Squadron, O’Donnell Introduce “Childcare Advance” in Assembly

First-of-its-Kind "Childcare Advance" Allows Annual $2K in Tax-Deferrals for Childcare Costs, Interest-Free Repayments

Squadron, O'Donnell's Childcare Advance Could Help 134,000 NY Families A Year

NEW YORK — Today, State Senator Daniel Squadron and Assemblymember Daniel O'Donnell announced introduction of the "Childcare Advance" into the Assembly. The Childcare Advance (S.6714/A.9699) would allow families to defer $2,000 in state taxes annually to help offset costs of work-related childcare for young children, while increasing economic activity and allowing parents to continue working. Once children are school-age, families would begin interest-free repayments of those deferrals, spread over up to 10 years.

Squadron and O'Donnell's Childcare Advance is a first-of-its-kind, innovative use of the state tax system to help spread out the high costs of childcare, which can be crushing during key early childhood years. It is estimated that 134,000 families would likely use the Childcare Advance yearly. Because it is a deferral of taxes, its cost to the State would reduce each year, even though benefits would continue to be available for all eligible families each year.

"Any new family knows what a challenge childcare costs are. The Childcare Advance is an innovative way to help families cope in the critical, and expensive, early years," said State Senator Daniel Squadron. "I urge the Legislature to build upon Paid Family Leave by passing the Childcare Advance, along with increasing childcare subsidies. I am pleased Assembly Member O'Donnell is carrying this legislation, and thank my colleagues in the Democratic Conference for the continued push to help make it easier to raise a family in New York."

"I often hear from my constituents about the unexpectedly high costs associated with having a new child, particularly the cost of quality childcare. I am proud to sponsor this important legislation in the Assembly which would allow families to take an interest-free loan from the state to cover some of those expenses. This legislation is an innovative approach to helping families remain in the workforce while helping families pay for affordable care for their children. It is a win-win for families and the state." said Assembly Member O'Donnell.

The proposal was first put forward by Squadron in "Pre-Natal to Pre-K: Supporting New York's Families," a white paper released by the Senate Democratic Conference and Senate Democratic Policy Group, which Squadron chairs.