Provides large new federal funding and program changes to expand child care access, workforce capacity, and quality. It allocates $20 billion for the Child Care Entitlement to States for FY2026 with future increases tied to the Consumer Price Index, creates set‑asides for tribes, territories, technical assistance, and research, and updates program definitions and fund‑distribution rules.

Creates a new competitive grant program with $5 billion per year to strengthen the child care workforce, increase supply, and improve quality and access in areas of “particular need.” States, territories, tribes, and tribal organizations must describe use of funds in their Child Care and Development Block Grant (CCDBG) plans; the law requires payment rules, reporting, public federal evaluations, and other accountability measures. Both sets of changes take effect October 1, 2025.