Congresswoman Tenney Reintroduces the Promoting Affordable Childcare for Everyone Act

Washington, DC – Congresswoman Claudia Tenney (NY-24), alongside Congressman Brad Schneider (IL-10), reintroduced the Promoting Affordable Childcare for Everyone (PACE) Act to bolster existing federal childcare tax incentives and improve access to affordable and high-quality child care for American families. 

The PACE Act would update the Child and Dependent Care Tax Credit and enhance Dependent Care Flexible Spending Accounts (DCFSAs) to make the credit refundable and allow for annual updates to keep both incentives effective and provide more financial support for working parents. This legislation increases the amount of pre-tax dollars parents can put into the accounts from $5,000 to $7,500, which indexes the new cap to inflation to allow DCFSAs to keep pace with the cost of childcare.

"Hardworking families should not have to spend their entire paycheck on affordable, quality child care. The PACE Act supports working families and childcare professionals by increasing the Dependent Care Flexible Spending Accounts cap and expanding the Child and Dependent Care Tax Credit to keep up with today's economy. This pro-family bill modernizes federal child care incentives, increases accessibility, and ensures lower-income and working families can provide quality care for their children," said Congresswoman Tenney. 

"The cost of quality childcare has only gone up while the existing provisions in our tax code that help with these costs haven't been updated in decades. Childcare costs are crushing too many families across the country -- it's long past time we enhance them to provide substantive financial support for working families and ensure they remain effective going forward. I'm proud to join Rep. Tenney send this lifeline to families struggling to afford care for their kids," said Congressman Schneider. 

"Child care costs are continuing to rise, and working parents simply can't keep up," said FFYF Executive Director Sarah Rittling. "The Promoting Affordable Childcare for Everyone (PACE) Act takes a significant step towards making care more affordable by updating two important tax provisions: the Child and Dependent Care Tax Credit (CDCTC) and Dependent Care Assistance Plans (DCAP). This legislation is a direct investment in hardworking families who need support as they look to re-enter or stay in the workforce, and we are grateful to Reps. Claudia Tenney and Brad Schneider for their work to provide much-needed relief to parents and caregivers." 

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