U.S. Senator Katie Britt, Colleagues Secure Historic Child Care Relief

Tax provisions included in reconciliation bill mark first significant update in 25 years

WASHINGTON, D.C. – U.S. Senator Katie Britt (R-Ala.) led her colleagues in securing updated child care tax credits in the Senate reconciliation bill for the first time in 25 years.

The Senate’s bill, which passed by a vote of 51-50, included modernized and increased tax credits to improve the accessibility and affordability of child care: the Child and Dependent Care Tax Credit (CDCTC), the Dependent Care Assistance Program (DCAP), and the Employer-Provided Child Care Tax Credit (45F). CDCTC and 45F have not been permanently updated since 2001. Since then, child care costs have increased by 263%. DCAP has not been updated since 1986.

“This is about more than just addressing our child care crisis – it is a direct investment in the hardworking families and local small businesses striving to achieve their American Dream across our nation. I’m proud to lead my colleagues in securing this historic win, which empowers parents, opens the door to more opportunities for their children, and tackles our nation’s urgent workforce needs to help unleash a new era of American prosperity,” said Senator Britt. “Getting this bill over the finish line will send a strong message to the American people that we can and will get the job done to improve the affordability and accessibility of quality child care. I’ll continue to fight for pro-family, pro-Main Street, and pro-growth policies that strengthen our communities, our economy, and our nation.”

The Senate’s reconciliation bill included significant portions of the Child Care Availability and Affordability Act, legislation that Senator Britt and Senator Tim Kaine (D-Va.) introduced earlier this year. This legislation received a wide swath of support across the Senate, including from Senators Joni Ernst (R-Iowa), Jeanne Shaheen (D-N.H.), John Curtis (R-Utah), Angus King (I-Maine), Shelley Moore Capito (R-W.Va.), Kirsten Gillibrand (D-N.Y.), Susan Collins (R-Maine), Amy Klobuchar (D-Minn.), Thom Tillis (R-N.C.), Maggie Hassan (D-N.H.), Dave McCormick (R-Pa.), Mark Warner (D-Va.), Tommy Tuberville (R-Ala.), Mark Kelly (D-Ariz.), Dan Sullivan (R-Alaska), Pete Ricketts (R-Neb.), Elissa Slotkin (D-Mich.), and Ruben Gallego (D-Ariz.).

Recently, 64 Chambers of Commerce, small businesses, and organizations across the country joined First Five Years Fund and the U.S. Chamber of Commerce in a letter calling on the Senate Finance Committee to expand child care tax credits.

“Members of Congress have been hearing from working parents around the country that they urgently need support in finding and affording child care. Expanding child care tax credits in the Senate bill is a step in the right direction toward making care more affordable and accessible for families nationwide. We appreciate the Senate’s inclusion of these updates and want to thank Senator Katie Britt (R-AL) for her leadership in making this a priority in the Senate package,” said Sarah Rittling, Executive Director of the First Five Years Fund.

“We know that childcare is an essential resource for working parents,” said Jon Barganier, president & CEO of Manufacture Alabama. “Currently, parents in Alabama make up 35% of the workforce. When parents have access to high-quality and affordable childcare, employers benefit from reduced absenteeism and productivity loss, increased employee retention, and a greater abundance of skilled workers.  We applaud Senator Britt for her vision and leadership to address this major challenge and we are excited about this legislative win which will complement the Alabama Childcare Tax Credit which the Alabama Legislature passed unanimously, and Governor Ivey signed into law last year.”

“Senator Katie Britt and Senator Tim Kaine accomplished what polling overwhelmingly shows the vast majority of Americans – Republicans, Democrats, and Independents all want – responsible policy achieved by working together across the political aisle. Because of their leadership, American families will receive much needed financial relief with childcare expenses,”said Rachel Pearson, Founder of Engage: Promoting Women’s Economic Security.

The worsening child care crisis is holding families, child care workers, businesses, and our entire economy back. Across the country, too many families cannot find or afford the high-quality child care they need so parents can go to work and children can thrive. Over the last few decades, the cost of child care has increased by 263%, forcing families—and mothers, in particular—to make impossible choices.

More than half of all families live in child care deserts. Meanwhile, child care workers are struggling to make ends meet on the poverty-level wages they are paid and child care providers are struggling to simply stay afloat. The crisis—which was exacerbated by the pandemic—is costing our economy dearly, to the tune of $122 billion in economic losses each year.

National polling in conjunction with First Five Years Fund (FFYF) reflects overwhelming bipartisan support for the CDCTC, with 86% of voters in support of increasing the CDCTC. Additionally, 79% of Republican voters have said they want President Trump and Republicans in Congress to do more to help hardworking families afford child care with 72% saying investing in child care is a good use of tax dollars. According to polling from Fabrizio Ward, 63% of all voters say helping working class families is their top priority when it comes to changes in tax policy.

Senator Britt is at the forefront of the Senate working on legislation to support families throughout all seasons, including early childhood development. Recently, Senator Britt reintroduced the bipartisan Rural Obstetrics Readiness Act. During her time in Congress, she has also introduced the More Opportunities for Moms to Succeed (MOMS) Act and the NIH IMPROVE Act and cosponsored the Childcare Worker Opportunity Act, and the Child Care and Development Block Grant (CCDBG) Reauthorization Act of 2024.

Senator Britt is also committed to empowering parents with resources to better address the mental health crisis exacerbated by social media. She recently introduced the bipartisan Kids Off Social Media Act, and last Congress introduced the Youth Mental Health Research Act.

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