Child Care for Working Families Act

Last progress July 15, 2025 (5 months ago)

Introduced on July 15, 2025 by Robert C. Scott

This bill would lower child care costs and expand access. It caps what families pay using a sliding scale: families at or below 85% of the state median income pay no copay; costs rise gradually up to a 7% cap of family income. Providers can’t charge more than the public support plus the family copay. Kids who qualify must stay covered for at least 12 months, and states must make enrollment simple and reduce barriers, with a focus on underserved groups like infants and toddlers, children with disabilities, dual language learners, children experiencing homelessness or in foster/kinship care, and families who need care during nights or weekends.

Starting October 1, 2026, states, Tribes, and territories would use federal funds to offer child care through provider contracts or parent certificates, set aside funds to raise quality and expand supply, and receive a 90% federal match for direct services through 2031 . Separate grants would stabilize providers, support higher wages for early educators, and grow the number of slots; states would make five‑year subgrants and pay them up front to help with operating costs . The bill bans suspending or expelling young children and requires states to update licensing within set timelines, while helping providers cover costs like background checks and training .

It also funds universal, high‑quality, free, and inclusive preschool, with sustained federal support from 2026 to 2031. States must build a mixed‑delivery system that includes Head Start and licensed child care and set teacher qualifications over time. If a state does not participate, local governments and Head Start agencies can receive funds directly. Head Start programs would get support to offer a full school day and full school year, with extra hours for migrant and seasonal programs .

Key points

• Who is affected: Families with young children (birth through age five), preschool‑age children, child care providers, and states, Tribes, and territories .
• What changes:
  • Family payments are capped by a sliding scale up to 7% of income; no copay for families at or below 85% of state median income; providers cannot charge extra beyond the subsidy and copay.
  • 12‑month continuous eligibility, low‑barrier enrollment, and priority for underserved children.
  • Help delivered by contracts or certificates; states reserve 5–10% to improve quality and expand supply; grants support wages and new slots with five‑year, upfront‑paid subgrants .
  • No suspensions, expulsions, or aversive interventions; updated licensing with help for providers’ costs .
  • Universal, free preschool; localities and Head Start can receive funds if a state opts out; Head Start moves to full‑day, full‑year services .
• When:
  • Starts October 1, 2026; major funding runs through fiscal years 2026–2031 .
  • Lead preschool teachers must have a bachelor’s degree within six years of first receiving funds (with exceptions for experienced staff).
  • States update child care licensing within 2.5 years and allow 3.5 years for providers to comply.