In a surprising example of cross-party collaboration impacting working families, a Republican-led Congress managed to secure $16 billion in new child care–related tax provisions as part of President Trump’s sweeping “One Big Beautiful Bill,” despite the package heavily cutting funding for health care, food stamps, and clean energy. The legislation includes expanded benefits such as the Child and Dependent Care Tax Credit (CDCTC), enhancements to the Dependent Care Assistance Program (DCAP), and an expanded employer-provided child care credit (Section 45F). These provisions represent a rare nod from GOP leadership toward addressing child care affordability issues.
A key driver behind this shift was freshman Senator Katie Britt (R-AL), who leveraged her rising national profile—stemming in part from her high-profile advocacy on IVF access—to champion bipartisan child care reform. Working with Senator Tim Kaine (D-VA) and backed by lobbying efforts from business groups and numerous Chambers of Commerce, Britt helped persuade her Senate colleagues that delivering tangible pro-family policy was politically imperative ahead of upcoming elections.
While the expansion of these tax credits marks a policy win, it isn’t a universal one. Because the CDCTC is nonrefundable and requires families to use paid child care, low-income families—especially those who owe little or no federal tax—will benefit far less than middle- and upper-income households who already utilize such services. Progressive advocates argue this creates an uneven playing field, criticizing the measures for falling short of addressing broader equity and inclusion in child care access.