The "Building Child Care for a Better Future Act" increases funding for child care programs and provides grants to improve child care workforce, supply, quality, and access, particularly in underserved areas.
Ron Wyden
Senator
OR
The "Building Child Care for a Better Future Act" increases funding for the Child Care Entitlement to States and establishes grants aimed at improving the child care workforce, supply, quality, and access, particularly in underserved areas. The bill allocates significant funds to states, territories, and tribal organizations, emphasizing community engagement and data-driven strategies to address specific child care needs. These grants support various initiatives, including workforce development, facility improvements, and financial assistance for providers, with a focus on serving vulnerable populations and ensuring fair wages for child care professionals. The bill also includes reporting requirements and ongoing evaluations to assess the impact of these investments on the child care landscape.
Bill Proposes $25 Billion Annual Boost for Child Care Starting 2025: Focus on Underserved Areas and Workforce Pay
This legislation, the "Building Child Care for a Better Future Act," aims to significantly increase federal investment in child care across the country. It does this through two main channels: boosting funding for existing state-run child care programs and creating a new grant program specifically designed to tackle shortages, improve quality, and support the child care workforce, particularly in areas struggling with access. The changes are slated to kick in starting October 1, 2025.
More Cash for Core Programs
First up, the bill injects a hefty $20 billion into the Child Care Entitlement to States for fiscal year 2026, a substantial increase over current levels (Section 2). Think of this as reinforcing the foundation of existing child care support systems. This funding, adjusted annually for inflation after 2026, flows to states, territories, and tribal organizations to help families afford care through the established Child Care and Development Block Grant (CCDBG) program. A portion of this funding is specifically reserved for tribal communities (5%), territories (4%), and technical assistance and research (up to 1%). The goal here is straightforward: put more resources into the system that already helps lower-income families access child care.
Targeted Help Where It's Needed Most
The second major piece is a new, separate $5 billion annual grant program starting in fiscal year 2026 (Section 3). This money is specifically earmarked to address critical gaps in the child care system. States, territories, and tribes receiving these funds must develop plans detailing how they'll target "areas of particular need." This could mean neighborhoods with few providers, communities needing care during evenings or weekends, or areas with high demand for infant/toddler slots.
How can this money be used? The bill lists several possibilities: supporting child care workers through better compensation, training, or scholarships; providing start-up funds for new providers or helping existing ones expand (including facility improvements); establishing family child care networks; and recruiting more staff. There's a clear emphasis on prioritizing services for specific groups, including dual language learners, children with disabilities, kids in foster care, families in rural areas, and those needing care outside typical 9-to-5 hours. This grant program aims to strategically build capacity and improve quality rather than just subsidizing existing slots.
Accountability and Worker Protections
To ensure the money is used effectively, recipients of the new $5 billion grant program must submit detailed plans and report back on how the funds were spent and what impact they had (Section 3). This includes data on child care supply changes and demographics. Importantly, any construction or renovation projects funded by these grants must pay workers prevailing wages, adhering to federal standards (Davis-Bacon Act requirements via title 40, USC). The bill also specifies that these new grant funds must supplement, not replace, existing state and local child care spending, ensuring the federal dollars represent a true increase in investment. There's also a provision for the federal government's interest in facility projects to expire after 10 years (or not apply at all for privately-owned family child care homes), potentially simplifying long-term ownership for providers.