Building Child Care for a Better Future Act
- Bill Number
- H.R. 2595
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Families
- Status
- Introduced
- Latest Action
- 2025-04-02: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-01T08:08:38Z
AI-Generated Summary
Purpose of the Legislation
The "Building Child Care for a Better Future Act" (H.R. 2595) aims to expand federal support for child care by increasing funding for existing programs and creating new grants. It focuses on sustaining and growing the availability, quality, and accessibility of child care services, while strengthening the child care workforce. This is achieved by amending part A of title IV of the Social Security Act, which oversees child care assistance programs.
Key Provisions
- Increased Funding for Child Care Entitlement to States (CCES):
- Allocates $20 billion for fiscal year 2026, with annual increases thereafter based on the greater of the prior year's amount or an adjustment for inflation (using the Consumer Price Index for urban consumers).
- Reserves portions of funds: 5% for grants to Indian tribes and tribal organizations, 4% for U.S. territories (Puerto Rico, U.S. Virgin Islands, Guam, American Samoa, Northern Mariana Islands), up to 0.5% for technical assistance and information sharing, and 0.5% for research, demonstrations, and independent evaluations of child care programs' impacts on access, safety, and quality.
- Introduces a process to redistribute unused funds from tribal grants to other tribes that can use them effectively.
- Requires funds to be integrated into state, territorial, and tribal plans under the Child Care and Development Block Grant (CCDBG) Act of 1990, making them subject to that law's rules.
- Updates definitions for terms like "Indian tribe," "State," "Territory," and "Tribal organization" to include federally recognized tribes, Native Hawaiian organizations, and certain nonprofits serving Indigenous youth.
- New Grants for Child Care in Areas of Particular Need:
- Provides $5 billion annually for grants to improve child care workforce, supply, quality, and access in underserved areas (e.g., regions with low availability, high poverty, or specific needs like rural or nontraditional-hour care).
- Reserves: 5% for Indian tribes and tribal organizations, 4% for territories, up to 0.5% for technical assistance, 0.5% for evaluations, and up to 3% for federal administrative costs.
- Grant distribution: Allotted to tribes and territories based on needs; remaining funds go to states proportional to their CCES allocations.
- Requires recipients (state/territorial lead agencies, tribes) to submit plans detailing: criteria for identifying "areas of particular need" (using data on demographics, economics, and community input); specific locations and child age groups affected; and proposed uses of funds.
- Allowed uses include:
- Contracts or grants to providers for child care slots, emphasizing stable compensation.
- Building family child care networks with training.
- Start-up funding, technical assistance for business/licensing, real estate support, and recruitment.
- Workforce development via apprenticeships, scholarships, partnerships with unions or colleges, and wage supplements/bonuses to ensure living wages (adjusted annually for cost-of-living).
- Facility improvements, construction, or renovations (with limits on federal interest retention: none for private family homes, 10 years max for others; requires prevailing wage rates for construction workers).
- Partnerships with experienced intermediaries for financing or sustainability evaluations.
- Priorities for funding: Services during nontraditional hours; for infants/toddlers, dual language learners, children with disabilities, homeless/foster/low-income children; in rural areas; via nonprofits/public entities owned by disadvantaged individuals; or to boost workforce pay and retention.
- Funds can support Head Start/Early Head Start programs.
- No state matching funds required; states must certify that grants supplement (not replace) existing non-federal spending on child care for low-income families, with a minimum expenditure baseline.
- Funds generally available for 1-3 years (extendable to 5 years for facility projects); unused funds redistributed.
- Reporting requirements: Ongoing integration into CCDBG reports; 1-year and 3-year post-award reports on supply, quality, access, demographics, and project status; public availability of data.
- Mandates regular federal evaluations of grant impacts (focusing on supply availability, parental choice, workforce retention, quality metrics like staff-child ratios, curricula, wages, and accreditation); reports to Congress every 5 years and public release.
- Effective Date: Both sections take effect October 1, 2025.
Significant Changes to Existing Law
- Funding Levels: Dramatically boosts mandatory CCES appropriations (previously capped at lower levels without automatic inflation adjustments), shifting from discretionary to more stable entitlement funding.
- New Program Creation: Establishes a dedicated $5 billion annual grant program outside the main CCES structure, targeted at underserved areas, which did not previously exist in this form.
- Flexibility Enhancements: Removes outdated restrictions on applying Federal Medical Assistance Percentage (FMAP, a formula for federal-state cost-sharing in health/welfare programs) and integrates funds more seamlessly with CCDBG requirements. Exempts new grants from certain CCDBG spending limits (e.g., on administrative costs or facility construction) and territorial funding caps.
