HR-7327 : Still Just a Bill

Child Care for Economic Recovery Act

This bill provides additional funding in FY2020 for taxpayer services, social services block grants, and infrastructure grants to improve child care safety, including needs assessments.

The bill adds and modifies certain tax provisions to

• increase and make refundable the child and dependent care tax credit;
• increase the exclusion from employee income for employer-provided dependent care assistance;
• allow employers payroll tax credits for certain fixed expenses of child care facilities closed due to COVID-19 (i.e., coronavirus disease 2019), certain employer-paid employee dependent care expenses, and the employment of workers who perform domestic service in the private home of an employer; and
• allow a carryover of unused benefits or contributions remaining in a dependent care flexible spending arrangement from the 2020 plan year to the 2021 plan year.

The bill increases funding (1) in FY2020-FY2024 for the general child care entitlement under the Social Security Act, and (2) for child care services for the children of essential workers.

The bill requires the Department of Health and Human Services (HHS) to conduct an immediate needs assessment of the condition of child care facilities throughout the United States and authorizes HHS to award grants to acquire, construct, renovate, or improve child care facilities, including expanding facilities to respond to the COVID-19 pandemic.