House Democratic Caucus Release on Child Care Proposal

DEMOCRATIC CAUCUS

NEWS

[1] Washington, D.C. -- Joined by First Lady Hillary Rodham Clinton, Secretary of Health and Human Services Donna Shalala, and working families, House Democrats today unveiled legislation designed to double the number of families receiving assistance to pay for child care.

[2] House Democratic Whip David Bonior (D-Mich.), Caucus Chairman Vic Fazio (D-Calif.), Vice-Chair Barbara B. Kennelly (D- Conn.), Rep. Ellen Tauscher (D-Calif.), and more than 100 Democratic cosponsors say the comprehensive bill is targeted at middle- and lower-income families faced with soaring child care costs and limited availability. The legislation:

o Increases tax credits for three million additional working

o Provides after-school care for up to half a million children

o Establishes a business tax credit for companies providing

o Creates a child care provider scholarship fund to train child

o Establishes a tax credit for stay-at-home parents with

o Improves child care safety and quality and enhances early

[3] "For millions of American families, nothing is more important than quality child care that is safe and affordable," said Fazio. "This legislation is a blend of initiatives that addresses costs, availability, quality, and safety."

[4] Many of the provisions in the bill are tax related. These include an increase in the dependent care tax credit for families with less than $60,000 combined income that would result in an average tax cut of $330 for three million families. Savings would be similar for stay-at-home parents with children under the age of four.

[5] Businesses that provide child care services for their employees by building or expanding child care facilities or training child care workers would receive a 25 percent credit towards those costs up to $150,000 per year. A matching fund grant program for business also would be created to expand the number of child care facilities, with small businesses receiving priority funding.

[6] The bill also has a strong focus on after-school programs to help parents bridge the gap between the hours when schools adjourn to when they return from work. The Child and Adult Care Food Program would be extended to those from 13 to 18 years old. In addition, new emphasis on after-school prevention programs will be required in juvenile justice programs.

[7] The Democratic Caucus proposal also calls for the establishment of a $3 billion fund over five years to provide challenge grants to communities to improve the delivery of child care services (including funds for improving child care provider training, lowering child/staff ratios, and providing for comprehensive background checks on child care workers). Another new $500 million fund over five years also would be created to step up enforcement of health and safety standards. Building on the military's model child program, this initiative is designed to help states improve their licensing systems.

[8] Other components of the bill include:

o Creation of a Child Care Provider Scholarship Fund proposed by

o Amending the National Housing Act to authorize the Secretary

o Establishment of a child care hotline to connect parents with

[9] The bill builds on President Clinton's child care proposal as well as those from Rep. Kennelly, Rep. Tauscher, Rep. Hoyer (D- Md.), Rep. Lowey (D-N.Y.), Rep. Woolsey (D-Calif.), Rep. Maloney (D- N.Y.), Rep. Moran (D-Va.), Rep. Allen (D-Maine), and Rep. Slaughter (D-N.Y.).

The $23.3 billion costs of the bill are designed to fall within the context of a balanced budget legislation.

DEMOCRATIC CHILD CARE BILL ORIGINAL COSPONSORS

Neil Abercrombie                      Tom Lantos

TOTAL: 117