Above: Gottheimer announcing new legislation to assist family caregivers.

FAIR HAVEN, NJ — Today, October 24, 2024, U.S. Congressman Gottheimer (NJ-5) announced his new “Family Caregiving Plan.” This includes the bipartisan Caregiver Financial Relief Act, which he is introducing with Congressman Mike Lawler (NY-17), to waive early withdrawal penalties from retirement accounts for family caregiving expenses. 

There are more than 53 million family caregivers in the US, with New Jersey also home to more than one million family caregivers, who provide $17.6 billion annually in unpaid labor caring for their loved ones.

Video of Gottheimer’s announcement can be found here.

The Rising Cost of Family Caregiving

• More than 53 million family members act as caregivers to help their loved ones
• New Jersey is home to more than one million family caregivers that provide $17.6 billion annually in unpaid labor
• On average, family caregivers can spend more than one-quarter of their income on caregiving activities

o    family caregiver expenses like housing, healthcare and transportation — can end up costing more than $7,000 a year

• Nearly 25 percent of American adults and more than half of people in their 40s are “sandwiched,” with at least one child to support and at least one parent over 65

o    By 2030, all Baby Boomers will be 65 or older — accounting for 20 percent of the population — almost double what it was in 2000.

o    Census Bureau projections suggest by 2034 — for the first time ever — there will be more people in the U.S. over the age of 65 than under 18.

Gottheimer’s Family Caregiving Plan

• First, Gottheimer is introducing the bipartisan Caregiver Financial Relief Act with Congressman Mike Lawler (NY-17) which will waive early withdrawal penalties from retirement accounts for family caregiving expenses. 

o    Early withdrawal penalties can add up to 10% of every retirement dollar you withdraw. 

o    Retirement funds can already be withdrawn without penalty for education expenses, home purchases, and certain childcare costs

• Second, Gottheimer is helping lead the bipartisan Credit for Caring Act to help working family caregivers offset their expenses. This bill, which also has bipartisan support in the Senate, will allow family caregivers to turn up to thirty percent of their family caregiving expenses into a tax credit ranging – up to $5,000 a year. 
• Third, Gottheimer is cosponsoring the bipartisan Improving Retirement Security for Family Caregivers Act, so that, if you need to take off work to care for a loved one, it doesn’t end up hurting your own retirement savings. 

o    This bipartisan legislation, which is bipartisan in the Senate, will allow caregivers to still contribute the maximum amount into their Roth IRA, up to $7,000, even if they aren’t working full time. 

• Finally, Gottheimer is a co-sponsor of the bipartisan Lowering Costs for Caregivers Act to allow funds in flexible spending, health savings, and medical savings accounts to be used toward medical expenses for a loved one. 

o    Currently, you’re limited to using these funds only for yourself or a dependent. This bill will change that and help save caregivers on their out-of-pocket medical-related expenses.

“Family caregivers are there to help with everything from preparing meals, to putting on clothes, to coordinating medical care while advocating on behalf of those in need. They’re on it – and, while it’s the right thing to do, aside from the emotional toll, it comes at a huge cost.” said Congressman Josh Gottheimer (NJ-5). “This new bipartisan legislation, which I’m introducing will ensure that family caregivers are no longer financially punished for the vital care they provide. ”

“Families shouldn’t be penalized for dipping into retirement savings to care for family members in need,” said Congressman Mike Lawler (NY-17). “Our new legislation will make sure they aren’t. This bill is common sense and will help countless families who need it the most.”

Gottheimer was joined by Former Monmouth County Commissioner Amy Mallet, Former Fair Haven Councilman Chris Rodriguez, and New Jersey seniors.

Below: Gottheimer announcing new legislation to assist family caregivers.

Gottheimer’s remarks as prepared for delivery:

Good morning, it is great to be with you here in Fair Haven. I want to thank the Knights of Columbus for hosting us here today, and for all they do for the community. Fair Haven is one of my favorite shore towns and, every August, when your kids might be depressed it’s the end of summer, the Fair Haven Fireman’s Fair comes to the rescue.  

Speaking of coming to the rescue, that’s exactly what so many families do every single day caring for their loved ones in communities just like this one across our state and country. I remember when my mom was sick. For years, my sister and my aunt Leslie and I woke up every day focused on making sure she got everything she needed. I remember all of those calls and visits – and working with her doctors and nurses — just hoping she would be comfortable. It can be a full time job. We were lucky to have some help, with my aunt and others, and, although it didn’t ease our anxiety, it certainly helped.   

But, for millions of Americans, they have little or no help. They are largely on their own, making sure their parents or siblings or children get the care they need. They are there to help with everything from preparing meals, to putting on clothes, to coordinating medical care while advocating on behalf of those in need. They’re on it – and, while it’s the right thing to do, it, aside from the emotional toll, comes at a huge cost. Time away from others and time away from work. It can have a huge impact on household income.   

