Capito, Klobuchar Introduce Legislation to Preserve Childcare Savings Lost During Coronavirus Pandemic
U.S. Senators Shelley Moore Capito (R-W.Va.) and Amy Klobuchar (D-Minn.) introduced the COVID-19 Dependent Care Flexible Spending Arrangement Rollover Act, which will prevent families from losing funds for child care services that go unused because of the coronavirus pandemic. Dependent care assistance plans (DCAPs) allow working parents to set aside pre-tax income to cover costs of child care, but the tax benefit does not roll over to the next calendar year if not used. Many childcare providers were closed for months during the coronavirus pandemic.
The bill serves as the Senate companion to the COVID-19 Dependent Care Flexible Spending Arrangement Rollover Act of 2020, previously introduced by Representatives Cindy Axne (D-Iowa) and Pete Stauber (R-Minn.).
"This is a common-sense bill that ensures families aren't unfairly penalized because of the COVID-19 pandemic, which forced child care centers to close," Senator Capito said. "Securing child care so people can go back to work is a major part of our country's economic recovery, and we should help those with DCAPs transition back to work more easily with this saving rollover."
"Child care providers across the country have had to close their doors as a result of the coronavirus pandemic, and without action, the funds families previously set aside to pay for their services could be lost by the end of the year," Senator Klobuchar said. "Allowing unspent childcare assistance plans to roll over to next year is a commonsense solution to ensure that parents and families aren't needlessly penalized during this public health crisis."