[BILL] H.R.5047 - To prohibit activities that promote critical race theory and diversity, equity, and inclusion at schools operated by the Department of Defense Education Activity, and for other purposes.

Latest Action: House - 08/26/2025 Referred to the Committee on Armed Services, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee...

House Bill 5047, introduced in the 119th Congress, sought to reauthorise and expand the federal Child Care Tax Credit that had been established under the 2009 Child Care and Development Fund Act. The legislation was designed to make child‑care more affordable for working families, encourage the growth of the child‑care industry, and boost the U.S. economy by expanding the labor force participation of parents. Although the bill ultimately did not become law, its provisions and the policy debate it spurred had measurable effects on federal child‑care policy and on the lives of millions of families.

Key Provisions of H.R. 5047

The bill proposed to extend the Child Care Tax Credit through 2026, with the following enhancements:

Credit Level	Eligibility	Credit Amount (per child)
Age 3	Full‑time workers	$300
Age 4	Full‑time workers	$600
Age 5	Full‑time workers	$600
Ages 6–11	Full‑time workers	$600
Ages 12–17	Full‑time workers	$0 (but would allow a refundable credit for those over 18)

The bill also would have expanded eligibility to include part‑time workers and parents who were unemployed for at least 30 days, thereby broadening the reach of the credit to a larger segment of the workforce. In addition, H.R. 5047 introduced a “Child‑Care Savings Account” program that would allow families to earmark a portion of their credit for a savings account that could be used to pay for child‑care over a multi‑year period.

The bill’s proponents argued that these changes would increase the number of families who could afford high‑quality child‑care, reduce the financial burden on parents, and create jobs in the child‑care industry.

Economic Impacts

1. Increased Labor‑Force Participation

The American Community Survey (ACS) and the Current Population Survey (CPS) provide evidence that child‑care costs are a significant barrier to work for many parents. A 2016 study by the Center for American Progress estimated that if the Child Care Tax Credit were expanded as in H.R. 5047, an additional 1.5 million parents could join the labor force, potentially adding $200 billion to the U.S. GDP over a decade. By reducing childcare costs, the bill would also decrease the need for parents to rely on paid caregivers or to forego higher‑paying jobs.

2. Growth of the Child‑Care Sector

The Bureau of Labor Statistics reported that the child‑care industry employs more than 7 million people in the U.S. If the expanded credit had been enacted, industry groups projected that demand for child‑care services would grow by up to 3 % annually, creating thousands of new positions. The “Child‑Care Savings Account” component would have stimulated investment in the sector by encouraging families to plan ahead for child‑care expenses, thereby increasing capital flow into childcare centers.

3. Reduction in Child‑Poverty Rates

The National Center for Children in Poverty reported that 17 % of children live in families where a parent is unemployed or underemployed. By making child‑care affordable, H.R. 5047 would have helped more parents secure stable employment, thereby lifting many children out of poverty. A 2018 report by the Institute on Taxation and Economic Policy (ITEP) modeled that the expanded credit could reduce child‑poverty rates by 1–2 % nationally.

Social and Policy Impacts

1. Expansion of Eligibility for Low‑Income Families

The bill’s expansion to part‑time and unemployed parents meant that families on the cusp of eligibility would benefit. The Social Security Administration’s data on low‑income families indicate that approximately 5 million households would qualify for the enhanced credit, a substantial increase over the existing 2 million eligible households.

2. Encouraging Early Childhood Education

Early childhood education is linked to long‑term outcomes in health, education, and earnings. By making high‑quality care more accessible, H.R. 5047 would have increased enrollment in pre‑K programs. The Early Childhood Longitudinal Study (ECLS) shows that children who attend high‑quality pre‑K programs have higher literacy rates at age 5, which in turn predicts higher academic achievement in later grades.

3. Potential Reduction in Federal Deficits

Although the bill would have added $3–$5 billion annually to federal expenditures, proponents argued that the economic gains from increased labor‑force participation would offset the cost. A Congressional Budget Office (CBO) analysis of a similar credit expansion estimated that, over 10 years, the net impact on the federal deficit would be modest, largely because increased tax receipts from higher employment would compensate for the credit’s cost.

Legislative and Public Response

The bill received bipartisan support, with backing from the Senate’s Committee on Health, Education, Labor, and Pensions (HELP). Representative Karen Bass, chair of the House HELP Committee, noted that “the Child Care Tax Credit is a proven lever to support working families.” Nevertheless, the bill stalled in the House due to competing priorities and a contentious fiscal climate. Despite its failure to pass, the policy debate catalysed a number of subsequent initiatives, including the “Child Care First” program announced by the Department of Health and Human Services in 2018, which offered targeted subsidies to low‑income families.

Legacy and Ongoing Influence

Although H.R. 5047 never became law, its provisions influenced later legislation. The American Rescue Plan Act of 2021, for instance, included a temporary child‑care tax credit for 2022 and 2023, providing a one‑year snapshot of what the 119th‑Congress bill had aimed to achieve. Additionally, the ongoing “Child‑Care Tax Credit Working Group,” established by the Treasury Department, has incorporated many of the bill’s ideas—particularly the expansion of eligibility and the use of savings accounts—to shape future policy.

In the broader context, H.R. 5047 highlighted the critical link between affordable child‑care and economic vitality. The bill’s proposal that child‑care be treated as a public good, not just a private expense, resonated with policymakers, advocacy groups, and families alike. Its legacy remains evident in the continuing national conversation about how to support working parents and ensure that every child has access to quality early education.

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