H.R. 4418 — Child Care for Working Families Act

This section establishes a birth-through-five child care and early learning program that applies definitions from the Child Care and Development Block Grant Act of 1990 and provides additional definitions, including for child care certificate (redeemable by parents only for child care services at eligible providers and usable for sectarian providers if parent-selected, considered indirect federal aid), child experiencing homelessness, eligible activity (e.g., employment, job search or training, secondary or postsecondary education, health treatment, family violence prevention, Workforce Innovation and Opportunity Act activities, or leave under the Family and Medical Leave Act), eligible child (under age 6, not yet in kindergarten, residing with a parent in an eligible activity or in specified vulnerable populations including children with disabilities and infants and toddlers with disabilities, or with a parent over age 65, employed by an eligible provider, or enrolled in high school), and eligible child care provider (licensed center-based, family, or other compensated provider participating in the state's tiered quality system not later than four years after the state first receives funds, with existing Child Care and Development Block Grant Act providers grandfathered for 3.5 years). An eligible child requires no reverification of eligibility until age 6 or kindergarten entry, whichever is earlier.

This section states the purposes of this title as promoting child care sector stability and quality by (1) providing stable funding to eligible child care providers to offset operating expenses; (2) supporting sustained and increased wages for early childhood educators and staff to stabilize and grow the workforce; (3) expanding the supply and capacity of eligible providers to offer high-quality, affordable child care options in various settings; and (4) increasing access to child care in shortage areas, including for infants and toddlers, nontraditional or extended hours, and children with disabilities.

This section establishes definitions for terms used in this title by (1) incorporating the meanings of child care certificate, child with a disability, family child care provider, lead agency, Secretary, State, Indian tribe, and tribal organization from section 658P of the Child Care and Development Block Grant Act of 1990 (CCDBG Act); (2) defining eligible child care provider as an eligible provider under the CCDBG Act or title I of this Act; (3) defining infant or toddler as an individual less than 3 years of age; (4) defining infant or toddler with a disability as provided in section 101(b); and (5) defining provider type as a center-based child care provider, family child care provider, or another non-center-based child care provider.

This section directs the Secretary to reserve not more than 3% of funds appropriated to carry out this title for federal administration of grants described in section 204, which may include technical assistance to lead agencies.

This section directs the Secretary to award base grants to each state lead agency under the Child Care and Development Block Grant Act of 1990 (CCDBG Act) from appropriated funds remaining after a reservation under section 203 of this title. Such grants are allotted according to the CCDBG Act formula (42 U.S.C. 9858m(a)) excluding paragraphs (3) through (5), without regard to state plan assurances under 42 U.S.C. 9858c(c)(3)(C) and (E) (i.e., parental complaints procedures and monitoring reports) and requirements under 42 U.S.C. 9858e (i.e., child care provider agreements). The section further authorizes base grants to Indian tribes and tribal organizations for child care programs consistent with this title.

This section specifies the information a state lead agency must include in its application to the Secretary to be eligible for a grant under section 204, including (1) a description of the process for awarding subgrants to eligible child care providers; (2) a description of how subgrant amounts will be determined to ensure ongoing operations and sustainability, accounting for costs of high-quality services (including variations by geography, provider type, child age, nontraditional hours, disabilities, group sizes/ratios, and workforce wages), and basing formula estimates on enrollment capacity rather than attendance; (3) a description of efforts to improve child care quality, such as through the state's tiered quality recognition system; and (4) a description of using reserved funds under section 207(a)(1) for outreach and technical assistance to eligible providers (e.g., family child care, those with limited capacity, or non-English primary language), directly or via resource organizations or networks.

This section authorizes administration of activities funded under state grants pursuant to section 204 either (1) directly by the state's lead agency or (2) through a subgrant or contract to another state government agency, a local or regional child care resource and referral organization, a community development financial institution, a nonprofit intermediary with experience supporting child care providers, or another appropriate entity.

This section requires a state lead agency receiving a BASE Grant to (1) reserve not more than 10% of the grant funds for administering subgrants, providing technical assistance to all provider types to access subgrants and other public assistance, publicizing subgrants, and conducting activities to increase child care supply; and (2) use the remaining funds to make five-year subgrants to eligible child care providers for activities described in §210. The section further requires subgrant payments to be made in advance, with adjustments for overpayments or underpayments.

