Letter to Incoming Administration Urging Expansion of CDCTC

First Five Years Fund (FFYF) and 127 national and state organizations have sent a letter to President Elect-Trump urging his administration to work with Congress and support working families’ access to affordable child care by expanding the Child and Dependent Care Tax Credit (CDCTC).

From the letter: 

“With the expiration of several provisions of the Tax Cuts and Jobs Act (TCJA) in 2025, Congress and your Administration have the opportunity to modernize the credit to better serve more families by increasing the value of the credit, indexing it to inflation, and making it refundable. Therefore, we encourage you to prioritize the needs of working families by including expansion of the CDCTC in the Administration’s budget and making these improvements to the credit a top priority in any negotiated tax package that moves in the next Congress.”

The CDCTC is the only tax credit that is specifically designed to offset the cost of child care. In practice, the average family who claims the CDCTC receives approximately $600 per year, which does not even cover one month of child care costs for the majority of families. The credit has not been permanently updated since 2001, which means it has lost purchasing power over the last 23 years.

The full letter and signatories are below.

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