Bills · HR 5558
IN COMMITTEE· 119TH CONGRESS
House BillHR 5558Taxation
Improving Child Care for Working Families Act of 2025
INTRO SEP 23· LAST ACTION SEP 23
READING
1MIN
COSPONSORS
7
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
- Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law
WHAT THE BILL DOES
AI-writtenThis bill matters because child care is a major expense for many working families, often costing thousands of dollars per year. By increasing the amount of money that can be set aside for child care with pre-tax dollars, the bill effectively gives families a tax break, allowing them to keep more of their earnings.
If this bill becomes law, families who use employer-provided dependent care assistance programs could reduce their taxable income by an additional $3,000, leading to more disposable income. If it doesn't become law, the current $7,500 limit remains, meaning families continue to pay taxes on income that could otherwise be used for essential child care expenses, offering less financial relief from these high costs.
KEY PROVISIONS
3AI-extractedPROVISION 01
Increases the maximum exclusion for Dependent Care Assistance Programs (DCAPs) from $7,500 to $10,500.
This allows families to put an additional $3,000 of their income towards child care without it being subject to federal income tax.
PROVISION 02
Adjusts the maximum exclusion for married individuals filing separately from $3,750 to half of the new $10,500 limit, which is $5,250.
This maintains the proportional benefit for individuals who file separately while reflecting the overall increase in the exclusion limit.
PROVISION 03
Applies the new limits to amounts paid or incurred in calendar years beginning after the bill's enactment date.
This sets a clear start date for when families can begin to take advantage of the increased tax benefit.
SPONSORSHIP
1 + 7
D· Washington
YRS IN OFFICE
7
BILLS LED
23
COSPONSOR BREAKDOWNBIPARTISAN · 29%
DEM 6 REP 1 IND 0
ACTION TIMELINE
2 EVENTSSEP 23
Introduced in House
SEP 23
Referred to the House Committee on Ways and Means.
BILL INFO
TypeHouse Bill
NumberHR 5558
Congress119th
StatusIn Committee
IntroducedSep 23, 2025
Last actionSep 23, 2025
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IN COMMITTEE· 119TH CONGRESS · WAYS AND MEANS COMMITTEE · INTRODUCED SEP 23, 2025
House BillHR 5558Taxation
Improving Child Care for Working Families Act of 2025
INTRODUCED SEP 23, 2025· LAST ACTION SEP 23, 2025
PASSAGE CHANCES
—%
READING
1 min
COSPONSORS
7
COMPLEXITY
Moderate
