NEW: Governor Spanberger Signs Bipartisan Legislation Lowering Childcare Costs for Parents

RICHMOND, VA - Governor Abigail Spanberger today signed a package of bipartisan legislation focused on lowering childcare costs for parents, strengthening early childhood education, and empowering small businesses to better recruit and retain talented employees.

Alongside parents, business leaders, General Assembly leaders, and Lieutenant Governor Ghazala Hashmi at the VCU Health Child Development Center Northside, Governor Spanberger signed House Bill 18 and Senate Bill 3 - led by Delegate Adele McClure and Senator Lashrecse Aird - to create the Employee Child Care Assistance program. The new law establishes a program to offer matching state funding to employers that cover childcare expenses on behalf of their employees, with priority going to small businesses with fewer than 50 employees.

"Affordable childcare and early childhood education are not niche issues. They are not luxuries. These are challenges impacting families in every region of Virginia," said Governor Abigail Spanberger. "Today, we're taking a first step to ease the burden on parents and families across our Commonwealth by creating the Employee Child Care Assistance Program - a new tool that incentivizes employers to help their employees pay for childcare, with the state matching those contributions."

Spanberger continued, "Childcare is also a matter of economic competitiveness. When a family can't afford childcare, often times a parent drops out of the workforce altogether. That's not just a family budget problem, that's a Virginia economy problem. We are competing against 49 other states for the best talent in America - and for the businesses that follow that talent. If childcare costs are driving parents out of the workforce, we are losing that competition before it even starts. Thank you to Senator Aird, Delegate McClure, and the General Assembly members here today for your efforts on all of this legislation - Virginia's children are lucky to have champions like you in Richmond."

In remarks at the event, Delegate McClure underscored the difference the new law will make in the lives of Virginia parents and families who are concerned about keeping up with the high cost of childcare.

"I wrote this bill in 2023 after knocking on so many doors and hearing from so many constituents about the need to support families in our workforce," said Delegate Adele McClure. "With this bill, we are offering Virginia's families an additional lifeline: a way for those who are struggling from paycheck to paycheck to know that their quiet struggles have been seen and that we are taking steps to support them."

Governor Spanberger was also joined by Brian Anderson, President and CEO of ChamberRVA, who highlighted how supporting employers in offering affordable childcare to their employees will help companies - particularly small businesses - better compete and thrive in the Commonwealth.

"Access to childcare is critical to maximizing workforce participation and increasing worker productivity," said Brian Anderson. "These are two fundamental ingredients for sustaining and accelerating economic growth. The bills signed today bring employers and other stakeholders together to the table for working families of the state."

Governor Spanberger also signed House Bill 1208 and Senate Bill 134 - led by Senator Mamie Locke and Delegate Brianna Sewell - to make sure Virginia is accurately calculating and reporting annually the costs to meet parental needs for early childhood care and education in the Commonwealth. The Governor also signed House Bill 211 - led by Delegate Debra Gardner - to direct Virginia to produce a comprehensive report on the state of Head Start and Early Head Start to strengthen these critical programs into the future.

BACKGROUND

Since taking office, Governor Spanberger has partnered with parents, educators, and legislators to take concrete steps to address the challenges facing schools, set up students for successful careers, and build a high-quality public education system for all kids.

In April, the Governor signed a package of bipartisan legislation - commonly known as the Momnibus - to improve and expand healthcare coverage for Virginia mothers and families, particularly women who face the highest risks. Governor Spanberger has also signed dozens of bipartisan bills to strengthen schools, support teachers who help kids reach their full potential, and keep kids safe and healthy both in and out of the classroom.

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