The average cost of center-based daycare in the United States is $11,666 per year ($972 a month), but can exceed $18,773 a year ($1,564 monthly), according to the National Association of Child Care Resource & Referral Agencies (NACCRRA).
Dependent Care Flexible Spending Accounts (DCFSAs) allow families to use pre-tax dollars to pay for child care and are an essential tool for improving the affordability of child care.
The current DCFSA limit of $5,000 has not increased since the inception of the program and does not begin to approach the true cost of care.
DCFSA contribution limits should be increased to reflect current costs of care and should be indexed to inflation going forward.