Sending Office: Honorable Kevin Yoder
Sent By:
Taylor.Huhn@mail.house.gov

 

Request for Cosponsor(s)

Cosponsor the Bipartisan PACE Act to Make Child Care More Affordable for More Families

Endorsed by Save the Children Action Network, First Five Years Fund, Child Care Aware, First Focus Campaign for Children, Early Care and Education Consortium, the National Association for the Education of Young Children, and KinderCare Education

 

Dear Colleague,

We respectfully invite you to cosponsor H.R. 3632, the Promoting Affordable Childcare for Everyone (PACE) Act.  This bipartisan bill would make the Child and Dependent Care Tax Credit (CDCTC) fully refundable and enhance the value of Dependent Care
Flexible Spending Accounts (FSAs) in order to put affordable child care within reach for more families.  A
Bloomberg editorial in support of the bill can be found
here
, describing the PACE Act as legislation that “would measurably improve the lives of millions of American families.”

Many American families depend on safe, reliable child care so that parents can hold good jobs and provide for their families.  However, child care costs are consuming an increasing portion of a family’s budget, to the point that parents sometimes opt to
leave the work force or cut back on hours to care for their kids.  According to a recent survey, 7 of 10 Americans have reported that the cost of child care causes meaningful financial problem for their household.  In many states, the cost of full-time child
care exceeds the average cost of in-state college tuition or rent. For specific information on childcare costs in your state, visit the
Economic Policy Institute’s website.

While child care costs have risen by 168% over the last 25 years, the CDCTC has not been updated since 2001 and FSA caps have not been raised since 1988.  Our bill would:

  • Make the CDCTC fully refundable, benefiting more low-income working parents with zero or minimal tax liabilities who do not benefit from the current non-refundable credit;
  • Increase the value of the credit for all families;
  • Increase the amount of pre-tax dollars that families can invest into FSAs from $5,000 to $7,500;
  • Index both the CDCTC and FSAs to inflation for the first time, ensuring that these important benefits keep pace with the rising cost of child care.

The PACE Act is the only bipartisan bill that reforms both the CDCTC and the Dependent Care FSAs. Addressing the high cost of child care is one of the most important ways that we can help working families and invest in the long-term strength of our workforce
and economy.  See below for quotes of support from the many children’s organizations that have endorsed the PACE Act.

For more information on the bill, or if you would like to cosponsor the PACE Act, please contact Taylor Huhn in Rep. Yoder’s office (taylor.huhn@mail.house.gov) or Dao Nguyen in Rep. Murphy’s office (Dao.Nguyen@mail.house.gov).

Sincerely,

 

Kevin Yoder                                                 Stephanie Murphy

Member of Congress                                      Member of Congress

 

Mark K. Shriver, President, Save the Children Action Network (SCAN):

“Quality early childhood care and education are critical to future success, particularly for children living in poverty who lack an equal opportunity to succeed. The PACE Act would provide families with greater opportunity to invest in their child’s future.
Making the Child and Dependent Care Tax Credit fully refundable and adding enhancing its value are critical steps to helping low- and middle-income families give their children a strong start in life.”

 

The First Five Years Fund:

“We applaud Congressman Yoder and Congresswoman Murphy for this legislation aimed at strengthening federal child care tax credits, and making them work for low-income families. Tax reform offers lawmakers a chance to help parents throughout the nation who
struggle with the cost of child care and we hope this bill helps ensure that efforts to reform the nation’s tax code will expand access to high-quality child care opportunities.”

 

Child Care Aware® of America:

“The PACE Act of 2017 takes a steps towards tackling the unbearable costs of child care families face across the country. Making the Child and Dependent Care Tax Credit (CDCTC) refundable would go a long way toward supporting working families who rely on
child care to work and go to school. In addition, the PACE would assist in the early development of young children.  We applaud the House joining the Senate on promoting this critical legislation.”

 

Bruce Lesley, CEO, First Focus Campaign for Children

“Affordable, quality childcare provides young children with a nurturing environment that fosters early learning and sets them up for success in school and life.  Childcare also allows parents to seek and maintain gainful employment.  Despite these important,
dual benefits, affordable childcare remains out of reach for many working American families.  We applaud Rep. Yoder and Rep. Murphy for introducing the PACE Act, which will provide working families with meaningful childcare assistance by making the Child and
Dependent Care Tax Credit fully refundable and increase and adjust the credit for inflation. We look forward to working with Reps. Yoder and Murphy on this commonsense, bipartisan legislation that prioritizes the needs of children and families.”

 

Michelle Dallafior, Senior Director of Government Affairs, Early Care and Education Consortium:

“Every family deserves access to high quality early care and education that supports parents’ ability to work and lays a strong foundation for children to succeed in school and in life.  However, child care is a significant investment for most families,
and federal tax policies related to child care need to be modernized to reflect the changes in our economic environment.  The Early Care and Education Consortium (ECEC) supports tax policy reforms that promote high quality child care and help to make child
care costs more affordable.  ECEC applauds the leadership of Representatives Yoder and Murphy in introducing the “Promoting Affordable Childcare for Everyone Act” (PACE Act) to update and strengthen the Child and Dependent Care Tax Credit.”

 

Rhian Evans Allvin, CEO, National Association for the Education of Young Children:

“NAEYC supports policies that build on the significant body of research and science demonstrating the benefits of investing in high-quality child care and early learning. The PACE Act of 2017, which strengthens the Child and Dependent Care Tax Credit (CDCTC)
and makes it refundable, is a good step towards helping more low- and middle-income families address the challenges of affordability. It should be supported as part of a solution for a broad and comprehensive financing strategy that delivers on the promise
of early learning that is affordable, accessible, and high-quality, for our nation’s children, families, and economy.”

 

Dr. Elanna Yalow, CEO, KinderCare Early Learning Programs

“The PACE Act will go a long way in assisting more working families afford the child care their family needs. Modernizing the Child and Dependent Care Tax Credit and Dependent Care Flexible Spending Accounts as the PACE Act does will provide critical enhancements
desperately needed by today’s low and middle-income working families in affording the quality child care that parents both want and expect for their children.”

Related Legislative Issues
Selected legislative information: Economy, Family Issues, Taxes
Related Bill Information
Bill Type: H.R.
Bill Type: 3632
Special Note:
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