Description:
In this chapter, we describe the current economic and policy contexts facing early care and education in the United States. We discuss the reality that most children live in families in which their parents are employed, as well as the importance of high-quality early learning experiences. We propose a new subsidy system for Assuring Care and Education for Young Children (ACE subsidies, or "the Assurance" for short) that would guarantee progressively structured subsidies to low- and moderate-income working families with young children so that all families can access and afford licensed, high-quality early learning and care options. When fully implemented, ACE subsidies would replace the current Child Care and Development Block Grant (CCDBG) program. ACE subsidies would serve families with children between birth and age five years, with care for school-age children (those in kindergarten through age thirteen, who are currently served in CCDBG) shifted to out-of-school and summer programs sponsored by public schools and other service systems. In addition, we propose reforming the existing Child and Dependent Care Tax Credit (CDCTC) to support a wide range of care options and to cover children of various ages across a broader span of family incomes. With more generous subsidies and tax credits providing greater support to low-, middle-, and higher-income families, existing dependent care assistance programs (DCAPs) could be phased out. Besides promoting children's development and family financial security, our system would also streamline the existing patchwork of fragmented early care and education programs in the United States. (author abstract)
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