WASHINGTON — Sen. Kelly Loeffler (R-Ga.) recently announced the introduction of new legislation, the Working Families Childcare Access Act, improving access to tax relief for childcare expenses. The bill would make a number of reforms to current tax law regarding Dependent Care Cafeteria Plan Flexible Spending Accounts (FSAs), raising contribution limits and eliminating the annual “use-or-lose” rule which applies to contributed funds.
American Principles Project has declared its endorsement of the plan and is encouraging lawmakers to support it. You can read APP’s full vote recommendation here.
In response, Terry Schilling, executive director at American Principles Project, also released the following statement praising the bill:
It’s no secret that working families are facing enormous challenges right now in America. Given the devastating impact that the COVID-19 pandemic has had on so many families financially, there is a critical need for lawmakers to step forward and find new solutions to support them. Fortunately, Sen. Loeffler is answering that call with her new legislation, the Working Families Childcare Access Act.
Among the bill’s provisions is an important proposal that would expand access for families to Dependent Care Cafeteria Plan Flexible Savings Accounts (FSAs). Only about 1.5 million taxpayers (out of 146 million) participated in these FSAs last year, despite the tremendous benefit they offer in allowing parents to defray costs related to childcare. To help make participation easier, Sen. Loeffler’s legislation would eliminate the use-it-or-lose-it rule which prevents plans holders from carrying over a balance year-to-year and increase annual contribution limits from $5,000 to $15,000.
This is exactly the type of innovation and common sense we need more of in Washington. APP commends Sen. Loeffler for her leadership, and we fully endorse this proposal to provide a much needed boost in support for America’s working families.
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