More than 53 million family members act as caregivers to help their loved ones live with the dignity and respect they deserve. Think about that: one in five adults now provide uncompensated care to loved ones with health problems. New Jersey is home to more than one million selfless family caregivers, including thousands here in Monmouth County, who provide $17.6 billion annually in unpaid labor caring for their loved ones. Far too often, they cannot financially carry this burden alone — it literally drains pocketbooks. Yet, without them, America’s health and long-term care systems would collapse. We need to do everything we can to help these caregivers out.  

Today, I’m here to announce new bipartisan legislation to help make family caregiving more affordable and increase financial support for caregivers.  

Let me give you a few more jaw-dropping facts. Expenses for family caregivers like housing, healthcare and transportation — can end up costing more than $7,000 a year. On average, family caregivers can spend more than one-quarter of their income on caregiving activities alone. 

This has forced too many family caregivers to take on debt, pay bills late, or cut into their retirement — all in the name of doing right by their loved ones.  

In fact, more than half of family caregivers experience financial setbacks. More than half of Americans said that they would need to tap their retirement account, savings, or cutting personal healthcare spending to care for a loved one. And, according to Vanguard, that’s exactly what they’re doing. 

Early withdrawals were up significantly over the last few years. Most Americans don’t have enough in their retirement accounts to afford withdrawing money for their loved ones and then having enough for themselves.  

And, as the years go on, and Baby Boomers are aging, these numbers will only get worse. By 2030, all Baby Boomers will be 65 or older — accounting for 20 percent of the population — almost double what it was in 2000. This huge demographic shift highlights the urgent need to prepare for the growing caregiving responsibilities that families will face in the coming years.  

Baby Boomers are still taking care of their parents, and, soon enough, if not already, their children or other loved ones are taking care of them. On top of taking care of their own kids. Nearly 25 percent of American adults and more than half of people in their 40s are “sandwiched,” with at least one child to support and at least one parent over 65. 

For most Baby Boomers, they don’t have any long-term care insurance. Medicare isn’t enough to stop working. So, what do we do? How do we help the millions of family caregivers in our country, and the millions who will be caring for others in the years to come? As a member of the Assisting Caregivers Today Caucus, I’ve been focused on this issue for years. It’s real, there’s nothing partisan about it, and we need to act.  

Today, I’m announcing my Family Caregiving Plan to help the 53 million Americans who make up the backbone of long-term care in our state and country.  

First, as part of my Family Caregiving Plan, I’m introducing the bipartisan Caregiver Financial Relief Act which will waive early withdrawal penalties from retirement accounts for family caregiving expenses. Those penalties can add up to ten percent of every retirement dollar you withdraw. This new legislation, which I’m introducing with Congressman Mike Lawler, will ensure that family caregivers are no longer financially punished for the vital care they provide. 

Individuals can already access their retirement funds without penalty for education expenses, home purchases, and certain childcare costs. It’s time we extend the same relief to family caregivers who are often left with no choice but to tap into their savings as a last resort.  

Second, I am proud to announce that I’m helping lead the bipartisan Credit for Caring Act to help working family caregivers offset their expenses. This bill, which also has bipartisan support in the Senate, will allow family caregivers to turn up to thirty percent of their family caregiving expenses into a tax credit ranging – up to $5,000 a year. With high costs already squeezing their pocketbooks thin, this credit will provide caregivers some much needed breathing room. 

Third, I am cosponsoring the bipartisan Improving Retirement Security for Family Caregivers Act, so that if you need to take off of work to care for a loved one, it doesn’t end up hurting your own retirement savings. This bipartisan legislation, which is bipartisan in the Senate, too, will allow caregivers to still contribute the maximum amount into their Roth IRA, up to $7,000, even if they aren’t working full time.   

Finally, as part of my Family Caregiving Plan, I’m proud to cosponsor the bipartisan Lowering Costs for Caregivers Act to allow funds in flexible spending, health savings, and medical savings accounts to be used toward medical expenses for a loved one.  Right now, you’re limited to using it only for yourself or a dependent. This will change that and help save caregivers on their out-of-pocket medical-related expenses.  

As co-chair of the Bipartisan Problem Solvers Caucus, I know we can fix issues impacting every day, hardworking Americans when we put country over party. As I said earlier, there is nothing partisan about taking care of a sick loved one. It’s a basic Jersey Value we’re taught as kids – to do right by others, especially our elders who looked out for us.  Roughly one-fifth of all of us will take care of a loved one at some point, with the large majority providing care for older adults. But, remember, Americans are also caring for children and siblings and other loved ones.  So, it’s important that we help them when they do, because financial issues are not going to just go away on their own.  

Recent Census Bureau projections suggest by 2034 — for the first time ever — there will be more people in the U.S. over the age of 65 than under 18. The good news is that Americans are living longer than ever, and we should celebrate the progress we have made on that front. But it also presents new challenges. We need to do everything we can to help ease the financial stress that forces too many families and loved ones to choose between basic necessities like rent, food, and diapers. My Family Caregiving Plan help do just that.  

These are tough issues, but I know that if we do that, in the greatest country in the world, if we work together, our best days will always be ahead of us. 

May God bless you, and may God continue to bless the United States of America. 

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