Modernizing Child Care
Families need affordable child care options that meet their unique needs and support their children’s healthy development.
The Child Care and Development Block Grant (CCDBG) is the largest source of federal funding for child care, but it has not kept pace with the needs of today’s families or the realities of the child care market. Modernizing CCDBG is essential to ensure more young children and working families can access the reliable, quality care they need.
State
of Play
What’s Happening
There are two primary ways to strengthen CCDBG in 2026.
FY27 Appropriations. Each year, Congress determines funding levels for federal programs that support the care and education of young children. These investments are essential for working families, early educators, and the healthy development of children ages five and under. For FY2027, Congress should protect, prioritize, and expand these investments in programs including the Child Care and Development Block Grant (CCDBG). Learn more here.
The bipartisan Child Care Modernization Act. This legislation would enable states to better meet the growing child care needs of working families, providers, and employers. In a nutshell, the bill would strengthen child care by working with states to design a more accurate way of determining provider reimbursement rates. It provides additional technical assistance to in-home and rural child care providers. And it would continue to ensure parents can choose the type of child care setting that works best for them, including licensed child care centers, home-based providers, and faith-based programs.
The Ask
Join Senators Deb Fischer (R-NE), Kirsten Gillibrand (D-NY), John Hickenlooper (D-CO), and Susan Collins (R-ME) in sponsoring the Child Care Modernization Act, legislation that would strengthen the federal Child Care and Development Block Grant (CCDBG) program in order to address child care needs facing parents today and in the future.
By the Numbers
- More than 1 Million: Number of children ages 5 & under served by CCDBG
- 16%: Percent of eligible children served by CCDBG at the current funding levels
- Two-thirds of children ages 5 and under in the United States today may need a form of child care because their parents work.
- Child care prices rose 29% between 2020 and 2024 due to increased operational costs and competing wages from other service sectors, or +7% more than the rise overall prices for other goods and services.
- Average cost of child care is +$13,000 a year (+$1,000 a month). View state averages.
- With CCDBG, the average child care copay drops to $3,400 a year ($284 a month). View state copay averages.
Essential Reading
Resources – Child Care Modernization Act
119th Congress: Bipartisan Child Care Legislation in the House and Senate
Reliable, affordable child care is essential for hardworking families, especially as two-thirds of all children under the age of five need care because all available parents are working. Yet, high …
First Five Things To Know About: The Child Care Modernization Act
Parents want child care options that meet their family’s unique needs and support their child’s healthy development. Yet today, far too many working families struggle to find and afford the …
Side-by-Side Analysis: Comparison of the 2025 Child Care Modernization Act to Current Law
The following is a summary of key revisions the Child Care Modernization Act of 2025 would introduce to the Child Care and Development Block Grant Act of 2014. Among other …
Enrollment and Attendance Payment Models: Child Care & Development Block Grant (CCDBG)
Overview: States have the flexibility to pay child care providers participating in subsidy programs based on either enrollment or attendance. With enrollment-based payment, providers receive a set amount for holding …
Cost Estimation Models: Increasing Child Care Stability Through More Accurate Provider Payment Rates
Cost Estimation Models allow states to better align provider payment rates with the actual cost of providing quality child care. This strengthens the workforce, enhances the quality of care children …
Press Releases and Statements of Support
- Official press statements from Senate Offices:
- Statements of support from organizations can be found here.
Resources – CCDBG
CCDBG: Overview
The Child Care and Development Block Grant (CCDBG) Act provides federal funding to states for child care subsidies for low-income families with children under age 13.
FFYF Capsule Collection: Fiscal Year 2027 Appropriations
A one-stop-shop collection of the top facts, resources, and data around the FY27 Appropriations process.
2026: ABCs of Federal Early Learning & Child Care Funding Streams
An overview of the top federal child care and early learning programs and how they are funded.
Federal Investments are the Foundation for State and Local Early Care and Education Programs
A deep dive into the ways federal funding undergirds the nation’s child care sector.
What you can do
Ask your Members of Congress to support the bipartisan Child Care Modernization Act.
