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It’s Open Enrollment Season. Do You Know What Your Child Care Options Are?

BLACKPRESSUSA NEWSWIRE — The United States spends less on child care than almost any other developed nation, leaving parents to foot most of the cost, which can put a significant strain on any family budget. But there are a few tax provisions out there that can help offset the rising costs of raising young children.

Published

1 week ago

November 25, 2025

Oakland Post

Dependent Care Benefits: Explained

By Brigid Schulte and Rebecca Gale

The United States spends less on child care than almost any other developed nation, leaving parents to foot most of the cost, which can put a significant strain on any family budget. But there are a few tax provisions out there that can help offset the rising costs of raising young children. Families just need to know about them. And when and how to apply.

And for many, a company’s Open Enrollment season every fall, which is currently underway, whereby employees can make decisions about their benefits for the calendar year 2026, gives families some of the best options. It can be confusing, financial advisors say. But one that they recommend families take a close look at is the Dependent Care Flexible Savings Account, especially since Congress voted last July to increase the benefit for the first time since 1986.

Now, parents can set aside as much as $7,500 in pre-tax dollars, which lowers a family’s total tax liability, to cover eligible child care expenses, including paying for nannies, pre-school, child care, after-school care, or summer camps. (Married couples filing separately can now set aside $3,750 each.) That’s up from the $5,000 per household limit set in 1986.

“This is a tremendous opportunity for families,” said Chris Woods, a financial planner in Charlotte, North Carolina, who assists many African American families in building wealth and financial stability. “The higher dollar amount still isn’t enough. With the high cost of child care in this country, $7,500 is a drop in the bucket. But for families who have this available to them, it’s a tremendous benefit that everyone can take advantage of.”

Child care costs rose, on average, by 29 percent from 2020 to 2024, according to Child Care Aware of America, which tracks child care costs in annual surveys. For those earning the median family income—about $83,000—child care can consume 10 percent of a married couple’s income and 35 percent for a single parent. In most states, infant care at child care centers costs more than rent, mortgage, or in-state college tuition.

The lack of affordable care is pushing many parents out of the workforce, which costs the economy an estimated $122 billion a year in lost earnings, productivity, and tax revenue. In 2025 alone, about 450,000 women were forced out of the workforce, and the lack of both flexible work and affordable child care played critical roles, analysts say.

As a result of this deepening child care crisis, a bipartisan group of lawmakers, led by Sens. Katie Britt, R-Alabama, and Tim Kaine, D-Virginia, pushed to expand these tax benefits as part of the major federal legislation that made sweeping changes to tax law, social programs, and government spending that was signed into law in July.

Woods brings up three important considerations for families: First, not all companies offer Dependent Care FSAs, so Woods suggests people check with their company’s benefits plans. And the share who do has been declining, from 65 percent of employers in 2021 to 54 percent in 2025, according to Society of Human Resource Management surveys. “I wish more people had access than they do,” Woods said.

Second, the Dependent Care FSA is a “use it or lose it” benefit. Unlike Health Care Savings Accounts, which can roll over into the following year, families have to make sure they’ll spend the entire amount set aside for child care by the end of the year.

And finally, the Dependent Care FSA is available to all employees, regardless of income level, unlike another tax benefit, the Child and Dependent Care Tax Credit, which families would claim when filing their taxes. The CDCTC has strict income limits.

Congress also voted in July to expand the amount of child care expenses that working parents can claim on their annual taxes, lowering their overall tax burden while helping families cover child care costs. Now, working parents can claim up to $6,000 for two children, $3,000 for one child, to use toward the costs of a registered child care or child care provider for a child under the age of 13. (Families can also use the tax credit to cover care costs for dependents who can’t care for themselves.) Families will then receive a percentage back as a tax credit, based on a sliding scale. Families with the lowest incomes will now receive a maximum 50 percent credit. Before the new law, it had been 35 percent.

All parents must be working, though. A family with a stay-at-home parent, even if they utilize some child care, is not eligible, though exceptions exist for parents who are students or parents who are disabled and cannot work.

Because this credit is nonrefundable – meaning that families cannot take advantage of it unless they pay a higher amount in taxes than they would receive in the benefit- it is limited in terms of people being able to utilize it. Almost all the families that do take advantage of this credit are middle to high income. The First Five Years Fund estimates that the new law will increase tax credits for nearly four million families, including dual-income households earning up to $206,000 and single-income households earning up to $103,000.

