Building Child Care for a Better Future Act

This bill would boost child care funding nationwide and help communities add more safe, reliable care. It raises federal child care grants to states to $20 billion starting in fiscal year 2026 and keeps them growing each year with inflation. A share is set aside for tribes and territories.

It also creates a new $5 billion per year grant program to expand child care in the places that need it most. States, tribes, and territories could use the funds to reserve child care slots for families, support home-based providers, upgrade or build facilities, help with licensing and business needs, recruit and train workers, and raise pay so staff earn at least a living wage; construction projects must pay prevailing wages. Grants would prioritize care during nontraditional hours; infant and toddler care; services for children with disabilities, children experiencing homelessness or in foster care, dual language learners, low-income families; rural communities; and providers owned by socially and economically disadvantaged people. States would not have to provide matching funds for these new grants, but they must keep up their own child care spending. Programs run through existing Child Care and Development Block Grant plans, with regular public reports and evaluations. Unused tribal grant funds can be reallocated to other tribes. Most changes start October 1, 2025.

Key points

• Who is affected: Families needing child care; child care providers; state, tribal, and territorial agencies.
• What changes: $20B in FY2026 with inflation growth; $5B yearly grants focused on high-need areas; funds can support slots, facilities, licensing, training, and higher wages; no state match required, but states must maintain their own spending.
• Oversight: Plans go through the CCDBG program, with regular reporting and evaluations made public; unused tribal funds can be redistributed.
• When: Most provisions take effect October 1, 2025.