Gottheimer announces new legislation to make childcare more affordable for New Jersey families
LITTLE Act helps families afford childcare and supports local entrepreneurship
NEW JERSEY – U.S. Congressman Gottheimer Tuesday announced The Lowering Infant and Toddler Tuition for Learning and Education Act outside Little Learners Childcare Center.
The LITTLE Act expands the child tax credit and lowers barriers for entrepreneurs to provide more childcare options for families.
This legislation builds on Gottheimer’s “Childcare Affordability Plan,” which also aims to make life more affordable by reinstating the full SALT deduction.
Skyrocketing Childcare Costs:
- New Jersey lost 250 childcare centers during the pandemic from 2020 to 2021 during the Pandemic
- The US Department of Labor reports childcare prices can reach higher than $19,500 a year in New Jersey for infant care and more than $17,000 for four-year-olds. Since 2019, the average cost of childcare rose with New Jersey residents spending up to $442 a week on childcare – the second most expensive in the country.
- Childcare costs have increased 223% between 2000 and 2022, while the average family income has only increased 182%
- For a minimum wage earner in New Jersey, childcare can cost more than fifty percent of their annual salary.
Gottheimer’s New Legislation, the LITTLE Act, will:
- First, the LITTLE Act will more than double the Child and Dependent Care Tax Credit to $7,500 for one child, and $15,000 for two or more.
- That’s up from $3,000 and $6,000, respectively.
- This refundable credit will also be tied to inflation.
- Second, the LITTLE Act will create a new tax credit for start-up childcare centers to ensure families have access to more affordable childcare.
- Third, this legislation continues the fight to make life more affordable by building on critical wins against the Congestion Tax, restoring SALT, and supporting local businesses with R&D tax credits.
“You can see why childcare costs have become a huge obstacle to working. When moms and dads can’t afford to work, it costs them and our economy. Jersey parents are expected to lose more than $378 million dollars in earnings as a result of being forced to cut work hours or leave the workforce altogether to care for their children,” Gottheimer said. “Imagine the upside for our parents and Jersey’s economy if we can find more affordable childcare for their children. The bottom line: we must do everything we can to make childcare — and life for parents — more affordable, so moms and dads can work and our kids can continue to thrive.”
“In March of 2020 Little Learners reached its highest capacity of 70, and with an additional 4 starting and 18 incredible, amazing staff members I had. Then covid 19 reached our area, and put things at a standstill, leaving us with no choice but to close for the safety and well-being of our families and the children and staff,” said Little Learners Owners Dawn Cleveland. “After being closed for 45 days, Little Learners reopened with only seven children and four staff members. Four years later, Little learners is still trying to recoup the huge loss to the program.”
“Without continued investment in our childcare infrastructure from the federal government, the long term viability of our childcare industry is at risk. Thank you Congressman for listening to our concerns and taking action by proposing solutions to help solve this crisis that is having a negative impact on our children, families, the state, and our economy,” said Diane Dellanno of Advocates for Children of New Jersey.
“Congressman Gottheimer’s supportive legislation will assist in reducing the cost of childcare, will give more parents like me, families like mine, the opportunity to grow and provide a better future for our children” said Liz Vasquez, a Mom from Little Learners Child Development Center.
Congressman Gottheimer was joined by Assemblywoman Shama Haider (LD-37), Bergen County Commissioner Rafael Marte, Dawn Cleveland, Owner and Director at Little Learners Child Development Center, Diane Dellanno, Policy Analyst at Advocates for Children of New Jersey, and Elizabeth Vasquez, Mom from Little Learners Child Development Center.
