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Policy Priority

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.

Little boy sitting in the safety seat in the car

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, bicameral 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

In the Senate: 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.

In the House: Join Representatives Ryan Mackenzie (R-PA), Susie Lee (D-NV), Ashley Hinson (R-IA), and Kristen McDonald Rivet (D-MI) in sponsoring the Child Care Modernization Act, legislation which is identical to its Senate companion and 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

Press Releases & Statements

Statement: House Lawmakers Introduce Bipartisan Child Care Modernization Act to Strengthen Child Care Options for Working Families

Representatives Ryan Mackenzie (R-PA), Susie Lee (D-NV), Ashley Hinson (R-IA), and Kristen McDonald Rivet (D-MI) today introduced the Child Care Modernization Act.

Factsheets

First Five Things To Know About: The Child Care Modernization Act

Parents need 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 …

Data & Analysis

Side-by-Side Analysis: Comparison of the 2025 Child Care Modernization Act to Current Law

The following is a summary of key revisions the bicameral Child Care Modernization Act would introduce to the Child Care and Development Block Grant Act of 2014. Among other changes, …

Data & Analysis

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 …

Factsheets

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 …

In the News

State Of Play: Rules and Regulations

As part of a “Child Care Reform Package” released on May 11, the Administration issued four separate policy actions: a Head Start Notice of Proposed Rulemaking (NPRM), the Child Care and Development Fund (CCDF) Final Rule, a Temporary Assistance for Need Families (TANF) Information Memorandum, and a CCDF Dear Colleague Letter.

Factsheets

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 …

Press Releases and Statements of Support

Resources – CCDBG

Factsheets

Child Care Across America: 2026 CCDBG State Fact Sheets

The Child Care and Development Block Grant (CCDBG) is the federal government’s primary child care assistance program, helping more than a million children from lower-income families afford the care they …

Factsheets

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.

Toolkits & Talking Points

FFYF Capsule Collection: Fiscal Year 2027 Appropriations

A one-stop-shop collection of the top facts, resources, and data around the FY27 Appropriations process.

Factsheets

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.

Data & Analysis

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.

In the News

State Of Play: Rules and Regulations

As part of a “Child Care Reform Package” released on May 11, the Administration issued four separate policy actions: a Head Start Notice of Proposed Rulemaking (NPRM), the Child Care and Development Fund (CCDF) Final Rule, a Temporary Assistance for Need Families (TANF) Information Memorandum, and a CCDF Dear Colleague Letter.

Data & Analysis

State Data: Child Care Ratios – Adult-to-Child Ratios for Center-Based Care

Caring for infants, toddlers, and preschoolers is labor-intensive. To keep children safe and give them the attention they need to learn and thrive, child care programs must maintain appropriate adult-to-child ratios.

What you can do

Ask your Members of Congress to support the bipartisan Child Care Modernization Act.

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