At the Jenkins Hill Child Development Center in Washington, DC, Jemaell Lyles looks after the youngsters. (CQ Roll Call via AP Images)
AT LAST A RELIEF! BIDEN ADMINISTRATION EYES TO LESSEN CHILDCARE COSTS!
The Biden administration recently declared that it would take independent action to lower childcare costs and increase access for American families.
On Tuesday, the US Department of Health and Human Services said that it has put up a new regulation to lower the out-of-pocket expenses for families that get federal childcare subsidies in order to lower childcare costs while providing financial assistance to providers who take those subsidies.
Only 900,000 families receive a childcare subsidy which could lower childcare costs, which is much less than what President Joe Biden had sought at the outset of his term, but it will provide enormous relief for those it does.
If the new rule is implemented on reducing childcare costs, it would limit co-payments for those receiving government assistance to no more than 7% of their income.
Additionally, by explicitly granting states the option to do so, it would encourage them to completely waive co-payments for families earning no more than 150 percent of the federal poverty line, or $45,000 per year for a family of four.
The majority of states require parents to make some sort of out-of-pocket payment, and low-income families pay more than 7% of their wages in 16 states. Only Indiana and New Mexico have already eliminated co-pays in lessen childcare costs.
Child Care Budget Continues To Enhance By The State Lawmakers (PHOTO: New Hampshire Bulletin)
Vice President Kamala Harris stated on a conference call with the media that she and the president had been discussing the 7 percent for two and a half years.
On July 13, the draft rule on limiting childcare costs will be made public. After 45 days for public feedback, the administration plans to publish the finalize rule in the spring of 2024.
While this is going on, parents are already paying outrageous prices for the care they can access. With median prices of $5,357 to $17,171 and a consumption of 8 to 19.30% of the median family income, childcare is unaffordable nationwide.
Hence, after being finalized, this will aid the parents to lessen the burden on outrageous childcare costs.
