Rep. Delgado Votes to Pass $50 Billion Child Care Stabilization Fund, Support Access to Child Care Tax Credits

Press Release

Today, U.S. Representative Antonio Delgado (NY-19) joined a bipartisan coalition in voting to pass two bills to support access to child care across the U.S. in the months following the COVID-19 pandemic. H.R. 7027, the Child Care is Essential Act will create a $50 billion Child Care Stabilization fund and invest in child care so that providers across New York have the resources they need to safely reopen. Rep. Delgado also voted to pass H.R. 7327, the Child Care for Economic Recovery Act to provide ongoing federal investments and tax subsidies for working families, helping to bring quality child care within their reach, to support ongoing employment and to provide tax credits for child care providers affected by COVID-19 shutdowns.

Without adequate support from the federal government New York could lose 176,567 licensed child care slots, approximately 50% of the child care supply. The $2,238,299,760 New York would receive from the Child Care is Essential Act would help child care providers stay open, keep employees on payroll, and safely operate under new guidelines to keep children and employees safe.

"We cannot talk about reopening our economy and supporting small businesses without having a conversation about how families will care for their children. Just last week, in my Small Business Advisory Committee Meeting, I heard from business owners and community members about the vital need for safe and affordable childcare to reopen our economy," said Rep. Antonio Delgado. "I am proud to join my colleagues today in being part of the solution. Both the Child Care is Essential Act and the Child Care for Economic Recovery Act makes critically important investments in our state and nation's child care facilities so we can take safe steps toward reopening and rebuilding our economy from the ground up."

"As Otsego County emerges from the pandemic, there are ramifications of fewer available child care slots, even higher fees and tuition, and a shortage of already-underpaid caregivers who simply couldn't afford to stay. This leaves Otsego County families asking the question: What will happen when a parent can't go back to work because no day care is available?" states Barbara Ann Heegan, President & CEO Otsego County Chamber of Commerce, Barbara Ann Heegan goes on and shares "Without a stable child care system, many Otsego County families will continue to struggle, unable to re-enter the workforce until kids are ready for elementary school. More funds for Child Care and Development Block Grant would also ensure more families can access and afford Child Care. I commend Congressman Delgado for bringing the needs of our families in rural upstate forward as we try to rebuild our economy and get people back to work."

Prior to the spread of the coronavirus, New York could not provide care for every child that needed it. With nearly 4 children per available child care slot, working families lacked access to safe, quality child care. The spread of COVID-19 has only worsened this problem to the brink of catastrophe. Since the pandemic, it is now estimated that there are almost 8 children per available child care slot. Without robust federal investments, the child care industry cannot provide the care needed to help Americans return to work.

The Child Care is Essential Act would provide grant funding to child care providers to stabilize the child care sector and support providers to safely reopen and operate.

Stabilization grants for personnel costs, sanitation and cleaning, training and other goods and services needed to maintain or resume operation of the child care program.

Support for child care workers. This bill requires employers to keep child care workers on payroll at the same compensation level as pre-COVID as a condition of receiving stabilization grant funds.

Support for working families by requiring providers to relieve families of copayments or tuition.

Promotion of health and safety through compliance with public health guidance. Under this legislation, open providers would be required to meet health and safety guidance from the Centers for Disease Control and Prevention and state and local authorities.

The Child Care for Economic Recovery Act would provide ongoing federal investments and tax subsidies for working families, helping to bring quality child care within their reach to support ongoing employment. It also provides tax credits to support child care providers affected by COVID-19 shutdowns.

This proposal makes the Child and Dependent Care Tax Credit (CDCTC) refundable, allowing many low- and middle-income families to claim the credit for the first time. The enhanced credit covers up to half of a taxpayer's childcare expenses. Under the proposal:

Families with one child would be eligible for a credit of up to $3,000;
Families with more than one child would be eligible for a credit of up to $6,000; and
The credit value phases down for families who earn in excess of $120,000.

Creates a new tax credit to help employees access quality, affordable child care to incentivize employers to do right by their employees, this measure provides a new 30 percent refundable payroll tax credit for eligible employee dependent care benefits paid by employers.

This proposal increases guaranteed federal funding for the Child Care Entitlement to States (CCES) up to $10 billion per year for FY2020 -- FY2024, and waives state match requirements for the additional funds for FY2020 and FY2021, in order to provide sustained and predictable support. The federal government administers CCES jointly with the annually-appropriated Child Care and Development Block Grant (CCDBG) to form one cohesive federal child care program, called the Child Care and Development Fund (CCDF).

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