Child Care Workforce Development Act

Summary

Creates two federal programs to recruit and retain early childhood educators. One program (HHS) will repay up to $6,000 per year of eligible educators’ Federal Direct student loan principal and interest in exchange for at least five years of service at a qualifying child care provider; it authorizes $25 million per year for FY2026–2031. The other program (Education) will award students enrolled in approved early childhood educator programs up to $4,000 per academic year (renewable up to three times) in exchange for a service obligation; failure to complete the service turns the grant into a Federal Direct Unsubsidized Stafford Loan with income-driven repayment and limited hardship relief.

• Creates an HHS loan-repayment program that will pay up to $6,000/year toward eligible early childhood educators’ Federal Direct loans in exchange for a 5-year service commitment.
• Authorizes $25 million per year for FY2026–2031 to fund the HHS loan-repayment program.
• Requires the Department of Education to set up a competitive grant program within 180 days to give students up to $4,000 per academic year for early childhood educator programs, renewable up to 3 times.
• Grant recipients must complete post-program service (at least one academic year, increasing with renewals) as licensed early learning educators or face conversion of grants into Federal Direct Unsubsidized Stafford Loans.
• Converted grants do not accrue interest during conversion and are repaid under income-driven or income-based plans; the Secretary may allow a one-year hardship extension.
• Eligible employers for the HHS program must be child care providers that receive or are eligible for CCDBG assistance, tying benefits to providers serving CCDBG populations.
• Programs borrow administrative and contract rules from existing federal loan-repayment authorities to structure eligibility, certification, and payments.
• Education grant program includes plain-language disclosures, certification requirements, and allows concurrent employment to count toward service obligations.
• HHS must recertify participants annually and report program results to Congress within five years of enactment.
• The grant program’s per-student cap is specified, but the statute does not specify a total authorization amount for the Education grants themselves.