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119-hr-4330119th CongressWALLET

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.

Sponsored By: Representative Jacobs, Sara [D-CA-51]

Introduced

Summary

Early Childhood Education Trust Fund would be created to channel a slice of estate tax revenue into grants that expand child care supply, while the bill also lowers the estate and gift tax exemption. The fund would receive 15% of annual taxes collected under IRC section 2001 and at least 25% of that slice must be used for child care supply grants awarded by HHS to state lead agencies.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Lower estate and gift tax exemption

If enacted, the federal estate and gift tax exemption would drop from $15,000,000 to $7,000,000. This would apply to estates of people who die and gifts made after December 31, 2025. Very wealthy households would have more of their estate taxed. Families planning large gifts or inheritances would likely face higher tax bills.

New child care supply grants to states

If enacted, the government would create an Early Childhood Education Trust Fund. Each year, 15% of federal estate tax receipts would go into the fund. At least 25% of that money would pay for child care supply grants. HHS would give grants to each state’s lead child care agency. This money would be on top of current Child Care and Development Block Grant funds, and some usual CCDBG rules would not apply. The changes would take effect December 31, 2025.

Sponsors & CoSponsors

Sponsor

Jacobs, Sara [D-CA-51]

CA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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