Child Care Modernization Act of 2026
Sponsored By: Representative Mackenzie, Ryan [R-PA-7]
Introduced
Summary
Modernize federal child care funding and expand local capacity. This bill would rewrite the Child Care and Development Block Grant Act to require state cost models for provider payments, create a new federal grant program for supply and facilities, and tighten reporting and eligibility rules.
Show full summary
- Families: Would broaden who qualifies by name, including homeless children, kinship care, children in protective services, and parents engaged in work, job search, training, education, or health treatment.
- Providers: Would require states to use a Cost Estimation Model that covers fixed and operating costs, includes biennial review and an annual cost-of-living adjustment, and would launch Child Care Supply and Facilities Grants for startup, expansion, and renovations with up to 10 percent reserved for state activities.
- States and workforce: States must write plans with parent and provider consultation, prioritize full workday and full workyear services, and spend at least 9 percent of certain funds on workforce recruitment, training, and retention while meeting expanded reporting and benchmarking requirements.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 7 benefits, 0 costs, 0 mixed.
Grants to expand child care supply
This bill would create a Child Care Supply and Facilities Grants program. It would authorize funding for fiscal years 2028–2031 and let HHS keep up to 1% for Federal administration. States would reserve up to 10% for State activities and must use the rest for startup, expansion, and facility subgrants. Grants must add to other public funds, not replace them, and priority would go to providers serving priority populations. Family child care homes would generally be protected from long federal property interests, and any retained interest would not exceed 10 years.
Rules for provider payment rates
This bill would require states to use a cost estimation model to set and certify child care payment rates. States would have to ensure rates cover fixed and operating costs, staff salaries and benefits, and local/provider differences. Models must be reviewed every two years and receive an annual cost-of-living adjustment. The HHS Secretary could give guidance but could not force any single model on States.
State copayment rules and reporting
This bill would require states to use sliding fee scales for family copayments and provide a smaller copayment for part-time care. The sliding scale must not block eligible families from getting child care. States would also submit a 10-year progress report and a five-year feasibility study on how to lower family copayments and increase access. The federal agency would report State information to Congress.
Who can get child care help
This bill would change eligibility rules for child care help. A child under 13 would be eligible if family income is at or below 85% of the State median for the family size and family assets are $1,000,000 or less. The bill would also expand the activities that make a parent eligible, such as work, job search, training, school, health treatment, SNAP/WIOA activities, certain TANF work, and FMLA or equivalent leave. States could request time-limited waivers to raise income limits but could not cut access or raise copayments for lower-income eligible families.
Authorized funding for child care
This bill would authorize open-ended appropriations of "such sums as may be necessary" for the child care services subchapter for fiscal years 2027–2031. That authorization would let states continue to receive federal funds for program operations and administration. Exact dollar amounts and household effects would depend on future congressional appropriations.
Money for child care workforce
This bill would require that at least 9% of certain child care funds each year be used for recruiting, training, and keeping child care workers. The money would support workforce pay, benefits, and retention programs and help providers reduce turnover. The exact dollar effect for workers and families would depend on total funding levels.
More support for child care providers
This bill would let Head Start agencies be eligible child care providers for subsidy rules. It would define family child care providers to include some 24‑hour care when a parent's job requires it. The bill would also direct USDA to change a loan rule so licensed child care businesses are not automatically barred from certain USDA loans.
Sponsors & CoSponsors
Sponsor
Mackenzie, Ryan [R-PA-7]
PA • R
Cosponsors
Rep. McDonald Rivet, Kristen [D-MI-8]
MI • D
Sponsored 6/9/2026
Rep. Hinson, Ashley [R-IA-2]
IA • R
Sponsored 6/9/2026
Rep. Lee, Susie [D-NV-3]
NV • D
Sponsored 6/9/2026
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 7/2/2026
Rep. Carbajal, Salud O. [D-CA-24]
CA • D
Sponsored 7/2/2026
Rep. Lofgren, Zoe [D-CA-18]
CA • D
Sponsored 7/20/2026
Rep. Wittman, Robert J. [R-VA-1]
VA • R
Sponsored 7/27/2026
Rep. Morelle, Joseph D. [D-NY-25]
NY • D
Sponsored 8/6/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov