Thu Sep 19 08:14:00 UTC 2024: ## States Step Up to Bridge the Child Care Gap as Federal Action Stalls

With federal efforts to expand the child tax credit and provide paid family leave stalled, states are taking the lead in incentivizing private employers to address the child care crisis. According to the National Conference of State Legislatures, 17 states now offer child care tax credits to employers that provide or contract out child care services for their employees.

This trend, experts say, is spurred by the increasing awareness of the pressing need for affordable and accessible child care. “States have realized that the federal government is considering another increase in child tax credits, and they can benefit from that by enacting their own,” said Eric Syverson, a senior policy specialist at the National Conference of State Legislatures.

While the tax credits are growing in popularity, only a small percentage of companies take advantage of them, attributed to the high cost of establishing child care facilities and a general lack of awareness among businesses.

To bridge the gap, companies like Upwards are stepping in, offering solutions like matching employees with nearby child care providers and customizing child care benefits based on employee needs.

Experts, however, caution that employer-sponsored child care is only a temporary solution. Elliot Haspel, a senior fellow at the family policy think tank Capita, argues that the only real solution is a permanent system of choice funded by public dollars. He advocates for a small payroll tax on employers, similar to the model implemented in Vermont, to generate these funds.

While some view employer involvement as a positive step, others warn of potential equity issues. Anna Lovejoy, director of early childhood policy at the Center for American Progress, expresses concern about the lack of access for those who lose their jobs or choose to step away from employment.

Ultimately, the child care crisis requires a multi-pronged approach. While state-level initiatives are a positive step, experts agree that robust federal action and a commitment to public funding are crucial to ensure equitable access to high-quality child care for all families.

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