In a rare moment of bipartisan agreement, Congress passed what some in the benefits world are calling “the Big Beautiful Bill”—a sweeping package of family-forward policies aimed at improving access to childcare, eldercare, and workplace flexibility.
Buried in the bill is a quiet but important change: the annual cap on Dependent Care Flexible Spending Accounts (DCFSAs) just got raised for the first time in decades—from $5,000 to $7,500.
Let’s pause there. 🎉
This is a big deal. For years, working families have been stuck with a 1980s-era benefit cap that didn’t come close to covering today’s childcare costs. This $2,500 boost—while modest—means more tax-free dollars available for babysitters, nannies, summer camps, and after-school programs. And it signals that Washington is (finally) recognizing that the modern family needs modern benefits.
At SitterSync, we see firsthand how hard it is for parents to make care work. Every dollar of savings matters—especially for middle-income families who earn too much for subsidies but not enough to float $1,500/month daycare bills without blinking.
Here’s what this change means in practical terms:
More tax-free savings: Depending on your tax bracket, $7,500 in DCFSA contributions could mean $2,000–$3,000 in annual savings.
Longer runway: Parents with school-aged kids now have more breathing room to cover non-daycare needs like after-school sitters, summer help, or backup care.
More flexibility: When paired with SitterSync, families can easily use their DCFSA dollars with the care providers they already know and trust—no new systems or strangers required.
Yes, $7,500 is better than $5,000. But it’s still way below the real cost of care. The average annual cost of childcare in the U.S. now exceeds $10,000 per child. For families with two kids? Forget it.
This is a step forward, but it’s not a finish line.
Until we tie these limits to inflation or rethink how we support working families altogether, we’ll keep seeing frustrated parents and underutilized benefits.
The good news? Momentum is shifting. Policymakers are starting to understand what parents have known for years: flexible, affordable care isn’t a luxury—it’s a necessity for workforce participation.
That’s why SitterSync is focused on helping families afford care they already use. We simplify payments, automate compliance, and unlock pre-tax savings for everyday sitters, not just licensed centers.
Because whether the cap is $5,000 or $15,000, it doesn’t matter if families can’t easily use it.
The new $7,500 DCFSA limit is now in effect. If your employer offers a DCFSA, ask HR about increasing your contribution during your next enrollment window. If they don’t offer one yet, it might be time to ask why not.
And if your company does offer a DCFSA but you haven't used it with SitterSync yet, we should talk.