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Stauber Childcare Bills Pass House with Bipartisan Support

July 29, 2020

WASHINGTON, D.C. – Today, Congressman Pete Stauber (MN-08) voted in favor of two comprehensive childcare packages that will assist childcare facilities and working families struggling in the wake of the COVID-19 pandemic. Stauber voted yes on H.R. 7027, the Child Care is Essential Act and H.R. 7327, the Child Care for Economic Recovery Act, which included two of his childcare bills that will help families save for this critical expense and prevent families from losing these hard-earned savings due to the COVID-19 pandemic.

After voting yes on both childcare packages, Congressman Stauber stated, "Even before COVID-19 reached our shores, rural America was disproportionately affected by a lack of convenient, affordable, and accessible childcare. And now, the pandemic has forced 60 percent of childcare centers nationwide to close and one-third of the workforce to lose their jobs, leaving more working families without childcare options. Childcare is a cornerstone of a fully functioning economy as working families from every sector rely on their services. These two pieces of legislation can reinvigorate the childcare industry and help more families afford their services. I am especially proud that language from my two pieces of legislation to help ensure families don't lose hard-earned funds that were saved for this specific purpose were included in today's vote, and I look forward to doing much more to help American families afford childcare services."

Clare Sanford, the Government Relations chair for the Minnesota Child Care Association stated, "Childcare was suffering from market failure and under-investment long before COVID19, but the current crisis has laid bare the need to make this a national priority. The Child Care is Essential Act is a bold step towards ensuring our childcare system can survive the pandemic, and the Child Care for Economic Recovery Act updates tax provisions used as childcare financial supports by millions of working families. We need an all-hands-on-deck approach toward the stability of young families, and these bills are positive movement. Together these proposals invest in childcare access, affordability, and quality from multiple angles, offering choice and support to both parents and providers. The Minnesota Child Care Association is thrilled that Rep. Stauber is stepping up with this recognition of childcare as critical economic and educational infrastructure across the 8th District, Minnesota, and the nation."

The language from the following two Stauber bills were included in H.R. 7327:

  • The Improving Child Care for Working Families Act will increase the cap on the employer-sponsored Dependent Care Assistance Plan (DCAP), allowing families to set aside a larger portion of their pretax income for childcare expenses.
  • The COVID-19 Dependent Care Flexible Spending Arrangement Rollover Act of 2020 will allow the funds already saved in the Dependent Care Assistance Plan (DCAP) to rollover from 2020 to 2021. The DCAP program allows working families to set aside pre-tax income for childcare expenses, but currently, accounts do not rollover from year to year.

Additionally, the legislation that Stauber helped pass today will help do the following:

  • Create a Childcare Stabilization Fund for States and Tribes to ensure further resources, such as Personal Protective Equipment, are accessible to providers.
  • Enhance and make refundable the child and dependent care tax credit (CDCTC).
  • Create a new, refundable payroll tax for childcare providers.
  • Provide funding for states to support essential workers obtaining child and dependent care during the COVID-19 pandemic.

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