U.S. Senator Katie Britt (R-Montgomery) is receiving broad praise for leading a historic overhaul of federal child care tax credits, reforms that she championed in President Trump’s Working Family Tax Cuts legislation.
Britt secured permanent updates to the Child and Dependent Care Tax Credit (CDCTC), the Dependent Care Assistance Program (DCAP), and the Employer-Provided Child Care Tax Credit (45F) — the first such changes in decades. The reforms come as child care costs have risen 263% since the last permanent updates in 2001 for CDCTC and 45F, and 1986 for DCAP.
The updates mean nearly 4 million working families will receive tax cuts. Parents can now set aside up to $7,500 in pre-tax flexible spending accounts — a 50% increase from the 1986 cap — while employers, including small businesses, will receive expanded incentives to offer child care to attract and retain employees.
“I am not setting down the mantle. I’m going to continue to carry it, but I think the fact that we’ve been able to effect change in this area—where it has not been done and nobody has knocked that wall down yet—I think that this is monumental,” Britt said.
Major outlets have noted the significance of the reform. Bloomberg pointed out that Republicans have unexpectedly achieved one of the most consequential family policy wins in recent memory, while Vox called the investment in child care “unusual” for a GOP-led Congress and credited Britt with leading the charge.
Family Matters called the overhaul the biggest permanent change to child care tax policy in more than two decades. Newsweek highlighted that the legislation was built on bipartisan groundwork laid by Britt and Sen. Tim Kaine (D-Va.).
The Bipartisan Policy Center applauded the reform, noting that the updated provisions were left out of past legislation but are now finally strengthened thanks to years of bipartisan efforts.
The group cited Britt’s leadership, along with Kaine’s, in introducing the Child Care Availability and Affordability Act, which laid the foundation for the success.
Business and civic leaders also praised Britt’s efforts. The U.S. Chamber of Commerce said child care is an essential foundation for a strong workforce and applauded Britt for improving affordability and access.
Manufacture Alabama noted that affordable child care directly helps Alabama’s workforce by reducing absenteeism and boosting retention.
Education advocates with the A+ Education Partnership stressed that access to quality child care gives children a strong start for success in school and life. The Business Council of Alabama underscored that Britt’s federal efforts build on state-level success and expand resources for working families nationwide.
Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].
