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Increased tax exclusion limit for dependent child care assistance programs.

This bill increases the maximum amount employees can exclude from taxable income under Dependent Care Assistance Programs. The limit rises from $7,500 to $10,500 annually, allowing working families to save more money on taxes when paying for child care services like daycares or nannies. This change directly benefits the personal finances of families utilizing these programs, taking effect in calendar years starting after the enactment date.
Key points
Increased Exclusion Limit: The maximum amount that can be excluded from taxable income for dependent care assistance increases from $7,500 to $10,500.
Financial Benefit for Families: This change means lower taxes and greater savings for working parents enrolled in employer-sponsored dependent care plans.
Effective Date: The new, higher limits will apply to amounts paid or incurred in calendar years beginning after the date the Act is signed into law.
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Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_5558
Sponsor: Rep. Schrier, Kim [D-WA-8]
Process start date: 2025-09-23
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Improving Child Care for Working Families Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_5558.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-09-23.

What are the main provisions?

Key points include:

  • Increased Exclusion Limit: The maximum amount that can be excluded from taxable income for dependent care assistance increases from $7,500 to $10,500.
  • Financial Benefit for Families: This change means lower taxes and greater savings for working parents enrolled in employer-sponsored dependent care plans.
  • Effective Date: The new, higher limits will apply to amounts paid or incurred in calendar years beginning after the date the Act is signed into law.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Schrier, Kim [D-WA-8].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Taxes Family Benefits