With the Inflation Reduction Act of 2022 recently signed into law, American families will see many of their expenses, such as energy and health care costs, significantly reduced.1 The law will help families cut down on important costs, such as prescription drugs and energy bills; set a path to 40 percent lower carbon pollution by 2030;2 and reduce the federal deficit by $300 billion.3 However, child care costs—one of the most significant financial burdens for families across the country—remain unaddressed.
Emergency COVID-19 pandemic relief funds through the American Rescue Plan of 2021 have provided temporary relief and stabilization, but these resources are set to expire soon: Provider stabilization grants will expire in 2023, and expanded Child Care and Development Block Grant (CCDBG) funding will expire in 2024.4 Their expiration means that more providers will permanently close, driving down supply and leaving parents without accessible or affordable care, which will force many to leave paid work, reduce their hours, or make other difficult financial decisions for their families. Without federal intervention, the United States could lose at least half of its licensed supply,5 creating more child care deserts where there are too few child care slots to meet demand.6
A federal investment in child care must come soon. Senate Majority Leader Chuck Schumer (D-NY) made a pledge to address this crisis from the floor as the Inflation Reduction Act was passed in the Senate,...
(The Lion) — A Senate Democrat has proposed a bill to repeal the federal Education Freedom Tax Credit, which passed in President Donald Trump’s budget bill last year. Sen. Mark Kelly, D-Arizona, m...