Senator Marshall Sends Letter to Secretary of the Treasury Supporting Nonprofits Working to Expand Child Care Access

Washington - On Tuesday, U.S. Senator Roger Marshall, M.D. (R-Kansas), sent a letter to Secretary of the Treasury Scott Bessent, asking the Department of the Treasury to issue guidance on the Employer-Provided Child Care Tax Credit that would allow more employers to offer child care to working parents by enabling nonprofit organizations to act as intermediaries between businesses and child care providers.

The Employer-Provided Child Care Credit (Section 45F of the Internal Revenue Code) was expanded under the Working Families Tax Cuts (WFTC) Act signed by President Trump in 2025, and works to expand childcare access, including through increased opportunities for employers. The updates made in the WFTC include increasing the maximum allowable credit from $150,000 to $500,000 ($600,000 for small businesses), increasing the credit from 25% to 40% (50% for small businesses) of eligible expenses, and permitting joint ownership and operations of qualified child care facilities.

In his letter to the Treasury, Senator Marshall wrote:

"The changes to Section 45, including increasing the maximum allowable credit, expanding the percentage of qualified child care expenditures eligible for the credit, and permitting joint ownership and operation of qualified child care facilities, create significant new opportunities for employers to invest in child care solutions that benefit their employees and communities. As a result, I understand that business and community leaders throughout Kansas are actively exploring collaborative approaches to expanding child care capacity. Many nonprofit organizations, particularly community foundations and United Way organizations, already serve as trusted fiscal partners by collecting, managing, and distributing contributions from businesses and community stakeholders to support local child care initiatives. These organizations and others like them are well positioned to act as intermediaries between businesses and providers.

"As the Treasury Department continues developing guidance to implement the expanded Section 45F credit, I would emphasize the need for guidance that allows employers to take full advantage of the credit. In particular, I would encourage adoption of a definition of the term 'intermediate entity' that recognizes both these nonprofit organizations and similar community-based partnerships. Providing this flexibility would reflect the collaborative models already being used in communities and help ensure the expanded credit achieves Congress's intent of encouraging innovative employer-supported child care solutions."

Click here to read the full letter from Senator Marshall.

The United Methodist Health Ministry Fund, which works across Kansas strengthening child care systems and programs, also wrote a letter to Secretary Bessent emphasizing Senator Marshall's request for clarification and guidance from the Treasury on intermediary entities so they can continue their work:

"The Health Fund appreciates Congress' recognition that employers have an important role to play in addressing the nation's child care challenges. We encourage Treasury to issue guidance as expeditiously as possible so employers can begin taking full advantage of these expanded incentives. Thoughtful implementation that emphasizes flexibility, clarity, and innovation will maximize the impact of this important investment and help expand access to child care for working families."

Click here to read the full letter from the United Methodist Health Ministry Fund.

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