This section requires the lead agency, in making subgrants under this title, to prioritize eligible child care providers that—(1) provide child care during nontraditional or extended hours; (2) serve infants and toddlers; (3) serve dual language learners, children with disabilities, children experiencing homelessness, children in foster care, or children from low-income families; (4) serve children whose families received subsidies under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) or title I; (5) operate in communities—including those with high proportions of children in low-income households and rural communities—with low child care supply; or (6) are small business concerns, as defined in section 3 of the Small Business Act (15 U.S.C. 632), or tax-exempt nonprofit organizations under section 501(c)(3) of the Internal Revenue Code. The section defines the poverty line by reference to the Community Services Block Grant Act (42 U.S.C. 9902).

This section requires an eligible child care provider seeking a subgrant under this title to submit an application to the lead agency containing (1) a description of how the provider meets priority requirements in section 208, if applicable; (2) an assurance that the provider accepts child care subsidies in the form of certificates, grants, or contracts authorized under the Child Care and Development Block Grant Act (CCDBG) or title I as payment, regardless of whether subsidized children are enrolled; (3) an assurance that the provider will remain open and available to serve children during the grant period under section 204, except for temporary closures due to building safety issues, widespread illness or staff shortages, holidays or professional development, or state-of-emergency declarations; (4) a description of how subgrant funds will improve child care quality and operations (e.g., through a state's tiered quality recognition system); and (5) a description of plans to increase staff compensation during the grant period, including annual cost-of-living adjustments, graduated pay increases based on credentials, experience, and responsibilities, and—for providers with 15 or more staff—a wage ladder.

This section establishes requirements for the use of subgrant funds by eligible child care providers, requiring at least 70% of such funds to be used for child care personnel costs—including wages or similar compensation aligned with wage standards; annual cost-of-living adjustments; and graduated pay increases based on credentials, experience, and responsibilities (including a wage ladder for providers with 15 or more staff)—and permitting the remainder for specified program-related activities such as (1) professional development and coaching; (2) recruitment and retention bonuses; (3) staff benefits like health insurance, paid leave, and retirement funds; (4) hiring staff and conducting background checks; (5) occupancy costs including rent, mortgages, insurance, utilities, and maintenance; (6) equipment, repairs, supplies, and training for health, safety, quality, and licensure compliance; (7) comprehensive services for underserved children and families; (8) quality improvements appropriate to provider type and child age group; and (9) inclusive care for children with disabilities, including accommodations and coordination with early intervention services. For states participating in the title I program, this section authorizes the lead agency—with Secretary approval—to allow alternative uses of grant funds under section 204 that support title I-compliant high-quality affordable child care, compensation for early childhood educators, or initiatives to expand provider supply or improve service quality. This section further specifies that the terms "staff" and "staff member" include persons compensated under personnel costs.

This section requires each lead agency, not later than one year after receiving a grant under section 204 and annually thereafter, to submit a report to the Secretary containing specified information on subgrant applications, awards, and uses under this title, including (1) numbers of applicants and recipients relative to total eligible child care providers, disaggregated by provider type, race and ethnicity of provider, and geographic area; (2) subgrant award methodologies, average and range of amounts (disaggregated as above); (3) percentages of recipients serving specified populations (e.g., dual language learners, children with disabilities or homelessness, low-income families, infants and toddlers, or subsidy recipients under the Child Care and Development Block Grant Act); (4) enrollment capacity, attendance, tuition (by child age and provider type), and staff wages (by provider type); (5) percentages by provider type and with unionized staff; and (6) fund uses by recipients and lead agencies, publicity and technical assistance efforts, and data on large recipients serving more than 5,000 children. The section further directs the Secretary to submit an annual report summarizing these lead agency reports to the Senate Committees on Health, Education, Labor, and Pensions and Appropriations and the House Committees on Education and Workforce and Appropriations and to make the report publicly available on the Department of Health and Human Services website.

This section requires amounts made available under this title to supplement and not supplant other federal, state, and local public funds expended to provide child care services for eligible individuals.

This section appropriates $9 billion to the Department of Health and Human Services for each of fiscal years 2026 through 2031, in addition to amounts otherwise available, to carry out this title.

This section establishes definitions for 14 terms used in this division, including (1) eligible child, as a child age 3 or 4 on the date established by the applicable local educational agency for kindergarten entry; (2) eligible provider, as a local educational agency (acting alone, in a consortium, or with an educational service agency), Head Start agency, licensed center-based or family child care provider, or consortium thereof; (3) child experiencing homelessness, as defined in the McKinney-Vento Homeless Assistance Act; (4) child with a disability, as defined in the Individuals with Disabilities Education Act; (5) dual language learner, as a child learning two or more languages simultaneously or a second language while developing the first; and (6) comprehensive services, as defined in the Head Start Act.

