Bipartisan, bicameral legislation introduced to reauthorize the Child Care and Development Block Grant

Key Takeaways

On June 9, Reps. Ryan Mackenzie (R-Pa.), Susie Lee (D-Nev.), Ashley Hinson (R-Iowa) and Kristen McDonald Rivet (D-Mich.) introduced the Child Care Modernization Act (H.R. 9224), a bipartisan proposal to reauthorize the Child Care and Development Block Grant (CCDBG). CCDBG is the primary federal funding source that helps low-income families afford child care. The U.S. House legislation serves as the companion to Senate bill (S.2828) introduced by Sens. Deb Fischer (R-Neb.), Kirsten Gillibrand (D-N.Y.), Susan Collins (R-Maine) and John Hickenlooper (D-Colo.).

If enacted, the legislation would represent the first comprehensive reauthorization of CCDBG since 2014 and could have significant implications for counties that administer child care programs, support working families and invest in local workforce development.

What’s in the bill?

CCDBG is the discretionary portion of the Child Care and Development Fund (CCDF), the federal-state partnership that helps eligible families access affordable child care while supporting parents’ participation in the workforce. Unlike the mandatory portion of CCDF, CCDBG funding must be appropriated by Congress each fiscal year.

The legislation seeks to modernize how child care assistance is delivered and how providers are supported, with a particular focus on expanding access and strengthening the child care workforce.

Among its major provisions, the bill would:

• Reauthorize CCDBG, ensuring continued federal support for child care assistance programs serving low-income families.
• Modernize provider reimbursement rates by transitioning states from the current market-rate survey methodology to a cost-estimation model. This new approach would better reflect the actual costs of providing high-quality care, including expenses associated with recruiting, training and retaining qualified staff.
• Create new child care supply and facilities grants designed to increase the availability of child care slots and help communities address shortages in care options.
• Expand support for rural and home-based providers through targeted technical assistance and capacity-building resources.
• Strengthen stakeholder engagement requirements by requiring states to consult with child care providers, parents and counties during the development of state child care plans.

What does this mean for counties?

Counties understand that access to affordable, reliable child care is essential to supporting families, strengthening local economies and building a resilient workforce.

According to the most recent state plans, counties are responsible for administering child care assistance programs in Colorado, Minnesota, North Carolina, North Dakota, New York, Ohio, Virginia and Wisconsin. Across the country, counties also serve as critical partners in connecting families to child care resources, supporting providers and coordinating workforce and economic development initiatives.

By aligning reimbursement rates more closely with the true cost of care, the Child Care Modernization Act would help stabilize provider networks and improve the financial sustainability of child care businesses. New supply and facilities grants may also provide communities with additional tools to expand child care capacity where shortages are most acute.

For counties that administer CCDF programs, the legislation’s emphasis on stakeholder consultation recognizes the important role local governments play in understanding community needs and implementing child care policies on the ground.

As Congress considers reauthorization of CCDBG, NACo continues to advocate for policies that expand access to care, support providers and recognize the critical role counties play in administering programs and delivering services to residents.