{"id":2302,"date":"2025-03-13T11:37:02","date_gmt":"2025-03-13T15:37:02","guid":{"rendered":"https:\/\/senatedems.com\/hertel\/?p=2302"},"modified":"2025-03-13T11:37:04","modified_gmt":"2025-03-13T15:37:04","slug":"senate-democrats-unveil-the-building-blocks-needed-to-cut-costs-improve-child-care-and-create-opportunity-for-parents-and-kids","status":"publish","type":"post","link":"https:\/\/senatedems.com\/hertel\/2025\/03\/13\/senate-democrats-unveil-the-building-blocks-needed-to-cut-costs-improve-child-care-and-create-opportunity-for-parents-and-kids\/","title":{"rendered":"Senate Democrats Unveil the \u201cBuilding Blocks\u201d Needed to Cut Costs, Improve Child Care and Create Opportunity for Parents and Kids"},"content":{"rendered":"

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Transformational proposal would lay the foundation for a strong future for\u00a0<\/i>children and parents with tax credit, cash stipend for new parents, and child care improvements<\/i><\/div>\n
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LANSING, Mich. (March 12, 2025) \u2014 Today at a press conference joined by policy advocates and experts, Senate Democrats unveiled a bold, transformative proposal that would provide the \u201cBuilding Blocks<\/a><\/b>\u201d Michigan needs to uplift working families and ensure they have a fair shot at a better quality of life for themselves and their children.\u00a0<\/div>\n
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The plan takes a multi-angled approach to cutting the cost of parenting by:<\/b>\u00a0<\/div>\n
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  1. Providing a significant income boost to working families through a targeted Working Parents Tax Credit;<\/li>\n
  2. Expanding Rx Kids statewide, a first-of-its-kind program that provides cash payments to new mothers and their babies; and<\/li>\n
  3. Tackling the child care crisis from both the demand and supply side.\u00a0<\/li>\n<\/ol>\n
    \u00a0<\/div>\n
    Cutting Taxes for Working Families<\/b>\u00a0<\/div>\n
    From diapers to daycare, the essentials are more expensive than ever due to inflation and skyrocketing child care costs. In the first year alone, raising a new baby costs more than $20,000<\/a><\/u><\/span>, a staggering amount that is more than a third<\/a><\/u><\/span> of an average U.S. family\u2019s annual household income. To address the issue head-on and help families keep up with the rising cost of parenting, Sen. Kevin Hertel<\/b> (D-St. Clair Shores) proposes a tax credit of $5,500 for working families with children under the age of three. The credit would be both easy to apply and qualify for, with eligibility based on the existing Earned Income Tax Credit.\u00a0<\/div>\n
    \u00a0<\/div>\n
    \u201cParents need more than budgeting hacks \u2014 they need real solutions,\u201d said Sen. Hertel<\/b>. \u201cWith inflation on the rise and birth rates declining, it\u2019s more important than ever to take steps to ease the financial stress\u00a0associated with raising a child. Cutting taxes for parents would put\u00a0more money in their pocket to afford necessities, plan for the future, and give their kids a better opportunity to succeed.\u201d\u00a0<\/div>\n
    \u00a0<\/div>\n
    \u201cParents work hard every day to provide for their families, but many still struggle to make ends meet,\u201d said Alison Freas, <\/b>President and CEO of The SOURCE.\u00a0\u201cReturning more of their hard-earned money back to parents would be life-changing for so many. The Working Parents Tax Credit would give families the support they need to keep up with rising costs, provide stability for their children, and cover unexpected costs.\u201d\u00a0<\/div>\n
    \u00a0<\/div>\n
    Improving Families\u2019 Physical and Economic Health<\/b>\u00a0<\/div>\n
    Rx Kids is a first-of-its kind program here in the United States, initially launching in Flint<\/a><\/u><\/span>, Michigan in October 2023, and is slated to expand to several more communities this year. \u00a0<\/div>\n
    \u00a0<\/div>\n
    The program supports parents and babies by providing all pregnant moms in a community, regardless of income, with no-strings-attached cash of $1,500 during pregnancy and $500 each month throughout the baby\u2019s first year. Research from Rx Kids<\/a><\/u><\/span> and similar initiatives shows that universal child cash transfer programs are an innovative solution to poor health outcomes for children and child poverty, helping to increase housing security, bolster access to nutritious food, and improve maternal and child health.\u00a0<\/div>\n
    \u00a0<\/div>\n
    \u201cRaising a child \u2014 especially a newborn \u2014 has become unbearably expensive, turning a joyful time into a financial struggle for too many families,\u201d said Sen. Sylvia Santana <\/b>(D-Detroit). \u201cMothers across the state are planning, saving, and budgeting, yet still falling behind. They need more support, and this program would do just that. With Senate Democrats\u2019 plan, we can expand Rx Kids statewide and give every family the building blocks to thrive.\u201d\u00a0<\/div>\n
    \u00a0<\/div>\n
    \u201cFrom Flint to Kalamazoo to the Eastern Upper Peninsula, Rx Kids is efficiently and effectively improving family financial stability and health outcomes by putting money directly into the pockets of new moms and babies. Michigan is making history, and I\u2019m so grateful for the leadership of Governor Whitmer and Senators Cherry and Santana in helping bring this life-changing program to life,\u201d said Dr.\u00a0Mona<\/b>\u00a0Hanna,\u00a0<\/b>Flint pediatrician and Michigan State University College of Human Medicine associate dean of public health. \u201cI look forward to continuing to work with the Michigan Legislature to expand Rx Kids statewide so that every Michigan baby gets the strongest, healthiest start possible.\u201d\u00a0<\/div>\n
    \u00a0<\/div>\n
    Tackling the Child Care Crisis<\/b>\u00a0<\/div>\n
    In the last decade, Michigan has lost 40% of its child care capacity, a level twice that of the national average. Michigan currently ranks 39th in the nation for workforce participation<\/a><\/u><\/span>, and the lack of child care is cited as the top reason young workers are choosing not to enter the workforce. As a result, the state loses out on an estimated $2.8 billion annually<\/a><\/u><\/span> in the form of workforce productivity and economic gains. \u00a0<\/div>\n
    \u00a0<\/div>\n
    To tackle this crisis, this plan would make child care more affordable for families and more sustainable for child care professionals and entrepreneurs by:\u00a0<\/div>\n
    \u00a0<\/div>\n
      \n
    • \n
      Codifying the innovative bipartisan program, Tri-Share, that splits the cost of child care equally among employers, the state, and employees;\u00a0<\/div>\n<\/li>\n
    • \n
      Tying the Child Care Reimbursement Rate to inflation to provide certainty and consistency to providers; and\u00a0<\/div>\n<\/li>\n
    • \n
      Updating licensing requirements for child care centers and removing burdensome barriers to opening and operating centers.\u00a0<\/div>\n<\/li>\n<\/ul>\n
      \n

      \u201cThe rising costs of raising children has created an overwhelming burden on families,\u201d said Sen. Mallory McMorrow <\/b>(D-Royal Oak). \u201cAs the mom of a young daughter myself, I know what parents are going through \u2014\u00a0balancing it all with so much economic uncertainty \u2014 and we don\u2019t have a minute to wait. It\u2019s time we build our societal infrastructure to lower costs for families so you can focus less on worrying and more on parenting. This proposal is about giving families the support you need by tackling your most urgent issues \u2014 shrinking budgets, lack of child care, and rising rates of childhood poverty.”<\/p>\n<\/div>\n

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      Transformational proposal would lay the foundation for a strong future for\u00a0children and parents with tax credit, cash stipend for new parents, and child care improvements LANSING, Mich. 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