S846-119

1. Short title This Act may be cited as the Child Care Workforce Act.

2. Purpose The purpose of this Act is to establish a pilot program to increase the supply of quality child care services by providing funding to States, Indian Tribes, and Tribal organizations to implement or strengthen programs to supplement the wages of eligible child care workers, in order to— attract and retain eligible child care workers; improve eligible child care worker well-being; improve the quality of child care services; and increase the availability of affordable child care services.

3. Definitions In this Act: The term child care worker means any individual whose primary and daily focus of work is— providing child care services, including direct care and education services, to children for a family child care provider or other child care provider, or a provider of early childhood education, that is in compliance with any licensing or registration standards, or regulations, of the State, Indian Tribe, or Tribal organization involved; and providing the child care services in a center-based or home-based setting. The term Indian Tribe has the meaning given the term in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304). The term State means any of the several States, the District of Columbia, the Virgin Islands of the United States, the Commonwealth of Puerto Rico, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. The term Tribal organization has the meaning given the term tribal organization in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n).

4. Pilot program The Secretary of Health and Human Services (referred to in this Act as the Secretary) shall establish a pilot program to award competitive grants to States, Indian Tribes, and Tribal organizations to supplement the wages of eligible child care workers. In selecting States, Indian Tribes, and Tribal organizations to receive grants under this section, the Secretary shall consider— the number of children under the age of 5 residing in the State or on the Tribal land of the Indian Tribe or Tribal organization; the number of child care workers working in licensed, regulated, or registered programs in the State or on the Tribal land; the average wage of child care workers working in the State or on the Tribal land; the percentage of families in the State or on the Tribal land who are eligible for child care subsidies under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) but do not receive the subsidies; and the need for additional child care workers in the State or on the Tribal land. To be eligible for a grant under this section, a State, Indian Tribe, or Tribal organization shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require, including— information showing a significant need for increased numbers of child care workers and increased wages among child care workers; a commitment to using the grant funds to supplement the wages of low-wage eligible child care workers; a plan for using the grant funds to supplement the wages of eligible child care workers, including— the criteria that will be used to determine which child care workers are eligible to receive the wage supplements; a description of how funds will be prioritized for areas with greatest need, including areas with overall staffing challenges, underserved geographic areas, areas with shortages of programs that serve low-income children and families, and areas with shortages of programs that serve infants and toddlers, that serve children with disabilities, or that offer child care services during nontraditional hours; and a description of how the wage supplements will be provided to eligible child care workers (directly, through the employer, or through a trusted intermediary) and how the supplements will be provided in a timely manner; a plan to engage in a public awareness campaign directed at eligible child care workers; a description of the measures that will be used to assess the impact of the wage supplement pilot program on attraction and retention of eligible child care workers, eligible child care worker well-being, child care services quality, and availability of affordable child care services, provided by eligible child care workers; a description of how the pilot program will contribute to the State’s or Tribe’s overall plan for increasing eligible child care worker compensation; a description of the plan for addressing and minimizing any destabilization that may occur after the grant funds are expended; and such other information as the Secretary may require.

5. Use of funds Except as provided in subsection (c), a State, Indian Tribe, or Tribal organization that receives a grant under section 4 shall use the grant funds solely to supplement the wages of eligible child care workers. In carrying out subsection (a), a State, Indian Tribe, or Tribal organization shall— disburse the wage supplements to eligible child care workers not less frequently than quarterly; target grant funding based on the areas described in section 4(c)(3)(B); provide to eligible child care workers education on any effect the wage supplements may have on taxes or public benefit eligibility; and inform eligible child care workers that acceptance, of the wage supplements, is voluntary. The State, Indian Tribe, or Tribal organization may use not more than 10 percent of the grant funds to pay for administrative costs associated with the administration of payments to eligible child care workers, financial counseling for eligible child care workers, including as described in subsection (b)(3), and public awareness campaigns to make child care workers aware of the availability of such payments.

6. Evaluation The Secretary shall conduct an evaluation of the pilot program to assess its effectiveness in— attracting and retaining eligible child care workers; improving eligible child care worker well-being and the quality of child care services; and increasing the availability of affordable child care services.

7. Report Not later than 2 years after the date on which the pilot program is implemented, the Secretary shall submit a report to Congress containing the results of the evaluation.

8. Authorization of appropriations There are authorized to be appropriated to carry out this Act such sums as may be necessary for fiscal year 2026 and each subsequent fiscal year.

9. Effective date This Act shall take effect 75 days after the date of enactment of this Act.