Build Housing with Care Act of 2025

Bill Number

H.R. 646

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Housing and Community Development

Status

Introduced

Latest Action

2025-01-23: Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, 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

2025-05-30T08:05:26Z

AI-Generated Summary

Purpose of the Legislation

The "Build Housing with Care Act of 2025" aims to improve access to affordable housing and child care by creating a federal grant program that encourages combining (or "co-locating") child care services with housing facilities. This addresses shortages in both areas, particularly for low-income families, by funding projects that integrate child care providers into or near housing developments.

Key Provisions

• Grant Program Establishment: The Secretary of Housing and Urban Development (HUD) will run a competitive grant program to fund the design, planning, construction, conversion, retrofitting, preservation, or renovation of "co-location facilities"—housing sites that include or are near eligible child care providers serving residents.
• Consultation Requirements: HUD must consult with the Secretaries of Health and Human Services (for child care expertise), Treasury (for community development finance), and Agriculture (for rural development) when setting up the program.
• Application Process: Eligible applicants must submit detailed applications, including:
• Certifications that the child care provider qualifies for federal child care funding (like vouchers under the Child Care and Development Block Grant Act) and that no residents will be evicted due to the project.
• A plan to inform and involve housing residents.
• Proof of compliance with environmental and land-use laws (or an explanation if not yet applicable).
• A business plan for the child care provider, covering budgets, licensing, and contracts for operations or low-income enrollments.
• Grant Award Priorities and Limits:
• Priority goes to projects in "child care deserts" (areas with far more children than available licensed child care spots), low-income or rural communities, those partnering with Head Start programs (early education for low-income children), or those involving community development financial institutions (CDFIs, which provide financing in underserved areas).
• Maximum grant per entity: $10 million.
• Allowed Uses of Funds:
• Primarily for building or improving co-location facilities, including long-term leasing.
• Grants can be passed to sub-recipients like nonprofits, public housing agencies (PHAs, government entities managing low-income housing), tribes, or others.
• CDFIs can use funds to create loans or other financial products for these projects.
• Up to 10% of funds for pre-development (like planning) and another 10% for partnerships with CDFIs to build capacity or support home-based child care licensing.
• Support and Oversight:
• HUD will offer technical assistance and share best practices online.
• Annual reports to Congress on grants awarded, child care slots created or preserved (especially for low-income or dual-language learner children), resident usage, employment impacts, demographics, and more.
• Funding authorization: $100 million per year from fiscal years 2025 through 2030.
• GAO Study on Public Housing Child Care: The Government Accountability Office (GAO) must study child care access for public housing residents, covering funding from existing programs (e.g., Community Development Block Grants, tax credits), economic effects of costs, barriers like state laws, impacts of rental assistance, tax credit effectiveness, information gaps, and recommendations. A report is due within 12 months of enactment.
• Definitions: Key terms include "child care desert," "co-location facility," "eligible entity" (e.g., CDFIs, child care providers, PHAs, tribes, nonprofits, housing developers using tax credits, or consortia), "low-income family," and others drawn from existing laws.

Significant Changes to Existing Law

This bill introduces a new grant program under HUD, building on but not directly amending prior laws like the Child Care and Development Block Grant Act (which funds child care subsidies), Head Start Act (early education programs), or housing laws (e.g., United States Housing Act for public housing). It creates fresh funding and priorities for co-location without altering eligibility or rules in those programs, though it requires certifications tying projects to them. The GAO study is a new mandate to evaluate overlaps with existing federal housing and child care initiatives.

Potential Impacts

• On Government Agencies: HUD gains responsibility for administering grants, consultations, and reporting, potentially increasing workload and coordination with HHS, Treasury, and USDA. GAO will conduct a one-time study, informing future policy. PHAs and tribes may receive sub-grants, easing local housing management.
• On Citizens: Low-income families, especially in housing developments, could gain easier access to nearby, affordable child care, reducing travel burdens and costs (e.g., preserving slots at risk of closure). This may support workforce participation, as child care deserts affect about 50% of U.S. communities. Public housing residents (over 1 million households) benefit from the targeted study on their challenges.
• On International Relations: No direct impacts, as the bill focuses on domestic housing and child care.

