By Melissa Nann Burke, mburke@detroitnews.com
Washington ― A bipartisan duo from Michigan has introduced legislation in Congress to take a “proven” childcare model from Michigan to the national level.
The bill is sponsored by Reps. Hillary Scholten, a Grand Rapids Democrat, and John James, a Shelby Township Republican, promise to reduce the cost of childcare by two-thirds for qualifying families, splitting the cost between an employee, their employer and the state and federal governments.
The Tri-Share Child Care Pilot Actw ould allocate $250 million annually over three years to create a pilot Tri-Share program for eligible parents with incomes below 500% of the federal poverty level who work for a participating employer.
“In 38 states, child care costs more than public college tuition. Think about that. … The price of child care has risen so high that it’s pushing many families to the breaking point. It forces parents to make impossible choices,” said Scholten, a mom of two boys, in remarks last month.
“It’s hard to know what to do when the numbers just simply don’t add up. This is a math problem, and we’re here to solve the equation, dividing the cost by thirds.”
The lawmakers say that employers, small business owners, government leaders all suffer when parents can’t find or afford reliable child care, leading to difficulty hiring and productivity dropping.
James, a dad to three young boys who is running for governor, said infant care in Michigan averages $9,044 a year in family-care settings and $12,667 in daycare center-based care, often ranking as one of a household’s largest expenses.
“We cannot address Michigan’s population losses or labor shortages without tackling childcare. Failing to fix this crisis only exacerbates the wealth gap and makes it harder for young families to build a future here,” James said in a statement.
“That’s why addressing childcare affordability for Michigan families is one of my highest priorities, and why I’m excited to co-lead this bipartisan solution with Rep. Scholten.”
The Tri-Share model has been piloted at the state level in multiple states, including Michigan, North Carolina, Kentucky, Indiana, Ohio, West Virginia, Connecticut, North Dakota, and Missouri, according to Scholten’s office.
Michigan has nearly 290 employers participating in MI Tri-Share statewide, providing support to more than 900 families and more than 1,020 children, according to state data. State officials estimate that since its inception in 2021, MI Tri-Share has saved families more than $11.5 million in child care costs.
The state of Michigan recently expanded its program in November to offer MI Care-Share, which is an employer-based child care cost-sharing benefit.
Under the existing MI Tri-Share program, the cost of child care is shared three ways among the qualifying employee, their participating employer and the state. Families qualify for the state’s one-third contribution if their household income falls between 200% and 400% of the federal poverty level, according to the Michigan Department of Lifelong Education, Advancement, and Potential (MiLEAP).
That is, for example, a family of four earning between $64,300 and $128,600.
The new MI Care-Share add-on is set up so that a participating employer covers a third of the child care cost, while employees who do not meet the state’s income eligibility contribute the remaining two-thirds, according to MiLEAP.
Under Scholten’s bill, states like Michigan and municipalities that already have a Tri-Share program would see the federal government chip in to help cover the state’s share of the cost-sharing, helping them expand the number of participants they can serve, she said.
Individual states would be in charge of coordinating and soliciting employer enrollment for the pilot program involving the federal government, according to a summary.
Andy Johnston, senior vice president of strategic initiatives at the Grand Rapids Chamber, said the group supports the new bill, pointing to a 2023 study that found child care issues resulted in an estimated $2.8 billion loss annually for Michigan’s economy.
The same report found Michigan loses an estimated $576 million annually in tax revenue due to child care issues and that 14% of parents left a job in the past six months due to childcare. An estimated 52% of parents needed to make a significant adjustment to their school or work training due to childcare issues, Johnston said.
“If we expand this impact across the other 49 states, you get a picture of how important the legislation is that we’re discussing today,” Johnston said. “Access to child care allows parents the flexibility to pursue careers or enhance their education or vocational skills.”
While Tri-Share makes it cheaper for parents to afford child care, critics have noted the model does not solve child care deserts ― areas with little or no child care offerings ― nor does it address child care workforce shortages or improve program quality.
