Sponsors (26)
Introduced April 2, 2025 by Danny K. Davis · Last progress April 2, 2025
The bill meaningfully expands and targets federal child-care funding—improving access, workforce support, and infrastructure especially for tribes, territories, and high-need areas—while raising long-term federal spending and imposing state-level maintenance, reporting, and implementation requirements that could strain budgets and complicate rollout.
Parents and low-income families across the U.S. gain substantially expanded access to subsidized child care through a permanent $20 billion annual baseline (CPI-indexed) plus a $5 billion annual high-need grant program, increasing affordability and availability of care.
Indigenous tribal communities and residents of U.S. territories get guaranteed, dedicated funding (5% for tribes, 4% for territories), improving stable access to culturally and geographically appropriate child care.
Child care workers (teachers and providers) in targeted/high-need areas receive wage supplements, bonuses, apprenticeships, and training supports, improving recruitment, retention, and workforce quality.
All taxpayers face higher federal spending obligations because the bill establishes a permanent $20 billion baseline (CPI-indexed) and an additional $5 billion annual grant program, increasing long-term federal costs.
State governments may be constrained by new maintenance-of-effort and minimum general revenue requirements, forcing reallocation of state budgets or reducing other state-funded programs.
Lead agencies and state/local administrators will face increased planning, reporting, and compliance burdens (detailed plans, quarterly payment reporting, multi-year reports, and rapid absorption of transfers), raising administrative costs and implementation risk.
Based on analysis of 3 sections of legislative text.
Establishes a $20B CPI‑indexed annual federal floor for child-care entitlements and creates a new $5B annual grant program for areas with particular child-care need, with set reservations for tribes and territories.
Dramatically increases federal funding for child care by creating a permanent $20 billion annual baseline for the Child Care Entitlement to States (indexed to CPI) beginning in FY2026 and adding a separate $5 billion annual grant program to expand workforce, supply, quality, and access in areas with particular need. Sets aside fixed percentages of each appropriation for Indian tribes/tribal organizations, U.S. territories, technical assistance, evaluation, and limited administrative expenses, updates definitions and allocation rules, and requires lead agencies to describe planned use of funds for high-need areas in CCDBG plans.