Yellen, Harris urge childcare investments to boost overall U.S. economy

By Andrea Shalal

WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen and Vice President Kamala Harris on Wednesday called for urgent action to make affordable childcare available to more families, calling such investments critical to ensuring U.S. growth and global competitiveness.

Harris and Yellen lauded a new Treasury report that charts the failures of the current privately-financed childcare system and shows the positive impact for women, families and the overall economy from the increased public spending envisioned in President Joe Biden's $3.5 billion legislation package.

"This is a fight for our future," Harris said during her first visit to Treasury since taking office. She pointed to estimates that U.S. gross domestic product would expand by 5% if women participated in the workforce at the same rate as men.

Democrats are negotiating over Biden's package that would fund free preschool for all 3- and 4-year olds; boost pay for childcare workers, 95% of whom are women; cut the costs of such care in half for most families; and make permanent a child and dependent care tax credit.

Enacting the proposals was "the single most important thing we can do to build a stronger economy over the next several decades," Yellen said, adding that childcare's "contribution to economic growth is as essential as infrastructure or energy.”

She shared her own quest to find childcare when she returned to work after the birth of her son, Robert, 40 years ago, and said she might not be where she is today if she had been unable to find - and afford - good care.

The Treasury said the current situation was "unworkable" and said improving access to affordable, high-quality care - a market estimated at some $60 billion in 2019 - would have big follow-on impacts on wages, society at large and employment.