WNEM: Lawmakers introduce bill aimed to make childcare more affordable

WASHINGTON (WNEM) - New legislation introduced by two lawmakers aims to make childcare more affordable by expanding savings programs.

The bipartisan Early Education Savings Program Act introduced by Congresswoman Kristen McDonald Rivet (MI-08) and Ashley Hinson (IA-02) would expand savings programs to include childcare.

“Every parent knows raising a family is way too expensive,” Rivet said. “When parents can’t access affordable childcare, they can’t go to work, and both their families and our economy suffer. Expanding 529s to cover childcare is an easy and important step that will help families save for and afford childcare for their young kids.”

A 529 plan is a tax-advantaged savings program that allows individuals to use invested dollars to pay for qualified education-related expenses. The Early Education Savings Program Act would further expand 529 savings programs to include childcare as well, allowing parents to use tax-free income on childcare for kids under five years old at state-licensed childcare facilities. These accounts would also have no cap on contributions or balances used for childcare expenses.