Sullivan, Hassan Introduce Legislation to Encourage Employer-Provided Child Care

WASHINGTON- U.S. Senators Dan Sullivan (R-Alaska) and Maggie Hassan (D-N.H.) have introduced legislation to help more employers offer child care support for their employees by establishing a dedicated business child care liaison within the Internal Revenue Service (IRS). The new liaison would serve as a central point of coordination between the IRS, businesses, child care providers, advocates, and state and local governments to help employers better understand and use existing federal tools that support child care for working families. This bill builds on the progress made in the Working Families Tax Cuts Act, passed in July, which significantly strengthened federal incentives for employer-supported child care by expanding the employer-provided child care tax credit and increasing the amount families can set aside in Dependent Care Flexible Spending Accounts.

"Quality child care is not only essential for the well-being of families, it is also key to a thriving economy and a strong workforce," said Sen. Sullivan. "I hear repeatedly from Alaska parents that the lack of affordable child care is one of their top concerns, and the data backs that up. Sixty-one percent of Alaskans are living in communities classified as child care 'deserts,' and too many families struggle to find reliable, affordable care close to home. This legislation will help employers, providers, and other nonprofits better utilize federal tools for employees-specifically the significant expansion of federal incentives in the Working Families Tax Cuts Act for child care facilities and the provisions that expand opportunities and support for working families."

"We need to make sure that businesses are able to take advantage of every available tool to help their workers afford child care," said Senator Hassan. "This bipartisan legislation will help cut through the confusion around federal child care tax incentives, increase awareness among businesses about these incentives, and make it easier for Granite State businesses and employers across the country to invest in the child care that their employees need to stay in the workforce."

The legislation has been endorsed by numerous child care providers and family support organizations in Alaska and across the country:

"Affordable, reliable child care is essential for strong families and a strong economy," saidTrevor Storrs, president and CEO of Alaska Children's Trust. "Alaska's businesses want to support working families, but navigating child care tax benefits can be complicated. This bill gives employers the clear guidance and partnership they need to offer meaningful child care support to their employees' families. At the Alaska Children's Trust, we believe strengthening businesses' ability to invest in child care strengthens our economy and our communities."

"This bill helps employers offer child care benefits that better support working families," saidStephanie Berglund, CEO of Thread. "That is especially important in rural states like Alaska, where child care shortages can limit workforce participation. We appreciate Senator Sullivan's leadership and his engagement with organizations like ours as we work to strengthen Alaska's child care system."

"The YMCA of Alaska endorses this legislation that lessens hurdles for accessible childcare and helps all families find affordable childcare options," said Nate Root, President and CEO of YMCA Alaska.

"The All Alaska Pediatric Partnership (A2P2) supports any legislation that promotes coordination and utilization of benefits aimed at increasing access to employer-supported child care tax benefits," saidTamar Ben-Yosef, executive director of A2P2. "The Child Care Tax Benefit Outreach and Assistance Act sponsored by Senator Sullivan and Senator Hassan is a positive step toward increasing the Federal government's understanding and consideration of the unique challenges experienced by Alaskans. We look forward to working with Senator Sullivan leveraging the information gathered through the Business Child Care Liaison office to identify further opportunities to increase utilization among Alaskan employers in rural communities where access to child care services is greatly limited."

"The U.S. Chamber of Commerce applauds Senators Hassan and Sullivan for introducing the bipartisan Child Care Tax Benefit Outreach and Assistance Act," said Stephanie Ferguson Melhorn, Executive Director of Workforce & International Labor Policy, U.S. Chamber of Commerce. "By establishing a dedicated Business Child Care Liaison, this legislation will help businesses leverage the employer-provided child care credit and other existing incentives. Employer-provided child care is a proven recruitment and retention tool, and this commonsense bill will empower more employers to take advantage of these benefits."

