Child Care Workforce Act Launches Pilot Program to Boost Low-Wage Worker Pay, Starting in FY 2026

The new Child Care Workforce Act is setting up a competitive grant program to tackle the nationwide child care crisis by addressing the root cause: low pay. Starting in Fiscal Year 2026, the Secretary of Health and Human Services (HHS) will hand out grants to States, Indian Tribes, and Tribal organizations. The goal is simple: to use federal money to supplement the wages of low-wage child care workers, ultimately helping to attract and keep quality staff, improve service, and make care more accessible for families (SEC. 2).

The Paycheck Boost Pilot

This isn't a general subsidy program; it’s strictly a workforce intervention. To get the money, applicants must prove they have a serious need for both more workers and higher wages. Their application has to include a detailed plan showing how the funds will only be used to top up the paychecks of low-wage child care workers (SEC. 4). Recipients must commit to distributing these wage supplements at least every three months, or quarterly (SEC. 5).

Think of it this way: if you’re a child care worker making near minimum wage, this pilot program is designed to give you a quarterly bonus, potentially making the job financially viable again. The recipients—the states or tribes—must focus this money on the areas that need it most, such as underserved geographic spots, places lacking infant/toddler programs, or areas struggling with staffing (SEC. 4).

What It Means for Families and Workers

For parents, this bill is aiming for stability. When child care centers can afford to pay their staff better, they stop the revolving door of turnover. That means your kid gets consistent care from experienced professionals, which is a huge quality boost. The bill specifically defines an eligible “child care worker” as anyone whose primary job is providing direct care and education in a licensed center or home setting (SEC. 3).

Grant recipients are also required to counsel workers on the potential tax implications of these supplements and how the extra income might affect their eligibility for other public benefits (SEC. 5). This is a crucial detail, as a small raise shouldn't inadvertently cause a worker to lose essential benefits like food assistance or housing aid. They also have to make it clear that accepting the supplement is voluntary.

The Fine Print and Future Funding

While the program is only a pilot, the funding mechanism suggests long-term intent. The bill authorizes appropriations indefinitely starting in FY 2026 (SEC. 8). This means Congress is giving the green light to fund this program year after year. The organizations running the program can use up to 10% of the grant money for administrative costs, covering everything from processing payments to running awareness campaigns (SEC. 5).

But here’s the reality check: since this is a pilot program, the states and tribes applying for the grant must explain their plan for minimizing disruption after the grant money runs out (SEC. 4). This detail is important because if a worker gets used to a $300 quarterly supplement, and then it suddenly disappears, it could cause the exact staffing instability the program was supposed to fix. The Secretary is required to evaluate the program’s success—looking at staff retention, worker well-being, and access to care—and report the findings to Congress within two years of the program starting (SEC. 6, SEC. 7).