Sponsors (2)
The bill increases access to and transparency around employer-provided child care benefits—helping families, employers, and policymakers—while adding federal staffing and raising risks of reduced hiring transparency and IRS resource diversion.
Parents and families (especially middle-class families) will get clearer, easier access to information and assistance to use employer-provided child care benefits (Dependent Care FSAs and the section 45F credit), likely increasing take-up and financial support for childcare.
Tax preparers and taxpayers will receive an official preparer fact sheet listing tax benefits and rules for employer-provided child care, reducing filing errors and improving compliance.
Small-business owners and employers will receive targeted outreach and coordination with the IRS and other federal agencies to adopt or expand employer-provided child care benefits, lowering barriers for employers to offer these benefits.
Federal hiring rules for the Liaison office would be waived (competitive service and SES appointment rules), reducing hiring transparency and potentially weakening merit-based selection within the federal workforce.
Mandating IRS involvement and public outreach to promote employer-provided child care could divert IRS resources from core tax administration, potentially reducing efficiency or enforcement in other IRS functions.
Creating a new Executive Schedule–level position and associated staff increases federal administrative costs and raises spending borne by taxpayers.
Based on analysis of 4 sections of legislative text.
Creates an IRS Business Child Care Liaison to improve outreach, employer coordination, SAM.gov linking, and annual reporting on Dependent Care FSAs and the child care credit.
Introduced March 12, 2026 by Margaret Wood Hassan · Last progress March 12, 2026
Creates a new Business Child Care Liaison position inside the IRS to help employers, payroll providers, tax preparers, and taxpayers better use Dependent Care Flexible Spending Accounts (FSAs) and the child care tax credit. The Liaison will run an office, do outreach and education, facilitate employer–IRS communications, post a landing page link on SAM.gov within 120 days, and deliver annual public reports with utilization data and recommendations.