The Biden administration’s announcement comes as billions of dollars in Covid-19 pandemic relief funds for the child care industry is set to expire at the end of September.

“No family should have to choose between high-quality care for their child or to give up their career or put food on the table,” Harris said.Ĭovid-19 pandemic relief funds expiring soon Low-income families often spend one-third of their yearly income on child care, more than on rent or their mortgage, Vice President Kamala Harris told reporters on a press call. However, federal funding falls short of allowing every eligible family to be served. The block grant supports 900,000 families and 1.5 million children. Also, nearly 200,000 providers would get paid earlier, and more than 100,000 providers would start getting paid based on enrollment so their payments aren’t adjusted downward if children miss days. Nearly 80,000 families would pay less for child care, thanks to the 7% cap, according to the administration. This will encourage more providers to participate in the grant program, according to the administration. Plus, it would help child care providers by ensuring they are paid when services are provided, as opposed to weeks later, and basing their payments on program enrollment rather than attendance. The measure also aims to make it easier for families to apply for aid by encouraging states to accept online enrollment applications and to make siblings of children who receive the subsidy presumptively eligible for benefits. It would cap child care copays at no more than 7% of a family’s income and encourage states to waive copays for families at or below 150% of the federal poverty level, or about $37,300 for a family of three in 2023. The proposal, which stems from an executive order President Joe Biden signed in April, would make adjustments to the federal Child Care & Development Block Grant program, which provides states with funding to help low-income, working households pay for care.

The Biden administration unveiled Tuesday a series of proposed measures to make child care more affordable for certain working families.

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