Milwaukee City Wire

Wisconsin State Sen. Chris Larson is promoting new legislation that would put a cap on the amount that families have to pay for childcare.

The 7% cap on childcare costs is one of the subsidies proposed in President Biden’s American Families Plan, according to The Balance. If the 7% maximum refers to pre-tax income, then for households with the median income of $68,703, the most they would be spending on childcare is around $400 per month.

"Congressional Democrats want to cap childcare costs at 7% of a family’s income," Larson wrote in an Oct. 13 Twitter post. "Right now, many families are paying double the cost of their mortgage just to keep their kids in day care. It’s time to Build Back Better."

According to Politifact, childcare costs the average Wisconsin family around 24% of their household budget.

Despite high costs of childcare, childcare workers in Wisconsin earn a median wage of $10.66/hour, and almost 20% of childcare workers live below the poverty line, according to Wisconsin Public Radio.

"Sometimes people think, 'Oh, if I'm paying a lot for my child's tuition, then educators must be doing fine,' but that’s not the case," Caitlin McLean, a senior research specialist at the Center for the Study of Childcare Employment (CSCCE) said, WPR reported. "Educators are really subsidizing the system with their low wages."