S. 535, the Respect Parents' Childcare Choices Act, reauthorizes federal child care funding at $14 billion annually through 2031 while expanding parental options in selecting child care providers. The bill requires states to offer all eligible families child care certificates they can use with providers of their choice, including religious providers and relatives, and protects religious child care providers from facing stricter licensing rules than secular providers while allowing them to maintain their religious character and hiring practices. The legislation reduces federal quality-improvement spending requirements from 10 percent to 9 percent of block grant funds and ensures relative caregivers receive at least 75 percent of the standard payment rate. The bill also establishes two $50 million pilot programs to prevent fraud in child care assistance and reduce regulatory barriers for family members serving as caregivers, while repealing the federal dependent care tax credit. These changes would significantly reshape how federal child care assistance is delivered by giving parents broader choices and religious and family-based providers greater flexibility.
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