Caregiving costs surge 60% as Congress moves to pass $5,000 tax credit
A new AARP study reveals that family caregivers in the US now spend an average of $11,508 annually out of pocket, a 60% increase over five years that outpaces inflation. This financial strain is compounded by lost wages and reduced retirement savings. In response, the bipartisan Problem Solvers Caucus endorsed the Credit for Caring Act, which proposes a $5,000 tax credit for caregivers. However, the issue is becoming a political flashpoint ahead of the 2026 midterms, with voters aged 50 and older indicating they will prioritize candidates who support caregiver aid, especially as proposed Medicaid cuts threaten to increase costs further.