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house Bill H.R. 7327

Should the Federal Gov’t Provide $10B in COVID-19 Relief to the Child Care Industry?

Argument in favor

Child care providers have been hit hard by the COVID-19 pandemic. Congress should stabilize these essential businesses, whose services are necessary to working families, to ensure that they make it through the current public health crisis. Stabilizing child care providers is especially important in communities of color, where businesses may have trouble accessing more institutional forms of capital.

jimK's Opinion
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07/29/2020
This bill should be part of HR 7027 - which is similar in nature. Putting both bills together would consolidate the effort and avoid confusion.
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larubia's Opinion
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07/29/2020
Essential workers and parents in quarantine need child care. Yes!!!
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KansasTamale's Opinion
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07/29/2020
This is a NON-QUESTION. Of course, children should have guaranteed healthcare, more especially because of Covid. It's ridiculous the Dems have yo FIGHT THE REPUBLICANS TOOTH & NAIL TO GET HELP FOR THE PEOPLE OF THIS COUNTRY. THEY ARE WHO PAY CONGRESS’ SALARY.
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Argument opposed

Congress has already allocated $3.5 billion to child care providers in the CARES Act, so this legislation is unnecessary. Child care providers that need assistance now can apply for Paycheck Protection Program (PPP) loans, which are meant to help small businesses like them remain solvent during the pandemic. Additionally, if current lockdowns continue, many families may not need child care providers outside the home — so it’s possible that child care providers won’t be needed to the same degree as before in the new normal.

burrkitty's Opinion
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07/29/2020
Weird as it may seem, I DO NOT think this is a good idea. This will encourage the Petri dish called child care to reopen. That’s not a good idea. So no. Stay closed. Keep your kids and STAY HOME.
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Glowurm's Opinion
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07/28/2020
Oh, Hindsight, I am so glad you have kept a log of the Tyrant’s abuses. Thank you so much. 👏🏻👏🏻👏🏻👏🏻👍🏻👍🏻👍🏻👍🏻❤️❤️❤️😊😊😊. What saddens me is just HOW MANY ABUSES THERE HAVE BEEN! I believe cities like Portland should arrest all HIS ILLEGALS. Those who pretend to be “military” officers. I believe they are just his white supremacists, in “wolves clothing.” They are there ILLEGALLY and subverting our First Amendment right to peaceful protest, while injuring the protesters as well. I say throw them ALL in jail and let the Courts decide the validity of their presence. Any of them who can be proven to have caused injury to anyone should be brought up on charges of assault! Enough of allowing this crap. If we don’t act now, things will balloon even more out of control! Otherwise, let’s declare marital law and BE RID OF HIM NOW. HAS HE NOT DONE ENOUGH DAMAGE ALREADY, THE BASTARD? I have, absolutely, no respect for any of them. If I did, I would not use this language. They give no respect to others. They deserve NONE IN RETURN! I call a spade a spade. And when I call them Bastards, I am really being nice...
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Joseph's Opinion
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07/29/2020
After finding out that Planned Parent hood took $80 Million Dollars ear marked for small businesses I would have to say Against !
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What is House Bill H.R. 7327?

This bill — the Care Care for Economic Recovery Act — would provide additional funding in FY2020 for taxpayer services, social services block grants, and infrastructure grants to help improve child care safety.

This bill would increase funds for the Child Care Entitlement to States program for the first time in over a decade, bringing the program’s funding to $10 billion. It would also invest $10 billion in infrastructure to improve child care safety and provide $850 million to states, the District of Columbia, and U.S. territories to fill in gaps in dependent care for essential workers during the COVID-19 pandemic.

Additionally, this bill would add and modify tax provisions to:

  • Increase and make refundable the child and dependent care tax credit;
  • Increase the exclusion from employee income for employer-provided dependent care assistance;
  • Allow employers payroll tax credits for certain fixed expenses of child care facilities closed due to COVID-19, certain employer-paid employee dependent care expenses, and the employment of workers who perform domestic service in the private home of an employer;
  • Provide a new refundable payroll tax for child care providers;
  • Expand the employee retention tax credit to incentivize employers to keep child care workers in payroll;
  • Allow a carryover of unused benefits or contributions remaining in a dependent care flexible spending arrangement (FSA) from the 2020 plan year to the 2021 plan year.

This bill would also increase funding for Voluntary Income Tax Assistance to support families filing their tax returns.

Finally, this bill would require the Dept. of Health and Human Services (HHS) to conduct an immediate needs assessment of the condition of child care facilities throughout the U.S. and authorize HHS to award grants to improve child care facilities through new construction, renovation, and/or expansion in response to the COVID-19 pandemic.

Impact

Families; children; child care providers; Dept. of Health and Human Services (DHHS); Voluntary Income Tax Assistance; regulation of flexible spending arrangements (FSAs); and the Child Care Entitlement to States program.

