Germany and US unveil new childcare benefit proposals

The United States is considering "Project 2029," a proposal that would either provide free childcare for families or pay parents a monthly cash incentive of $1,000 if they keep their children at home. Advocates say the plan could ease workforce shortages and increase consumer spending, while companies anticipate changes to payroll, benefit administration, tax treatment and data‑privacy compliance.

In Germany, the coalition government led by Chancellor Friedrich Merz has introduced a draft reform of the Elterngeld system. The bill would require at least three months of parental leave taken by the second parent for a family to receive the full twelve months of benefit, cut the maximum entitlement from fourteen to twelve months, raise the minimum monthly amount from €300 to €330, and eliminate the partnership bonus and certain other provisions. The changes aim to encourage greater father involvement and simplify benefit calculations, with mixed reactions from family organisations.