Biden to Sign Executive Order Aimed at Reducing Cost of Child Care and Long-Term Care

President Joe Biden announced an executive order in the Rose Garden on April 18 designed to increase access to and lower the costs of long-term care and child care, and support care workers and family caregivers the White House said in a statement.

Calling it the most “comprehensive set of executive actions any president has ever taken to improve care,” the White House reported in a fact sheet that the order includes more than 50 directives across almost every Cabinet-level agency.

The cost of child care is “up 26 percent in the last decade and more than 200 percent over the past 30 years” and costs for the elderly or people with disabilities have increased 40 percent over the last decade, the fact sheet said.

“The result is many Americans—particularly women—stay out of the workforce to care for their families, making it hard for businesses to attract and retain a skilled workforce and for the economy to grow,” the fact sheet said.

A Boston Consulting Group study shows that the Gross Domestic Product will lose $290 billion each year in 2030 and beyond if the United States does not improve the lack of affordable childcare, the according to the fact sheet.

“At the same time, many workers providing this critical care find themselves in low-paying jobs with few benefits. Care workers, who are disproportionately women of color, struggle to make ends meet, and turnover rates are high,” the White House said. “In addition, at least 53 million Americans serve as family caregivers—including over 5 million caring for service members or veterans—and many face challenges due to lack of support, training, and opportunities for rest.”

Move to Make Childcare More Affordable

The Biden administration “called for investments to support high-quality, affordable child care, preschool, and long-term care in their fiscal year 2024 budget,” the White House noted.

“While Congress considers those proposals, the president is taking immediate action to make care more affordable for American families, support family caregivers, boost compensation and improve job quality for care workers, and expand care options,” the fact sheet added.

The fact sheet reported that the White House is urging federal agencies to “identify which of their grant programs can support child care and long-term care for individuals working on federal projects, and consider requiring applicants seeking federal job-creating funds to expand access to care for their workers.”

The order would also direct the Department of Defense to initiate steps to enhance the affordability of childcare on military installations.

Under the order, the Office of Personnel Management is tasked to “conduct a review of child care subsidy policy and consider setting standards for when and how federal agencies should provide child care subsidies to federal employees.”

Federal agencies will review opportunities to “expand employee access to childcare services through federal childcare centers, childcare subsidies, or contracted care for providers,” according to the order.

Biden plans to expand requirements incorporated in the CHIPS and Science Act earlier in 2023, mandating that manufacturers offer employees childcare to qualify for subsidies of $150 million and above.

The Department of Health and Human Services (HHS) will be asked to determine how to lower or eliminate costs for families under the Child Care & Development Block Grant (CCDBG), a program that helps subsidize care for low-income families.

In the budget passed at the end of 2022, the CCDBG received a 30 percent increase in funding.

Proposed Helps for Veterans

Biden is asking the Department of Veterans Affairs to expand the Veteran Directed Care program, which allows veterans to hire health aides to receive care in their own homes, rather than in more institutional facilities like nursing homes.

Through the program, veterans can select their own care staff instead of an agency choosing staff for them. The program also allows family caregivers to potentially receive pay for their work if the veteran hires them.

Other provisions target supporting the nation’s 43.5 million caregivers, including a recommendation encouraging HHS to test a new dementia care model that includes respite care for family caregivers of people with dementia.

Usually provided by an agency, respite care is short-term care to allow family caregivers the time they need to rest and recharge.

The Biden administration is also requesting that HHS streamline the process that involves applying for childcare assistance to build or improve childcare facilities on tribal lands.

The White House said that an estimated 500,000 American Indian and Alaska Native children un