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A second, competing proposal, entitled the “Child Care Services Improvement Act,” takes a less costly approach. It would provide child care service block grants to states in the amount of $250 million per year. Block grants give states flexibility to accredit, license and administer child care services within their borders.
This latter proposal would provide incentives for businesses to establish child care centers. Additionally, it would not penalize parents who choose to stay home to raise children by creating a homemaker IRA and giving a tax exemption for the time a parent is at home.
Even though this proposal would permit a greater degree of flexibility, there are some who question whether a state should take such an active role in being a child care provider.
Finally, the “Child Care Tax Credit Reform Act” would expand the current child care tax credit, providing assistance directly to families rather than to institutions or bureaucracies.
To date, I have not co-sponsored any of these legislative proposals. I feel confident in predicting that the issue of government subsidization of child care will continue to generate interest and support, and will be a major issue in both this fall’s elections and when the 101st Congress begins next January.
John Warner is Virginia’s Senior Senator. Constituents wishing to contact him about pending federal legislation may write: Honorable John IF. Warner, 2S1S Dirksen Senate Office Bldg., Washington, D.C. 20510.
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