Official White House Photo by Adam Schultz
- A new analysis shows that American families would save thousands on childcare under Biden's spending plan.
- In West Virginia, families could save $7,870 every year. In Arizona, they could save $9,430 annually.
- But the senators from those states are calling for cuts to the size and scope of the reconciliation bill.
- See more stories on Insider's business page.
Democrats' proposed reconciliation bill would pour trillions into "human infrastructure" – social spending meant to expand Medicare, eliminate the cost of community college, and enact paid leave.
One key measure: $450 billion toward affordable childcare and universal pre-K, a proposal that 127 economists have thrown their support behind. Under Democrats' plan, most families would not spend over 7% of their income on childcare.
However, key moderates like Sen. Joe Manchin of West Virginia and Sen. Kyrsten Sinema of Arizona have said that the current $3.5 trillion price tag is too hefty. Paring it down means that measures like free community college or affordable childcare could be shaved down or cut out completely.
A new analysis from the House Committee on Education and Labor shows just how much families stand to save on childcare. In every single state, a typical family of four that has an infant in full-time care would save at least $6,000 a year.
Politico reported that Manchin laid out his infrastructure proposals in a July document; he wanted a $1.5 trillion topline for the package, and said any new spending – like that for childcare – should go through means testing, where a certain eligibility threshold is set. That might exclude some parents from reaping the benefits of better-subsidized childcare, including those in Manchin's and Sinema's home states.
In West Virginia, the typical family would save $7,870 every year. In Arizona, they'd save $9,430 - just shy of $10,000 in savings annually. A typical family in Kentucky, Senate minority leader Mitch McConnell's home state, would save $6,020 every year.
Residents of Massachusetts would get the biggest break of all states, saving $18,750 every year. The report also highlights $21,670 in savings for residents of District of Columbia, which is likely an outlier due to city cost of living.
A similar analysis from the left-leaning Center for American Progress broke down how much families who make 135% of their state's median income would pay in childcare costs; these could be families potentially excluded by Manchin's means testing, if childcare subsidies only apply to lower-income families.
In West Virginia, families pay an estimated $198 a week in childcare under current policy, Insider's Madison Hoff reports. Under Biden's proposal, that cost would be more than halved, with West Virginia families saving $103 a week. It's a similar story in Arizona, where families currently are estimated to spend $236 a week in childcare. They'd save $126 a week under the new proposed spending.
Once again, the residents of Massachusetts would rack up the most savings, with their costs slashed from $436 a week to $182 a week.
Right now, Democrats are locked into a intra-party negotiation over just how big their party-line package should be. Progressives previously called for even more in spending, working with Senate Democrats to craft the $3.5 trillion package over the summer. Now, as moderates push back and Biden steps in, it might be whittled down to somewhere around $2 trillion.