Child Care for Working Families Act
The Child Care for Working Families Act establishes a comprehensive federal entitlement program to provide high-quality, affordable child care for children under age 6 who are not yet in kindergarten. The bill creates a new funding stream through the Department of Health and Human Services to help states develop and maintain child care systems that ensure every eligible child can access quality care. The program aims to address child care affordability by capping family copayments on a sliding scale based on income (with no copayment for families earning up to 85% of state median income), while simultaneously improving child care quality through a tiered rating system and ensuring adequate compensation for child care workers comparable to elementary school teachers with similar credentials.
Key Points
- 1Universal Entitlement: Beginning October 1, 2026, every eligible child in participating states is entitled to receive child care assistance, with eligibility including children whose parents are working, in school, in job training, or participating in other qualifying activities, as well as vulnerable populations like children with disabilities, those experiencing homelessness, or in foster care
- 2Affordability Standards: Establishes a sliding fee scale where families earning up to 85% of state median income pay no copayment, with copayments capped at 2-7% of income for higher earners, and prohibits providers from charging families more than the subsidy plus copayment amount
- 3Provider Payment Rates: Requires states to conduct cost studies and set payment rates sufficient to cover the true cost of quality care, including adequate wages for child care workers that must at minimum provide a living wage and be equivalent to wages for elementary educators with similar credentials
- 4Quality Improvement System: Mandates states develop tiered quality rating systems with the highest tier equivalent to Head Start standards, with financial support to help providers move up quality tiers, and requires all children have access to highest-quality care within 10 years
- 5Workforce and Licensing: Requires states to develop appropriate licensing standards for various provider types (including family child care homes), create pathways to licensure, establish wage ladders for child care staff, and provide financial support to help providers meet licensing requirements