Lawmakers reintroduce Child Care for Working Families Act

Key Takeaways

On April 27, Senator Patty Murray (D-Wash.) and Representative Robert C. “Bobby” Scott (D-Va.), reintroduced the Child Care for Working Families Act (H.R.2976/S.1354), which would increase the affordability of high-quality child care for families and address the nationwide child care shortage. The bill would leverage federal and state funding to cap child care costs for working families, invest in child care quality and supply, expand preschool programs for low-and-moderate-income families and fund higher wages for child care workers.  

The Child Care for Working Families Act (CCWFA) would address the child care crisis through the creation of three key programs:  

Birth Through Five Child Care and Early Learning Program 

To increase access to high-quality and affordable child care the CCWFA creates a federal-state partnership where the federal government covers 90 percent of the cost of child care services and the state covers the remaining 10 percent. The bill would cap child care costs at 7 percent of income and while families earning state median income will pay $10 a day, those below 85 percent of state median income will not have to pay for child care. The Birth to Five Child Care and Early Learning Program will also provide grants to new child care providers in underserved communities covering start-up and licensing costs. Through federal subsidies, child care workers would be paid a living wage and achieve parity with elementary school teachers who have similar credentials and experience.  

Building an Affordable System for Early Education (BASE) Grants  

Under CCWFA, flexible funding would go to every state based on the same formula used to distribute funds for the Child Care Development Block Grant (CCDBG) to support stability, quality of services and increase worker wages and benefits. This funding follows the model of Child Care Stabilization grants authorized under the American Rescue Plan Act, which provided financial relief to child development facilities for unexpected business costs associated with the pandemic and helped stabilize their operations and the supply of child care for children and families. 

Universal Preschool Program  

To expand access to high-quality preschool programs, CCWFA provides states with funding to establish and expand a mixed-delivery system of high-quality preschool programs for 3- and 4-year-olds and states must prioritize establishing and expanding universal local preschool programs within and across high-need communities.  

CCWFA also provides funding for Head Start agencies to provide full school year and full school day services, and ensure Head Start and Early Head Start teachers and staff receive wages comparable to elementary teachers with similar credentials and experience in the State for Head Start teachers. 

Importantly for counties, if a state does not choose to receive funding through the Birth through Five Early Learning or Universal Preschool programs, local governments, including counties, will be able to apply directly for funds through a set-aside. Additionally, in acknowledgement of the key role that counties play in supporting the child care system, CCWFA directs states to coordinate with local governments around the implementation of licensing requirements for family child care providers. 

To read the full bill, click here and to view a fact sheet and section-by-section click here.  

County governments play a significant role in local child care systems, whether by administering federal human services programs that subsidize care or contributing local dollars to efforts with cross-sector partners to build the supply of high-quality child care. We urge our federal partners to pass bipartisan legislation boosting the supply of high-quality and affordable child care for families, which is essential for a strong workforce and thriving local economy.  

NACo will continue to monitor federal action on the child care sector.  

ADDITIONAL RESOURCES  

• Federal Policy Levers for Stabilizing the Child Care Industry
• NACo Policy Brief: Support the Child Care and Development Fund (CCDF)
• The Human Services and Education Landscape  
• NACo Blog: New data from ACF underscores the significant impact of federal investments in the child care system