The content on this page is to serve as a resource of pending federal legislation, information from national partners and relevant updates to the Child Care Development & Block Grant (CCDBG) law and to the Child Care and Development Fund (CCDF) updated as of March 20, 2024.Click here to go to Federal Code of Regulations PART 98 - CHILD CARE AND DEVELOPMENT FUND Click here to see Child Care Aware's one-pager on the CCDBG Click here to watch live US Senate Floor proceedings. Click here to watch US House of Representatives hearings. Click here to see the Notice of Proposed Rule Changes for CCDF (Updated: 03/09/26)_________________________________________________________________________________2026 CCDF UpdatesNEW CLASP Estimates California Will Have a $7M Increase in FY26 CCDBG Funding Discretionary Allocation On February 3, 2026 Congress approved a $85M increase to the Child Care and Development Block Grant (CCDBG) in the FY 2026 appropriations process. Unfortunately, this small increase does not keep pace with inflation and ultimately falls short of the $160M needed to ensure there are enough resources to serve all children currently accessing care through CCDBG. In a recent report, CLASP estimates that California's estimated distribution for Grant Year (YR) 2026 CCDBG discretionary funds will be $755,676,980, or roughly a $7M increase from 2025. See the chart below pulled from the report. For questions, please contact Rachel Wilensky at [email protected].
NEW Federal Child Care Legislation in the 119th Congress (2025-26) CCDF Program Integrity and Fraud On Thursday, March 5, 2026 the Education and Workforce Committee passed 8 bills aimed at cracking down on fraud, strengthening oversight, and protecting taxpayer dollars in federal child care assistance programs. Read the committee's summary here. • The Child Care Payment Integrity and Fraud Accountability Act (H.R. 7720) proposes stronger oversight and accountability measures to ensure CCDF dollars are paid accurately and used as intended. • The CRACKDOWN Act (H.R. 7721) would set a 5 percent threshold for improper payments and require states exceeding it to implement corrective actions. • The Child Care Integrity Monitoring Act (H.R. 7722) would establish a formal three-year audit cycle for child care programs and subject repeat offenders to heightened oversight. • The Safeguarding Taxpayer Dollars in Child Care Act (H.R. 7723) proposes to strengthen safeguards around CCDF funding to prevent misuse and improve program integrity nationwide. • The No Waivers for Fraud Act (H.R. 7724) proposes that child care funds are protected by ensuring federal waivers cannot override safeguards when fraud is identified. • The Stop Child Care Fraud Act (H.R. 7725) would improve data sharing between state agencies to ensure fraud warning signs are detected and addressed. • The No Funds for Repeat Child Care Violations Act (H.R. 7726) proposes accountability measures by directing child care funding to providers that consistently meet program standards. • The Closing the Provider Fraud Gap Act (H.R. 7677) would direct the Government Accountability Office to identify vulnerabilities in direct payments to providers and recommend measures to prevent abuse. Direct Impact on Educators and Reimbursement • The Payment Integrity Act (S. 3862) would amend the CCDBG Act to require states to pay educators based on verified attendance rather than enrollment. This could significantly change how payments are calculated. • The Child Care Supply Tax Credit Act of 2025 (S. 3534) would create a new wage-based tax credit for educators, including family child care, with higher percentages for rural areas. • The Child Care Workforce and Facilities Act of 2025 (S. 169/H.R. 581) provides grants to expand the workforce and improve facilities in child care shortage areas. Comprehensive System Reform • The Child Care for Every Community Act (H.R. 5658) proposes a universal model with capped family costs and wage alignment for educators. • The Child Care for Working Families Act (S. 2295 / H.R. 4418) would limit child care costs to 7 percent of income for lower-income families and support significant wage increases. • The Child Care Modernization Act (S. 2828) would require states to use a cost estimation model to set reimbursement rates, reflecting the actual cost of providing quality care. • The Head Start for America's Children Act (S. 2819) would fully fund and expand Head Start to serve all eligible children, extend program hours to match working families’ schedules, increase educator pay, and invest in workforce, mental health, and facility improvements. Food, Nutrition, and Operational Support • The Child Care Nutrition Enhancement Act (S. 1420 / H.R. 2859) would eliminate the two-tier reimbursement system in CACFP for family child care homes. • The Early Childhood Nutrition Improvement Act (S. 1447 / H.R. 2818) would allow reimbursement for a third meal and simplify eligibility reporting requirements. Specialized Care and Tax Policy • The After-Hours Child Care Act (S. 3845) would provide incentives for care during nontraditional hours. • The Improving Child Care for Working Families Act of 2025 (H.R. 5558) would increase Dependent Care Assistance Program (DCAP) limits for families. • The Stronger Start for Working Families Act (S. 3596) would expand access to the Child Tax Credit. Past and Upcoming Federal Hearings