To Woods, the newly expanded Dependent Care FSA is the best option for most families. “I think that’s going to be the better way to go,” he said. However, for those whose employers don’t offer it, he suggests exploring the Child and Dependent Care Tax Credit.

For those who may seek to use both tax credits, Woods cautions that families have to be careful to show they aren’t double-dipping. “You cannot claim the same child care expenses with the FSA and the CDCTC,” he said.

Congress also voted to increase the non-refundable Child Tax Credit from $2,000 per child to $2,200 per child for dual-income married households earning up to $400,000 and single-parent families earning up to $200,000.

The increase, however, is far lower than the pandemic-era expansion in 2021 ($3,600 per child under six and $3,000 for children six to 17). Because it was fully refundable and paid out monthly rather than in one annual lump sum, the expansion benefitted many single parents and low-income families who typically don’t qualify for the tax credit, lifted 3 million children out of poverty, and brought child poverty to historic lows.

Some lawmakers, both Democratic and Republican, including Vice President JD Vance, have proposed legislation to expand the Child Tax Credit, and some proposals would make it fully refundable, so it would be available to more families with lower earnings.

“Child care is an ongoing concern for families,” said Woods. “There aren’t a ton of benefits available. So, whenever people can, try to take advantage of them. If they can afford to do so, try to max them out.”

Brigid Schulte is an award-winning journalist, author, and director of the Better Life Lab at New America. Rebecca Gale is a staff writer at the Better Life Lab at New America.

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LIHEAP Funds Released After Weeks of Delay as States and the District Rush to Protect Households from the Cold

BLACKPRESSUSA NEWSWIRE — The federal government has released $3.6 billion in home heating assistance after a delay that left states preparing for the start of winter without the program’s annual funding.

Published

4 days ago

December 1, 2025

Stacy M. Brown

By Stacy M. Brown
Black Press USA Senior National Correspondent

The federal government has released $3.6 billion in home heating assistance after a delay that left states preparing for the start of winter without the program’s annual funding. The Low-Income Home Energy Assistance Program, known as LIHEAP, helps eligible households pay heating and cooling bills. The release follows a shutdown that stretched 43 days and pushed agencies across the country to warn families of possible disruptions.

State officials in Minnesota, Kansas, New York, and Pennsylvania had already issued alerts that the delay could slow the processing of applications or force families to wait until December for help. In Pennsylvania, more than 300,000 households depend on the program each year. Minnesota officials noted that older adults, young children, and people with disabilities face the highest risk as temperatures fall.

The delay also raised concerns among advocates who track household debt tied to rising utility costs. National Energy Assistance Directors Association Executive Director Mark Wolfe said the funds were “essential and long overdue” and added that high arrearages and increased energy prices have strained families seeking help.

Some states faced additional pressure when other services were affected by the shutdown. According to data reviewed by national energy advocates, roughly 68 percent of LIHEAP households also receive nutrition assistance, and the freeze in multiple programs increased the financial burden on low-income residents. Wolfe said families were placed in “an even more precarious situation than usual” as the shutdown stretched into November.

In Maryland, lawmakers urged the Trump administration to release funds after the state recorded its first cold-related death of the season. The Maryland Department of Health reported that a man in his 30s was found outdoors in Frederick County when temperatures dropped. Last winter, the state documented 75 cold-related deaths, the highest number in five years. Rep Kweisi Mfume joined more than 100 House members calling for immediate federal action and said LIHEAP “is not a luxury” for the 100,000 Maryland households that rely on it. He added that seniors and veterans would be placed at risk if the program remained stalled.

Maryland Gov. Wes Moore used $10.1 million in state funds to keep benefits moving, but noted that states cannot routinely replace federal dollars. His administration said families that rely on medical equipment requiring electricity are particularly vulnerable.

The District of Columbia has already mapped out its FY26 LIHEAP structure in documents filed with the federal government. The District’s plan shows that heating assistance, cooling assistance, weatherization, and year-round crisis assistance operate from October 1 through September 30. The District allocates 50 percent of its LIHEAP funds to heating assistance, 10 percent to cooling, 13 percent to year-round crisis assistance, 15 percent to weatherization, and 10 percent to administrative costs. Two percent is used for services that help residents reduce energy needs, including education on reading utility bills and identifying energy waste.

