The Biden administration intends to cut childcare expenses by limiting the amount that families must pay. Reports say the program will see to it that families will not pay more than 7% of their income for childcare expenses.
On July 11, U.S. Vice President Kamala Harris announced limiting the amount that families must pay for childcare expenses through the Child Care And Development Block Grant Program. Following an executive order signed by U.S. President Joe Biden last April, Harris explained the specifics of the proposal from the Department of Health and Human Services.An article in PBS states that through the Child Care And Development Block Grant Program, families would not pay more than 7% of their income for childcare expenses and childcare providers will have it easier getting paid on time. In addition, the Child Care And Development Block Grant Program intends to encourage U.S. states to allow families to apply for childcare online.
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Save Funds Under the Child Care And Development Block Grant Program
According to an article in Reuters, in 2016, the federal government set 7% of household income as the benchmark for affordable childcare expenses. However, only 14 U.S. states adhered to this standard. To date, the Child Care And Development Block Grant Program assists 1.5 million children.
Due to the proposed limit in the Child Care And Development Block Grant Program, around 80,000 families would be able to pay less for childcare expenses as the rule also exempt families who earn at or below 150% of the federal poverty level.