Substantial child care subsidies included in Build Back Better Act

Working families will be eligible for significant savings on child care costs should Congress pass the current version of the Build Back Better Act.

The bill — already passed by the House of Representatives — will expand federal cost assistance through Child Care Development Block Grants, and could erase $10,000 in costs to families earning between $51,000 and $68,000, and totally eliminate the cost for families earning at and below 75 percent of the state median income (approximately $68,000).

“Right now, New Yorkers are paying over 23 percent of their income on childcare costs — that places an enormous financial and emotional burden on parents, and it must change,” Congressman Joe Morelle (D-Irondequoit) said in a news release. “Supporting the needs of working families has always been my top priority. This will be transformative for Monroe County families and will help set our children up for success from an early age.”

The average annual cost of a child care center in New York is $12,361. Through provisions in the Build Back Better Act, it is expected that a family of four making $68,000 will pay no more than $1,360 annually, Morelle’s office said.

The total funding in the bill for child care across the country is $390 billion. Under the legislation, subsidized child care will be available for families of children age 5 and younger who are not enrolled in kindergarten. Parents must be working or participating in work-related activities such as job training to qualify.

Families earning above 100 percent and not more than 125 percent SMI (between $68,000 and $85,000) will have a copayment of more than 2 percent and not more than 4 percent of their family income. For example, a family earning $85,000 would pay no more than $3,400 on child care.

For families earning above 125 percent and not more than 150 percent of the SMI, the copayment would be between 4 and 7 percent. For families earning more than 150 percent and not more than 250 percent of the SMI, copays would be no more than 7 percent of their income.

“Reducing the cost of high-quality childcare is a moral and necessary step towards economic and social justice,” said Jerome H. Underwood, president & CEO of Action for a Better Community. “Utilizing funding from the Build Back Better Act as a means to this end is one way to ensure that the unprecedented level of funding coming to Monroe County is allocated where it is most needed. We look forward to the day when affordable child care is a priority item with sustainable funding.”

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