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119-hr-10741119th CongressWALLET

Free Child Care for America Act

Sponsored By: Representative Khanna, Ro [D-CA-17]

Introduced

Summary

Massive federal child care investment. This bill would create a national Child Care for America program that funds providers, raises workforce pay, and adds two new cash programs: a $1,000 monthly stipend for stay‑at‑home parents and direct payments to kin, friend, and neighbor (FFN) caregivers.

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  • Families and children: Low‑ and middle‑income households with children under age 6 would get expanded subsidized care and fee protections for eligible families. Eligibility is set at the greater of 200% of a State median income or $250,000 for a family of the same size.
  • Providers and the early childhood workforce: Licensed and registered child care providers would receive renewable two‑year subgrants covering wages, benefits, and operating costs and must adopt wage and benefits ladders. The title would authorize about $78 billion per year and includes annual set‑asides such as $250 million for facilities, $250 million for home‑based training, and $250 million for innovation.
  • Stay‑at‑home parents and FFN caregivers: Stay‑at‑home parents with children under 3 meeting income rules would get $1,000 per month from a $12 billion annual fund. The Kin Care program would allocate $5 billion per year to make predictable payments to verified FFN providers and build a national Kin Care Interface for enrollment and payments.

*Would increase federal spending by about $95.0 billion per year over FY2026–2035.*

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 5 benefits, 0 costs, 6 mixed.

Kin Care payments for parents

If enacted, low‑ and moderate‑income parents (income ≤100% of State median) could apply through a national Kin Care Interface to get child care paid when a family, friend, or neighbor (FFN) provides care. The program would prohibit parent co‑payments when an FFN provider receives a title payment, require basic health and safety documentation, and let parents and providers access and correct program data. States would run payments and appeals, and at least 75% of Kin Care funding would be reserved for direct provider payments. The program would include privacy and platform rules to protect personal data.

Stay-at-home parent $1,000 stipend

If enacted, the bill would fund a stay‑at‑home parent stipend with $12 billion per year and pay $1,000 per month per eligible child under age 3 for FY2026–2035. Families would qualify only if family income is at or below 100% of the State median for their size, and payments would stop if a child attends covered care more than 10 hours per week. The IRS would deliver monthly payments, require annual recertification by the tax‑return deadline, and allow appeals and limited reinstatement rules for missed renewals. The Treasury and IRS would run outreach and a help line to assist applicants.

Large federal child care funding

If enacted, the bill would provide about $78 billion each year for Title I child care programs from FY2026–2035. States and Tribal organizations would have rules: at least 70% for direct services, set-asides for quality and outreach, and caps on admin. States would need to keep or increase their own child-care spending, and later years would require a State match (5% in 2028–29, 10% in 2030–2035). The Secretary could reserve up to 1% for Federal admin and 1% of funds would be used for research each year.

Protections for family, friend caregivers

If enacted, States would have to use safety-check procedures for family, friend, and neighbor (FFN) caregivers that avoid undue burdens. Eligibility could not depend on whether the caregiver owns or rents the home. Landlords would not be allowed to discriminate against tenants for participating in the FFN program.

Help for family child care providers

If enacted, the bill would create many supports for family, friend, and neighbor (FFN) and home‑based providers. States would offer voluntary licensing grants (up to $5,000), equipment grants for special‑needs care (up to $1,000 per year), payments for voluntary quality activities, and a required national base rate that states adjust for cost of living and special needs. Providers would face safety, registration, and background‑check rules and generally limits on how many children they may supervise. States would also have to offer multiple payment methods and regular schedules for provider payments.

Grants for child care facilities

If enacted, the bill would fund annual grants for child care facilities and home‑based supports. The Child Care Facilities Grant Program would get $250 million each year with individual grants up to $15 million and a 15% admin cap. A Home‑Based Training and Support Fund would get $250 million each year to pay for coaching, business training, and provider networks. A $250 million annual Child Care Innovation Fund would fund pilots and improvements, with at least 60% for pilot projects.

State opt-in controls child care access

If enacted, the title would apply only in States that choose to participate. Whether your family can use these child care benefits would depend on if your State opts in and how much of the program it adopts. Residents of nonparticipating States would not be covered by the title.

Child care wages and labor rules

If enacted, States would have to create or improve wage and benefits ladders for child care staff and pay wage supplements within 12 months. FFN and family providers would get new worker‑protection rules: organizing, whistleblower protections, and limited collective‑bargaining options if a State elects them. The bill would also require prevailing wages on construction projects paid with Act funds. Some rules could raise provider labor costs while increasing pay and protections for workers.

Rules and limits for child care providers

If enacted, child care providers getting subgrants would need to be licensed, regulated, or registered under State law and follow spending and reporting rules. They would have to use funds only for allowable expenses, keep or increase staff wages and benefits, cap executive pay at 25 times the median employee wage, and not use subgrant funds to pay investor dividends or interest. Income-eligible families could not be charged tuition or extra fees at these providers, and companies with more than 20 licenses would file detailed annual financial reports with HHS.

State child care outreach boards

If enacted, each State would have to create local advisory boards that include parents and FFN providers to guide outreach and local program design. States would form written community partnerships, run multilingual outreach, and file annual implementation reports to the Secretary. The Secretary would also coordinate evaluations and promote shared training across early‑childhood programs. These steps aim to improve access and navigation for families and providers.

Restrictions on use of child care funds

If enacted, States, Tribes, and subgrant recipients could not use these funds to buy or permanently improve land or buildings except as allowed under section 104. Funds also could not be used for sectarian religious activities, lobbying, political activity, or other purposes the Secretary finds inconsistent with program goals. These limits would steer money toward services and program goals rather than some facility or political spending.

Sponsors & CoSponsors

Sponsor

Khanna, Ro [D-CA-17]

CA • D

Cosponsors

  • Del. Norton, Eleanor Holmes [D-DC-At Large]

    DC • D

    Sponsored 10/5/2026

  • Rep. Crockett, Jasmine [D-TX-30]

    TX • D

    Sponsored 10/5/2026

Roll Call Votes

No roll call votes available for this bill.

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