As Donald Trump potentially returns to the presidency, child care policy might undergo significant shifts. Here’s an overview of what may emerge, based on past actions, public reporting, and the trajectory of Republican child care proposals during the Biden administration.
Expanded Child and Dependent Care Tax Credit (CDCTC)
One of the most likely moves could be the expansion of the Child and Dependent Care Tax Credit (CDCTC). In July 2024, a bipartisan bill led by Sen. Katie Britt (R-Ala.) and Sen. Tim Kaine (D-Va.) proposed increasing the maximum credit and making it refundable. This would address long-standing issues in the credit’s design, which disproportionately benefits higher-income families.
Reforming Child Care Reimbursement Rates
A major step could involve requiring states to implement true cost-of-care models for determining child care subsidy reimbursement rates. Sen. Deb Fischer (R-Neb.) introduced legislation in August 2024 to reauthorize the Child Care and Development Block Grant Act (CCDBG), mandating this change. If adopted, it would replace the outdated system that often underfunds child care providers.
Streamlining Regulations for Family Child Care Providers
Current zoning and food preparation regulations often restrict family-based child care programs. Bipartisan efforts, like the bill co-sponsored by Rep. Virginia Foxx (R-N.C.) and Rep. Marie Gluesenkamp Perez (D-Wash.), aim to ease these barriers. Simplifying such regulations could enable more providers to enter the market while maintaining safety and quality.
Boosting Employer-Sponsored Child Care
Promoting employer-sponsored child care is likely to remain a priority. The Britt-Kaine proposal includes expanding the Employer-Provided Child Care Credit (45F), which incentivizes companies to offer child care benefits. While some experts criticize over-reliance on employers for solutions, the credit has gained bipartisan support as a means of addressing the child care crisis.
Support for Family, Friend, and Neighbor (FFN) Caregivers
Conservative leaders like Vice President-elect JD Vance and Sen. Marco Rubio (R-Fla.) emphasizes greater federal support for informal caregivers (FFN care) and stay-at-home parents. Proposals include increasing CCDBG subsidies for FFN caregivers and introducing stipends or minimum wages. For instance, Rep. Ro Khanna (D-Calif.) suggested paying FFNs $15 per hour and offering stay-at-home parents $300 monthly.
Prioritizing Parent Choice in Child Care
Policymakers may aim to balance support between licensed child care centers and informal or home-based care. This dual approach acknowledges the diverse needs of working parents, stay-at-home caregivers, and unlicensed providers, ensuring all groups receive adequate resources.
Challenges Amid Broader Policies
Despite potential progress, broader policies under Trump’s administration—such as tax cuts funded by Medicaid or SNAP reductions—could overshadow child care reforms. Cuts to family-support programs could disproportionately impact low- and middle-income families, undermining child care gains.
Final Thoughts
While child care policy isn’t expected to be a top priority for Trump himself, influential Republican figures like JD Vance and Katie Britt might push for meaningful changes. If implemented, these reforms could reshape the child care landscape—but they must be part of a broader, family-centered policy agenda to truly succeed.
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