NYC's new child care report gets the diagnosis right
The Marshall Plan for Moms Task Force is right about the problem. Its employer section stops short of the numbers that would actually move a small firm, and those numbers are now unusually strong.
Short pieces on employer-supported child care, benefits economics, and the slow change happening underneath both. Lightly edited from posts originally written for LinkedIn.
The Marshall Plan for Moms Task Force is right about the problem. Its employer section stops short of the numbers that would actually move a small firm, and those numbers are now unusually strong.
The 2026 rules made the dependent care FSA bigger, and quietly made it the wrong choice for many mid-income families. Rational employees will notice. A certain compliance test will feel it.
The dependent care fairness test is hardest for the high-paying firms that get pitched child care benefits most, and nearly automatic for hourly workforces. That changes who should be building programs.
Employer child care credits and dependent care assistance programs are often treated as mutually exclusive. They aren't, and a properly structured plan can capture both.
Backup care programs are high margin for providers and uneven for families. The ROI math can work, but it does nothing for the cost of regular care.
The dependent care FSA is what most companies mean by "child care benefits." It helps, but a couple thousand dollars in tax savings pales next to the real cost of care.
Why universal access creates the political coalition that makes a program durable, and what that means for child care.
Deloitte cut benefits and earned the predictable backlash. The way to push back is with sharper economics, not louder outrage.
How much value an employee receives for each dollar the employer spends. Child care now belongs in the same conversation as health insurance and 401(k) matches.
Of every dollar Americans spend on child care, less than two cents come from the employer. Why that is starting to change.
These are opinion pieces, not legal, tax, or financial advice. Arluck Consulting is not a law firm or CPA firm. Anything you might do based on what you read here should run through your own qualified advisors first.