Federal Judge Orders ACF to Release CCDF Funds Until Lawsuit Concludes A federal lawsuit brought by New York and several other states challenges the Administration for Children and Families’ decision to withhold billions of dollars in child care and social service funding, arguing the action was unlawful and would harm families. U.S. District Judge Vernon Broderick has blocked the federal government from enforcing the funding freeze, ordering that the money continue to flow while the case proceeds. The funds support critical programs such as child care subsidies and other safety-net services that help stabilize families and support working parents. In his ruling, the judge found that allowing the freeze to move forward could cause immediate and widespread disruption to services relied on by millions of families. The order is a preliminary injunction, meaning it stays in effect for the duration of the lawsuit unless it is changed by the court or overturned on appeal. While the case itself is still ongoing, the decision ensures that states can continue operating these programs without interruption for now. History of CCDF Funding Freeze:
On January 6, 2026, the Administration for Children and Families (ACF) informed Governor Newsom that the ACF is restricting drawdown for all Child Care Development Fund (CCDF) funds and Temporary Assistance for Needy Families (TANF) provided by ACF until further notice. Additionally, the ACF sent a letter to Governor Newsom freezing any additional drawdown of Social Services Block Grant (SSBG) funds.
President Trump Signs Federal Appropriations Package, DHS Negotiations Continue 02/05/26 President Trump signed the appropriations package (H.R.7148 - Consolidated Appropriations Act, 2026) passed by the House and Senate. All full-year appropriations bills with the exception of the Department of Homeland Security (DHS) have now been passed. DHS has flat funding through a continuing resolution that will expire February 13. Click here for the Labor, Health and Human Services, Education, and Related Agencies (LHSS) bill summary. Included in the LHSS bill was:
Click here to view the congressional appropriations status tracker, including the Labor-HHS-Education bill. Proposed Federal RuleNotice of Proposed Rulemaking (NPRM): Restoring Flexibility in the Child Care and Development Fund (CCDF) Public comment closed on February 4th EOD. On January 5th, 2025, the Department of Health and Human Services (HHS), Administration for Children and Families (ACF) released a proposed federal rule that proposes to amend the Child Care and Development Fund (CCDF) regulations (45 CFR part 98) to reduce costs and burden for states and territories administering the CCDF program. The rule proposes rescinding the four requirements outlined in the 2024 ACF final ruling which instructed Lead Agencies (such as the Dept. of Social Services in California) to implement the following:
The proposed rule gives states the choice to continue implementing these policies if they choose. It does not instruct states to rescind these policies.
______________________________________________________________________________________________________________________2025 Federal Budget Reconciliation
2025 Actions & Directives
2025-27 California State PlanIntroductionThe federal Child Care and Development Fund (CCDF) is an aggregate of several funding sources that is distributed in block grants by the federal government to the states and territories. The majority of the funds are to be used to provide child care services to families who meet certain income and need criteria. A portion of the funding is to be used for activities to improve the quality of child care. Another portion is to be used to pay for costs of administering the CCDF. The purpose of the CCDF is to increase the availability, affordability, and quality of child care services. States and territories receiving CCDF funds must prepare and submit to the federal government a plan detailing how these funds will be allocated and expended. Federal Fiscal Years (FFY) 2025–27
______________________________________________________________________________________________________________________Federal Organizations Tracking Child Care and Early Education:
___________________________________________________________________________
|
