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Vice President Kamala Harris recently dropped a bombshell that has parents everywhere perking up their ears: a plan to cap child-care costs at 7% of a family’s income. Sounds like a dream, right? But as with anything in politics, there’s more to this story than meets the eye.
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Let’s break it down and see what the experts have to say about this potentially game-changing proposal.
Also see what Harris’ “opportunity economy” might look like.
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What’s the Big Idea?
At an event in Philadelphia with the National Association of Black Journalists, Harris announced her intention to limit child-care costs for working families to 7% of their income.
“My plan is that … no working family should pay more than 7% of their income in child care,” she said.
Why? Well, as Harris puts it, “When you talk about the return on that investment, allowing people to work, allowing people to pursue their dreams in terms of how they want to work, where they want to work, benefits us all.”
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Hasn’t This Been Promised Before?
If this sounds familiar, you’re not experiencing déjà vu. Adnan Rasool, associate professor at the University of Tennessee at Martin, reminds us.
“This is an original promise by the Biden administration, and it was supposed to work through the child tax credit being increased and made permanent,” he explained. “This was part of the legislative agenda after the American Rescue Plan passed. Now VP Harris is bringing it back and really pitching it with the updated version that promises $6,000 for the first year for a newborn with an extended child-care credit.”
So, it’s not exactly a new idea, but rather a renewed push on an earlier promise.
The Good News: Potential Game Changer for Families
Chris Bennett, CEO and founder of child-care platform Wonderschool, sees the potential in Harris’ proposal.
“While specific details for achieving this goal or how she’d pay for such a measure have yet to be shared,” he said, “her overarching plan’s promise will enable more accessible and affordable child care for U.S. families.”
Rasool adds some context to why this could be such a big deal.
“In a country where families spend a significant amount of money on child-care costs, sometimes up to 20% of their household income, the notion that max child-care costs can be capped at 7% through government support will fundamentally put more money in the pockets of average Americans,” he said. “The proposals address a serious pain point for middle class Americans.”
