Caregiving has become a critical public health concern as the U.S. population continues to age and chronic illnesses become more prevalent. Family caregiving plays a vital role in enabling individuals to remain in their homes and communities, yet caregiver contributions often go underappreciated and unpaid.
As the number of family caregivers grows, there is increasing awareness among voters, policymakers, and employers about the challenges they face. Many caregivers are balancing work, raising children, and supporting aging parents, often at a significant personal and financial cost.
Recent legislative efforts aim to support family caregivers by making it easier for them to prepare for retirement. Two new bills propose measures to address this issue and President-elect Trump has expressed support for a caregiver tax credit, as outlined in the 2024 Republican Party platform. Additionally, in September, the Department of Health and Human Services released a progress report detailing federal efforts to implement a national strategy to assist family caregivers.
Caregiver Contributions Bridge a $600 Billion Gap in U.S. Health Care
The U.S. healthcare system is often described as “complex,” “inefficient,” “unfair,” or even “broken.” Despite spending more per capita on health care than other developed nations, the U.S. frequently fails to achieve better outcomes.
One of the system’s most glaring weaknesses is the lack of a national program to cover long-term care costs. This gap forces many families to bear the financial and emotional burden of caring for loved ones, including aging parents, spouses, special needs children, and others who require help with daily activities such as meal preparation, bathing, paying bills, and managing medications.
Family caregivers step in to fill this void, providing “free” essential services at an enormous personal cost. According to an AARP report, unpaid caregivers delivered 36 billion hours of care in 2021, valued at an astounding $600 billion. This figure surpasses all out-of-pocket healthcare spending in the U.S. that year and marks a $130 billion increase in unpaid contributions compared to 2019.
The number of unpaid family caregivers is also rising rapidly. AARP data shows that more than 53 million adults—approximately one in five Americans—provided unpaid care as of 2020, a 9.5 million increase since 2015. With an aging population, this number is expected to grow. By 2034, AARP projects that adults aged 65 and older, who are at greater risk for chronic conditions such as dementia, arthritis, heart disease, diabetes, and cancer, will outnumber children under 18 for the first time in U.S. history.
Family Caregiving Takes Financial and Emotional Toll
On average, caregivers in the U.S. spend $7,200 out-of-pocket annually and dedicate 26 hours each week to caring for loved ones. Many also face the dual pressures of maintaining employment while managing their caregiving duties. For those simultaneously raising children and supporting aging parents—often referred to as the “sandwich generation,” aged 35 to 64—the demands can be overwhelming.
For some, caregiving equates to working a part-time or full-time job in itself. Others are forced to leave the workforce entirely, sacrificing career advancement, job opportunities, and retirement savings to focus on caregiving responsibilities. Those who manage both caregiving and employment frequently report declines in physical and mental health, as well as increased workplace absenteeism.
Women remain disproportionately impacted, as they are more likely to take on unpaid caregiving roles while working full-time. However, the trend is shifting, with more men stepping into caregiving roles. Caregivers across all demographics—regardless of gender, age, or race—often face financial challenges. Over one-third of caregivers earn less than $50,000 annually, leaving them particularly vulnerable to economic stress. Inflation and declining savings rates have further strained caregivers’ ability to manage the financial demands of providing care.
Growing Support for Family Caregivers
Demographic and economic shifts are creating an unsustainable situation for family caregivers, as working-age Americans increasingly find themselves forced to choose between their own well-being and caring for loved ones. However, more resources and support may soon be available for those who provide essential care to millions of older adults, special needs children, and other individuals requiring assistance.
The National Strategy to Support Family Caregivers, launched in 2022, presents a comprehensive plan outlining hundreds of specific actions federal agencies are taking to address the physical, emotional, and financial challenges faced by family caregivers. A progress report released by the Department of Health and Human Services (HHS) in September 2024 stated that most of these actions are either completed or in development. The strategy was developed as a result of the RAISE Family Caregivers Act, which was passed in 2018 and mandates the creation of a national framework to support family caregivers.
This top-down initiative has gained widespread support from voters across the political spectrum, according to polling data. A June 2024 poll revealed that 86% of voters, including 92% of Democrats and 82% of Republicans, want policymakers to take action to make caregiving more affordable. Over 80% of respondents supported paid family leave, caregiver tax credits, and employer incentives for caregivers.
Policymakers Push for Increased Support for Family Caregivers
Family caregivers are gaining attention from policymakers, with both major political parties recognizing the need for more support. On the campaign trail, Donald Trump expressed his support for a tax credit for family caregivers, while his vice president, J.D. Vance, suggested that federal childcare assistance measures should also benefit family caregivers. The 2024 Republican Party Platform further advocates for supporting unpaid family caregivers through tax credits and reducing bureaucratic barriers, along with a shift toward at-home senior care.
Vice President Kamala Harris, during her presidential campaign, made a direct appeal to the sandwich generation by proposing that Medicare should cover home health care. Additionally, the Credit for Caring Act, introduced earlier this year, proposes a tax credit of up to $5,000 for eligible working family caregivers. This credit could help offset costs related to adult day services, home aides, assistive technology, transportation, and more.
Two bipartisan bills introduced in September aim to further support caregivers’ financial well-being. The Improving Retirement Security for Family Caregivers Act would eliminate the income cap on Roth IRA contributions, allowing caregivers to contribute up to $7,000 annually, regardless of their income level. The Catching Up Family Caregivers Act would enable family caregivers to make catch-up contributions to retirement plans, a benefit typically available only to those over 50.
On the state level, various programs offer financial assistance, paid leave, and other forms of support for family caregivers. Several states partner with organizations like AARP to help caregivers access resources.
Plan for Long-Term Care with an Elder Law Attorney
Planning for long-term care is essential, especially for family caregivers who provide critical support to aging loved ones. Consulting with an elder law attorney will help you navigate complex legal and financial considerations while securing the resources needed for caregiving. Elder law attorneys also provide guidance on estate planning, guardianship, and long-term care insurance, helping you understand your options and protect your family’s financial future. Together we’ll create a comprehensive plan that ensures your loved one receives the care they need, while also safeguarding your financial well-being.
Bromlow Law, PLLC and Laura L. Bromlow, are dedicated to the practice of Elder Law and Estate Planning. Our practice focuses solely on working with clients in these and closely related legal fields. Laura L. Bromlow is a Certified Elder Law Attorney with the National Elder Law Foundation. Bromlow Law, PLLC strives to enhance communication among family members and loved ones and to keep them all out of conflict so they can stay out of court. We want to help you keep your close circle safe!
Please contact our office today at (281) 665-3807 to schedule a free consultation to discuss your legal matters. We look forward to the opportunity to work with you.