Lawmakers from both sides of the aisle are pushing forward with the Affordable Childcare Act, a bill aimed at easing the burden of childcare costs for American families.
The proposal, introduced by Rep. Brian Fitzpatrick (R-PA), Ryan Mackenzie (R-PA), Sharice Davids (D-KS), and Suzanne Bonamici (D-OR), would expand the Child Tax Credit and increase tax incentives for businesses that provide child care assistance to employees.
What the Bill Proposes and Who It Helps
The current Child Tax Credit allows parents to claim up to $2,000 per child under 17, with phase-outs beginning at $200,000 for single filers and $400,000 for married couples.
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The new bill seeks to triple that amount, offering a maximum of $6,000 per child and $12,000 for families with two or more dependents. Businesses would also benefit—companies that provide childcare support to employees could see their tax credit double to $300,000 annually.
This initiative follows a broader push for childcare relief in recent years. During the 2024 presidential campaign, then-Sen. JD Vance (R-OH) and then-Vice President Kamala Harris each called for significant increases in the Child Tax Credit, proposing $5,000 and $6,000 per child, respectively.
As noted by Glamour, making childcare more affordable was a central issue for both parties, reflecting growing concerns among working families.
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The proposal has drawn mixed reactions. Supporters argue that an expanded Child Tax Credit would provide much-needed financial relief to families struggling with rising costs. According to The Center on Budget and Policy Priorities, past increases in the tax credit significantly reduced child poverty, helping families afford necessities like rent, groceries, and childcare.
However, critics question whether direct cash payments are the best approach. A January report by the Center for American Progress argues that rather than expanding tax credits, funds would be more effectively allocated to targeted programs such as early education initiatives, childcare subsidies, and infrastructure improvements.
The report emphasizes that these investments can provide more direct assistance to lower-income families in need.
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Even with bipartisan support, getting the bill through Congress won't be easy. As noted by Thomson Reuters, Republicans are prioritizing the renewal of the 2017 Tax Cuts and Jobs Act, which increased the Child Tax Credit from $1,000 to $2,000 but is set to expire in 2025.
If Congress doesn't renew the TCJA, the credit could revert to its previous levels, complicating efforts to expand it further.
Some states are taking their own approach. In Georgia, lawmakers recently passed a bill creating a $250 tax credit per child under seven to expand childcare support. However, the Associated Press reported the measure is expected to cost the state over $180 million per year, raising questions about long-term affordability.
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