HR3273-119

What This Bill Does

The Child Care Workforce Development Act attacks early childhood staffing through loan repayment and education grants. HHS may contract with eligible early childhood educators who agree to serve for five years with a qualified employer, repaying up to $6,000 per year of principal and interest on qualifying education loans, with total payments capped at outstanding loan balances. Qualified employers are child care providers receiving or eligible for Child Care and Development Block Grant vouchers or assistance. The bill authorizes $25 million per year for fiscal years 2026 through 2031. It also requires Education to make payments to institutions of higher education with qualified early childhood educator programs so they can award competitive grants of up to $4,000 per academic year, renewable up to three times, for students in associate or certificate programs. Grant recipients must serve in licensed early learning programs after completion, or the grants convert into no-interest Direct Unsubsidized Stafford Loans, with hardship extensions available. That grant program is authorized at $10 million per year for fiscal years 2026 through 2030, with no more than 3 percent for administration.

Who Benefits and How

Early childhood educators benefit from up to $6,000 per year in loan repayment for five years of qualifying child care service. Child care students benefit from grants of up to $4,000 per academic year for early childhood associate or certificate programs. Licensed early learning programs benefit because service obligations steer grant recipients into child care classrooms after training. Child care providers receiving CCDBG assistance benefit from a stronger recruitment and retention tool for educators.

Who Bears the Burden and How

HHS workforce staff must administer loan-repayment contracts, annual certification, and $25 million annual authorization. Education Department grant staff must pay institutions, monitor service obligations, handle loan conversions, and administer $10 million annual grants. Grant recipients who do not complete service obligations must repay converted no-interest federal loans. Institutions of higher education must manage applications, disbursements, renewals, and service-obligation disclosures.

Key Provisions

• Authorizes HHS to repay up to $6,000 per year of eligible early childhood educator loans for five years of service.
• Funds the loan-repayment program at $25 million annually for fiscal years 2026 through 2031.
• Creates Education Department grants of up to $4,000 per academic year for early childhood educator students.
• Requires post-program service in licensed early learning programs or conversion of grants into no-interest federal loans.