OKC Standard

Washington, D.C. - Congresswoman Stephanie Bice from Oklahoma and Congresswoman Linda T. Sánchez from California have reintroduced the Combatting High Inflation Limiting Daycare (CHILD) Act. This bipartisan initiative aims to assist American families facing increasing childcare costs by doubling the annual contribution limit for Dependent Care Flexible Savings Accounts (DCFSAs).

Childcare expenses have become a significant financial burden for families nationwide, consuming up to 19.3% of their annual income. "The CHILD Act would help families across the nation tackle the rising costs of childcare," stated Congresswoman Bice. She emphasized that the bill addresses outdated contribution limits for Dependent Care Flexible Spending Accounts, which have not been adjusted since their inception.

Congresswoman Sánchez noted, "The cost of childcare keeps going up and up each year, but the relief we provided parents hasn’t changed in decades." She believes that the CHILD Act will make it easier for families to afford necessary care.

The key provisions of the CHILD Act include an increased contribution limit and an annual adjustment for inflation. The proposed legislation seeks to raise the annual contribution limit for Dependent Care FSAs from $5,000 to $10,000 for joint filers and from $2,500 to $5,000 for separate filers. This increase aims to provide families with more flexibility and financial assistance in covering childcare expenses such as after-school programs and daycare services.

Additionally, unlike Health FSAs, which have had periodic adjustments, the maximum contribution for Dependent Care FSAs has remained unchanged since 1986 at $5,000 per household. The CHILD Act plans to address this disparity by implementing annual inflation adjustments to ensure that contribution limits align with rising costs.