How the Biden Administration Wants to Help 80,000 Families Save Money on Child Care

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Child care costs continue to rise in the U.S. The Biden administration hopes to make this expense more affordable for low-income families. Find out how. 

Child care is not an affordable expense in the United States. The Biden administration recently announced a proposed set of actions that could reduce the cost of child care for many low-income families. The administration has proposed a Department of Health and Human Services (HHS) rule change to strengthen the Child Care and Development Block Grant (CCDBG) program. These changes could help thousands of families save money.

Child care is unaffordable for many American families

Unfortunately, the cost of quality child care in America continues to rise. According to a recent Care.com study, 59% of parents polled plan to spend over $18,000 per child for these costs in 2023. A similar 2022 poll found that 58% of families planned to spend over $10,000 per child.

With those figures in mind, it’s easy to see how child care expenses could quickly drain the checking accounts of hard-working families. For many households, this necessary expense causes added financial burden.

Some families are forced to reduce their working hours, leave the workforce, or piece together child care solutions. But the Biden administration hopes to make child care more affordable for low-income families in the U.S.

Proposed changes would help families and child care workers

The CCDBG program supports 1.5 million families each month with the cost of child care. On July 11, Vice President Harris announced a proposed rule that would do the following:

Cap child care copayments at no more than 7% of a family’s income.Encourage states to waive copayments for families at or below 150% of the federal poverty level.Improve financial stability and encourage child care workers to participate in the CCDBG program by ensuring they get paid on time based on program enrollment, not attendance.Encourage states to accept online applications and make siblings of children who already receive the subsidy presumptively eligible for benefits, to make it easier for families to access the CCDBG program.

How eligible families would benefit financially

The high cost of child care is something that impacts many American families. Vice President Harris had the following to say when announcing the plan, “This is a critical issue for almost every family in our country,” She continued, “Low-income families often spend one-third, one-third of their yearly income on childcare, more than they spend on their rent or mortgage.”

The HHS estimates that between 2005 and 2021, the average family child care copayment increased by nearly 20%. High copayments make it difficult for low-income families to afford participation in the CCDBG. The proposed copayment cap could make it more feasible for families to participate in this child care assistance program.

An estimated 80,000 families would see their child care payments reduced under this proposed plan. For families at or below 150% of the federal poverty level, copayments could be eliminated — saving some families hundreds of dollars each month. Any money saved could be used to cover other essential bills, improving the personal finances of many households.

Share your thoughts on the proposed changes

The public is encouraged to submit comments on the proposed rules. Comments are due 45 days after July 13, 2023. The public plays a vital role in the HHS rulemaking process. If you have thoughts regarding the cost of child care in America and the proposed changes mentioned above, you can submit a public comment on or before Aug. 28, 2023. To do so, visit Regulations.gov and search for the proposed rule by searching docket number: 2023-14290.

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