Yesterday, Representative Sharice Davids joined a Shawnee family to pick up their children from day care and discussed her bipartisan Affordable Childcare Act with them. The bill aims to ease the financial burden on parents by doubling three different tax credits, directly increasing their savings. With a report showing that working parents are spending 24 percent of their income on child care, Davids is advocating for urgent measures to reduce these costs.

Representative Sharice Davids’ bipartisan Affordable Childcare Act, introduced earlier this year with Representative Marc Molinaro (R-NY-19), proposes several significant enhancements:

Doubling the Child and Dependent Care Credit: This credit helps families offset child care and dependent care expenses. The Act increases the credit to $6,000 for one dependent and $12,000 for two or more, aiding working families in managing rising child care costs.

Doubling the Employer-Provided Child Care Credit: This credit allows businesses to claim expenses for providing child care facilities or services to their employees. The Act raises the credit to $300,000 per year, covering 25 percent of qualified child care facility expenses and 10 percent of child care resource and referral expenses, to encourage greater business investment in employee child care support.

Doubling Dependent Care Flexible Spending Account Contributions: This benefit allows employees to use pre-tax dollars for eligible dependent care expenses. The Act increases the contribution limit to $10,000, allowing parents to save more for qualifying caregiving costs. “Child care is essential not only for giving kids like Eli and Colby Zigtema a strong start, but also for allowing parents to earn a living and support their families,” said Davids. “Growing up with a single mom, I know how much a little extra money in the bank account can mean. That’s why I introduced bipartisan legislation to help the Zigtemas and other hardworking Kansas families afford the quality child care they need.”