The Build Housing with Care Act of 2025 establishes a HUD grant program to support the development of affordable housing that includes on-site or nearby child care services.
Ron Wyden
Senator
OR
The Build Housing with Care Act of 2025 establishes a competitive grant program through the Department of Housing and Urban Development to integrate child care services into affordable housing developments. By funding the construction, renovation, and operation of co-location facilities, the Act aims to increase access to child care, particularly in underserved "child care deserts." Additionally, the bill mandates a comprehensive study to evaluate the intersection of housing and child care affordability for public housing residents.
New $100 Million Grant Program to Build Child Care Centers Directly Inside Affordable Housing Developments Starting in 2026
Imagine a world where your morning commute is just an elevator ride from your apartment to your kid’s daycare. The Build Housing with Care Act of 2025 aims to make that a reality by creating a $100 million annual grant program through HUD. The goal is simple: fund the design, construction, or renovation of 'co-location facilities'—housing developments that have licensed child care providers either on-site or right next door. By authorizing $600 million over six years (2026-2031), the bill attempts to solve two of the biggest headaches for working families—finding a place to live and a place for the kids—in one fell swoop.
The 'Child Care Desert' Fix
This isn't just about convenience; it’s about basic access. The bill specifically targets 'child care deserts,' which it defines in Section 3 as census tracts where there are either no licensed providers or where the demand is three times higher than the available slots. If you’re a parent in a rural area or a low-income neighborhood where the nearest daycare is a 45-minute bus ride away, this bill prioritizes your community for funding. It also gives a leg up to projects that enroll at least 10% of children from very low-income families or partner with Head Start programs, ensuring the benefits reach those who are currently most squeezed by rising costs.
More Than Just Four Walls
The legislation is surprisingly flexible about who can get the work done. Eligible entities range from tribal organizations and public housing authorities to nonprofit developers and community banks (CDFIs). Under Section 4, these groups can use the cash for almost anything related to the physical space—buying land, retrofitting old buildings, or even long-term leasing. For a local nonprofit developer, this could mean the difference between leaving a ground-floor space empty or turning it into a vibrant early childhood center. To keep things honest, the bill requires a 'non-eviction' certification, meaning developers can’t use these new grants as an excuse to kick out current residents to make room for the upgrades.
Looking Under the Hood of Public Housing
Beyond the construction grants, the bill orders the GAO to conduct a deep-dive study into the financial reality of public housing residents. We’re talking about a real-world look at how much people are spending on the basics. Section 5 requires an analysis of households that are 'cost-burdened' by rent while also spending at least 7% of their income on child care. It even goes as far as checking if residents have enough left over for broadband, cell phones, and transportation. While this study doesn't change laws overnight, it’s designed to identify the specific state and local regulations that make it hard to build daycare centers, potentially clearing the path for more streamlined projects in the future.