BIDDEFORD, ME – Today, U.S. Senator Angus King (I-Maine) toured the St. Louis Child Development Center in Biddeford, where he met with local parents and staff to discuss the challenges of paying for childcare and the importance of access to high-quality early learning experiences. During that discussion, Senator King outlined the bipartisan legislation he recently introduced that would make childcare more affordable for Maine’s working families.

“With rising childcare costs, it is becoming harder and harder for parents to balance their responsibilities at home and at work. Great organizations like St. Louis Child Development Center here in Biddeford are stepping up to help out, but some federal policies just aren’t keeping up with the needs of working families,” Senator King said. “The PACE Act would expand an existing federal tax credit to make childcare more affordable for families across Maine, and it would help make staying at work a little easier for parents – a win for kids, families, and the economy.”

In July, Senator King joined forces with Senator Richard Burr (R-N.C.) to introduce the Promoting Affordable Childcare for Everyone (PACE) Act. The bipartisan bill would expand the Child and Dependent Care Tax Credit to provide families with greater spending power when seeking care for their children. According to the Economic Policy Institute, for nearly half the country the annual cost of full-time childcare for a 4-year old is greater than the average cost of in-state tuition at a four-year college or university. That financial pressure impacts low-wage workers even more, with poor working families spending on average more than 30 percent of their income on childcare.

The federal government provides a tax benefit, known as the Child and Dependent Care Tax Credit, to help offset the cost of childcare, but it’s in need of modernization. Not only has the credit’s value failed to keep pace with inflation, meaning its value has substantially eroded over time, but it also is ineffective for low-income families because it’s not refundable. The PACE Act would modernize the tax credit by increasing its value and expanding its reach, helping lower the cost of childcare for working families and allowing parents to focus on keeping or finding a job. The bill would also support families who make use of a separate tax benefit, Dependent Care Flexible Spending Accounts, by increasing their annual contribution limits.

The PACE Act is part of Senator King’s anti-poverty, pro-workforce agenda – an effort that also includes his EMPOWER Act and LADDER Act. The goal of this agenda is to improve federal government programs to help lift Americans out of poverty, put them back into the workforce, and reduce reliance on government assistance programs.

A program of Catholic Charities, the St. Louis center provides high-quality care to young children, regardless of income, in a learning environment that is developmentally appropriate, nurturing, and safe.

Photo 1: Senator King reads to children at the St. Louis Child Development Center in Biddeford.

Photo 2: Senator King meets with parents and children at the St. Louis Child Development Center in Biddeford. 

Photo 3: Senator King meets children at the St. Louis Child Development Center in Biddeford. 

###