- Equity and Redistribution: Adds specific reservations and redistribution for tribes/territories; expands definitions to better include Native Hawaiian and Indigenous-serving groups; requires collaboration between states/territories and tribes.
- Accountability: Introduces detailed planning, reporting, evaluation, and maintenance-of-effort rules to ensure funds target needs and measure outcomes, while waiving some prior matching and supplantation prohibitions.
Potential Impacts
- On Citizens: Could increase child care slots and options, especially for low-income, rural, or underserved families, enabling more parents (particularly working mothers) to join or stay in the workforce. Improved wages and training may attract/retain diverse child care workers, enhancing service quality and reducing turnover. Families in "areas of particular need" (e.g., high-poverty or rural zones) stand to gain most through targeted expansions.
- On Government Agencies: U.S. Department of Health and Human Services (HHS) gains administrative responsibilities for grants, evaluations, and technical assistance, with added funding for these. States, territories, and tribes receive more resources but must develop plans, report data, and maintain spending levels, potentially straining smaller agencies initially. Increased federal spending (over $25 billion annually post-2026) may require congressional budgeting adjustments.
- On International Relations: No direct impacts, as the bill focuses on domestic U.S. child care programs.
Main Stakeholders Affected
- Families and Children: Low-income parents, infants/toddlers, dual language learners, children with disabilities, homeless/foster youth, and those in rural or high-poverty areas benefit from expanded access and quality.
- Child Care Providers and Workforce: Providers (centers, family homes, nonprofits) gain funding for operations, facilities, and slots; workers receive support for wages, training, and retention, addressing shortages.
- Government Entities: States and District of Columbia (lead agencies under CCDBG); U.S. territories; federally recognized Indian tribes and tribal organizations (including Native Hawaiian groups); HHS for oversight and evaluations.
- Communities and Nonprofits: Local resource/referral organizations, unions, colleges, and small businesses owned by disadvantaged individuals involved in delivery or partnerships.
Notable Legal, Constitutional, or Political Implications
- Legal: Aligns with existing welfare laws (Social Security Act, CCDBG) by enhancing entitlements without creating new mandates; enforces labor standards (e.g., prevailing wages under federal construction laws) and limits federal property interests in funded projects to encourage private investment. Potential for legal challenges if states fail maintenance-of-effort certifications, but includes Secretary guidance to aid compliance.
- Constitutional: Supports federalism by providing block grants to states/tribes with planning flexibility, respecting tribal sovereignty (via dedicated funds and collaboration requirements). No apparent conflicts with equal protection or spending clause principles, as it promotes equitable access without discrimination.
- Political: Represents a significant expansion of social welfare spending, potentially bipartisan appeal for family support but partisan debate over costs and federal role in child care. Evaluations and public reporting promote transparency, aiding future policy adjustments; could influence broader debates on workforce development and poverty reduction.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (26)
Rep. Bonamici, Suzanne [D-OR-1], Rep. Moore, Gwen [D-WI-4], Del. Plaskett, Stacey E. [D-VI-At Large], Rep. Horsford, Steven [D-NV-4], Rep. Sánchez, Linda T. [D-CA-38], Rep. Doggett, Lloyd [D-TX-37], Rep. Evans, Dwight [D-PA-3], Rep. Salinas, Andrea [D-OR-6], Rep. DelBene, Suzan K. [D-WA-1], Rep. Chu, Judy [D-CA-28], Rep. Larson, John B. [D-CT-1], Rep. Gomez, Jimmy [D-CA-34], Rep. Boyle, Brendan F. [D-PA-2], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Carter, Troy A. [D-LA-2], Rep. Tlaib, Rashida [D-MI-12], Rep. Thanedar, Shri [D-MI-13], Rep. Johnson, Julie [D-TX-32], Rep. Vargas, Juan [D-CA-52], Rep. McDonald Rivet, Kristen [D-MI-8], Rep. Sykes, Emilia Strong [D-OH-13], Rep. Waters, Maxine [D-CA-43], Rep. Pingree, Chellie [D-ME-1], Rep. Figures, Shomari [D-AL-2], Rep. Ross, Deborah K. [D-NC-2]
Recent Actions
- 2025-04-02: Referred to the House Committee on Ways and Means.
- 2025-04-02: Introduced in House
- 2025-04-02: Introduced in House
Bill Versions
- Building Child Care for a Better Future Act — issued 2025-04-02 — PDF (37 pages)