S 2295119th CongressIn Committee

Child Care for Working Families Act

Introduced: Jul 15, 2025

Sponsor: Sen. Murray, Patty [D-WA] (D-Washington)

Labor & EmploymentSocial Services

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Child Care for Working Families Act would create a Birth Through Five Child Care and Early Learning Entitlement Program aimed at expanding access to high-quality, affordable child care for children from birth through age 5 (before kindergarten). Starting October 1, 2026, eligible children in participating states, territories, or tribal entities would be entitled to direct child care services funded through a combination of federal grants to states/localities/head Start agencies and direct administration by the federal government. The bill requires states to develop comprehensive plans—including cost estimation, a tiered quality system, licensing improvements, wage standards for providers, copayment scales, and enrollment procedures—and would provide substantial federal funding (with ongoing administration funds) to implement these requirements. It also emphasizes inclusivity, low-barrier enrollment, protections against suspension/expulsion, and targeted support for underserved populations.

Key Points

1Birth Through Five Entitlement: Establishes an entitlement program to provide eligible children under 6 (not yet in kindergarten) with access to high-quality direct child care services, funded through state plans and federal support, starting in 2026.
2Large-Scale Funding: Authorizes substantial federal funding for 2026-2031, including $20 billion (fiscal years 2026–2031) for grants to localities and Head Start agencies, plus $1.3 billion for administration, to run the program and related activities.
3State Plans and Cost Modeling: States must submit plans with detailed cost estimation models to ensure payment rates cover providers’ costs (including fixed costs and varying costs by geography, provider type, and child age) and align with a tiered quality system. Plans must include wage standards, annual cost updates, and an appeals process.
4Tiered Quality System: States must implement a system that classifies providers into tiers based on quality standards (with Head Start-level baselines or equivalents) and provides resources to help lower-tier providers improve toward higher standards. The system must accommodate different provider types and age groups and align with licensing where appropriate.
5Access, Affordability, and Protection: The plan must guarantee ongoing access for eligible children, implement a sliding copayment scale (0% to 7% of family income, scaled to income relative to state median), cap charges to ensure total support does not exceed assistance plus copay, and emphasize enrollment continuity (at least 12 months) and low-barrier enrollment processes.
6Licensing, Workforce, and Practices: Requires licensing standards that enable diverse provider types to participate, a pathway to licensure, background checks/training support funded by the grant, prohibitions on suspensions/expulsions and aversive discipline, and supports like infant/early childhood mental health consultation and trauma-informed care.
7Inclusive and Underserved Focus: Policies to expand access for underserved populations (low-income families, homeless, rural, dual-language learners, children with disabilities, etc.) and to ensure inclusive care where children with disabilities are served alongside peers.
8Eligible Child and Provider Definitions: Clarifies who qualifies as an eligible child and who can be an eligible provider (licensed, part of state-tiered quality recognition, and compliant with local requirements). Special rules apply to tribal, territorial, and non-traditional providers.
9Payment and Administration: States receive federal payments for direct child care services and administration; payments must support providers’ fixed costs and the tiered system’s quality requirements, including wage floors for staff.

Impact Areas

Primary beneficiaries: Children from birth through age 5 (before kindergarten) and their families, especially those with low or moderate incomes and those in underserved communities.Direct service providers: Center-based and family child care providers, including those seeking licensure or upgrading to meet higher quality tiers; workforce wages and professional development are emphasized.States, territories, and tribal governments: Must implement lead agency structures, develop plans, establish tiered quality systems, manage funds, and ensure licensing and compliance.Head Start programs and localities: Eligible to receive grants to participate in the program, expanding their role in delivering high-quality early care and learning.Employers and communities: Expanded access to reliable early care can affect parental employment participation, workforce stability, and local economic activity.FMAP: Federal Medical Assistance Percentage; used to describe financing arrangements similar to how medical assistance programs are funded, relevant to how the federal share is calculated.Tiered quality system: A framework where providers are assigned to levels based on quality standards. Higher tiers meet stricter standards and receive higher payments, with lower tiers supported to progress toward higher quality.Child care certificate: A federal/State-issued payment instrument given to a parent to pay for child care services; may be used directly with providers and can count as indirect federal support to the provider.Inclusive care: Child care that serves children with disabilities at rates reflecting state disability prevalence and ensures full participation of all children alongside peers without disabilities.Eligible activities: Broadly defines what activities qualify a parent for receiving child care assistance (employment, job training, education, health treatment, safe planning, etc.).

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