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119-hr-7203119th CongressWALLET

CHIPS Child Care Act

Sponsored By: Representative Bynum, Janelle S. [D-OR-5]

Introduced

Summary

Child care supports tied to semiconductor workforce expansion. This bill would create a Department of Labor grant program that helps states pay monthly child care stipends for people in semiconductor-related workforce programs and fund construction or renovation of child care facilities near major semiconductor investments.

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  • Families and workers: Parents in qualified semiconductor training or apprenticeship programs could get monthly child care stipends to help cover costs, with a minimum of $500 per dependent child per month. Stipends must supplement wages and are excluded from federal taxable income and from counting toward means-tested benefits.
  • Child care providers and communities: Grants would help eligible providers buy, build, renovate, or expand facilities and adapt hours to meet demand in regions with large semiconductor investment. Priority goes to providers serving low-income children, children under five, rural areas, and nontraditional hours.
  • States and workforce programs: States would apply for two-year grants in equal annual payments, submit plans for stipend distribution and facility use, and report on retention, completion, and access with demographic breakdowns.

*Would authorize $10.0 million for fiscal year 2025 and $10.0 million for fiscal year 2026, a $20.0 million total authorization that would modestly increase federal spending.*

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

Tax-free CHIPS child care stipends

This bill would make stipends paid under the CHIPS Child Care program tax-free for federal income tax purposes. If you received a stipend under this Act, you would not include that money in your federal gross income. That would lower your reported taxable income and could reduce your federal income tax bill depending on how much you get and your tax rate.

Child care grants for CHIPS workers

This bill would create a CHIPS Child Care State Grant Program run by the Department of Labor. It would authorize $10 million for each of fiscal years 2025 and 2026 and reserve 1.5% of each year for a required study and reports. The Secretary would award two-year grants to States for two tracks: (A) monthly stipends paid to child care providers on behalf of eligible parents in semiconductor-related workforce programs (at least $500 per dependent child per month), and (B) capital grants to expand or improve child care facilities in semiconductor investment areas. Stipends would have to supplement wages and not reduce eligibility or benefit amounts under federal, state, or local programs funded with federal dollars. Construction paid for by these grants would require Davis-Bacon prevailing wages. States would report on stipend use, program retention and completion, wages, and facility impacts, with an initial State report due within 180 days after the grant period ends and three annual follow-ups; the Secretary would consolidate and report to Congress after receiving the final State report and for three years thereafter.

Sponsors & CoSponsors

Sponsor

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

OR • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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