WASHINGTON, D.C. – U.S. Senators Shelley Moore Capito (R-W.Va.) and Kelly Ayotte (R-N.H.) have introduced the Working Families Relief Act, legislation that would make it easier for working families to access childcare for their children.
“As working mothers ourselves, we know firsthand the importance of giving families flexibility and options to balance their careers and personal lives,” said the senators. “The Working Families Relief Act will make it easier for small businesses to offer childcare to their employees on a pre-tax basis. This bill already has bipartisan support in the House, and we’ll push for its swift passage so we can better support working women and families all across the country.”
The Working Families Relief Act would increase the maximum amount that employers can provide or employees can set aside to the Dependent Care Assistance Program (DCAP), a flexible spending account which they can use to pay for childcare on a pre-tax basis. DCAP can also be used to pay for elder care. This bill raises that cap to $10,500 and indexes it for inflation. It also provides tax credits to employers who match the DCAP contributions to encourage them to offer this benefit.
The House companion to this bill was introduced by Mike Kelly (R-Pa.) and Linda Sanchez (D-Calif.).