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S2828119th CongressWALLET

Child Care Modernization Act of 2025

Sponsored By: Senator Fischer, Deb [R-NE]

In Committee

Summary

This bill would redesign the federal child care program into a mixed-delivery system that broadens who can get help and funds a new federal facilities grant to grow supply and improve centers.

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  • Families: More families could qualify. Eligible children would be under age 13 from households at or below 85% of the State median income with assets under $1,000,000, and parents in many work, training, or care-related activities would count as eligible.
  • Providers and workforce: States would have to use a cost-estimation model to set payment rates that cover fixed and operating costs and review it at least every two years. At least 9% of relevant funds must be dedicated to quality and workforce efforts to help recruit, train, and retain staff.
  • States and communities: A new Child Care Supply and Facilities grant program for 2027–2030 would fund construction, renovation, and startup subgrants. Grants must prioritize providers serving priority populations and require detailed State reporting on providers, slots, and subgrant use.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 7 benefits, 0 costs, 1 mixed.

More child care eligibility and activities

If enacted, a child under 13 could qualify for subsidized care if your family income is at or below 85% of your State's median for your family size (States may have approved waivers to set higher), and family assets are $1,000,000 or less. A qualifying child also must meet conditions like a parent participating in approved activities, homelessness, kinship or child-protection situations, or living with a parent over 65. The bill would expand what counts as an eligible activity—adding part- and full-time work, self-employment, job search, job training, school or ESL, health treatment, SNAP and WIOA activities, certain TANF work, and approved leave. The bill would also make Head Start agencies explicitly eligible as child care providers under this program.

Business help and USDA rule change

If enacted, the bill would require States to support business technical assistance for child care providers, including management coaching, shared services and provider networks, and coordination with the Small Business Administration and the Department of Agriculture. The bill would also direct the Agriculture Secretary to revise a USDA rule so that businesses licensed, regulated, or registered as child care providers are excluded from that regulation.

State plans, fees, and affordability reports

If enacted, States would have to write child care plans after "meaningful consultation" with parents, providers, employers, and local governments. States would also have to send, when they submit those plans, a report showing what share of income unassisted eligible families spend on child care and a five-year feasibility study on lowering family copays. States must use a sliding fee scale (with smaller copays for part-time care) that is designed so copays are not a barrier to getting care.

Authorization for child care funding

If enacted, the bill would authorize Congress to appropriate "such sums as may be necessary" to run the redesigned child care services subchapter for fiscal years 2026 through 2030. This authorization excludes the facilities grants section. The authorization does not guarantee funding; Congress still must appropriate the money.

Grants to expand child care facilities

If enacted, the bill would create a Child Care Supply and Facilities Grants program for fiscal years 2027–2030. The Secretary could reserve up to 1% for Federal admin. States could keep up to 10% for State activities and must use the rest for subgrants for startup, construction, renovation, repairs, licensing upgrades, and other supply-expansion costs. Subgrant recipients must commit to serve eligible children for a State-set time, and States must prioritize providers serving priority populations. Funds used to improve private family child care homes generally would not trigger long-term Federal claims, and any Federal interest could not last more than 10 years. States must report on subgrants within 12 months and yearly after that.

New cost model for provider payments

If enacted, States would have to use a statistically valid cost estimation model to set child care payment rates. The model must account for fixed and operating costs, staff pay and benefits, differences by geography, provider type, child age, children with special needs, weekend or nontraditional hours, and provider quality. States must review the model at least every two years and certify rates will be sufficient by the later of five years after plan submission or September 30, 2031. States must also describe how they will pay providers on time.

Rules for family child care providers

If enacted, a licensed child care provider who is also the legal parent of a child would still be able to receive assistance for that child's care if the provider also cares for other eligible children. The bill would also clarify that a family child care provider includes someone caring for children in a private home for part-day or for 24-hour care when overnight care is required by a parent's work.

Biennial federal child care reports

If enacted, the Department would file the required child care report every two years instead of the previous schedule. This mainly changes how often federal-level information is sent to Congress and does not by itself change family benefits.

Sponsors & CoSponsors

Sponsor

Fischer, Deb [R-NE]

NE • R

Cosponsors

  • Sen. Gillibrand, Kirsten E. [D-NY]

    NY • D

    Sponsored 9/17/2025

  • Sen. Collins, Susan M. [R-ME]

    ME • R

    Sponsored 9/17/2025

  • Sen. Hickenlooper, John W. [D-CO]

    CO • D

    Sponsored 9/17/2025

  • Sen. Kelly, Mark [D-AZ]

    AZ • D

    Sponsored 6/11/2026

  • Sen. Britt, Katie Boyd [R-AL]

    AL • R

    Sponsored 6/16/2026

  • Sen. Fetterman, John [D-PA]

    PA • D

    Sponsored 8/6/2026

  • Sen. Ricketts, Pete [R-NE]

    NE • R

    Sponsored 8/6/2026

  • Sen. Grassley, Chuck [R-IA]

    IA • R

    Sponsored 9/30/2026

  • Sen. Cortez Masto, Catherine [D-NV]

    NV • D

    Sponsored 9/30/2026

Roll Call Votes

No roll call votes available for this bill.

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