U.S. Senators Dan Sullivan of Alaska and Maggie Hassan of New Hampshire introduced legislation on March 13 to help more employers offer child care support by creating a business child care liaison within the Internal Revenue Service. The proposed liaison would coordinate between the IRS, businesses, child care providers, advocates, and government agencies to improve understanding and use of federal tools that assist working families with child care.
The issue is significant as many families struggle to find affordable and reliable child care, which affects workforce participation and economic growth. According to Sullivan, “Quality child care is not only essential for the well-being of families, it is also key to a thriving economy and a strong workforce.” He said that in Alaska, 61 percent of residents live in communities considered child care ‘deserts,’ making access especially difficult.
Hassan said, “We need to make sure that businesses are able to take advantage of every available tool to help their workers afford child care.” She added that the bipartisan bill aims to simplify federal tax incentives for businesses so they can better invest in employee child care needs.
The legislation builds on provisions from the Working Families Tax Cuts Act passed in July, which expanded employer-supported child care tax credits and increased Dependent Care Flexible Spending Accounts. Supporters include organizations such as Alaska Children’s Trust, Thread, YMCA Alaska, All Alaska Pediatric Partnership (A2P2), U.S. Chamber of Commerce, New Futures in New Hampshire, Early Learning NH, First Five Years Fund, Child Care Aware of America, Buffett Early Childhood Institute at the University of Nebraska, Executives Partnering to Invest in Children (EPIC), Moms First, and Early Care and Education Consortium. Trevor Storrs of Alaska Children’s Trust said the bill gives employers “the clear guidance and partnership they need” while Stephanie Ferguson Melhorn from the U.S. Chamber of Commerce called it a way for businesses “to leverage the employer-provided child care credit and other existing incentives.”
Sullivan serves as a Republican U.S. senator representing Alaska according to the official website. His public service includes work across Washington D.C. and Alaska with offices supporting constituents on federal matters according to the official website. He holds membership on Senate committees such as Commerce; Armed Services; Environment and Public Works; and Veterans’ Affairs according to the official website.
Supporters say this legislation could help turn underused tax incentives into real options for working families nationwide. As Radha Mohan from Early Care and Education Consortium said: “This bill will ensure recent enhancements…are fully realized…By creating a Business Child Care Liaison at the IRS…this bill will help turn underused tax incentives into real child care options for working families.”
