Walorski Introduces Bill to Help Working Families Access Child Care

Wednesday, July 1, 2020

Walorski Introduces Bill to Help Working Families Access Child Care

Would Allow Parents to Contribute More to Dependent Care FSA for Child Care Expenses, Roll Over Unused Funds

WASHINGTON – U.S. Rep. Jackie Walorski (R-Ind.) today announced the introduction of legislation to provide working families more flexibility to pay for child care by allowing parents to contribute more to their employer-sponsored dependent care flexible spending account (FSA) and roll over remaining funds to the following year.

“Hoosier workers and families are facing unprecedented challenges amid the coronavirus pandemic, and access to child care is among parents’ biggest concerns,” Congresswoman Walorski said. “As we work to safely reopen and rebuild our economy, we need to find commonsense solutions that empower working families and help them thrive. Giving parents more flexibility to save their hard-earned money for critical child care expenses will make it easier for them to navigate these uncertain times.”

BACKGROUND

H.R. 7436, the Working Families Childcare Access Act, would allow parents to contribute up to $15,000 per year to their employer-sponsored dependent care FSA. It would also allow any funds remaining at the end of the year to be rolled over to the following year without penalty.

A dependent care FSA is a cafeteria plan benefit that allows pretax dollars to be used to pay for dependent care services. Eligible expenses include preschool, summer day camp, before or after school programs, and child or adult daycare. Currently, annual contributions are limited to $5,000, and any unused funds are forfeited at the end of the year.

Congresswoman Walorski, the top Republican on the Ways and Means Subcommittee on Worker and Family Support, recently spoke at a subcommittee hearing about the importance of access to affordable, high-quality child care for working families as America’s economy safely reopens. More information on the hearing, including video of Walorski’s opening statement, is available here.

Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Ways and Means Committee.

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