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Sen. Katie Britt Highlights Child Care Wins in Working Families Tax Cuts Act at Tax Day Press Conference

April 15, 2026 - WASHINGTON, D.C. - U.S. Senator Katie Britt (R‑Ala.) joined Senate Finance Committee Chairman Mike Crapo (R‑Idaho) and several Republican colleagues on Tax Day to spotlight what they described as major victories for working families secured in the historic Working Families Tax Cuts (WFTC) Act. The press conference emphasized provisions aimed at lowering costs, expanding opportunity, and modernizing long‑stagnant child care tax policies.

Britt appeared alongside Senators Deb Fischer (R‑Neb.), Marsha Blackburn (R‑Tenn.), Bernie Moreno (R‑Ohio), Ashley Moody (R‑Fla.), and Roger Marshall (R‑Kan.) to outline how the legislation delivers updated tax relief for parents and employers for the first time in decades.

First Major Child Care Tax Credit Updates in a Generation

Senator Britt played a central role last year in securing long‑awaited reforms to federal child care tax credits through the Senate reconciliation bill. Those updates-now included in the WFTC Act-modernize three key programs:

- Child and Dependent Care Tax Credit (CDCTC)

- Dependent Care Assistance Program (DCAP)

- Employer‑Provided Child Care Tax Credit (Section 45F)

Britt noted that DCAP had not been updated since 1986, when President Ronald Reagan was in office. The WFTC Act raises the allowable pre‑tax set‑aside from $5,000 to $7,500, a more than 50% increase.

"We took a look at DCAP. DCAP used to be $5,000, and it's been that way since 1986," Britt said. "We updated that for the very first time with over a 50% increase, now allowing parents to set aside $7,500 that they can use."

She also highlighted that the CDCTC had not been adjusted since 2001, and the legislation increases the credit by roughly $900 for eligible families. Section 45F, which incentivizes employers to help provide childcare options, was also updated for the first time in more than two decades.

Expanding Access Through Public‑Private Partnerships

Britt emphasized that the reforms are designed to encourage collaboration between employers, communities, and families-particularly in rural and small‑business settings.

"That's where we're taking a look and saying, how can we have a collaboration, public‑private partnerships, how can we make sure that everyone has a seat at the table as we work to address this in a responsible way?" she said.

For the first time, small businesses can now participate in the employer‑provided childcare credit, pooling up to $600,000 in resources. Britt said this change is especially meaningful for rural industrial parks and Main Street businesses that struggle to attract workers due to limited childcare availability.

"If you think about an industrial park there in rural America that's trying to figure out how do we get workers here and be able to create a sustainable environment where they know their children are being loved? This can do that," she said.

Impact on Women and Workforce Participation

Britt also pointed to the broader economic implications of childcare affordability, noting that workforce participation-particularly among women-has been significantly affected.

"[W]e lost 455,000 women from the workforce last year, from January to August of 2025," she said. "We know that this affects parents, both men and women, but we know it disproportionately affects women."

She argued that improving access to childcare is essential to ensuring that every American who wants to work and pursue their goals has the opportunity to do so.

"We want to make sure that every person who wants to achieve their American Dream has that opportunity. So, I am proud of the work that we have done," Britt said.

Looking Ahead

Republican senators at the event framed the WFTC Act as a major step toward easing financial pressures on families and strengthening the workforce. The updated child care provisions-many untouched for decades-represent a significant structural shift in how federal tax policy supports working parents.

 
 

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