employee DCAP contributions.
“Early education is critical for a child’s healthy development and for giving him or her a fair opportunity to succeed in life,” Kelly said. “Unfortunately, working families often struggle to cover costs for quality care in today’s economy, which have reached more than $10,000 a year. This bipartisan, bicameral legislation will help parents overcome that difficulty by expanding and modernizing DCAP accounts, which currently help more than 1.3 million families pay for child and dependent care annually. Just in time for Mother’s Day, this bill is pro-family and pro-common sense.”
U.S. Rep. Linda Sanchez (D-CA), a cosponsor of the House bill, said that the measure would make it easier for working families to afford childcare.