Increased Parental Choice in Childcare and Repeal of Dependent Care Tax Credit.
This Act reauthorizes the Child Care and Development Block Grant (CCDBG) until 2030, focusing on increasing parental choice by mandating that 90% of direct services funding be provided via child care certificates (vouchers). It significantly reduces regulatory burdens on relative caregivers (family members) and ensures they receive fair compensation. Crucially, the bill repeals the federal Child and Dependent Care Tax Credit, directly impacting how families manage and deduct childcare expenses on their taxes.
Key points
Childcare Funding Extended: CCDBG program reauthorized through fiscal year 2030 with $14 billion authorized annually.
Voucher System Mandate: States must use 90% of direct service funds through child care certificates, giving parents more flexibility in choosing providers.
Support for Relative Caregivers: Reduced regulatory requirements for family members (grandparents, aunts, uncles) providing care, and a guaranteed payment rate of at least 75% of the family child care provider rate.
Tax Changes: Repeal of the federal Child and Dependent Care Tax Credit (Section 21 of the Internal Revenue Code).
Religious Provider Protections: Strengthened protections ensuring religious childcare providers maintain their independence and character while receiving public funds.
Expired
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