Who's Watching the Kids? How Employers, Innovators, and Parents are Solving America's Child Care Crunch

Labor Department and Labor LawHouse Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education · January 13, 2026 · 119th Congress
The Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education held this hearing to examine how private-sector employers are helping address the high cost and limited availability of child care, building on a prior hearing about the Child Care and Development Block Grant. Begins at ▶ 0:05:56
Transcript
Highlights

Title

Employer child care programs and the federal role in addressing costs

Purpose

The Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education held this hearing to examine how private-sector employers are helping address the high cost and limited availability of child care, building on a prior hearing about the Child Care and Development Block Grant. Members heard from three companies with employer-sponsored child care programs and a policy advocate, and debated whether tax incentives like Section 45F and voluntary employer benefits can substitute for larger public investment, alongside disputes over recent Trump administration actions on child care funding and fraud enforcement. Begins at▶ 0:05:56

Who spoke

• Chairman Kylie▶ 0:05:56: Opened by noting the CCDBG serves only about 1.5 million of roughly 12.6 million children in non-parental care▶ 0:06:48, cited a national average child care cost of $13,128/year▶ 0:07:18, and framed employer investment as a third leg alongside families and government▶ 0:07:48.

• Ranking Member Bonamici (D-OR)▶ 0:09:35: Argued employers "play a part but not solving" the crisis▶ 0:10:01, cited a $122 billion annual economic loss from lack of child care▶ 0:10:58, criticized a proposed Trump administration rule rescinding a 2024 CCDF cost-cap policy▶ 0:13:43, and pushed the Child Care for Working Families Act▶ 0:14:25.

• Mr. Haden Polseno-Hensley, Red Rooster Coffee▶ 0:16:39: Described founding Yellow Hen Child Care in 2018, subsidizing it at nearly $90,000/year with a $1/hour price▶ 0:17:31, noting 14 of 24 current employees have used it▶ 0:18:17; later described the county's largest daycare closing in November 2025 due to staff turnover▶ 1:31:41.

• Ms. Alex Grover, CEO, i2M▶ 0:19:55: Said i2M's contracted child care program launched in 2022 with extended hours for shift workers▶ 0:21:40, reported nearly 100% retention among participating families▶ 0:22:37, and argued the expanded Section 45F credit meaningfully influences business decisions unlike Pennsylvania's smaller state credit▶ 0:47:37.

• Ms. Amy Matsui, National Women's Law Center▶ 0:24:42: Cited Janet Yellen calling child care "a textbook example of a broken market"▶ 0:25:36, said fewer than 1% of corporate tax returns claim the employer child care credit and mostly large firms benefit▶ 0:26:44, and argued public investment—not tax credits—is needed at scale▶ 0:27:38.

• Ms. Mary Lou Burke Afonso, COO, Bright Horizons▶ 0:29:17: Said Bright Horizons partners with nearly 1,400 employers▶ 0:32:22, and later disclosed average caregiver pay of about $24/hour and median total compensation of $33,164 in 2024▶ 0:54:12.

• Rep. Rulli (Ohio)▶ 0:34:37: Asked Grover how Congress could incentivize more employer-provided daycare, framing on-site care as a recruiting advantage▶ 0:37:00.

• Rep. Bobby Scott (D-VA), full committee ranking member▶ 0:39:40: Pressed Matsui on the administration's rollback of the 7% co-payment cap and enrollment-based payments▶ 0:39:45, and asked what's wrong with relying solely on employer-based child care▶ 0:42:57.

• Chairman Kylie (self, second round)▶ 0:44:32: Cited district-level infant care costs of $19,968 (center) and $15,599 (in-home)▶ 0:44:55, and noted $52.5 billion in COVID-era child care spending▶ 0:45:47.

• Rep. Bonamici (second round)▶ 0:50:36: Asked Matsui whether HR1's changes fixed Section 45F's shortcomings▶ 0:51:05, and pressed Burke Afonso on Bain Capital's past ownership of Bright Horizons and executive compensation▶ 0:53:49.

• Rep. Moylan (Guam)▶ 0:56:15: Asked Polseno-Hensley how 45F helped his rural small business▶ 0:57:37; asked Burke Afonso whether Bright Horizons operates in US territories, learning of one Puerto Rico site▶ 1:00:30.

• Rep. Adams (D-NC)▶ 1:02:19: Cited North Carolina child care worker pay down 7% since 2019 and costs up nearly 25% in three years▶ 1:03:25; asked Matsui about HR1's effects on early educators, including SNAP/Medicaid cuts and immigration enforcement affecting the ~20% immigrant workforce▶ 1:04:15.

• Rep. Harris (NC)▶ 1:07:49: Criticized reliance on federal spending, citing fraud at a Minneapolis facility▶ 1:08:37, and asked Polseno-Hensley about rural challenges finding space and staff▶ 1:09:29.

