CHIPS Child Care Act

Bill Number

H.R. 7203

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Families

Status

Introduced

Latest Action

2026-01-22: Referred to the Committee on Education and Workforce, 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

2026-02-18T16:49:41Z

AI-Generated Summary

Purpose

The CHIPS Child Care Act (H.R. 7203) aims to create a federal grant program to help states support child care for parents or guardians participating in training and workforce programs related to the semiconductor industry. This support is intended to boost participation in these programs, which are critical for building the U.S. semiconductor workforce, by addressing child care barriers. The act ties into broader efforts to strengthen domestic semiconductor manufacturing, as outlined in prior laws like the CHIPS and Science Act.

Key Provisions

• Grant Authorization and Award Process: The Secretary of Labor can award competitive grants to states using funds appropriated for fiscal years 2025 and 2026 (up to $10 million per year total, with 1.5% reserved for reporting). Grants last two years and are split equally between the years. Priority goes to geographically diverse states and those with major public and private investments in semiconductor manufacturing.
• Allowed Uses of Grant Funds:
• Provide monthly stipends (at least $500 per dependent child) directly to eligible child care providers to cover costs for individuals while they participate in:
• Semiconductor-related workforce programs (e.g., apprenticeships, training, or education offered by colleges, nonprofits, or local governments in partnership with semiconductor funding recipients).
• Construction projects tied to semiconductor manufacturing (for those in or recently completing apprenticeships).
• Pre-apprenticeship programs that lead to such construction jobs.
• Help child care providers in high-investment semiconductor regions build, renovate, expand, or improve facilities to increase capacity or adapt for better service.
• Eligibility and Priorities:
• Stipend recipients must have dependent children and be in qualifying programs.
• States must prioritize stipends for first-generation college students, graduates of historically Black colleges and universities (HBCUs), rural residents, and veterans.
• For facility improvements, priority goes to providers serving low-income families, infants/toddlers, those with facility limitations, nontraditional hours, or rural/underserved areas.
• Application and Reporting Requirements:
• States apply with plans for stipend distribution, post-grant support, and impact reporting on facility improvements.
• States submit initial reports 180 days after the grant ends (covering stipend usage, program completion rates, wages, and facility effects) and follow-up reports for three years, disaggregated by race, ethnicity, and gender (with privacy protections).
• The Secretary of Labor reports to Congress summarizing state data, including effects on retention, wages, and unintended consequences, with follow-ups for three years.
• Additional Rules:
• Stipends are tax-free under the Internal Revenue Code and do not count toward eligibility for other federal, state, or local benefits (e.g., they won't reduce welfare or aid amounts).
• Stipends supplement (but do not replace) wages earned during training.
• Construction work on child care facilities must follow the Davis-Bacon Act, which requires paying workers prevailing local wages (as determined by the Department of Labor) to ensure fair labor practices.
• Definitions: Key terms include "semiconductor" (electronic components like chips), "eligible child care provider" (from the Child Care and Development Block Grant Act), and "semiconductor-related workforce program" (training linked to federal semiconductor incentives).

Significant Changes to Existing Law

This bill introduces a new, standalone grant program not previously existing in federal law. It builds on the CHIPS and Science Act (2022) by extending support to child care in semiconductor workforce development but does not amend that act directly. It also incorporates labor standards from the Davis-Bacon Act (requiring fair wages for construction) and references the Workforce Innovation and Opportunity Act (WIOA) for workforce board involvement, without altering those laws. A key addition is the exclusion of stipends from taxation and benefit calculations, which creates new protections to encourage participation without financial penalties.

Potential Impacts

• On Citizens: Could increase access to child care for parents in semiconductor training, potentially raising program completion rates, job placement, and wages in a high-demand industry. This may particularly benefit underserved groups (e.g., rural families, veterans, HBCU graduates), helping address workforce shortages while supporting family stability.
• On Government Agencies: The Department of Labor gains administrative duties for grant awards, oversight, and reporting to Congress. States (via workforce boards) handle implementation, which may strain resources in smaller or rural areas but foster local partnerships. No direct impact on international relations, though it indirectly bolsters U.S. competitiveness in global semiconductor supply chains.
• Broader Effects: May expand child care capacity in semiconductor hubs, improving overall access and quality, but limited funding ($20 million total) suggests modest scale, potentially affecting only select programs and regions.

Main Stakeholders Affected

• Individuals and Families: Parents/guardians with children participating in semiconductor training or related construction, especially prioritized groups like first-generation students and low-income families.
• Child Care Providers: Eligible centers or home-based providers receiving stipends or facility funding, particularly those serving vulnerable populations or in underserved areas.
• States and Local Governments: Recipients of grants, responsible for distribution and reporting; workforce development boards (under WIOA) may coordinate programs.
• Semiconductor Industry and Workforce Programs: Training providers (e.g., colleges, nonprofits) and employers benefit from higher retention; ties to CHIPS Act-funded projects.
• Federal Agencies: Department of Labor (grant administration and labor enforcement); Treasury (tax exclusions); and Congress (receives impact reports).

Notable Legal, Constitutional, or Political Implications

• Legal: Enforces labor protections via the Davis-Bacon Act, ensuring compliance through application assurances and Department of Labor oversight, which could lead to disputes over wage determinations or construction standards. The tax and benefit exclusions create incentives but may require coordination with IRS and other agencies to implement without loopholes.
• Constitutional: Aligns with Congress's spending power (Article I) to promote economic development and equity. Reporting requirements support accountability under administrative law, with privacy safeguards for disaggregated data preventing violations of individual rights.
• Political: Advances national priorities in semiconductor self-sufficiency (post-CHIPS Act) while addressing social issues like child care access and workforce equity. Bipartisan appeal in supporting jobs and families, but limited funding and competitive grants may spark debates over geographic or demographic priorities; could influence future expansions if reports show positive outcomes.

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

Sponsor

Rep. Bynum, Janelle S. [D-OR-5]

Recent Actions

• 2026-01-22: Referred to the Committee on Education and Workforce, 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.
• 2026-01-22: Referred to the Committee on Education and Workforce, 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.
• 2026-01-22: Introduced in House
• 2026-01-22: Introduced in House

Bill Versions

• CHIPS Child Care Act — issued 2026-01-22 — PDF (15 pages)