In the United States, the childcare agenda of presidential candidates may play a prominent role in their appeal to suburban women in swing states, who are considered crucial for winning the November election. Women are reported to provide two-thirds of unpaid caregiving work, valued at $1 trillion annually. When families cannot afford care for their children or elderly parents, they are disproportionately affected. The cost of childcare is a pressing issue, with childcare prices rising faster than the inflation rate.
Both parties share a major common point on the topic of childcare costs: both presidential candidates – and their running mates – have at one point supported expanding the child tax credit. According to data from the Urban Institute, having a child leads to an average 10.4% decrease in household income compared to before pregnancy. Unlike many countries, the U.S. does not mandate paid parental leave.
Meanwhile, families incur additional expenses like diapers, food, and medical costs. From 1991 to this spring, the cost of daycare and preschool education has almost doubled inflation rates. According to a 2023 report from the Department of Labor, infant care costs in big cities may exceed $1,400 per month.
Under current law, most families can receive a maximum child tax credit of $2,000 per child under 17. Families with income below $2,500 do not qualify for the credit.
Reducing childcare costs is important for average families. During the pandemic, the temporary expansion of the child tax credit benefited 2.9 million children. Single filers earning less than $75,000 and married couples earning less than $150,000 can receive the full credit, up to $3,600 per child.
Families use this money for essentials like groceries, housing, and utilities. About a quarter of households with young children, according to the Household Pulse Survey by the Census Bureau, use this money for childcare costs.
Former President Donald Trump has a history of reducing childcare costs, as Congress expanded the child tax credit during his presidency. In his first term, he proposed paid parental leave, but faced criticism as his proposal excluded fathers. Once in office, he sought $10 billion in childcare funding and, at the urging of his daughter and policy advisor Ivanka, crafted a parental leave policy.
Congress rejected these proposals, but Trump successfully doubled the child tax credit and established paid leave for federal employees. However, he did not present a plan to further reduce childcare costs in his second term.
During a presidential debate in June, CNN host Jake Tapper twice asked Trump what measures he would take to reduce childcare costs. Both times he did not answer, diverting to other topics. His campaign platform also lacked specific details in this regard.
However, his running mate, Ohio Senator J.D. Vance, has long advocated for policies that encourage American families. Some of his plans include giving parents with children more voting power than those without.
Just this month, Vance expressed his desire to increase the child tax credit to $5,000. He opposes government spending on childcare, believing that as long as one parent is at home, many children can be cared for.
Vice Presidential nominee Kamala Harris expressed her plans to build upon the Biden administration’s efforts. During a speech at a community college in North Carolina earlier this month, she stated her vision to raise the child tax credit to $3,600 and provide more subsidies to families with newborns – $6,000 in the first year of a child’s birth.
During her tenure as Vice President, Harris worked behind the scenes in Congress to push Biden’s proposals for national paid family leave, universal pre-K education, and investing billions in childcare to ensure that families do not pay more than 7% of their income.
Her running mate, Tim Walz, has a strong record in implementing policies to ease the burden on families. As Governor of Minnesota, he established paid leave and child tax credit systems.
Though the specifics of Harris’s proposal are not yet clear, the conservative Tax Foundation estimates that the total cost of the newborn bonus and expanded child tax credit she mentioned could reach $1.6 trillion over the next decade.