Washington, D.C. — U.S. Senators Michael Bennet (D-Colo.) and Marsha Blackburn (R-Tenn.), members of the Senate Committee on Finance, introduced the bipartisan Child Care for American Families Act to strengthen the employer-provided child care credit and expand support for small and rural businesses. 

“Child care costs are rising nationwide, and countless families lack access to affordable, high-quality child care. This makes things that much harder for working parents, strains families’ budgets, and adds undue stress for families with young children,” said Bennet. “The Child Care for American Families Act will help increase our country’s child care supply and reduce the number of Americans in child care deserts.”

“Many families across Tennessee and America are struggling to find reliable and affordable child care, and we need to incentivize businesses to invest in child-care services for their employees,” said Blackburn. “Our Child Care for American Families Act would help alleviate the financial burden of child-care costs by expanding and modernizing the Employer-Provided Child Care Tax Credit.”

This legislation expands the employer-provided child care credit and increases the existing credit to:

• 60 percent for businesses in eligible rural areas, for a maximum total credit of $1.2 million annually;
• 50 percent for small businesses, for a maximum total credit of $1 million annually; and
• 40 percent of the first $2 million in qualified child care expenses for a maximum total credit of $800,000 annually.

The legislation also directs the U.S. Department of the Treasury to issue guidance on multi-employer facilities. 

In 2018, the Center for American Progress found that more than half—an estimated 51 percent—of the U.S. population lived in a childcare desert, with disproportionate impacts felt by low-income communities, Hispanic communities, and other communities of color. According to the Bipartisan Policy Center, 31.7 percent of children below the age of six with working parents do not have access to child care, while in rural communities, that number rises to 35.1 percent. According to the Center on Poverty and Social Policy at Columbia University and the National Women’s Law Center, increased investment in affordable child care would increase the number of women working full-time by 17 percent; this number jumps to 31 percent for women without a college degree. 

Bennet has continuously worked to expand the Child Tax Credit to help families afford the rising cost of raising kids. Last year, Bennet joined House Democratic Whip Katherine Clark (D-Mass.) to call on the Internal Revenue Service to improve outreach promoting awareness of the Employer-Provided Child Care Credit. In 2021, Bennet also introduced the Military Childcare Expansion Act to expand access to child care for servicemembers and their families.

The legislation is endorsed by Save the Children, Colorado Executives Partnering to Invest in Children (EPIC), Kindercare, Early Care & Education Consortium (ECEC), and BPC Action.