• Rep. Grijalva (AZ)▶ 1:12:46: Asked Matsui about the impact of lacking paid parental leave▶ 1:13:49 and pressed on the administration's attempted freeze of child care funds to five states▶ 1:16:16.

• Rep. Owens (UT)▶ 1:18:39: Praised the witnesses' "for-profit" model, cited Utah child care costs of $8,000–$13,000/year▶ 1:19:34, and asked Grover and Polseno-Hensley about ripple effects on local providers▶ 1:21:20.

• Rep. Lee (PA)▶ 1:24:25: Noted Pennsylvania child care workers earn under $30,000/year▶ 1:24:54; cited an attempted $2.4 billion freeze to five states affecting 500,000 children▶ 1:26:17, and asked Matsui about Head Start being told to avoid words like "disability"▶ 1:26:35.

• Chairman Walberg (full committee, MI)▶ 1:29:52: Asked Burke Afonso why child care needs are ubiquitous across industries▶ 1:33:14 and Grover about retention's effect on the talent pipeline▶ 1:34:03.

• Rep. Molinaro (NY)▶ 1:35:19: Criticized the administration's attempted funding freeze to five Democratic-led states, including New York, as politically motivated▶ 1:37:07; asked Matsui about child tax credit refundability▶ 1:38:26.

• Rep. Messmer (IN)▶ 1:40:10: Asked Grover about the bottom-line business case for child care benefits▶ 1:40:41 and Burke Afonso about the biggest barriers to employer investment▶ 1:42:21.

• Rep. Hayes (D-CT)▶ 1:44:50: Shared her own experience working in child care without employer discounts▶ 1:45:24; asked Matsui about Project 2025's proposed elimination of Head Start▶ 1:47:10.

• Rep. McClain-Delaney/McKenzie (PA)▶ 1:50:36: Described his working families tax package including a doubled child care tax credit▶ 1:51:08; asked Grover about links between child care, safety, and manufacturing outcomes▶ 1:52:38.

Key moments

• Bonamici cited a $122 billion annual economic loss from insufficient child care▶ 0:10:58, a figure Matsui also cited independently▶ 0:26:03.

• Polseno-Hensley's Yellow Hen program cost his company nearly $90,000/year at a $1/hour price point, and he highlighted employee India Dietro, who rose from part-time worker to 10% owner and managing partner▶ 0:19:19.

• Matsui testified that fewer than 1% of corporate tax filers claim the employer child care tax credit, and those who do are overwhelmingly large corporations▶ 0:26:44.

• Sharp exchange: Bonamici pressed Burke Afonso on Bright Horizons' past Bain Capital ownership and disclosed that Bright Horizons' average child care worker earns about $24/hour ($33,164 median total compensation in 2024) versus a CEO total compensation exceeding $5 million and Burke Afonso's own $1.9 million package▶ 0:53:49▶ 0:55:07▶ 0:55:16.

• Grover contrasted Pennsylvania's small state child care tax credit ($150 on a $500 contribution) with the expanded federal Section 45F credit, arguing only the latter meaningfully changes business decisions▶ 0:47:37.

• Multiple Democratic members (Grijalva, Lee, Molinaro) raised the Trump administration's attempted freeze of roughly $2.4 billion in child care funds to five Democratic-led states, which Molinaro called politically motivated and Matsui said was based on unsubstantiated fraud allegations▶ 1:16:16▶ 1:26:17▶ 1:37:07.

• Lee said Head Start grantees were told to avoid nearly 200 words, including "disability" and "accessible," in grant applications, which Matsui said conflicts with statutory obligations to serve children with disabilities▶ 1:26:35▶ 1:27:03.

• Polseno-Hensley said the largest child care provider in his county closed in November 2025 because it could not retain staff, worsening the local shortage▶ 1:31:14.

• Matsui said fully refundable child tax credits under the American Rescue Plan cut child poverty by nearly 50%, versus current partial refundability limiting benefits for lower-income families▶ 1:38:37.

• Lee noted a Republican-backed bill on the House floor that day would let employers exclude child care benefits from overtime pay calculations, which she argued would harm workers most in need of care▶ 1:28:35.

Metadata

CommitteeHouse Education and Workforce Subcommittee on Early Childhood, Elementary, and Secondary Education
Chamber / CongressHouse · 119th Congress
DateJanuary 13, 2026
TypeHearing
Witnesses
Ms. Alex Grover — CEO, i2M
Ms. Amy Matsui — Vice President for Child Care & Income Security, National Women's Law Center
Ms. Mary Lou Burke Afonso — COO, Bright Horizons
Mr. Haden Polseno-Hensley — President and Co-Founder, Red Rooster Coffee Company, LLC
Videoyoutube
Transcript305 caption blocks · 18,766 words · 2:00:28 runtime
EventCongress.gov 118804