St. Paul, MN – The House Suburban Solutions Caucus releases a new childcare initiative called “The Building Blocks of Learning.”
The two bills aim to expand the childcare system with rates that attract new childcare providers, stabilize costs, bring more funding, and provide additional options for suburban families and providers.
House File 4349, which was introduced by Rep. Danny Nadeau (R-Rogers), expands the dependent care credit.
“This expansion would provide families and providers additional funding and more options by expanding the child and dependent care tax credit to 50% and up to $24,000 for two or more dependents. The credit begins to phase down at $150,000 of adjusted gross income reaching zero at $200,000 helping families who were left out last session, care for children and seniors,” said Nadeau.
House File 4776 expands employer flexible spending accounts. The bill increases spending into employee flexible spending accounts by increasing the deduction for any employer who chooses to partner with their employees in the provision of dependent care.
Under this proposal, employers can contribute up to $10,000 per employee to expand employee FSA accounts to provide additional resources into the dependent care system and address pay and workforce challenges. Employers would then be able to deduct those expenses.
“After holding childcare town halls, speaking with parents and providers, and as a father of a 3-year-old, it was clear that we needed policies that address the rising cost and access to childcare care for suburban families that we can implement today,” Rep. Andrew Myers (R-Tonka Bay) stated.
Additionally, the Suburban Solutions Caucus has plans for a bill to reduce regulatory burdens and increase capacity, affordability, and options within the childcare sector.
While other proposals only change the amount a family pays by shifting the burden onto someone else, these solutions provide a real opportunity to address and fix the childcare system. The Suburban Solutions Caucus was established to help reduce the divide and provide solutions to the priorities of the hard-working families in the suburbs.
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