July 10, 2025
Ms. Jacobs introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To amend the Internal Revenue Code of 1986 to establish the Early Childhood Education Trust Fund consisting of amounts paid for the estate tax and made available to fund child care services, and for other purposes.
Section 1. Early childhood education trust fund
(a) In general
Subchapter A of Chapter 98 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
9512. Early childhood education trust fund
(a) Creation of trust fund
There is hereby established in the Treasury of the United States a trust fund to be known as the Early Childhood Education Trust Fund, consisting of such amounts as may be appropriated or credited to such Trust Fund as provided in this section or section 9602(b).
(b) Transfer to trust fund of amounts equivalent to certain taxes
There are hereby appropriated to the Early Childhood Education Trust Fund 15 percent of the amount equivalent to the taxes received in the Treasury under section 2001 in each calendar year, of which not less than 25 percent shall be made available to carry out subsection (e).
(c) Expenditures from trust fund
Amounts in the Early Childhood Education Trust Fund shall be available to carry out subsection (e).
(d) Supplemental appropriation
Amounts made available under this section are authorized in addition to any other amounts authorized to carry out the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m).
(e) Grants
From the amounts made available under subsection (c) and under the authority of section 658O of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m), the Secretary of Health and Human Services shall award to each lead agency a child care supply grant, without regard to the requirements in subparagraphs (C) and (E) of section 658E(c)(3), and in section 658G, of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(3), 9858e). Such grant shall be allotted in accordance with section 658O of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m).
(b) Clerical amendment
The table of sections for subchapter A of chapter 98 of such Code is amended by adding at the end the following new item:
(c) Effective date
The amendments made by this section shall take effect on December 31, 2025.
Sec. 2. Deincrease in estate and gift tax exemption
(a) In general
Section 2010(c)(3) of the Internal Revenue Code of 1986 is amended—
(1)
in subparagraph (A), by striking $15,000,000
and inserting $7,000,000
, and
(2)
in subparagraph (B)—
(A)
by striking 2011
and inserting 2026
, and
(B)
in clause (ii), by striking 2010
and inserting 2025
.
(b) Effective date
The amendments made by this section shall apply to estates of decedents dying and gifts made after December 31, 2025.