When I first walked the halls of Congress as the Head of Government Affairs at Care.com, I carried with me the stories and research that illustrated what so many families across the country were experiencing. Reports that detailed the impossible cost of child care for working parents. Testimony that shed light on whether young Americans want to have children at all. Accounts of businesses at risk of losing talented employees due to caregiving struggles. These insights painted a vivid picture of a system stretched to its breaking point. It was clear then, as it is now, that meaningful change was urgently needed.
How We Got Here
Now, urgency has turned into action. Critical new tax credit enhancements for families are now law, as part of the One Big Beautiful Bill Act—and Care.com played an integral role in getting it across the finish line.
In Washington, progress is rarely swift. Advocacy takes patience and resilience. In the meantime, child care costs kept climbing past inflation, rivaling housing or tuition. Elder care needs grew, leaving multigenerational households increasingly strained and families in need of relief.
Eventually, these pressures led to momentum. We were on the ground at the 2024 National Child Care Innovation Summit, where state models like Kentucky’s Employee Child Care Assistance Program and Michigan’s Tri-Share plan were presented, demonstrating how costs can be shared across families, employers and government. Senators Tim Kaine and Katie Britt proposed a bipartisan bill to make the Child and Dependent Care Tax Credit fully refundable, saving families in high-cost states nearly $5,000 a year. The topic of caregiving cost also reached the 2024 presidential debates, where candidates across parties pledged solutions, from capping costs at 7% of income to expanding employer-backed care.
These moments underscored what we already knew: the tax code is one of the most powerful levers for change, and enhancing tax credits to offset the cost of care could deliver much needed relief to families. But turning that idea into reality required persistence. Care.com, alongside other advocacy partners, invested years into building coalitions across party lines, reframing care as an economic investment, and proving, again and again, that when families cannot access affordable care, the entire economy suffers.
Now, that persistence has paid off. The passage of critical tax credit enhancements marks a breakthrough for families nationwide. For the first time in decades, our tax system is beginning to reflect the reality that care is central to family wellbeing and economic stability. These enhancements will mean real dollars back in the pockets of families—dollars that could make the difference between staying in the workforce or stepping back, and between financial stability or financial strain.
What the One Big Beautiful Bill Act Delivers
For families, the new law matters:
- Child and Dependent Care Tax Credit (CDCTC): Eligible families can now get back up to half their child care costs, and a typical family could see about $900 more in their refund.
- Employer Support (Section 45F): Businesses get bigger tax breaks for helping with child care—like subsidies, on-site care, or partnerships—making it easier for parents to stay in the workforce.
- Pre-Tax Savings (DCAPs): Parents can now set aside $7,500 tax-free through work to cover child care, up from $5,000.
- Child Tax Credit (CTC): Families keep at least $2,200 per child each year, with the credit growing alongside inflation after 2026.
The biggest win of all: these changes are now permanent. Families no longer need to wonder, year after year, whether Washington will extend the support they count on.
Looking Ahead
This milestone shows that persistence and data-driven advocacy can create real change. Yet, the work is far from over. Our care economy remains fragile, caregivers are underpaid and families still face impossible choices. I’m grateful for the colleagues, partners, and lawmakers from both sides of the aisle who fought for this cause, and am determined to keep pushing until affordable, quality care is the norm. Investing in care means investing in families and in the future of our nation. Today, we are one step closer to the future families deserve.
