H.R. 4330: To amend the Internal Revenue Code of 1986 to establish the Early Childhood Education Trust Fund consisting of amounts paid for the estate tax and made available to fund child care services, and for other purposes.

This bill proposes the establishment of an Early Childhood Education Trust Fund as part of the Internal Revenue Code. The main features of the bill include:

Creation of the Early Childhood Education Trust Fund

The bill would create a new trust fund within the U.S. Treasury named the Early Childhood Education Trust Fund. This fund would be financed by a percentage of estate taxes collected by the government:

• Specifically, it would receive 15 percent of the estate tax revenue collected each year.
• At least 25 percent of that amount would be designated for specific purposes related to early childhood education.

Use of Funds

The funds collected and deposited in the Early Childhood Education Trust Fund would be used to support child care services. The Secretary of Health and Human Services would be responsible for awarding child care supply grants to various lead agencies:

• These grants would provide financial assistance to improve child care services.
• The bill specifies that the grants should be awarded without adhering to certain restrictions typically applied under existing child care programs, thereby easing access to funds.

Supplemental Appropriations

The funds appropriated to this new trust fund would be in addition to any existing amounts already authorized under the Child Care and Development Block Grant Act of 1990. This means that the trust fund would not replace prior funding but provide additional resources for early childhood education services.

Changes to Estate Tax Exemptions

The bill would also amend the estate and gift tax exemptions:

• The exemption threshold would be reduced from $15 million to $7 million.
• This change is aimed at ensuring more estates are subject to the estate tax, thereby increasing revenue for the trust fund.

The adjustments to the estate tax would apply to estates of individuals who pass away and gifts made after December 31, 2025.

Effective Date

The provisions of the bill are set to take effect on December 31, 2025, meaning the establishment of the trust fund and the modifications to estate tax exemptions will not be implemented until that date.

Relevant Companies

None found