The Child Care for Working Families Act establishes a comprehensive federal program to provide subsidized child care and universal preschool for eligible families between 2026 and 2031. The bill creates an entitlement program serving children under age 6 whose parents work, seek employment, or participate in education or treatment, with families earning up to 85% of state median income paying nothing and higher-income families paying up to 7% of costs. The legislation appropriates $21.3 billion total for the main child care program plus an additional $9 billion annually for direct provider grants, $2.5 billion for Indian Tribes, $1.25 billion for U.S. territories, and $4.8-6.6 billion annually to expand Head Start services. States must submit detailed plans ensuring child care payment rates cover actual costs and staff wages comparable to elementary school teachers, implement tiered quality systems, prioritize low-income families by October 2026, reserve 5-10% of funds for quality improvements, and report annual data on providers and outcomes to Congress. The bill includes provisions to improve child care workforce wages, expand services in underserved areas, ensure nondiscrimination and inclusion of children with disabilities, and require states to maintain existing early childhood program spending to receive federal funds.
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