Child Care Workforce Act

This bill creates a nationwide test program that gives grants to states and Tribes to boost pay for child care workers. The goal is to attract and keep more workers, improve job well-being, and raise the quality and availability of affordable child care. Money must go to wage boosts only, with payments going out at least every quarter. Programs must also tell workers how extra pay could affect taxes or public benefits, and they can spend a small share on outreach and financial counseling .

The Department of Health and Human Services will choose where the grants go by looking at need, like how many young children live in the area, how many child care workers there are, how low the average pay is, and how many families qualify for help but aren’t getting it. States and Tribes must show how they’ll target areas with staffing shortages, underserved communities, and programs for infants, children with disabilities, and nontraditional hours. They also have to track results and plan for what happens when the extra funds end. The program takes effect 75 days after the law is signed, and funding is authorized starting in fiscal year 2026, with a report to Congress due within two years of launch .

Key points

• Who is affected: Child care workers; families seeking child care; states, Indian Tribes, and Tribal organizations running child care programs .
• What changes: Competitive grants to raise child care worker pay; payments at least quarterly; worker education on tax/benefit impacts; up to 10% for admin, counseling, and outreach; required tracking of results .
• Where funds go first: Areas with staffing challenges, underserved regions, shortages for infants and toddlers, children with disabilities, and nontraditional hours .
• When: Effective 75 days after enactment; funding allowed beginning in FY2026; federal evaluation and report within two years of implementation .