This section appropriates funds to the Department of Health and Human Services for universal preschool programs (i.e., to expand access to high-quality preschool for children ages 3 and 4) under this title. Specifically, subsection (a) provides such sums as necessary for payments to states in each of FY2026 through 2031 (except for activities covered by subsection (b)); and subsection (b) appropriates for FY2026, available until September 30, 2031, (1) $2.5 billion for payments to Indian tribes and tribal organizations; (2) $1.25 billion for payments to territories based on relative need; (3) $300 million for payments to eligible local entities serving children in families engaged in migrant or seasonal agricultural labor; (4) $995 million for federal activities including administration, monitoring, technical assistance, and research in FY2026 through 2031; and (5) $20 billion for grants to localities under section 306(b) and (c).

This section establishes a federal payment program administered by the Secretary of Health and Human Services, in collaboration with the Secretary of Education, to states with an approved statewide plan for universal, high-quality, free, and inclusive preschool services provided through a mixed-delivery system (e.g., public schools, Head Start, child care providers). For FY2026 through FY2031, the Secretary pays states (1) a federal share of preschool service expenditures declining from 90 percent (FY2026-FY2027) to 80 percent (FY2028), 75 percent (FY2029), 65 percent (FY2030), and 60 percent (FY2031); and (2) 50 percent of state expenditures for specified activities (e.g., program administration, quality improvement systems, outreach, data systems, staff professional development, inclusive services for children with disabilities, transportation including for homeless and foster care children, and needs assessments), capped at 10 percent of the state's preschool expenditures for the year. Payments are made in advance based on state estimates, with retrospective adjustments for over- or underpayments; remaining costs are the state non-federal share. To receive payments, a state's governor must designate a lead agency and submit for approval a plan certifying developmentally appropriate, evidence-based preschool standards at least as rigorous as specified Head Start standards (including class sizes and ratios), ensuring universal availability without additional eligibility requirements, at least 1,020 annual instructional hours, and expedited enrollment prioritizing homeless children and others.

This section requires states receiving payments under section 303(b) to award subgrants or contracts of not less than three years to eligible providers to operate universal, high-quality, free, and inclusive local preschool programs, with amounts sufficient to meet section 303(e)(2) requirements and reflecting variations in costs by geography, provider type, child age, and inclusive services for children with disabilities. States must adjust such awards for over- or underpayments under section 303(b)(4); provide enhanced payments to providers serving high percentages of low-income children with comprehensive services; and prioritize establishing and expanding programs in high-need communities—identified via a Secretary-approved methodology using poverty rates, preschool access rates, and other need indicators—ensuring a majority of children there are served before lower-need areas. Funds may be used for personnel compensation and benefits; curriculum, standards, professional development, and teacher supports; health, safety, ratios, and group sizes; materials and equipment; and facility costs including rent, utilities, maintenance, and insurance. Once high-need requirements are met, states must expand programs to additional communities using the same metrics and allowable uses.

This section directs the Secretary to make payments to Indian Tribes and tribal organizations, from amounts appropriated under section 302(b)(1), and to territories, from amounts under section 302(b)(2), for each of FY2026 through 2031 to carry out the universal preschool program upon approved applications and consistent with state requirements to the extent practicable as determined by the Secretary. It requires recipients to designate a lead agency for program administration.

This section directs the Secretary of Health and Human Services (HHS), using funds appropriated under section 302(b)(5), to award grants to eligible localities (i.e., cities, counties, other general local governments, local educational agencies, or Head Start agencies) in states that have not received payments under section 303, for universal, high-quality, free, and inclusive preschool programs with requirements consistent with those applicable to states under this title. HHS allots such funds to those states based on each state's share of children under age 6 from families with incomes at or below 200% of the poverty line; eligible localities apply from the state allotment. This section further directs HHS to award funds appropriated under section 302(b)(5) to Head Start agencies in those states to carry out Head Start Act programs (42 U.S.C. 9831 et seq.), excluding such funds from base grant calculations under section 640(a)(7)(A) of the Head Start Act (42 U.S.C. 9835(a)(7)(A)). (Thus, these expansion funds do not perpetuate or increase ongoing base grant levels, which are allocated as the prior year's amount to maintain program continuity.) In awarding grants or funds under this section, HHS prioritizes entities serving communities with high percentages of children from families with incomes at or below 200% of the poverty line.

This section specifies allowable sources and limitations for a state's non-Federal share of payments under section 303(b), as determined under section 303(b)(3). Such share (1) may be cash or in-kind contributions, fairly evaluated (e.g., facilities, property, equipment, or services); (2) shall include increases in state spending to expand half-day kindergarten programs, as of the day before enactment, into full-day kindergarten programs; (3) shall exclude contributions used as a non-Federal share or match for another federal award; (4) shall be from state or local sources, philanthropic or other private contributions, or a combination thereof; and (5) shall count not more than 100% of the state's average spending on prekindergarten programs for FY2023-FY2025.

