Expanding Childcare in Rural America Act of 2025

Bill Number: H.R. 5363
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: Agriculture and Food
Status: Introduced
Latest Action: 2025-12-02: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
Last Updated: 2026-06-22T16:51:18Z

AI-Generated Summary

Purpose of the Legislation

The Expanding Childcare in Rural America Act of 2025 aims to improve access to affordable, high-quality childcare in rural and agricultural communities by directing the U.S. Department of Agriculture (USDA) to prioritize funding for such programs. It addresses shortages in childcare that affect families, workers, and local economies in these areas.

Key Provisions

Definitions:
"Childcare" includes programs offering care and early education for children not yet in kindergarten or in kindergarten, run by licensed or regulated providers that meet state, tribal, territorial, or local health and safety standards. It covers school-based programs, facilities, and related services.
"Initiative" refers to the Expanding Childcare in Rural America Initiative.
"Secretary" means the Secretary of Agriculture.

Establishment of the Initiative: The USDA Secretary must create the Initiative for fiscal years 2026 through 2030. It focuses on enhancing the availability, quality, and affordability of childcare in rural and agricultural areas by giving funding priority to related projects.

Funding Priorities:
In awarding loans and grants, the Secretary must prioritize applicants planning to use funds for rural or agricultural childcare improvements.
Applicable programs include:
Essential community facilities loans and grants (for building or upgrading facilities like childcare centers).
Technical assistance and training grants (to help providers improve operations).
Rural business development grants.
Business and industry loans (direct and guaranteed).
Rural microentrepreneur assistance.
Rural innovation stronger economy (RISE) grants.

Requirements for Funding:
Priority goes to projects in "farming-dependent counties" (areas heavily reliant on agriculture, as defined by USDA's Economic Research Service codes from 2015 or updates).
Funding must be distributed geographically across rural areas for balance.

Use of Intermediaries: The USDA can channel funds through expert organizations, such as childcare resource networks, family childcare groups, community development financial institutions, or nonprofits. These groups must specialize in technical/financial aid for childcare facilities, provider support, or securing private funding for low-income community projects.

Evaluation and Reporting:
Within 2 years of enactment, the Secretary must evaluate Initiative projects, covering project types, locations, participants, partnerships, and economic/social impacts.
Within 3 years, submit a report on the evaluation to the Senate Committee on Agriculture, Nutrition, and Forestry and the House Committee on Agriculture.

Significant Changes to Existing Law

This bill does not create new programs but amends how existing USDA rural development laws (under the Consolidated Farm and Rural Development Act) are applied. It introduces a mandatory priority for childcare projects in loan and grant selections, overriding other considerations where applicable. This shifts focus within programs like community facilities loans (7 U.S.C. 1926(a)) and rural business grants (7 U.S.C. 1932), potentially reallocating resources toward childcare without increasing overall funding.

Potential Impacts

On Government Agencies: The USDA will need to adjust application review processes to incorporate childcare priorities, conduct evaluations, and report to Congress, increasing administrative workload but using existing budgets.
On Citizens: Rural families, especially in farming areas, may gain better access to childcare, enabling parents (often in agriculture) to work or pursue education. This could reduce childcare costs and improve early education quality, supporting workforce participation and child development.
On International Relations: No direct impacts, as the bill focuses on domestic rural policy.
Broader Effects: Could stimulate local economies by retaining workers in rural communities and fostering partnerships between providers and nonprofits.

Main Stakeholders Affected

Rural and Agricultural Families: Primary beneficiaries through expanded childcare options.
Childcare Providers: Eligible for prioritized funding to build, renovate, or operate facilities.
USDA and Rural Development Programs: Must implement new priorities and evaluations.
Nonprofits and Intermediaries: Organizations like childcare networks or community financial institutions that can receive and distribute funds.
Farming-Dependent Communities: Counties reliant on agriculture, which get funding preference.
State, Tribal, and Local Governments: Involved in licensing and regulating providers, potentially seeing increased collaboration.

Notable Legal, Constitutional, or Political Implications

Legal: Builds on the Child Care and Development Block Grant Act (defining eligible providers) and USDA statutes, ensuring compliance with health/safety rules. The priority system may face challenges if it displaces other applicants, but it aligns with congressional authority to direct agency spending.
Constitutional: Relies on Congress's spending power (Article I, Section 8) to allocate federal funds for public welfare, with no apparent free speech, equal protection, or federalism issues. It respects state/tribal roles in regulation.
Political: Promotes rural equity by targeting underserved areas, potentially bridging urban-rural divides. As a bipartisan introduction (with cosponsors from both parties), it could encourage similar targeted initiatives, though implementation depends on annual appropriations.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Perez, Marie Gluesenkamp [D-WA-3]

Cosponsors (5)

Rep. Mann, Tracey [R-KS-1], Rep. Underwood, Lauren [D-IL-14], Rep. Baird, James R. [R-IN-4], Rep. Davis, Donald G. [D-NC-1], Rep. Davids, Sharice [D-KS-3]

Recent Actions

2025-12-02: Referred to the Subcommittee on Commodity Markets, Digital Assets, and Rural Development.
2025-09-15: Referred to the House Committee on Agriculture.
2025-09-15: Introduced in House
2025-09-15: Introduced in House

Bill Versions

Expanding Childcare in Rural America Act of 2025 — issued 2025-09-15 — PDF (6 pages)