Tax credit aims to shore up child care workforce shortage
S. 4918 — Right Start Child Care and Education Act of 2026 · Filed by Jeanne Shaheen (D-NH) · 3 cosponsors · Introduced Jun 24, 2026 · Referred to committee
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What it does
This bill creates a new federal tax credit for individuals with degrees or credentials in early childhood education who work at least 1,200 hours per year in licensed child care facilities. Workers with bachelor's degrees get $4,500/year, associate's degrees get $3,000/year, and those with a Child Development Associate credential get $1,500/year — but only for up to 3 years total. The credit is designed to incentivize and retain qualified child care workers in the field.
Why we flagged it
The bill's core mechanism is a temporary tax credit designed to attract and retain qualified child care workers in licensed facilities. It is a straightforward labor-market intervention using the tax code.
What the text implies
- The 3-year limit means workers must cycle out or lose the credit, potentially creating turnover rather than long-term retention despite the stated goal.
- The 1,200-hour threshold (roughly 23 hours/week) may exclude part-time workers who are common in child care, limiting the credit's reach.
The full analysis lists 4 implications of this text.
Who stands to gain
child care workers with relevant degrees or credentials; educational institutions offering early childhood education programs