"Employers in New Hampshire understand that child care is workforce infrastructure - when parents can't find or afford care, they can't show up to work," said Trina Ingelfinger, Early Care and Education Policy Director of New Futures, Concord, NH. "Federal tax credits and flexible spending accounts are available to help businesses invest in child care solutions for their employees, but too many companies are finding it challenging to use these programs. The Child Care Tax Benefit Outreach and Assistance Act closes that gap by giving businesses the guidance and support they need to act on the child care challenges their employees face every day. This kind of practical approach will give more families access to programs that can help them better afford child care."

"As a statewide organization dedicated to supporting child care programs and the families they serve, Early Learning NH understands how helpful a Business Child Care Liaison housed at the IRS will be to parents working hard to provide for their family," said Jackie Cowell, Early Learning NH.

"We're grateful to Senators Hassan and Sullivan for their leadership in introducing the Child Care Tax Benefit Outreach and Assistance Act," said Sarah Rittling, Executive Director of the First Five Years Fund. "The 45F credit recognizes that employers are eager to be part of the child care solution for their employees. Having an IRS advocate dedicated to employer-provided child care, as this bill does, would go a long way in helping businesses utilize the 45F tax credit, leading to more child care options that support working parents and help our youngest learners grow."

"Employers know that child care is the necessary infrastructure that supports their workforce," said Susan Gale Perry, CEO of Child Care Aware of America. "But many are unaware of the federal tools available to defray the cost of providing child care support. Establishing a Business Child Care Liaison at the IRS would help ensure employers understand and can better utilize the Employer-Provided Child Care Credit (Section 45F). Greater awareness of this credit will help more employers partner with Child Care Aware of America's network of child care resource and referral organizations to connect working families with the child care they need."

"The Buffett Early Childhood Institute at the University of Nebraska is pleased to endorse the bipartisan Child Care Tax Benefit Outreach and Assistance Act, introduced by Senators Hassan and Sullivan," said Walter S. Gilliam, PhD, Executive Director of the Buffett Early Childhood Institute at the University of Nebraska. "This bill smartly addresses one of the biggest challenges regarding businesses utilizing tax benefits to increase access to child care-lack of tailored technical assistance that businesses can use. Thank you Senators Hassan and Sullivan for prioritizing businesses and working families by prioritizing affordable access to child care."

"When employers support child care options for their employees, it is a win-win - families have access to the care they need to thrive and participate in the workforce, and employers have tools to help them attract and retain employees," said Nicole Riehl, President & CEO of Executives Partnering to Invest in Children (EPIC). "Federal child care tax incentives are an important tool for encouraging businesses to invest in child care, but they can be intimidating to navigate. By providing resources to help with this navigation, we are confident that more employers will take the leap to invest in child care as a workforce and economic development tool."

"For too long, women have been forced to choose between their careers and their kids, not because they want to, but because child care is treated like a personal problem," said Reshma Saujani, Founder and CEO of Moms First. "Last year, with the help of Moms First's National Business Coalition for Child Care, Congress expanded the employer child care tax credit for the first time in over two decades. That's a $700 million opportunity to get more companies providing child care benefits to their workers, but only if they know how to use it. This bill makes sure they do, and that means more women in the workforce, stronger businesses, and an economy that can actually grow."

"Employers are a critical piece of the puzzle as we work to ensure all families, regardless of income or geography, have access to high-quality, reliable child care," said Radha Mohan, Executive Director, Early Care and Education Consortium. "The Early Care and Education Consortium (ECEC) commends Senators Hassan and Sullivan for introducing the Child Care Tax Benefit Outreach and Assistance Act. This bill will ensure recent enhancements to the Employer-Provided Child Care Tax Credit (Sec. 45F) and Dependent Care Flexible Spending Accounts (DCAP FSAs) are fully realized. By creating a Business Child Care Liaison at the IRS to educate employers, issue clear guidance, and troubleshoot real-world implementation challenges, this bill will help turn underused tax incentives into real child care options for working families. Paired with continued investments in core programs like the Child Care and Development Block Grant, this kind of smart, business-facing infrastructure is exactly what we need to expand affordable, accessible child care and support the workers and businesses who depend on it."

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