Reps. McDonald Rivet, Hinson Introduce Bill to Make Child Care More Affordable

WASHINGTON— Today, Congresswomen Kristen McDonald Rivet (MI-08) and Ashley Hinson (IA-02) announced the bipartisan Early Education Savings Program Act. This bill, supported by Democrats and Republicans, would make child care more affordable by expanding 529 savings programs to cover child care expenses. 

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

“Access to child care is a women’s issue, a family issue, and a workforce issue, and no two families have the same needs or circumstances. That is why I’m proud to help introduce bipartisan legislation to expand savings programs parents can use for child care, while also supporting early childhood education,” said Congresswoman Hinson. “I’ll continue working across the aisle to make child care more affordable, flexible, and accessible for families because supporting parents strengthens our workforce and helps build a stronger economy, and community, for everyone.”

A 529 plan is a tax-advantaged savings program that allows individuals to use invested dollars to pay for qualified education-related expenses. Originally intended to assist with higher education, 529 plans were expanded in recent years to also cover K-12 and apprenticeship programs.

The Early Education Savings Program Act would further expand 529 savings programs to include child care as well, allowing parents to use tax-free income on child care for kids under five years old at state-licensed child care facilities. These accounts would have no cap on contributions or balances used for child care expenses.

Beyond the impact on children, child care affordability continues to be a crisis for the nation’s workforce. The U.S. Chamber of Commerce estimates states lose $1 billion per year in economic activity due to a lack of affordable and accessible child care. The same study also found that absences and employee turnover, which often stem from a lack of child care, cost employers between $400 million and $3 billion a year. 

Congresswoman McDonald Rivet has spent her career fighting to expand access to child care and early childhood education, including as Executive Director of Michigan Head Start, Chief of Staff of the Michigan Department of Education, and Vice President of The Skillman Foundation. Earlier this year, the Congresswoman fought against the Administration’s efforts to freeze child care funding. She is a member of the bipartisan Congressional Pre-K and Child Care Caucus and cosponsors the following pieces of legislation to expand access to child care:

• Building Child Care for a Better Future Act: The bill would increase annual funding for the Child Care Entitlement to States (CCES) to $20 billion per year and increase the amount of CCES funds reserved for Indian tribes, tribal organizations, and territories.
• Expanding Child Care Access Act of 2025: This bill would amend the Internal Revenue Code of 1986 to establish a refundable credit for qualified child care startup expenses.
• Child Care for Working Families Act: This bill would expand access to affordable, quality early learning programs, expand access to pre-K, and support full-day, full-year Head Start programs and increased wages for Head Start workers.