Tri-Share Child Care Pilot Act of 2025
Sponsored By: Representative Rep. Scholten, Hillary J. [D-MI-3]
Introduced
Summary
Three-way cost-sharing model: this bill would create a federal, competitive three-year pilot that tests splitting eligible child care costs equally among parents, employers, and State lead agencies. The pilot aims to expand affordable, quality child care and measure effects on hiring, employment, and retention.
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- Families: Working parents with children younger than the State's kindergarten entry age would be eligible if family income is at least the State threshold for CCDBG assistance and no more than 300% of that threshold. Parents would pay one-third of eligible costs and may authorize employers to withhold up to one-third from pay.
- Employers: Participating employers can contribute one-third of costs and may apply to join the program across multiple States with a consolidated application. The program is designed to test whether employer cost-sharing helps hiring and retention.
- States and providers: State lead agencies apply for competitive grants paid at the State's FMAP times program costs per quarter, with administrative expenses capped at 10% and a $20.0 million hard cap per State for the pilot. Payments go directly to providers that meet Child Care and Development Block Grant health and safety rules.
*This bill would authorize $250.0 million per fiscal year for the three-year pilot, with 5% for evaluation and 5% for technical assistance, increasing federal spending during the pilot.*
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 3 benefits, 0 costs, 2 mixed.
Child care costs split three ways
If enacted, eligible child care costs would be split three ways. You would pay one-third, your employer one-third, and the State lead agency one-third. The State would pay your provider directly, then collect two-thirds from you and your employer. You could let your employer withhold up to one-third from your pay to send in. Providers could choose from multiple payment schedules. The pilot would run for three years, starting the first day of the first federal fiscal quarter after enactment.
Funding, federal match, and program review
If enacted, the pilot would get $250 million each fiscal year during the three-year period. Five percent would fund evaluation and 5 percent would fund technical help for States. Each quarter, States could get grants equal to their Federal Medical Assistance Percentage (FMAP) times what they paid, subject to available funds, with no more than 10% for admin and a $20 million cap per State. The Secretary would evaluate the pilot and send a report to Congress within one year after it ends. Unused funds each September 30 would move to Preschool Development Grants for the next fiscal year.
States may use tech platforms, third-party admins
If enacted, State lead agencies could use technology platforms to link parents, employers, and providers. They could also hire third-party administrators to run program tasks. This would give States flexibility in how they operate the pilot.
How families apply; other child care aid unchanged
If enacted, parents whose employer joins would need to apply to the State lead agency. The application would include a joint promise that you and your employer each pay one-third, contact details, your child’s name and age, and proof of your job. You would also need to give income information for each pay period so the agency can verify it. The agency would check your job and income and decide based on need and available funds. Taking part would not change whether you qualify for CCDBG child care help or the amount you get.
How employers join the tri-share pilot
If enacted, any employer could apply to a State lead agency to join the pilot. The State could approve employer applications. Employers that want to join in several States could file one consolidated application. Approved employers would be able to share child care costs with workers under the program.
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Sponsors & CoSponsors
Sponsor
Rep. Scholten, Hillary J. [D-MI-3]
MI • D
Cosponsors
Rep. James, John [R-MI-10]
MI • R
Sponsored 11/25/2025
McBride
DE • D
Sponsored 1/22/2026
Rep. Johnson, Julie [D-TX-32]
TX • D
Sponsored 2/12/2026
Roll Call Votes
No roll call votes available for this bill.
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