Child Care Modernization Act of 2025
Sponsored By: Senator Deb Fischer
In Committee
Summary
Expand access to affordable, high-quality child care by reorganizing and updating the Child Care and Development Block Grant so states have more flexibility on payment rates, quality standards, and eligibility, and by creating new grants to grow supply and facilities.
Show full summary
- Families: Would preserve income and asset eligibility rules, require a sliding fee scale so copayments do not block access, and push states to support full-day/full-year care and priority services for children experiencing homelessness or in kinship care.
- Child care providers and workforce: Would require states to use a cost-estimation model for provider payment rates that reflects total operating costs, updates at least every two years, and provides cost-of-living adjustments. States would have to spend at least 9 percent of specified grant funds on recruiting, training, and retaining staff.
- States, tribes, and facilities: Would create Child Care Supply and Facilities Grants with authorizations for fiscal years 2027–2030 to expand licensed capacity and renovate or build safe, developmentally appropriate facilities. It would also direct the Agriculture Department to exclude licensed child care businesses from certain loan eligibility.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 1 costs, 0 mixed.
Child care funding, rate, and eligibility
If enacted, States would update child care plans to emphasize parental choice, full-day/full-year care, and workforce development. States would use a sliding fee scale so copayments are not a barrier and set lower copays for part-time care. States must use or certify a cost estimation model for provider payment rates and review it at least every 2 years with a cost-of-living adjustment. States that meet baseline rules could request waivers to raise income eligibility; waivers may be renewed up to 3 years with notice and must show payment rates align with the cost model. A State could not deny access or raise copays as a direct result of getting such a waiver for families below the new maximum and asset limit. The bill would authorize "such sums as may be necessary" for Part I for FY2026–FY2030.
Grants to expand child care facilities
If enacted, the bill would create a Child Care Supply and Facilities Grants program for States, territories, and Tribes. The program would fund subgrants to add child care slots, pay startup costs, or remodel, repair, or build facilities. States would set aside 10% of grant funds for State-level activities. The Secretary could use up to 1% of annual funds for Federal administration. Any Federal interest in financed facilities would be limited to 10 years. Lead agencies would report provider and slot counts within 12 months of subgrants and each year after. Funding is authorized for FY2027–FY2030 as "such sums as may be necessary."
USDA loans exclude licensed child care
If enacted, the Department of Agriculture would have to change 7 C.F.R. 3555.102(c) to exclude businesses that are licensed, registered, or regulated as child care providers. Licensed child care providers would no longer be eligible for that USDA loan option. If you run a licensed child care business, this would remove one federal loan route for startup or expansion.
Free Policy Watch
You just read the policy. Now see what it costs you.
Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.
Pick a topic to get started
Sponsors & CoSponsors
Sponsor
Deb Fischer
NE • R
Cosponsors
Kirsten Gillibrand
NY • D
Sponsored 9/17/2025
Susan Collins
ME • R
Sponsored 9/17/2025
John Hickenlooper
CO • D
Sponsored 9/17/2025
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govLive Policy Activity
LiveSurfaced from PRIA's policy knowledge graph — ranked by signal strength, connected by evidence.
Deep Dive
· Polipedia policy encyclopediaYouth Conservation Corps & Public Lands Corps
The federal government runs two closely related conservation-workforce pipelines on public lands: the Youth Conservation Corps YCC and the Public Lands Corps PLC. YCC is a summer employment program fo
WTO Membership & Uruguay Round Agreements Act
The Uruguay Round Agreements Act URAA of 1994 19 U.S.C. §§ 3501–3624 implemented U.S. membership in the World Trade Organization WTO and incorporated the Uruguay Round trade agreements — the broadest
World Trade Center Health Program (James Zadroga Act)
The World Trade Center Health Program is a federally funded health benefits program that provides free medical monitoring and treatment to those who were exposed to the toxic dust, debris, and fumes f
Workers' Compensation
Workers' compensation is the United States' primary workplace injury system — a no-fault insurance program where employees who are injured on the job receive medical coverage and partial wage replacem
Take It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in