Sponsors (7)
The bill provides targeted financial incentives and funding to build and retain an early childhood workforce and expand childcare access, but it ties support to multi-year service obligations, benefit caps, and eligibility limits that can leave some workers and students with unmet costs or unexpected debt while increasing federal spending.
Early childhood educators and students receive direct financial support — up to $6,000/year in federal loan repayments (for up to 5 years) and up to $4,000/year in education grants — reducing out-of-pocket education costs and lowering debt burdens for people entering or remaining in the early childhood workforce.
Parents, children, and low-income families benefit from a stronger early childhood workforce because the bill funds workforce development ($25M/year) and creates retention incentives that make it more likely childcare slots and quality will increase or stabilize.
Institutions and programs get more stable cash flow through advance payments (≥85% of grant funds), improving program stability and enabling targeted recruitment into early childhood educator training.
Early childhood educators and grant recipients face binding service obligations (a 5-year commitment for loan repayment and service/placement windows for grants) that can limit career mobility and, if unmet, lead to conversion of support into federal loans.
Students and educators may still face significant unmet costs because benefit caps ($6,000/year for loan repayment; $4,000/year for grants) and rules limiting disbursements to tuition/fees/materials can leave remaining loan balances and do not cover living expenses.
Educators employed in settings that are not CCDBG-funded or eligible can be excluded from program eligibility, leaving some early childhood workers unable to access the benefits.
Based on analysis of 3 sections of legislative text.
Establishes an HHS loan repayment program for early childhood educators and a Department of Education grant program for students in early childhood educator programs, both tied to service obligations.
Introduced May 8, 2025 by Katherine M. Clark · Last progress May 8, 2025
Creates two federal programs to recruit and retain early childhood educators: (1) a loan repayment program run by HHS that can repay up to $6,000 per year of qualifying federal student loan principal and interest for eligible early childhood educators who commit to at least five years with a qualified employer, with $25 million authorized per year for FY2026–FY2031; and (2) a Department of Education grant program that pays students in approved early childhood educator programs (up to $4,000 per academic year, renewable up to three times) in exchange for a multi-year service commitment in licensed early learning programs, with grant amounts converting to loans if recipients fail to meet service requirements. Both programs include certification and reporting rules, service/repayment disclosures, and implementation oversight.