Memphis Standard

U.S. Senators Marsha Blackburn and Michael Bennet have introduced a bipartisan bill named the Child Care for American Families Act. The legislation aims to enhance the employer-provided child care tax credit, offering more support to small and rural businesses.

Senator Blackburn highlighted the struggles families face in finding reliable and affordable child care, stating, "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." She added that the act would help reduce the financial burden of child-care costs by expanding the Employer-Provided Child Care Tax Credit.

Senator Bennet noted the increasing cost of child care nationwide, saying, "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." He believes the act will increase the country's child care supply and address issues in child care deserts.

The Tennessee Department of Human Services reports that 48 percent of Tennessee residents live in areas lacking adequate child care services. The Bipartisan Policy Center found that over 31 percent of children under six with working parents do not have access to necessary services.

The proposed legislation outlines an expansion of the employer-provided child care credit. It offers a 60% credit for businesses in eligible rural and low-income areas up to $1.2 million annually; a 50% credit for small businesses up to $1 million annually; and a 40% credit for all other businesses up to $800,000 annually. Additionally, it instructs the U.S. Department of the Treasury to provide guidance on multi-employer facilities.

Endorsements for this bill come from organizations such as Save the Children, Colorado Executives Partnering to Invest in Children (EPIC), Kindercare, and Early Care & Education Consortium (ECEC).