As the American public prepares for another presidency under Donald Trump, many are likely thinking about the potential impact on their personal finances. Some people have expressed concerns about how Trump could reverse President Biden’s loan forgiveness efforts, while others may be eagerly anticipating the tax breaks that the president-elect promised on the campaign trail.
One thing Trump has spent less time discussing, however, is how his policies might benefit Americans who are concerned they can’t afford children or families that are already struggling to absorb the costs of childcare. Unlike Vice President Kamala Harris—who made childcare and caregiving a central part of her campaign—Trump has largely steered clear of the issue. In September, during an event at the Economic Club of New York, Trump was asked about how he might offset childcare costs as president; in a rambling response, Trump seemed to say childcare should be more affordable but then segued into his plan to impose tariffs on imported goods, which he claimed could help pay for childcare.
The Child Tax Credit
Trump has, however, expressed a desire to increase the child tax credit. In his first term, Trump did in fact expand the child tax credit from $1,000 to $2,000 annually, though he declined to make the benefit available to the lowest-income families as well as those without any income. (Harris’s plan, by contrast, was to make all families eligible for the credit, regardless of income, and restore the larger credit that President Biden rolled out during the pandemic.) Trump has said that he plans to extend the expanded credit that he introduced while in office, which is set to expire next year.
Reducing childcare costs
When it comes to reducing the cost of childcare—or addressing widespread childcare shortages—Trump has offered few solutions beyond the potential revenue generated by tariffs. (Many economists have also warned that those tariffs could significantly drive up the price of consumer goods, and in turn, household costs for Americans.)
While JD Vance has spoken about childcare in more depth and pledged his support for “pro-family policies,” his comments have often elided broader policy solutions to the challenges facing American families. Instead, Vance has suggested that parents should rely more on family members rather than paying for childcare, and that family help can also supplement limited childcare options. Vance has also argued that the federal programs that currently subsidize childcare for low-income families don’t account for “alternative arrangements” that parents might choose, such as assistance from family or community members.
Potential Program Cuts
It seems likely that Trump will take a similar approach to issues like childcare as he did in his first term. While in office, Trump repeatedly pushed for budget cuts to federal programs including Head Start and the Child Care and Development Block Grant, which help subsidize childcare costs for low-income families. (Those proposed cuts were rejected by Congress.)
For months, Trump has disavowed Project 2025 and its extreme policy proposals, which include a striking recommendation to eliminate Head Start altogether. Trump may not go that far—but while campaigning, he has signaled that family policies are not high on the agenda for a second term.