Tri-Share Child Care Pilot Act of 2025
- Bill Number
- H.R. 6312
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Families
- Status
- Introduced
- Latest Action
- 2025-11-25: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-01-23T09:06:30Z
AI-Generated Summary
Purpose of the Legislation
The Tri-Share Child Care Pilot Act of 2025 aims to create a temporary federal pilot program that shares the costs of child care equally among employers, employees (parents), and state governments. This initiative seeks to improve access to affordable, high-quality child care for working families, potentially boosting employment and retention while testing a new funding model.
Key Provisions
- Pilot Program Structure: A 3-year program (the "program period") administered through competitive grants to state "lead agencies" (state agencies responsible for child care programs under existing federal law). States must demonstrate unmet child care needs, capacity to implement, employer commitments, recruitment plans, and equitable geographic access.
- Cost-Sharing Model: For eligible children, each of the following pays one-third (1/3) of approved child care costs:
- The parent (employee).
- The participating employer.
- The state lead agency (reimbursed partially by federal grants).
- Grant Funding and Limits:
- Federal funding: $250 million per fiscal year, with 5% for evaluation and 5% for technical assistance to states.
- Grants to states based on the state's Federal Medical Assistance Percentage (a formula for federal matching funds, frozen at 1995 levels).
- Per-state cap: $20 million total.
- Administrative costs limited to 10% of grants.
- Eligibility and Applications:
- Children: Under kindergarten age, from families with income between the state's child care assistance threshold and 300% of that threshold, not receiving other federal child care block grant aid, and with a parent employed by a participating employer.
- Employers: Can apply to state lead agencies to participate; multi-state employers can submit one consolidated application.
- Parents: Submit joint applications with employers, including income verification and attestations; lead agencies verify employment and needs before approval.
- Providers: Must meet state health and safety standards; payments go directly to approved providers, with flexible schedules.
- Administration and Oversight:
- States can use technology platforms or third parties for management.
- Program does not affect eligibility for other child care benefits under the Child Care and Development Block Grant Act of 1990.
- Ends after 3 years; requires evaluation by the Department of Health and Human Services (HHS) on cost-effectiveness, employment impacts, and child care access, with a report to Congress.
- Additional Requirements:
- HHS must study the feasibility of a sliding-scale cost-sharing model based on family income.
- Unspent funds transfer to preschool development grants.
Significant Changes to Existing Law
- Amends Section 418 of the Social Security Act (which deals with child care funding under Temporary Assistance for Needy Families) by adding a new subsection (e) to establish this pilot program.
- Makes minor conforming edits to clarify that the new pilot is separate from existing child care provisions in the same section.
- Effective date: First day of the first federal fiscal quarter after enactment (expected around late 2025 or early 2026).
Potential Impacts
- Government Agencies: HHS and state lead agencies will manage grants, applications, payments, and evaluations, increasing administrative workload but with dedicated funding. Unobligated funds support broader preschool programs, potentially enhancing early education access.
- Citizens: Working parents in eligible income brackets (moderate earners above basic assistance levels) gain subsidized child care, reducing financial burdens and supporting workforce participation. Could improve child care affordability and availability, especially in underserved areas.
- Employers: Encourages participation to aid employee retention and hiring, with costs shared but potentially deductible as business expenses (not specified in the bill).
- International Relations: No direct impacts, as this is a domestic social welfare program.
Main Stakeholders Affected
- State Lead Agencies: Primary implementers; responsible for applications, approvals, payments, and recruitment.
- Employers: Businesses that opt in to share costs and support employees' child care.
- Parents and Families: Working parents of young children in eligible income ranges, who benefit from reduced out-of-pocket costs.
- Child Care Providers: Licensed facilities receiving direct payments, potentially increasing enrollment and stability.
- Federal Government (HHS): Oversees grants, evaluation, and reporting; allocates funds from general Treasury appropriations.
- Children: Eligible young children gain access to quality care without overlapping federal aid.
Notable Legal, Constitutional, or Political Implications
- Legal: Builds on existing child care frameworks (e.g., Child Care and Development Block Grant Act) without altering them, ensuring compliance with health/safety standards. The pilot's temporary nature limits long-term commitments, but the required evaluation and feasibility study on sliding-scale fees could inform future permanent laws.
- Constitutional: No apparent challenges; involves standard federal spending power for social welfare programs, with state involvement via grants (a common federal-state partnership model).
- Political: Promotes bipartisan workforce support by addressing child care as an economic issue, potentially appealing across parties. The $750 million total appropriation (over 3 years) may spark debates on federal spending priorities, especially with caps and fund transfers to education programs. The focus on moderate-income families (up to 300% of assistance thresholds, roughly $75,000–$150,000 depending on state/family size) targets "working families" without expanding aid to the lowest incomes.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Scholten, Hillary J. [D-MI-3]
Cosponsors (2)
Rep. James, John [R-MI-10], Rep. McBride, Sarah [D-DE-At Large]
Recent Actions
- 2025-11-25: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-11-25: Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-11-25: Introduced in House
- 2025-11-25: Introduced in House
Bill Versions
- Tri-Share Child Care Pilot Act of 2025 — issued 2025-11-25 — PDF (14 pages)