While the President provided few details in his speech to Congress, some details have been leaked from the press. According to a number of reports, the Trump family leave plan would:
- Allow families to deduct child-care expenses from their taxable income. The amount of the deduction would be capped at the average cost of child care in their state and would apply to children younger than 13.
- Make low-income families eligible to receive a tax credit for up to 7.65% of their child-care costs.
- Create childcare savings accounts to which contributions would be tax-deductible and to which $2,000 a year could be contributed.
- Provide six weeks of paid maternity leave by amending the unemployment insurance system.
The Tax Foundation has estimated that such a plan would cost the federal government $500 billion in lost revenue over the course of a decade. The President has said that these costs would be offset by increased economic growth and by reducing fraud and waste.