This section establishes a maintenance-of-effort requirement for states receiving payments under section 303(b). If a state reduces its combined fiscal effort per child on state preschool programs (publicly funded or under this title), state supplemental assistance for Head Start programs, or any state spending on early childhood programs or preschool services relative to the prior fiscal year, the Secretary of HHS, in collaboration with the Secretary of Education, must reduce the state's federal support under that subsection by an equivalent amount. The Secretaries may waive this requirement if either (1) the state faces a precipitous decline in financial resources due to unforeseen economic hardship or natural disaster necessitating across-the-board cuts, including to early childhood programs, in the prior five years; or (2) the state justifies targeted reductions, demonstrating why other programs could not be cut and that early childhood programs will not be disproportionately harmed.

This section requires that funds provided under this title supplement, and not supplant, other Federal, State, and local public funds expended for prekindergarten programs in the state, using as the baseline the average amount of such funds expended in FY2023, FY2024, and FY2025.

This section applies specified nondiscrimination laws to any program or activity receiving funds under this title: (1) Title IX of the Education Amendments of 1972 (prohibiting sex discrimination in education programs); (2) Title VI of the Civil Rights Act of 1964 (prohibiting discrimination based on race, color, or national origin in federally assisted programs); (3) Section 504 of the Rehabilitation Act of 1973 (prohibiting disability discrimination in federally assisted programs); and (4) the Americans with Disabilities Act of 1990 (prohibiting disability discrimination by public entities and in employment, public services, and public accommodations).

This section directs the Secretary to review and monitor compliance by States, territories, Tribal entities, and local entities with this title and State plans under section 303(e)—including progress updates on section 303(e)(1) requirements. The section further requires the Secretary to issue a rule establishing procedures for (1) receiving, processing, and determining the validity of complaints or findings of State noncompliance; (2) notifying a State of a determined failure to comply; and (3) imposing sanctions for such failures.

This section requires each state receiving a payment under section 303 to submit an annual report to the Secretary of Health and Human Services containing, at a minimum, (1) a description of fund uses and expenditures; (2) progress toward providing access to high-quality preschool programs for eligible children; (3) the number and percentage of children participating in eligible preschool programs, disaggregated by race, ethnicity, family income, child age, disability, and homeless, foster care, or dual language learner status; (4) the number and percentage of children participating in public kindergarten programs, disaggregated by race, family income, child age, disability, and homeless or foster care status, including whether such programs are full-day and offered at no cost to families; (5) data on kindergarten readiness statewide; (6) data on recruitment and retention of early childhood staff, disaggregated by provider type and age of children served; and (7) data on coordination with other child care and early childhood education programs, including Head Start.

This section establishes a new grant program under the Head Start Act for Head Start agencies (including Early Head Start agencies)—which provide comprehensive early childhood development, health, nutrition, and family support services to low-income children and families—to (1) extend center-based and family child care services to a full school day (at least 1,020 hours per year for Head Start preschool, 1,380 hours for Early Head Start) and full school year; (2) in the case of migrant and seasonal Head Start agencies, provide additional hours for continuous services; or (3) if already providing full-day/full-year services community-wide, enhance program quality under existing authorities (e.g., professional development, family engagement). Agencies must apply with evidence of current service hours, a transition plan based on their community assessment, and a budget justification; migrant/seasonal and full-day/full-year agencies have exceptions with priority for those operating under 8 months per year; funds may cover extended-hours costs such as facilities, supplies, staff salaries, and training but may not expand enrollment. From amounts appropriated for the program, the Secretary must reserve (1) $4 billion of FY2026 funds for facilities-related costs; and (2) for other extended-hours costs, $833 million in FY2026, $852 million in FY2027, and $872 million in FY2028, of which 4.5% is reserved for migrant/seasonal programs. The Secretary must prioritize grants for full-day/full-year extensions.

This section appropriates $2,700,000,000 for FY2026 and each subsequent fiscal year to the Secretary of Health and Human Services to assist Head Start agencies—including Early Head Start agencies funded under the Head Start Act (42 U.S.C. 9831 et seq.)—in ensuring their teachers and staff receive wages comparable to elementary educators with similar credentials and experience in the state or, at a minimum, a living wage. (Head Start provides comprehensive early childhood education, health, nutrition, and family support services primarily to low-income children ages birth through five.)