Parents are struggling to balance childcare with work as the economy attempts to recover from the coronavirus pandemic. That struggle has become a significant issue in the 2020 presidential election.
President Donald Trump and former Vice President Joe Biden have different approaches to childcare policy. Here is a brief summary of how the policies of the 2020 presidential candidates may affect childcare in the future:
Biden wants to make childcare a centerpiece of his Build Back Better plan, which aims to spend $775 billion over the next decade to bolster the caregiving economy.
Build Back Better would address childcare affordability in several ways:
As a proponent of universal preschool for 3- and 4-year-old children, Biden also wants to adopt the childcare program outlined in Sen. Patty Murray and Rep. Bobby Scott’s bipartisan Child Care for Working Families Act.
The Trump administration has increased childcare tax incentives and funded billions more in block grants to low-income families.
The Tax Cuts and Jobs Act of 2017 doubled the Childcare Tax Credit for nearly 40 million families. The president’s tax reforms doubled from $1,000 to $2,000 per qualifying child. The refundable portion of the Child Tax Credit was increased from $1,000 to $1,400.
In 2018, Congress approved a historic increase of $2.37 billion for the Child Care and Development Block Grant for low-income families. Trump, who initially proposed cutting the program by $95 million, signed the increase into law. Trump’s fiscal 2021 budget proposes a one-time investment of $1 billion to increase childcare supply to underserved populations, including programs sponsored by employers.
The administration also supports the Senate GOP’s HEALS Act, which designates $15 billion for childcare, including $5 billion to childcare providers and $10 billion for “back to work childcare grants.” The Democrats’ House’s bill earmarks $7 billion for childcare through the Child Care and Development Block Grant, a fund typically used to subsidize childcare for low-income families with children under age 13.
Childcare is one of the most significant economic issues Americans face. Regardless of the 2020 presidential election outcome, employers will need tailor-made childcare benefit programs to help working parents.
Arvorie’s platform can help employers maximize any tax incentives available under new legislation and programs. Currently, employers using our platform save up to 70 cents for every dollar invested in childcare program costs.
Employers that create better childcare benefit programs will boost productivity, lower turnover and enhance diversity and inclusion. An open, flexible and efficient program is more important as employers have more remote workers.