White House details plan to cut childcare costs for low-income families

White House details plan to cut childcare costs for low-income families

WASHINGTON — The White House introduced new proposed actions Tuesday to reduce the cost of child care and strengthen a block grant program that helps low-income families access care.

Proposed Actions Expand President Joe Biden’s April Campaign executive order direct the Department of Health and Human Services to work on policies to reduce child care costs for families who benefit from the Child Care and Development Fund (CCDF).

Vice President Kamala Harris detailed the announcement on a call with reporters, emphasizing that child care is a “critical issue” for many families.

“I strongly believe that when we raise the status and economic status of families, we raise the economic status of communities,” Harris said. “Our entire economy and our entire nation benefits as a result.”

He proposal would limit child care copays to 7% of a family’s income for those who participate in the Child Care & Development Block Grant (CCDBG). If the plan is enacted, about 80,000 families would have reduced child care payments, according to a White House fact sheet.

The plan would also ensure that nearly 200,000 child care providers who participate in CCDBG are paid on time, rather than retrospectively, the White House said.

The proposal would also encourage states to accept online applications for people seeking to enroll in the CCDBG program.

During the press call, Harris said that parents should be able to request help online. He stressed that families should not have to choose between providing high-quality care for their children and quitting their job or putting food on the table.

Harris described the issue as personal to her, reflecting on how caring for children allowed her mother to contribute to the fight against breast cancer as a researcher.

“My mother used to say that if it hadn’t been for Mrs. Shelton, she never would have been able to do the job that she did,” Harris said of a woman who ran a child care center. “She would never have been able to contribute the way she did to the fight to end breast cancer.”

This proposal has several months before it can be enacted. The comment period opens Thursday and will last 45 days, according to senior administration officials.

At the close of the term, the HHS Administration for Children and Families will review the comments and work to draft a final rule.

The White House said it expects to publish the final rule in the spring of 2024.

By Mitchell G. Patton

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