[Congressional Record Volume 155, Number 37 (Tuesday, March 3, 2009)]
[Extensions of Remarks]
[Page E526]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 INTRODUCING LEGISLATION TO ENCOURAGE AND EXPAND THE USE OF DEPENDENT 
                  CARE FLEXIBLE SAVINGS ACCOUNTS (FSA)

                                 ______
                                 

                    HON. F. JAMES SENSENBRENNER, JR.

                              of wisconsin

                    in the house of representatives

                         Tuesday, March 3, 2009

  Mr. SENSENBRENNER. Madam Speaker, today I am introducing legislation 
to encourage and expand the use of Dependent Care Flexible Savings 
Accounts (FSA).
  Millions of people rely on child care to be able to work, and 
increasingly, to look for work, while others are responsible for older 
parents or disabled family members. Child and dependent care is a 
critical issue and a large expense for many American families.
  Across the country, annual prices for full-time child and dependent 
care have increased dramatically. The average price for full-time care 
for a toddler is approximately $7,000 according to the National 
Association of Child Care Resources and Referral Agencies--infants cost 
even more. My state of Wisconsin is among the highest, with an average 
cost of $12,000. Meanwhile, the out-of-pocket cost of caring for an 
aging parent or spouse can easily exceed $6,000 a year.
  To lighten the financial burden for working individuals, Congress 
created the Dependent Care FSA. A Dependent Care FSA enables 
individuals to put aside a set amount of money each year to help pay 
for eligible dependent care expenses for children under the age of 13, 
or others who can be claimed as a dependent, including a parent or 
spouse. The money set-aside is pretax, thus reducing a person's taxable 
income.
  My legislation will improve the Dependent Care FSA by increasing the 
exclusion amount to $7,500 for families and indexing it to inflation on 
an annual basis. Increasing this amount to reflect the changing times 
will provide more financial relief to parents raising children and/or 
caring for adults. The legislation would also allow individuals to roll 
over any unused funds to the following year. Under current law, each 
household is permitted to set aside up to $5,000 annually pre-taxed. 
The $5,000 limit has been in effect since 1986, even though the cost of 
care has risen significantly since then.
  I am pleased that employers are increasingly recognizing the need to 
address dependent care issues in the workplace by offering Dependent 
Care FSAs. It is my hope that Congress will raise the current Dependent 
Care FSA limit to better reflect the changing workforce and help 
individuals plan and pay for the care they need at home as they earn a 
living.
  I urge my colleagues to join me in supporting this important bill.

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