This legislation aims to substantially increase federal investment in child care services across the United States. It amends the Social Security Act to provide significant and sustained funding to improve the supply, quality, and accessibility of child care, while also supporting the child care workforce. The bill seeks to address critical gaps in child care availability and affordability, particularly in underserved communities.

Beginning in fiscal year 2026, the bill appropriates an initial $20 billion for grants to states, territories, and Indian tribes, with annual increases tied to inflation or the previous year's amount. A portion of these funds is specifically reserved for tribal organizations, territories, technical assistance, and research to ensure equitable distribution and program effectiveness. These funds are integrated into the existing Child Care and Development Block Grant (CCDBG) program, adhering to its established requirements and limitations.

In addition to the core funding, the bill establishes a new, dedicated annual appropriation of $5 billion for grants specifically designed to improve the child care workforce, supply, quality, and access in areas of particular need. These grants also allocate specific percentages for Indian tribes, territories, technical assistance, and program evaluation. States, territories, and tribal organizations must submit detailed plans outlining how they will identify and address these high-need areas, including community engagement strategies.

The targeted grant funds can be used for a wide array of activities, such as contracting with providers to secure child care slots, expanding family child care networks, and offering start-up funding and technical assistance to providers. Crucially, the bill emphasizes supporting the child care workforce through recruitment, training, professional development, and increasing total compensation to ensure a living wage and retention. Funds can also be used for facility improvements, including construction and renovation, with specific provisions for federal interest and prevailing wage requirements.

These new grants do not require state matching funds, but states must certify that federal funds supplement, rather than supplant, existing state child care expenditures and maintain a minimum level of state funding. Priority for these grants is given to services operating during non-traditional hours, serving vulnerable populations like dual language learners or children with disabilities, and those in rural communities. The legislation mandates comprehensive reporting and regular evaluations by the Secretary to assess the impact of these investments on child care supply and quality, with findings made publicly available.