Child Care Tax Benefit Outreach and Assistance Act
- Sponsor
- Rep. Kustoff, David [R-TN-8]
- Committees
- Ways and Means Committee (primary)
- Last action
- Sep 21, 2026
Bottom line
This bill aims to increase the utilization of existing federal tax benefits for employer-provided child care by creating a dedicated IRS liaison to provide outreach, education, and recommendations for policy improvements.
What it actually does
This bill amends the Internal Revenue Code of 1986 to establish a Business Child Care Liaison within the Internal Revenue Service (IRS). The liaison will be responsible for promoting employer-provided child care benefits, educating businesses and stakeholders on related tax benefits, and recommending legislative and administrative changes to increase their adoption. The role also includes coordinating with other federal and state agencies and submitting annual reports to Congress on the utilization of child care tax benefits.
Proponents argue
Supporters argue that many businesses, particularly small and medium-sized enterprises, are unaware of or find it difficult to navigate the tax benefits available for providing child care to their employees. They contend that a dedicated liaison will reduce information barriers, increase the adoption of employer-provided child care, and ultimately support workforce participation, productivity, and economic development by helping employees balance work and family responsibilities.
Opponents contend
Critics might argue that creating a new federal position and office within the IRS adds unnecessary bureaucracy and cost without addressing the fundamental financial challenges or structural issues that prevent businesses from offering child care benefits. They might suggest that existing IRS resources or private sector initiatives could achieve similar outreach goals more efficiently, or that the impact of an informational liaison on actual business behavior might be limited if the underlying economic incentives are not sufficiently strong.
The bill is very short and clearly written, making it easy for any informed reader to understand its provisions within the time typically allotted for legislative review.
Section 2, amending Section 7803 of the Internal Revenue Code of 1986 by adding subsection (g).
Establishment of Business Child Care Liaison and Support Staff
This provision mandates the Commissioner of Internal Revenue to appoint a Business Child Care Liaison within the IRS. The Commissioner has the discretion to create an office with additional support staff to assist the liaison. The appointment is made without regard to competitive service or Senior Executive Service rules, and the liaison's compensation is set at Level V of the Executive Schedule.
Supporters argue
Supporters argue that a dedicated, high-level position is necessary to ensure the IRS prioritizes and effectively executes outreach efforts for employer-provided child care benefits, signaling a serious commitment to addressing this issue.
Critics contend
Opponents might argue that creating a new, potentially politically appointed position outside of standard civil service rules could lead to inefficiencies or politicization, and that existing IRS personnel could be tasked with these duties more efficiently.
Tradeoffs
The tradeoff is between ensuring dedicated focus and expertise through a new position versus potentially increasing administrative overhead and bypassing standard federal hiring procedures.
Section 2, subsection (g)(2)
Duties of the Business Child Care Liaison
This provision outlines seven specific duties for the liaison. These include acting as a liaison among various stakeholders (IRS, businesses, advocates, state agencies, tribal organizations), providing public education on different employer-provided child care benefits (like Dependent Care Assistance Programs, Flexible Spending Accounts, on-site care), issuing a fact sheet for tax preparers, facilitating communication between businesses and the IRS on operational challenges, establishing a dedicated landing page on SAM.gov, recommending legislative and administrative changes to Congress, and coordinating with other federal and state agencies on outreach.
Section 2, subsection (g)(5)
Annual Report to Congress and Public
This provision requires the Business Child Care Liaison to submit an annual report by December 31st to the Senate Finance Committee and House Ways and Means Committee. The report must summarize assistance requests, describe activities and their effectiveness, identify problems, recommend administrative or legislative actions, and provide updated data on the utilization of child care tax benefits, including employer numbers and size breakdowns. The report must also be made publicly available.