The District’s plan lists a minimum LIHEAP benefit of $200 and a maximum of $1,800 for both heating and cooling assistance. Crisis benefits are provided separately and may reach up to $500 when needed to resolve an emergency. The plan states that a household is considered in crisis if it has been disconnected from energy service, if heating oil is at 5 percent or less of capacity, or if the household has at least $200 owed after the regular benefit is applied.

The District’s filing notes that LIHEAP staff conduct outreach through community meetings, senior housing sites, Advisory Neighborhood Commissions, social media, posters, and mass mailings. The plan confirms that LIHEAP applicants can apply in person, by mail, by email, or through a mobile-friendly online application and that physically disabled residents may request in-home visits.

As agencies nationwide begin distributing the newly released funds, states continue working through large volumes of applications. Wolfe said LIHEAP administrators “have been notified that the award letters have gone out and the states can begin to draw down the funds.”

Stacy M. Brown

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Seven Steps to Help Your Child Build Meaningful Connections

BLACKPRESSUSA NEWSWIRE — Swinging side by side with a friend on the playground. Sharing chalk over bright, colorful sidewalk drawings. Hiding behind a tree during a spirited game of hide-and-seek. These simple moments between children may seem small, but they matter more than we think

Published

4 days ago

December 1, 2025

Oakland Post

By Niyoka McCoy, Ed.D., Chief Learning Officer, Stride/K12

Swinging side by side with a friend on the playground. Sharing chalk over bright, colorful sidewalk drawings. Hiding behind a tree during a spirited game of hide-and-seek. These simple moments between children may seem small, but they matter more than we think: They lay the foundation for some of life’s most important skills.

Through everyday play, young children begin learning essential social and emotional skills like sharing, resolving conflicts, showing empathy, and managing their emotions. These social skills help shape emotional growth and set kids up for long-term success. Socialization in early childhood isn’t just a “nice-to-have”—it’s essential for development.

Yet today, many young children who haven’t yet started school aren’t getting enough consistent, meaningful interaction with peers. Research shows that there’s a decline in active free play and peer socialization when compared to previous generations.

There are many reasons for this. Children who are home with a parent during the day may spend most of their time with adults, limiting opportunities for peer play. Those in daycare or preschool may have restricted free play, and large classrooms can reduce supervision and social coaching. Some children live in rural areas, are homebound due to illness, have full schedules, or rely on screens to fill their playtime. And for some families, finding other families with young children to connect with isn’t easy.

While these challenges can feel significant, opportunities for connection still exist in every community. Families can take simple steps to help children build friendships, create a sense of belonging, and strengthen social skills. Here are some ideas to get started:

Storytime sessions at libraries or local bookstores
Community offerings such as parent-child workshops, art, music, gymnastics, swimming, or sports programs
Weekly events at children’s museums, which may include art projects, music workshops, or science experiments
Outdoor exploration, where kids can play with peers
Local parenting groups that organize playdates and group activities
Volunteer opportunities where children can participate, such as pet adoption events or packing meals at a food bank
Classes for kids at local businesses, including hardware, grocery, or craft stores

Some of these community activities are free or low-cost and give kids the chance to build friendships and practice social skills. Parents can also model positive social behavior by interacting with other parents and encouraging their children to play with their peers.

These may seem like small moments of connection, but they can have a powerful impact. Every time your child shares a toy, plays make-believe with peers, or races a friend down the slide, they’re not just playing—they’re learning the skills that build confidence, empathy, and lasting friendships. And it’s good for you, too. Creating intentional opportunities for play also helps you strengthen your own network of parents who can support one another as your children grow together.

Oakland Post

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#NNPA BlackPress

Seven Steps to Help Your Child Build Meaningful Connections

Published

4 days ago

December 1, 2025

Oakland Post

By Niyoka McCoy, Ed.D., Chief Learning Officer, Stride/K12

Storytime sessions at libraries or local bookstores
Community offerings such as parent-child workshops, art, music, gymnastics, swimming, or sports programs
Weekly events at children’s museums, which may include art projects, music workshops, or science experiments
Outdoor exploration, where kids can play with peers
Local parenting groups that organize playdates and group activities
Volunteer opportunities where children can participate, such as pet adoption events or packing meals at a food bank
Classes for kids at local businesses, including hardware, grocery, or craft stores