Labor & Employment Law Daily Wrap Up, HOUSE NEWS—Hearing highlights need for affordable, accessible childcare, (Jan 15, 2026)

By Patricia K. Ruiz, J.D.

One witness testified that employer investment in childcare reduces absenteeism, boosts productivity, and improves retention.

In a hearing before the U.S. House Subcommittee on Early Childhood, Elementary, and Secondary Education, business leaders and advocates shared firsthand experiences and policy recommendations addressing the nation’s childcare crisis. Their testimonies underscored the urgent need for affordable, accessible care and highlighted innovative employer-supported models alongside calls for systemic public investment.

Employer-backed childcare solutions. Mary Lou Burke Afonso, Chief Operating Officer for North America at Bright Horizons, emphasized the role of employer-backed childcare solutions in supporting working families. Bright Horizons, founded in 1986, partners with nearly 1,450 organizations—including over 220 Fortune 500 companies—to provide on-site and backup care. Afonso cited survey data showing that 80 percent of working parents believe the workforce has not adapted to modern family needs, and 67 percent feel forced to choose between career and family. She noted that employer investment in childcare reduces absenteeism, boosts productivity, and improves retention, framing childcare as both an economic and social imperative.

Robust public investment needed. Amy K. Matsui, Vice President for Child Care and Income Security at the National Women’s Law Center, described the worsening childcare crisis and its economic impact. Families face unaffordable costs, limited supply, and inadequate public funding, while early educators—mostly women and disproportionately women of color—remain among the lowest-paid workers. Matsui highlighted that pandemic-era relief temporarily stabilized the sector but expired, causing prices to rise and access to decline. She argued that employer-provided benefits and tax credits are insufficient to meet demand and urged Congress to pass the Child Care for Working Families Act, which would cap family childcare costs, expand pre-K access, and raise wages for early educators. Matsui framed childcare as essential infrastructure for families, employers, and the economy.

Small business solution. Haden Polseno-Hensley, President and Co-Founder of Red Rooster Coffee Co., shared how his company created an in-house childcare program to address local shortages. In 2018, facing long waitlists and prohibitive costs in rural Floyd, Virginia, Red Rooster launched Yellow Hen Child Care within its facility, charging just $1 per hour and subsidizing annual deficits of up to $90,000. At its peak, Yellow Hen served 24 children and became a cornerstone of employee retention and company culture. As workforce needs shifted, the program transitioned to after-school and holiday care, supplemented by a Family Financial Assistance Program offering childcare reimbursements and college savings contributions. Polseno-Hensley’s testimony illustrated how employer-driven solutions can transform employee stability and loyalty, even in resource-limited communities.

Childcare as workforce infrastructure in manufacturing.Alex Grover, CEO of i2M, a Pennsylvania-based manufacturer, testified that reliable, high-quality childcare is essential to staffing 24/7 operations and retaining skilled workers across shifts. i2M launched a childcare partnership in 2022 that reserves subsidized slots with a local provider, offering extended hours and drop in options tailored to manufacturing schedules and making the benefit available immediately to new hires. Grover reported near 100 percent retention among participating employees and significant reductions in unplanned call offs, improving production stability and safety. She urged Congress to preserve and strengthen employer-focused incentives—particularly the expanded Section 45F Employer Provided Child Care Credit—arguing that well designed, business friendly tax credits meaningfully change the ROI for employers and unlock scalable private investment in childcare without requiring companies to operate centers themselves.

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