Under the American Rescue Plan, President Biden proposed expanding the existing child tax credit (CTC) to make it fully refundable, both increasing the benefits families receive and allowing families to receive increments of the benefit monthly.
To support child care through COVID and to ensure a robust recovery and an equitable economy in the future, child care requires at least $50 billion in direct public spending to support providers and families.
The coronavirus has revealed and worsened racial inequities across the child care sector. This report explains the origins of long-standing inequities in early education, examines how the coronavirus pandemic has exacerbated them, and offers recommendations for how stakeholders can address them to build a fairer system.
The impact of the pandemic on child care has already been extensive, and the system is struggling to survive. The federal government should allocate $50 billion in relief funds for child care in the next coronavirus package.