Access to affordable childcare is emerging as a critical factor in maintaining workforce engagement, particularly as gaps in care force parents out of employment and deprive businesses of skilled labor. According to estimates from the U.S. Chamber of Commerce Foundation, disruptions in childcare cost states roughly $1 billion annually. In response, companies are stepping up to fill the gap, ensuring employees can remain active in their careers. n nToyota is leading one such initiative, announcing plans to establish four new childcare centers at manufacturing locations in North Carolina, Mississippi, Alabama, and West Virginia. The automaker already operates similar facilities in Kentucky and Indiana. These upcoming centers will add up to 1,064 new childcare spaces for local families, align with plant work schedules, and be managed by accredited providers. n nThe benefits extend beyond convenience. Employees will gain reliable access to on-site care tailored to rotating shifts, easing stress for working parents. Children enrolled will participate in developmentally appropriate programs emphasizing cognitive, physical, and emotional growth. Each facility will include dedicated STEM learning areas, outdoor play zones, and commercial kitchens, and will pursue accreditation from the National Association for the Education of Young Children (NAEYC), widely recognized as the benchmark for quality early childhood education. n nDenita Neville, Toyota’s Vice President of Corporate Shared Services, described the effort as both a support system and a strategic investment: “Providing childcare energizes our workforce, fosters inclusivity, and helps today’s youngest learners grow into tomorrow’s leaders.” The company’s actions reflect a broader trend: employers are recognizing childcare as essential infrastructure for future economic resilience. n nNationwide, childcare shortages continue to hinder labor force participation. The Bureau of Labor Statistics reports that 332,000 workers missed work this year due to care-related issues. When parents cannot secure or afford childcare, they often exit the labor market, depriving employers of valuable talent. n nTo address this, the U.S. Chamber advocated for improvements in the One Big Beautiful Bill Act, enhancing three key tax provisions: n nThe 45F employer credit now offers a 40% rate, rising to 50% for small businesses, with maximum credits increasing from $150,000 to $500,000 ($600,000 for small firms). Eligible expenses now cover third-party partnerships and jointly operated childcare facilities, making it easier for companies to launch programs. n nFor Dependent Care Assistance Programs (DCAP), the annual pre-tax contribution limit has been permanently raised from $5,000 to $7,500 for individuals and joint filers, and from $2,500 to $3,750 for married individuals filing separately, allowing greater flexibility in saving for care costs. n nThe Child and Dependent Care Tax Credit (CDCTC) will see the maximum reimbursement rate for low-income earners rise from 35% to 50% starting in 2026, with benefits phasing down gradually as income increases, offering greater relief to working families. n nThe Chamber played a central role in promoting these reforms, educating policymakers, and rallying business leaders around the idea that resolving childcare challenges is vital to unlocking national workforce potential. n nToyota’s move exemplifies what becomes possible when businesses are empowered to act. The Chamber remains committed to advancing scalable solutions so that childcare evolves from a barrier into a pathway for opportunity. n
— news from U.S. Chamber of Commerce
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How Childcare Solutions Drive Workforce Growth & Economic Impact
When parents can’t find or afford care, they’re forced out of the workforce, and businesses lose out on skilled employees. Childcare gaps sideline workers and strain manufacturers’ staffing, with states losing an estimated $1 billion annually due to child care breakdowns, according to U.S. Chamber of Commerce Foundation estimates. In response, employers are leading the response efforts to ensure parents don’t miss out on access to care, and workers aren’t forced out of the workforce. n nOne example of this is already underway at Toyota. The automaker is demonstrating how to build a future where working parents can thrive. In a major announcement, the company unveiled plans to open four new childcare facilities at manufacturing sites in North Carolina, Mississippi, Alabama, and West Virginia. Toyota currently offers child care at its facilities in Kentucky and Indiana. The facilities will offer up to 1,064 new childcare spots to local communities, be tailored to plant schedules, and be operated by high-quality providers. n nThese types of childcare centers offer immense benefits to both parents and children. Workers at these plants will gain access to onsite childcare centers that accommodate diverse work shifts, providing maximum convenience and peace of mind for working parents. Meanwhile, children enrolled in Toyota’s high-quality programs will benefit from age-based curriculums that support physical, cognitive, and social-emotional development. Each center will feature STEM education rooms, outdoor playgrounds, and commercial kitchens. Each site will go through the National Association for the Education of Young Children (NAEYC), the gold standard for quality child care. n nThis isn’t just a benefit; it’s a business strategy. As Denita Neville, Toyota’s VP of Corporate Shared Services, said, “Offering childcare motivates and empowers our team members, makes our industry more inclusive and helps our smallest learners of today become our biggest leaders of tomorrow.” Toyota’s investment reflects a growing recognition among employers: childcare is essential infrastructure that prepares today’s students for tomorrow’s workforce. n nAcross the country, childcare shortages are sidelining talent and stalling growth. The Bureau of Labor Statistics reports that this year alone, 332,000 workers missed work due to childcare problems. When parents can’t find or afford care, they’re forced out of the workforce and businesses lose out on skilled employees. n nThat’s why the Chamber championed key enhancements in the One Big Beautiful Bill Act, which improved three critical child care tax provisions: n n45F: The employer credit rate increased from 25 percent to 40 percent, and to 50 percent for eligible small businesses. The maximum credit rose from $150,000 to $500,000, or $600,000 for small businesses. Qualified expenditures now include costs associated with contracting with third-party intermediaries and jointly owned or operated childcare facilities. These changes make it easier for businesses to invest in childcare solutions for their workforce. n nDCAP: The annual pre-tax contribution limit was permanently increased from $5,000 to $7,500 for individuals and joint filers, and from $2,500 to $3,750 for those married filing separately. This gives employees more flexibility to save for childcare expenses through employer-sponsored plans. n nCDCTC: Beginning in 2026, the maximum reimbursement rate for the lowest-income earners will increase from 35 percent to 50 percent. The percentage of reimbursement for qualifying expenses will continue to decrease gradually as income rises. This means more working parents will receive a larger credit to help cover childcare costs. n nThe Chamber led the charge in advocating for reforms, educating lawmakers, and mobilizing the business community. Our message was clear: solving the childcare crisis is a key part of unlocking America’s workforce potential. n nToyota’s announcement is another example of what’s possible when businesses are empowered to provide solutions. The Chamber will continue to advocate for scalable solutions to achieve a future where childcare is no longer a barrier to work, but a bridge to opportunity.