Murray, Colleagues Introduce Legislation to Expand Child Care Relief to Families

To alleviate childcare costs for working families, Murray, Smith, Shaheen, Warnock, and Wyden introduce Child and Dependent Care Tax Credit Enhancement Act to permanently expand child care tax credits

Washington, D.C. - Today, Senator Patty Murray (D-WA), a senior member and former Chair of the Senate Health, Education, Labor and Pensions (HELP) Committee, joined Senator Tina Smith (D-MN), and Senate Democratic colleagues to introduce the Child and Dependent Care Tax Credit Enhancement Act, legislation to help more working families cover a greater share of the high cost of child care.

The Child and Dependent Care Tax Credit Enhancement Act would permanently expand the Child and Dependent Care Tax Credit (CDCTC). This bill would help ease the burden of high childcare costs on working families by increasing the maximum tax credit to $4,000 per child, allowing families to receive up to $8,000 in tax credits to offset up to $16,000 in expenses. It would also make the credit refundable to ensure low-income working families can benefit. The credit would also be indexed to inflation to retain its value over time.

"Instead of addressing the growing child care crisis, Trump is indiscriminately firing the very workers who help child care and Head Start centers keep their doors open-making child care more expensive and harder to get for working parents," said Senator Murray. "While Trump raises families costs by nearly $4000 a year and pushes child care even farther out of reach, my Democratic colleagues and I are continuing to fight to lower families' costs in every possible way, and I am proud to reintroduce the Child and Dependent Care Tax Credit Enhancement Act as one additional way to help get families some additional relief to afford the child care they need."

"I constantly hear from families in Minnesota who are struggling with the high cost of childcare. For some, it rivals mortgages and is even higher than tuition at the University of Minnesota. Families need real relief and this bill will lower costs and put more money back into the pockets of parents," said Senator Smith. "When childcare works, everything else does, too-families thrive, the economy grows, and our communities get stronger. That's why I'm committed to fighting to lower costs and improve access to childcare."

"No matter where I go in New Hampshire, families tell me about how much they struggle to access affordable child care," said Senator Shaheen. "The Child and Dependent Care Tax Credit is a proven and effective tool for bringing quality, affordable child care within reach for more families. Expanding this credit to keep up with the rising cost of child care is the right thing to do for workers, families and our nation's economy."

"American families have to deal with hefty expenses when raising a child or caring for a loved one. That's why the Child and Dependent Care Tax Credit Enhancement Act is so crucial, especially right now," said Senator Reverend Warnock. "It will help parents and caregivers afford caretaking costs in a time when margins are tight for many families across the country. Tax cuts should go to hardworking Americans, not the wealthiest people in the nation."

"The cost of raising a family in this country is already way too high, and it's getting even more expensive as Trump's global tariffs jack up the cost of food, cars and products families use every day," said SenatorWyden. "This proposal is a commonsense, pro-family policy aimed at helping parents and people caring for loved ones, and it's striking that this kind of bill is nowhere to be found in the Republican tax agenda that costs a staggering $7 trillion. Trump and Republicans are locked in on giving trillions in new handouts to corporations and the wealthy and sticking everybody else with the bill, but pro-family proposals like this one prove that there's a better way forward."

The Child and Dependent Care Tax Credit Enhancement Act would:

• Increase the maximum credit amount to $4,000 per child, allowing families to receive up to $8,000 in tax credits to offset up to $16,000 in expenses;
• Automatically adjust it to keep pace with inflation;
• Save money by phasing out the credit for families making more than $400,000; and
• Ensure low-income families can benefit from the tax credit by making it refundable.

Senator Murray has led the fight to tackle the child care crisis in Congress. She was instrumental in ensuring Congress took action when the COVID pandemic forced the child care sector to the brink of collapse. She authored the stabilization provisions in the American Rescue Plan alongside Congresswoman Rosa DeLauro (D-CT-03) and helped secure a historic $24 billion in stabilization funds and an additional $15 billion for CCDBG in the legislation. One third of child care providers who received a stabilization grant said their child care program would have closed permanently without the grants. She introduced legislation and pushed to extend the stabilization grants-and has continued to push to deliver supplemental funding to address the child care crisis, particularly given the tight fiscal constraints the Fiscal Responsibility Act has imposed on annual appropriations. Critically, Senator Murray has introduced and continues working to build the support needed to pass her Child Care for Working Families Act, comprehensive legislation to tackle the child care crisis and ensure families across America can find and afford the high-quality child care they need.

In addition to Senators Murray, Smith, Shaheen, Warnock, and Wyden, the Child and Dependent Care Tax Credit Enhancement Act is cosponsored by Senators John Fetterman (D-PA), Brian Schatz (D-HI), Tammy Duckworth (D-IL), Mazie Hirono (D-HI), Chris Van Hollen (D-MD), Dick Durbin (D-IL), Amy Klobuchar (D-MN), Martin Heinrich (D-NM), Maria Cantwell (D-WA), Angus King (I-ME), Jeff Merkley (D-OR), Richard Blumenthal (D-CT), Cory Booker (D-NJ), Elissa Slotkin (D-MI), Jack Reed (D-RI), Michael Bennet (D-CO), Chris Murphy (D-CT), Peter Welch (D-VT), Ruben Gallego (D-AZ), Chuck Schumer (D-NY), Adam Schiff (D-CA), Tammy Baldwin (D-WI), Kirsten Gillibrand (D-NY), Sheldon Whitehouse (D-RI).

The bill is also endorsed by the National Women's Law Center Action Fund, Child Care Aware of America, Save the Children, First Focus Campaign for Children, First Five Years Fund, Center for Law and Social Policy (CLASP), Moms Rising, National Association for the Education of Young Children (NAEYC), Zero to Three, Society for Human Resource Management (SHRM) and the Early Care and Education Consortium (ECEC).

Read more about the Child and Dependent Care Tax Credit Enhancement Act HERE.

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