Main Stakeholders Affected

• Eligible Entities: Primary recipients include CDFIs, child care providers, PHAs, government bodies, Indian Tribes and Tribal organizations (including Native Hawaiian-serving entities), nonprofits developing housing, community housing development organizations, tax credit users (low-income housing or new markets), and consortia.
• Low-Income Families and Residents: Especially those in public housing, rural areas, child care deserts, or using Head Start; they gain from new or preserved child care slots and integrated services.
• Child Care Providers: Benefit from funding for facilities, licensing support, and partnerships, particularly home-based or those serving very low-income (under 30% of area median income) or dual-language learner children.
• Communities: Underserved urban, rural, and tribal areas see improved infrastructure.

Notable Legal, Constitutional, or Political Implications

• Legal: Emphasizes compliance with environmental reviews (under laws like the National Environmental Policy Act) and state/local licensing, potentially streamlining approvals for co-location via pre-development funds. Ties to existing federal programs ensure alignment but add reporting burdens to prevent misuse (e.g., no evictions).
• Constitutional: No major issues; supports equal protection by targeting underserved groups without discriminating, and respects tribal sovereignty through dedicated eligibility.
• Political: Addresses bipartisan concerns on housing affordability and child care shortages (exacerbated post-pandemic), promoting economic equity. Annual reporting could influence future appropriations or expansions, while the GAO study may highlight gaps in tax credits (e.g., Child Tax Credit) and rental aid, spurring reforms.

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

Sponsor

Rep. Bonamici, Suzanne [D-OR-1]

Cosponsors (34)

Rep. Titus, Dina [D-NV-1], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Panetta, Jimmy [D-CA-19], Rep. McIver, LaMonica [D-NJ-10], Del. Norton, Eleanor Holmes [D-DC], Rep. Dean, Madeleine [D-PA-4], Rep. Hayes, Jahana [D-CT-5], Rep. McGovern, James P. [D-MA-2], Rep. Ramirez, Delia C. [D-IL-3], Rep. Salinas, Andrea [D-OR-6], Rep. Bynum, Janelle [D-OR-5], Rep. Dingell, Debbie [D-MI-6], Rep. Keating, William R. [D-MA-9], Rep. Garcia, Sylvia R. [D-TX-29], Rep. Evans, Dwight [D-PA-3], Rep. Jacobs, Sara [D-CA-51], Rep. Tlaib, Rashida [D-MI-12], Rep. Nadler, Jerrold [D-NY-12], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Tokuda, Jill N. [D-HI-2], Rep. McClellan, Jennifer L. [D-VA-4], Rep. Ross, Deborah K. [D-NC-2], Rep. Clarke, Yvette D. [D-NY-9], Rep. Landsman, Greg [D-OH-1], Rep. Castor, Kathy [D-FL-14], Rep. Escobar, Veronica [D-TX-16], Rep. Hoyle, Val T. [D-OR-4], Rep. Dexter, Maxine [D-OR-3], Rep. Carson, André [D-IN-7], Rep. DeSaulnier, Mark [D-CA-10], Rep. Latimer, George [D-NY-16], Rep. Thanedar, Shri [D-MI-13], Rep. Balint, Becca [D-VT-At Large]

Recent Actions

• 2025-01-23: Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, 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.
• 2025-01-23: Referred to the Committee on Financial Services, and in addition to the Committee on Ways and Means, 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.
• 2025-01-23: Introduced in House
• 2025-01-23: Introduced in House

Bill Versions

• Build Housing with Care Act of 2025 — issued 2025-01-23 — PDF (16 pages)