Cost of House Bill H.R. 7327

$10.00 Billion
The CBO estimates that this bill would cost $10 billion over the period 2020-2025.

More Information

In-DepthSponsoring Rep. Nita Lowey (D-NY) introduced this legislation to expand the availability of quality child care, which is both a basic precondition of allowing parents and caregivers to return to work and essential to children’s healthy development and academic success:

“The coronavirus pandemic has taken a devastating toll on our families and communities. We will recover together, but that recovery is only possible if we invest in affordable, quality child care. The early years of a child’s life are powerfully formative. We have an opportunity and a duty to ensure all our children are safe, healthy, and learning. Parents simply cannot return to work without these baseline necessities in place, which is why the Child Care for Economic Recovery Act would dramatically increase child care funding for the first time in more than a decade, provide new funding for infrastructure improvements, give families, providers, and employers tax relief, and recognize child care workers as the essential workers they are.”

The Early Care & Learning Council is among a number of child care and policy advocacy organizations that support this bill. Its Executive Director, Meredith Menzies Chimento, says:

“Child care [h]as been a critical support for working families before the COVID-19 pandemic and continues to play an even more vital role in serving essential workers. Yet, the child care industry as a whole is extremely under-resourced and has been struggling for years. The Child Care for Economic Recovery Act takes crucial steps to bolster the infrastructure of the system and alleviate the financial hardship experienced by families as they utilize child care. As our Child Care Resource and Referral network works with child care providers to this deliver this essential service, the public and private investments that will come through this act will make big strides towards ensuring the strength of the system and its ability to continue to care for and educate young children.”

Chris Herbst, an associate professor studying public policy at Arizona State and the author of a new paper on child care supply, warns that the COVID-19 pandemic could permanently alter parents’ child care preferences. For example, parents who prioritize safety may choose to keep children home or prioritize small programs with stringent COVID-19 prevention measures. If there’s a mismatch between the child care services that government supports and the child care services that parents prefer, Herbst warns, the government could “end up propping up the wrong set of businesses,” which would be inefficient.

Senate Republicans, who have urged restraint in future coronavirus relief spending, are demanding that any future COVID-19 relief legislation be narrowly targeted. Given this, it’s unclear whether they’ll support this legislation’s high level of investment.

This legislation has 30 Democratic House cosponsors. It also has the support of numerous policy and childcare advocacy organizations, including the Bipartisan Policy Center (BPC), Coalition on Human Needs, Early Care & Learning Council, and Schuyler Center for Analysis and Advocacy.


Of NoteThe Center for Law and Social Policy (CLASP), a national nonpartisan organization dedicated to advancing policy solutions for low-income people, notes that the need for child care support is particularly acute in low-income minority communities. In a July 14, 2020, brief CLASP reported:

“Child care is least affordable for Black and Latinx families with low incomes. Asian American and Latinx children have particularly low levels of access to child care subsidies, the main support to help families pay for child care. Native American and Latinx communities are more likely to live in child care deserts—areas with particularly low capacity of licensed child care relative to the population of children— making access to care challenging… Black, Latinx, and Native children were already experiencing higher rates of poverty and economic insecurity prior to the pandemic… Because many child care programs also provide nutritious food to children, the shutdown of programs has likely contributed to an increase in hunger, especially among communities of color. Families across the board are also experiencing increased stress and conflict, with Black families reporting an increase in children’s behavior issues in recent weeks, while families overall report a decline.”

Furthermore, CLASP reported that child care providers have been hit hard by COVID-19. The organization predicts that, without federal support, many child care providers may not make it through the pandemic, hurting both families with children who need child care and child care workers in a double whammy for minority communities.

In a recent estimate, the National Women’s Law Center (NWLC) found that it would take at least $9.6 billion per month to keep current child care providers solvent. According to CAP, the need for assistance is especially acute among child care providers in communities of color; such businesses may struggle to access small-business loans, such as those through the PPP, due to systemic discrimination in banking practices, the wealth gap, and higher debt.

To date, Congress has given the child care sector $3.5 billion in pandemic funding in the CARES Act. The House has also passed $10 billion in the Moving Forward Act, which finances grants to improve child-care centers and help them fund construction, renovations, and improvements to address both longstanding issues and new challenges posed by COVID-19. An additional $7 billion in the HEROES Act (which hasn’t been considered in the Senate due to Republican opposition) is also pending. The White House has issued statements of administration policy opposing both the HEROES Act and Moving Forward Act.


