Biden Administration Plans to Place Cap on Child Care Expense

WASHINGTON (NEWSnet/AP) — Vice President Kamala Harris said Tuesday the government plans to put a cap on how much families pay for child care, as part of the Child Care & Development Block Grant program.
Speaking to reporters, Harris reviewed details of a proposed rule by the Department of Health and Human Services that follows an executive order President Joe Biden signed in April. Families would pay no more than 7% of their income for child care through the program and child care providers would find it easier to be paid on time. The proposal also encourages states to allow families to apply for care online.
Harris touted the possible savings for families.
“Let’s take a family in Montana making $46,000 a year—they could save about $80 every month, or almost over $1,000 a year,” the vice president said. “That money could go to gas and groceries or to fix a leaky roof.”
The program supports 1.5 million children. In 2016, the government established 7% of family income as the standard for affordable child care, but only 14 states follow that guidance through the block grant program.
About 80,000 families would pay less for child care due to the cap. The rule would waive payments for families who are at or below 150% of the federal poverty level.
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