2) Build and Care Initiative
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Program 2: Build and Care Initiative
ADDRESSES: HOUSING AND CHILD CARE

What the program does
1. Housing supply incentives
Tie part of federal transportation and community development grants to local zoning reforms that allow more homes: smaller lots, accessory units and conversions of commercial buildings. Expand the low-income housing tax credit and add a starter-home construction credit.
2. Child care cost cap
Set a target that families pay no more than a fixed share of income for licensed care, funded through block grants to states that expand supply and raise provider pay. Expand the dependent care tax credit as a faster first step.
3. Renter and first-time buyer support
Down payment help for first-generation buyers, and emergency rental assistance for households hit by energy price shocks.
Design options
Zoning reform and other supply-side housing measures draw support across the spectrum. Child care help can be built as a tax credit, which conservatives tend to prefer, or as direct funding for providers, which progressives tend to prefer. A hybrid improves the odds of passage.
How we will measure success
Housing permits rising year over year in participating areas, and child care costs falling as a share of family income in participating states.
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