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Washington, DC -- Today, Congresswoman Jennifer Wexton (D-VA) voted to pass the bipartisan Child Care is Essential Act to create a $50 billion Child Care Stabilization fund and invest in child care across Virginia in order for providers to have the resources needed to safely reopen. Wexton also voted to pass the bipartisan Child Care for Economic Recovery Act, which provides ongoing federal investments and tax subsidies to support child care providers and caregivers.

"As a working mom, I know that finding quality, affordable child care is not easy under the best of circumstances, but the strain of COVID-19 has pushed the child care industry to the brink of collapse,” said Congresswoman Jennifer Wexton. “Nearly half of all child care providers have closed at some point during the COVID-19 crisis, and those that have reopened are facing increased costs to implement new safety measures. Many providers are at risk of closing permanently without immediate financial support. Parents simply cannot return to work if they can’t find child care. This bipartisan legislation would bring an estimated $985 million to Virginia to help keep child care providers open and their employees on payroll."

Without adequate federal support, Virginia could lose 130,373 licensed child care slots, approximately 45% of the child care supply. With the Child Care is Essential Act, Virginia would receive an estimated $985,898,085 to support child care providers and ensure that the industry is operating under new safety guidelines.

Even before the COVID-19 crisis, many Virginia families lacked access to child care. COVID-19 has worsened the problem, and it is now estimated that there are 3.85 children per child care slot, compared to 2.12 children per slot prior to the crisis. Without robust federal investment, the child care industry cannot provide the care needed to help Americans return to work.

The Child Care is Essential Act includes:

• Stabilization grants for personnel costs, sanitation and cleaning, training and other goods and services needed to maintain or resume operation of the child care program. Grants would be equitably distributed to eligible child care centers, home based child care providers, and family child care homes.
  
  
• Support for child care workers. This bill requires employers to keep child care workers on payroll at the same compensation level as pre-COVID as a condition of receiving stabilization grant funds. 
  
  
• Support for working families by requiring providers to relieve families of copayments or tuition. 
  
  
• Promotion of health and safety through compliance with public health guidance. Under this legislation, open providers would be required to meet health and safety guidance from the Centers for Disease Control and Prevention and state and local authorities. 

The Child Care is Essential Act is complemented by the Child Care for Economic Recovery Act which would invest $10 billion in infrastructure to improve child care safety, provide $850 million to support family care for essential workers, and increase funding for federal child care programs. The legislation includes a new refundable payroll tax credit for child care providers and incentivizes employers to keep child care workers on payroll, by expanding the employee retention tax credit (ERTC).

A summary of the Child Care is Essential Act is here. The full text of the bill is here.

A summary of the Child Care for Economic Recovery Act is here. The full text of the bill is here.

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