The proposal is one of five recommendations from the president's Middle Class Task Force, which was established one year ago this week.
It comes as an increasingly populist White House struggles to regain political momentum among middle-class, independent voters frustrated by the slow pace of the economic recovery.
Obama will push to increase the Child and Dependent Care Tax Credit rate from 20 to 35 percent for families making under $85,000 a year. Families making from $85,000 to $115,000 also would see an increase in their tax credit, the official noted.
At the same time, lower-income families would receive a $1.6 billion increase in child care funding, the largest one-year increase in two decades.
In addition, the White House will propose limiting a student's federal loan payments to 10 percent of his or her income above a basic living allowance.
The administration also will push for the creation of a system of automatic workplace individual retirement accounts, requiring all employers to give workers the option of enrolling in a direct-deposit IRA.
Fourth, the White House will propose expanding tax credits to match retirement savings, while also enacting new safeguards to protect retirement savings.
Fifth, the administration will push to expand federal support for families caring for elderly relatives, "helping them manage their multiple responsibilities and allowing seniors to live in the community for as long as possible," the official said.
Since its establishment, Middle Class Task Force has held 11 meetings around the country and at the White House, the official noted.
– CNN's Suzanne Malveaux contributed to this report