Media:

Summary by Lorelei Yang

(Photo Credit: iStockphoto.com / ChiccoDodiFC)

AKA

Child Care for Economic Recovery Act

Official Title

Making additional supplemental appropriations for disaster relief requirements for the fiscal year ending September 30, 2020, and for other purposes.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house Passed July 29th, 2020
    Roll Call Vote 250 Yea / 161 Nay
    IntroducedJune 25th, 2020

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    This bill should be part of HR 7027 - which is similar in nature. Putting both bills together would consolidate the effort and avoid confusion.
    Like (71)
    Follow
    Share
    Weird as it may seem, I DO NOT think this is a good idea. This will encourage the Petri dish called child care to reopen. That’s not a good idea. So no. Stay closed. Keep your kids and STAY HOME.
    Like (33)
    Follow
    Share
    Oh, Hindsight, I am so glad you have kept a log of the Tyrant’s abuses. Thank you so much. 👏🏻👏🏻👏🏻👏🏻👍🏻👍🏻👍🏻👍🏻❤️❤️❤️😊😊😊. What saddens me is just HOW MANY ABUSES THERE HAVE BEEN! I believe cities like Portland should arrest all HIS ILLEGALS. Those who pretend to be “military” officers. I believe they are just his white supremacists, in “wolves clothing.” They are there ILLEGALLY and subverting our First Amendment right to peaceful protest, while injuring the protesters as well. I say throw them ALL in jail and let the Courts decide the validity of their presence. Any of them who can be proven to have caused injury to anyone should be brought up on charges of assault! Enough of allowing this crap. If we don’t act now, things will balloon even more out of control! Otherwise, let’s declare marital law and BE RID OF HIM NOW. HAS HE NOT DONE ENOUGH DAMAGE ALREADY, THE BASTARD? I have, absolutely, no respect for any of them. If I did, I would not use this language. They give no respect to others. They deserve NONE IN RETURN! I call a spade a spade. And when I call them Bastards, I am really being nice...
    Like (28)
    Follow
    Share
    Essential workers and parents in quarantine need child care. Yes!!!
    Like (22)
    Follow
    Share
    This is a NON-QUESTION. Of course, children should have guaranteed healthcare, more especially because of Covid. It's ridiculous the Dems have yo FIGHT THE REPUBLICANS TOOTH & NAIL TO GET HELP FOR THE PEOPLE OF THIS COUNTRY. THEY ARE WHO PAY CONGRESS’ SALARY.
    Like (22)
    Follow
    Share
    More distractions from controlling COVID-19. With surges in the Southern states now taking more allocations of medical supplies, hospitals have new triage procedures on who gets treated and who does not as shortages are anticipated, the 1st is Remdesivir. Much of what is covered in this bill is not COVID-19 related and addresses taxes & tax deductible expenses based on not having access to an employer sponsored HSA account provided by some employers but not all, many which only offer FSA accounts, and small businesses that may have neither. The Covid-19 related items are part of PPP for small businesses. Perhaps this is why this has been proposed as a separate bill but it shouldn’t be deemed COVID-19 but instead expanding the HSA program beyond employer sponsored.
    Like (17)
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    The American people, especially the poor and especially small businesses which include vital childcare need help. An awful lot of the previous relief went to wealthy corporations. We, the people need all the help we can get.
    Like (11)
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    Yes. But the racist stone cold heartless mother fucking Republicans will probably not support such a humane initiative since it could benefit black and brown babies.
    Like (10)
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    After finding out that Planned Parent hood took $80 Million Dollars ear marked for small businesses I would have to say Against !
    Like (8)
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    The federal government could give us all relief by cutting taxes and spending. Are we supposed to call it relief when the give us some of our own money back?
    Like (7)
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    Open everything back up ! Should have never quarantined! We would have been through this increase in cases in April instead we delayed the inevitable. Lock down does not work
    Like (6)
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    No doubt about it.
    Like (6)
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    The government has no money to give. They only have money it takes from taxpayers in the first place. It will just create a additional burden on taxpayers down the road.
    Like (5)
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    Support child care and the workers attached to those children!!
    Like (5)
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    We need to stop giving away money we don’t have
    Like (5)
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    Without childcare availability, how are women supposed to work? This bill needs to pass.
    Like (4)
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    Stop giving our taxes to corporations.
    Like (4)
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    While children may, generally speaking, not suffer the ravages of the coronavirus, I have not heard anywhere that they can’t be carriers. If we want parents to get back to work, there needs to be childcare available ( employers, if they have the space, could alleviate much of that burden for their employees). The quickest way to get back to something resembling normal, is to take a step back and develop a nation plan to tackle the virus. It can’t be 50 different plans with 50 different goals. Even if a state stumbles on the perfect plan, the bozos in the next state over can undo all that progress by deciding to get out of the pandemic on the cheap, as it were, thinking that economic activity is more important that the health of their residents. Fix the pandemic comprehensively, first- pay the cost of our lack of preparation for the foreseeable, then fix the economy and creating a system that doesn’t just benefit the few and leaves everyone else scrabbling for the crumbs.
    Like (4)
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    We need to provide this to help restore the economy the Republican botched pandemic destroyed!
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    Save lives not ruin lives!
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