January 15, 2025
Mrs. Bice (for herself, Ms. Sánchez, Mr. Feenstra, Ms. Houlahan, Mr. Moolenaar, Mr. Nunn of Iowa, Mr. Torres of New York, and Mr. Magaziner) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to index dependent care assistance programs to inflation.
Section 1. Short title
This Act may be cited as the Combating High Inflation Limiting Daycare Act of 2025
or the CHILD Act of 2025
.
Sec. 2. Increased maximum contribution to dependent care assistance programs
(a) In general
Section 129(a)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $5,000 ($2,500
and inserting $10,000 ($5,000
.
(b) Cost-of-Living adjustment
Section 129 of such Code is amended by adding at the end the following new subsection:
(f) Inflation adjustment
(1) In general
Each dollar amount in this section shall be increased by an amount equal to—
(A)
such dollar amount, multiplied by
(B)
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins, determined by substituting
calendar year 2023forcalendar year 2016in subparagraph (A)(ii) thereof.(2) Rounding
If any increase under paragraph (1) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.
(c) Removing deadwood
Section 129(a)(2) of such Code is amended by striking subparagraph (D).
(d) Effective date
The amendments made by this section shall apply to calendar years beginning after December 31, 2024.