Respect Parents’ Childcare Choices Act

This bill changes how federal child care aid is delivered so parents have more say. States would have to give most help as vouchers (called child care certificates) that families can use with the provider they choose, moving 90% of direct services to vouchers . Parents could use vouchers to pay a grandparent, aunt, uncle, or adult sibling; in some cases, a married couple could get a payment when one parent stays home to care for their own child if the family meets work and income rules. States must clearly tell families about these options and review any rules that make it hard for relatives to provide care. They must also pay relatives at least 75% of the local rate paid to family child care providers. If an unmarried parent marries and the new household income goes over the limit, the state must keep aid in place for at least six months. States are not required to use grants or contracts to deliver services; the focus is on vouchers .

It also adds protections for religious child care providers. States cannot put extra burdens on them compared with other private providers. Religious providers can keep their names, symbols, and mission, and may hire based on their beliefs; existing legal exemptions still apply, and providers can sue to enforce these rights and seek attorney’s fees . The bill orders a federal report within one year on rules that reduce the number of relative caregivers and sets up two 2-year pilot grant programs: one to grow care by relatives and one to prevent fraud by verifying eligibility and relationships, with $50 million for each program. Finally, it repeals the federal tax credit for child and dependent care expenses by striking section 21 of the tax code, effective for tax years beginning after enactment, and makes related technical changes .

Key points

• Who is affected: Parents seeking child care help, grandparents and other relatives who provide care, religious child care providers, and families who have claimed the child and dependent care tax credit .
• What changes: Moves most aid to parent-held vouchers (90% of direct services), sets a floor for paying relatives (at least 75% of local family child care rates), keeps aid for 6 months after a marriage increases income, and requires clear notices and periodic reviews of rules that burden relatives .
• Provider rules: Protects religious providers from extra state requirements and lets them keep their religious identity, practices, and hiring standards; allows lawsuits to enforce these rights .
• Program tests: Creates two 2-year pilot programs—one to boost relative caregiving and one to reduce fraud—each with $50 million; also requires a report within one year on barriers to relatives providing care.
• Taxes: Ends the federal child and dependent care tax credit for tax years starting after the law takes effect .