Indian American Representative Ro Khanna (CA-17), co-Chair of the Congressional Bipartisan Affordable Child Care Caucus, introduced the Child Care for America Act, on October 1, 2024, aiming to reduce child care costs to $10 per day for families, and raise the minimum wage for child care workers to $24 per hour.
According to a statement from Rep. Khanna’s office, currently, the average cost of infant care exceeds $12,000 annually, and child care workers earn a median wage of just $14.60, leading to high turnover and shortages. The proposed $780 billion, 10-year plan would fund traditional child care settings, support stay-at-home parents, and provide compensation for kin caregivers, drawing inspiration from similar programs in Canada and Massachusetts.
“Child care is an essential need for almost all parents, yet it’s out of reach for the majority of hard-working Americans. With a perfect storm of high costs, limited access, and a shortage of child care workers, parents are struggling. We have to establish a child care model where parents are not forced to sacrifice their career or dip into their savings to pay and workers are paid a family-supporting wage,” he said in the statement. “The Child Care for America Act will provide families with affordable, flexible options to meet their needs – whether that’s traditional child care settings, support for stay-at-home parents, or compensation for kin caregivers.”
Senior Fellow at the family policy think tank Capita, Elliot Haspel, emphasized, “Rep. Khanna has introduced the boldest federal child care plan to date. The Child Care for America Act hits the marks on affordability, accessibility, quality, and choice. It finally establishes child care as the critical social and economic infrastructure it is, reflecting the fact that all Americans –– whether or not they have children –– need the nation to have a strong child care system.”
According to the statement, the Child Care for America Act also includes:
Child Care Facilities Fund: $2 billion annually to support improvements and expansion of child care infrastructure.
Child Care Innovation Fund: provides $250 million annually to encourage creative approaches to increasing child care supply and quality, particularly in underserved areas.
The Stay-at-Home Parent Child Care Stipend Program: allocates $6 billion annually to provide a monthly stipend of $300 per child under the age of 3 to eligible families who opt out of using external child care services.
The Kin Care for Family, Friend, and Neighbor (FFN) Program: This program establishes a framework for compensating close family members – initially grandparents, aunts, and uncles – who regularly provide primary child care.
