The widespread worker shortage might be solved with available childcare for American families. And if there’s any federal support parents and childcare workers should look for, it’s in the Build Back Better act that’s waiting to be passed by the Senate early next year.

As the Senate has closed its doors for the holidays, millions of parents along with childcare providers are hoping the holiday spirit will well carry over until next January in time for the Democrats to unanimously pass the act.

In the meantime, here’s what the Build Back Better Act includes to alleviate parents’ and childcare workers’ woes.

Build Back Better Provisions

The Benefits for Parents: Child tax credit

2021 saw the introduction of a wider rollout and higher tax credit for struggling parents with young kids. Given a monthly or annual option, parents get more childcare subsidies to help defray childcare costs. President Biden’s original promise was to make childcare affordable especially for parents of young kids age 0-6. He vowed to cap spending for childcare at no more than 7% of the household income.
While this provision was originally written to fund child tax credits until 2025, the House’s scaled back version of the bill will now only fund it until 2022.

Childcare Funding Credits: Childcare industry grants

After decades of little to no government support, the childcare industry will finally have access to more government funding that allows them to improve their services and curriculum, raise the wages and salaries of their staff, and expand their capacity.

These funds will go to states and local governments which will then open applications for grants. Childcare service providers can apply for grants that can be used for opening a new service in an underserved area, raising wages, remodeling their center, or upgrading their curriculum.

To ensure that providers will be consistently improving their service, there will be a tiered review system that will be applied for all childcare providers. This system will determine the amount of subsidy they qualify for while guiding them on how to reach the next level.
There will also be funding for scholarship grants for those who would like to pursue a career in early childhood education and for those who want to advance their careers.

Universal Pre-K

During wartime, America had a government-funded daycare initiative. While the funding came from the government, it was up to communities to start their own daycare centers. This move allowed young mothers to help in the war efforts through factory jobs while their children were cared for in these small, localized daycare centers.

Now, with the Build Back Better act, parents of 3-4 year olds won’t be having a hard time finding an affordable childcare service with universal Pre-K that is free and accessible to all 3-4 year olds in the country.
However, states can opt out of this universal Pre-K initiative.

How will these provisions change the current landscape of the childcare industry?

Using the child tax credit, hopefully parents will be able to finally get more affordable childcare services without it making a large dent on their household budget.

The expanded childcare tax credit will also help more mothers come back to the workforce. In 2021, there were fewer women who resumed employment and chose instead to care for their children.

Meanwhile, the severely lacking childcare industry will definitely get a much needed boost with available funding in grants. Hopefully, this will attract centers which have closed down to re-open and new entrants to the childcare industry.

While the Build Back Better bill has certainly been pared down from its originally ambitious $3.5 trillion plan to $1.75 trillion, this law has the potential to finally help the childcare industry get back on its feet and let more parents, especially women, back into the workforce.

And while Senator Manchin’s opposition to the bill certainly threatens its passing, there’s still hope that the Christmas ghosts of past, present, and future might wake the senator’s scrooge heart over the holidays in time for him to vote yes this January.