Protecting Childcare from Private Equity Act
Sponsored By: Representative Riley, Josh [D-NY-19]
Introduced
Summary
Private equity ownership of childcare providers would face new federal oversight, temporary ownership limits, and a two-year federal study.
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- Families and parents: The Comptroller General must study how private equity ownership affects care quality, availability of spots, tuition, and employee wages. A report to Congress is due within 2 years.
- Childcare providers and investors: For 4 years after a covered private fund first controls a provider, the fund may not sell its interest and the provider may not pay dividends, capital distributions, or undertake share buybacks with the fund.
- Regulators and Congress: The Securities and Exchange Commission, in consultation with the Secretary of Health and Human Services, would require covered private funds to provide ownership and transaction data within 1 year. The SEC must deliver an anonymized annual report to Congress no later than 1 month after each fiscal year.
- Which entities are covered: A "covered private fund" must have more than $150 million in assets under management and provide childcare at more than 25 locations. The bill defines "controls" as owning more than 50% of a legal entity's voting equity.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
New rules for private equity childcare
If enacted, the bill would define which private equity funds count as "covered private funds." A fund would be covered if it would be an investment company except for two specific exemptions, has more than $150,000,000 in assets under management, and through companies it controls provides childcare at more than 25 locations. The SEC would have to collect, within one year, each covered fund's ownership, purchases, and sales of childcare companies and send Congress an anonymized annual report no later than one month after the fiscal year ends. When a covered fund first controls a childcare company (more than 50% voting power), the fund could not sell its interest, and the childcare company could not pay dividends, make capital distributions, or buy back shares from the fund, for four years.
Sponsors & CoSponsors
Sponsor
Riley, Josh [D-NY-19]
NY • D
Cosponsors
Rep. Casar, Greg [D-TX-35]
TX • D
Sponsored 7/22/2026
Rep. Cisneros, Gilbert Ray [D-CA-31]
CA • D
Sponsored 7/22/2026
Rep. McClain Delaney, April [D-MD-6]
MD • D
Sponsored 7/22/2026
Rep. Subramanyam, Suhas [D-VA-10]
VA • D
Sponsored 7/22/2026
Rep. Vindman, Eugene Simon [D-VA-7]
VA • D
Sponsored 7/22/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov