Congress·In Committee·S. 2828

Fischer and Gillibrand Introduce Bipartisan Bill to Expand Child Care Access and Lower Costs

Child Care Modernization Act of 2025

1 day ago·View on Congress.gov

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Key Points

The bill reauthorizes and updates the main federal child care program (CCDBG) through fiscal year 2030, expanding the definition of who qualifies for help. Parents engaged in job searches, self-employment, education, mental health treatment, substance use treatment, or taking family leave can now qualify for child care assistance.
A brand-new grant program is created to expand the supply of child care by funding startup costs, facility construction, renovation, and repair. States would distribute subgrants to qualified child care providers, with priority given to those serving children in underserved areas, rural communities, foster care, and homelessness.
From policy text
“expand the supply and capacity of qualified child care providers and staff so that working parents have multiple high-quality child care options to choose from in making their own decisions regarding the child care services that best suit their family's needs”
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By 2031, states must switch to a cost estimation model for setting payment rates that reflects the true cost of running child care, including staff salaries and benefits, instead of relying only on market rate surveys. This is meant to help providers pay workers enough to recruit and retain qualified staff.
States can apply for waivers to raise the income ceiling for families eligible for child care subsidies above the current 85% of state median income, but only after demonstrating they are already serving the lowest-income families. This could open assistance to more middle-income families.
From policy text
“the State, on the date of the request, has a maximum income standard that meets section 658A(5)(B)(i), and requests the waiver to raise that standard”
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The bill emphasizes parental choice through a 'mixed delivery system' that includes family child care homes, centers, Head Start, faith-based programs, and schools. It also directs the Department of Agriculture to remove loan restrictions that have made it harder for home-based child care providers to get financing.
From policy text
“The Secretary of Agriculture shall revise section 3555.102(c) of title 7, Code of Federal Regulations, as in effect on the date of enactment of this Act, to exclude a business that is licensed, regulated, or registered as a child care provider under State law.”
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Impact Analysis

Personal Impact

Who is affectedScoreImpactCertaintyScopeDurationSentiment

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones3 actions

Mar 19, 2026Senate

Committee on Health, Education, Labor, and Pensions. Hearings held.

Sep 17, 2025Senate

Read twice and referred to the Committee on Health, Education, Labor, and Pensions.

Sep 17, 2025

Introduced in Senate

Related News

1 article

NBC News·6 months ago

Bipartisan Senate group releases bill to help increase affordable child care

Senators Deb Fischer (R-NE) and Kirsten Gillibrand (D-NY) introduced the Child Care Modernization Act of 2025, a bipartisan effort to reauthorize the Child Care and Development Block Grant for the first time since 2014. The bill expands eligibility and creates new grants for child care facilities.

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