The Child Care Modernization Act of 2026 makes several changes to improve child care access and quality across the country. The bill requires states to expand their consultation process when developing child care plans to include more diverse stakeholders such as eligible parents, child care providers from different regions, employers, and tribal representatives. The legislation mandates that states dedicate at least 9 percent of their annual quality improvement funding to workforce development initiatives that help providers recruit, train, and retain staff, with unused funds rolling over year to year instead of expiring. Additionally, the bill removes restrictions on child care providers accessing certain U.S. Department of Agriculture loan programs, making it easier for licensed child care businesses to secure financing. The bill also includes technical clarifications to improve the precision of references within existing child care law.