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HomeEconomyHarris unveils proposed rule changes to lower U.S. child care costs

Harris unveils proposed rule changes to lower U.S. child care costs

WASHINGTON (Reuters) – U.S. Vice President Kamala Harris on Tuesday announced new measures to lower child care costs for U.S. families, including a proposal that would limit the number of childcare services that serve 1.5 million children and their families each month. Copayments for Block Grant Programs.

The proposed rule would limit copayments by working parents under the Child Care and Development Block Grant (CCDBG) program to no more than 7 percent of household income.

The proposal, which would have a 20 day comment period, would encourage states to waive exemptions at or below 19% of households’ out-of-pocket expenses have increased federal poverty levels, the White House said in a fact sheet on the changes. The Department of Health and Human Services (HHS) hopes to publish the final rule in the spring, a senior administration official said.

Lowering child care costs has been a top priority for the Biden administration, but a deeply divided Congress has blocked passage of some key proposals, including a push to make the expanded child tax credit permanent during the COVID-19 pandemic -000 and other measures designed to help licensed and regulated child care providers.

The proposal would also ensure that child care providers participating in the program get paid on time based on program enrollment rather than attendance, the White House said.

It will also work to make block grant programs more accessible to families by encouraging states to accept online applications and making siblings of children who already receive subsidies presumptively eligible.

HHS estimates that between 2005 and 2024 prompted many households to reduce their working hours or exit the labor force entirely.

Low-income households also pay disproportionately higher costs, the White House cited a U.S. Census Bureau survey that found low-income households pay five times as much as high-income households because

If enacted, the proposed changes would reduce certain 20, White House says,family.

A senior administration official said the rule would use available resources to maximize the interests of families and child care providers.



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