WASHINGTON, DC –Congressman Brian Fitzpatrick (PA-01) and Congresswoman Kim Schrier, M.D. (WA-08) have introduced the Improving Child Care for Working Families Act—bipartisan legislation to permanently raise the cap on Dependent Care Assistance Plans (DCAPs), putting real dollars back in parents’ pockets and helping families afford the quality child care they need to stay in the workforce.
“I’ve sat down with parents working long hours who still can’t afford child care, and providers doing everything they can just to keep their doors open,” said Fitzpatrick. “Through those conversations, we’ve focused on practical, bipartisan solutions that tackle the challenges our families are facing head-on. The Improving Child Care for Working Families Act is one of them—increasing the outdated pre-tax savings cap to ease the burden on families, expand access to care, and support the parents powering our workforce. It’s a practical step toward making child care affordable, reliable, and actually work for the families who depend on it.”
“The importance of having access to affordable child care cannot be overstated – it helps children, parents, and the overall economy by giving parents who would like to return to work outside the home the opportunity to do so,” said Schrier, M.D. “That is why I am proud to introduce this legislation that will help lower barriers facing parents struggling to afford child care.”
Radha Mohan, Executive Director of the Early Care & Education Consortium, added:
“The Early Care & Education Consortium is once again pleased to support the bipartisan Improving Child Care for Working Families Act. High-quality child care has long been out of reach for families across the country. This legislation provides a simple yet meaningful improvement that will go a long way toward both helping working families afford quality care, and addressing the workforce crisis facing the broader economy. ECEC commends Reps. Schrier and Fitzpatrick for their longstanding commitment to children and families. Their proposal to permanently lift the DCAP limit to $10,500 will allow the benefit to better keep pace with inflation and the rising cost of care, and is part of a holistic solution to the persistent child care crisis.”
Delivering Real Relief for Working Families
Child care costs now rival or exceed college tuition in many parts of the country—including Pennsylvania’s First District—draining family budgets and forcing parents out of the workforce. For decades, families were limited to setting aside just $5,000 in pre-tax dollars for child care under DCAPs, even as costs surged.
The Improving Child Care for Working Families Act raises the DCAP cap to $10,500, permanently indexes it to inflation, and gives parents greater control over their own hard-earned money to pay for quality care. This is a practical, bipartisan step to make child care more affordable and reliable while strengthening the workforce Pennsylvania families and businesses rely on every day.
Background:
As Chairman of the Ways and Means Working Families Tax Team, Congressman Fitzpatrick has been at the forefront of bipartisan efforts to reduce costs for working families and overhaul outdated tax provisions to deliver meaningful relief for parents.
Earlier this year, he introduced the Affordable Child Care Act, bipartisan legislation to help hardworking families access quality, affordable child care. This bill doubles three key tax credits, putting real money back into parents’ pockets at a time when child care costs have reached historic highs.
By permanently lifting the DCAP cap to $10,500 and indexing it to inflation through the Improving Child Care for Working Families Act, Fitzpatrick is advancing a sustained, bipartisan strategy to break the child care cost barrier, strengthen the workforce, and empower working families across Pennsylvania and the nation.
The Improving Child Care for Working Families Act is endorsed by the Early Care & Education Consortium and the National Taxpayers Union.
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