Biden Administration Caps Childcare Costs for 100,000 Families

The new rule aims to alleviate financial burdens and improve access to childcare, with significant changes to take effect by April 30.

The Biden Administration announces a new rule to cap childcare costs for over 100,000 families, reducing financial strain and expanding access to aid.
The rule modifies the Child Care and Development Fund, affecting an average of 1.3 million children monthly, with changes to take effect on April 30.
Families receiving childcare subsidies will see copays capped at 7% of their income, with some states encouraged to eliminate copays for vulnerable groups.
Childcare providers will benefit from being paid based on enrollment rather than attendance, ensuring financial stability and keeping more centers open.
States have until 2026 to fully implement the changes, with provisions for a two-year waiver for those undergoing substantial adjustments.