Dependent Care Assistance Program
Overview
The dependent care assistance program (DCAP) is an employee benefit plan – or a flexible spending plan – that helps employees pay for the care of a qualifying dependent.
The program provides reimbursements for up to $5,000 annually ($2,500 each for married couples filing separately) to employees who pay for dependent care. Employees are then allowed to deduct these dependent care expenses from their paycheck on a pre-tax basis, which can include an employer contribution.
DCAP helps parents afford child care by offseting the costs of going to work and providing for their families. It is critical that Congress expand this tax provision to support businesses and parents.
Top
Resources
FFYF Capsule Collection: Tax Policy and Child Care
Millions of American families today are struggling to find the affordable, reliable, quality child care they depend on to go to work. This has a devastating impact on our youngest …
Dependent Care Assistance Program (DCAP): Overview
Millions of American families are struggling to find quality, reliable, affordable child care they can depend on. This is having a devastating impact on our youngest learners, working families, and …
The First Five Things to Know About: The Britt-Kaine Bipartisan Child Care Plan
First Introduced: July 2024 Reintroduced: March 2025. Parents want to make child care choices that best support their family’s individual needs and their child’s development. This is especially true for …
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Two Bipartisan Bills to Address Quality, Affordability of Child Care introduced in Congress
Last week, Iowa’s Congressional leaders introduced two bipartisan bills, the ACCESS Act and the Improving Child Care for Working Families Act, to address the quality and affordability of child care. …
New Bipartisan, Bicameral Proposal to Make Child Care More Affordable
U.S. Senators Katie Britt (R-AL) and Tim Kaine (D-VA) along with U.S. Representatives Mike Lawler (R-NY) and Salud Carbajal (D-CA) have introduced the Child Care Availability and Affordability Act and …
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