The Child Care Workforce Development Act creates two federal programs to support early childhood educators and reduce their student debt. The first program allows the Department of Health and Human Services to repay up to $6,000 per year in student loans for educators who commit to working in federally-subsidized child care settings for five years, with a maximum total repayment equal to their actual loan balance. The second program provides grants of up to $4,000 per academic year through colleges and universities to students pursuing early childhood education degrees or certificates, with recipients required to work in licensed early learning programs for at least one year after graduation (plus four additional months for each grant renewal received, up to four years of total grants). If recipients fail to meet their work commitments, grants convert to no-interest loans repayable under standard federal repayment plans, though hardship extensions are available for those unable to find employment. The bill authorizes $25 million annually from 2026 through 2031 for the loan repayment program and $10 million annually from 2026 through 2030 for the grants program, with a requirement that the Department report to Congress on implementation after five years.
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