Bice & Sanchez Reintroduce the CHILD Act

Washington, D.C. - Yesterday, Congresswoman Stephanie Bice (OK-05) introduced the Combatting High Inflation Limiting Daycare (CHILD) Act alongside Congresswoman Linda T. Sánchez (CA-38). The bipartisan measure seeks to provide much-needed relief to hardworking American families struggling to meet the rising costs of childcare by doubling the annual contribution limit for tax-advantaged Dependent Care Flexible Savings Accounts (DCFSAs).  

Childcare has become one of the biggest expenses for families no matter where they live in the country. Recently, families have been increasingly burdened by childcare expenses, which are taking up to 19.3% of their annual income.   

“The CHILD Act would help families across the nation tackle the rising costs of childcare,” said Congresswoman Bice. “This bill addresses the outdated contribution limits for Dependent Care Flexible Spending Accounts which haven’t been adjusted since their creation. Inflation has caused a drastic increase in the cost of childcare, and our legislation is a vital step in ensuring that parents have the resources they need to support their families.”  

 “The cost of childcare keeps going up and up each year, but the relief we provided parents hasn’t changed in decades,” said Congresswoman Sánchez. “The CHILD Act bill fixes that problem and makes it just a little bit easier for families to afford the care they need.” 

Key provisions of the CHILD Act include:    

Increased Contribution Limit: Under the proposed legislation, the annual contribution limit for Dependent Care FSAs would be raised from $5,000 to $10,000 for joint filers and from $2,500 to $5,000 for separate filers. This significant increase will provide families with greater flexibility and financial assistance in covering childcare expenses, including after-school programs, daycare, and other dependent care services.  

Annual Adjustment for Inflation: Unlike Health FSAs, the maximum contribution for Dependent Care FSAs has remained stagnant since 1986, with a maximum contribution limit of $5,000 per household. The CHILD Act also addresses this inequity by instituting annual adjustments for inflation, ensuring that contribution limits keep pace with rising costs.