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Introduced January 29, 2025 by Ronald Lee Wyden · Last progress January 29, 2025
Creates a competitive HUD grant program to fund co-located affordable housing and child care facilities. Grants may be used to design, build, convert, lease, renovate, or preserve housing that contains or is close to licensed child care providers; awards are capped at $10 million each and the program is authorized at $100 million per year for fiscal years 2026–2031. Sets eligibility and application requirements for grantees, priorities for areas with child care shortages or very low-income residents, technical-assistance and reporting requirements, and a GAO study on child care availability and affordability for public housing residents.
The bill expands and targets federal support to build co-located affordable housing and child care—likely increasing access and stabilizing care for low-income families—at the cost of new federal spending, administrative complexity, and a risk that larger, better-capitalized developers will capture a disproportionate share of funds while smaller providers wait.
Low-income families, public housing residents, and parents gain increased access to affordable housing paired with on-site or nearby licensed child care—creating more child care slots and reducing childcare-related barriers to work.
The bill authorizes a sustained federal funding stream (authorized at $100 million per year through 2031) to build and operate co-located housing and child care facilities, increasing the likelihood projects are financed and constructed.
Community development financial institutions (CDFIs), nonprofits, tribal governments, and tribally designated housing entities are explicitly eligible, widening financing and partnership options and making resources available to Native communities.
Taxpayers face increased federal spending of $100 million per year through 2031 with no offsets, raising the program’s budgetary cost.
Administrative complexity and reporting/certification burdens (eligibility rules, business plans, licensing, resident engagement, HUD compliance) may slow applications, delay projects, and favor larger organizations with administrative capacity.
Grant design features (including a $10 million per-award cap combined with reliance on LIHTC/NMTC structures) risk concentrating funds in fewer, larger projects or tax-credit-affiliated developers and disadvantaging smaller local providers without tax-credit capacity.