Child Care Infrastructure Act Authorizes $10 Billion for Facility Upgrades, Mandates Prevailing Wages for Construction

The newly introduced Child Care Infrastructure Act is aiming to tackle the massive, and often invisible, problem of crumbling child care facilities across the country. This bill authorizes a hefty $10 billion in federal funding, available between fiscal years 2026 and 2030, specifically for building, renovating, and improving child care centers and home-based programs.

The core purpose here is two-fold: to improve safety and to expand capacity, especially for centers serving the kids who need it most. Before the money starts flowing, the Secretary is required to conduct an immediate assessment of the current state of child care buildings nationwide, with a report due to Congress within one year. Think of this as a national inventory of leaky roofs, outdated wiring, and cramped spaces, giving us a baseline for where that $10 billion needs to go.

Where the Money Goes: Prioritizing the Pinch Points

This isn't just a free-for-all for any facility looking for a fresh coat of paint. The grants go to states, which must then prioritize certain providers when distributing the cash. If you run a center, or rely on one, that serves primarily low-income children, has a high enrollment of infants and toddlers, or is located in a rural or underserved area, you are at the front of the line. The bill specifically focuses on places that are currently limited in how many kids they can take because their building is holding them back.

For example, if a center in a high-need urban area could serve 50 more preschoolers but its current facility layout and safety codes only allow for 30, this grant money is designed to help them reconfigure or expand to hit that higher capacity. States are also encouraged to support home-based programs, recognizing that many families rely on these smaller, often more flexible, settings. To get the money, states must commit to a 10% match, though the bill is flexible, allowing this match to come from private donors or even funds already subsidized by the federal government.

The Prevailing Wage Requirement: What It Means for Contractors

Here’s a crucial detail for anyone in the construction industry or managing a renovation project: the bill includes a significant labor protection. Any construction, repair, or renovation work funded by these grants must adhere to local prevailing wage standards. This means that laborers and mechanics working on these projects must be paid wages that match what the Secretary of Labor determines is standard for similar local projects.

This provision is a big deal. For construction workers, it guarantees fair pay on these federally-funded projects, preventing a race to the bottom on wages. For child care providers managing the renovation, it adds a layer of compliance and paperwork, requiring written assurance that these wage rules will be followed for all contractors and subcontractors. If you’re a small local contractor, you need to be aware of these requirements before bidding on a facility upgrade project.

Getting the Funds Out the Door

Beyond the direct state grants (which are capped at $250 million annually per state), the bill allocates between 10% and 15% of the total funds—up to $1.5 billion—to intermediary organizations. These are groups like Community Development Financial Institutions (CDFIs) that specialize in financing and technical assistance. They will receive grants of up to $15 million each to help child care providers navigate the complex world of facility financing and capacity building.

This is smart policy designed to help smaller providers, especially home-based ones, who might not have the expertise or resources to apply for a major infrastructure grant directly. Think of these intermediaries as the technical support team, offering financing tools and guidance to make sure the money actually translates into better, safer, and more accessible child care spaces for working families.