Child Care Modernization Act of 2025

Increased Parental Choice and Flexibility: The bill promotes a "mixed delivery system" designed to empower working parents to make decisions that best suit their family's needs (Section 2, Purpose 1 and 2; Section 3, paragraph 7).

Support for Working Parents' Diverse Needs: The definition of "eligible activity" is expanded to include things like job training, education, and health treatment, which can support parents as they work toward independence (Section 3, paragraph 4).

Improved Quality and Workforce Stability: The act seeks to assist States in improving child care quality through established standards and by supporting the recruitment, professional development, and retention of a qualified workforce (Section 2, Purpose 5 and 6).

Enhanced Facility Safety and Capacity: Through the "Child Care Supply and Facilities" part, the bill provides grants to expand the supply of qualified providers and ensure facilities are equipped to keep children healthy and safe (Section 12, Part II, subsection a).

Financial Support for Providers: The bill requires States to develop cost estimation models to ensure payment rates are sufficient to meet the actual costs of providing services, including staff salaries and benefits (Section 6, paragraph 4, subparagraph B).

Targeted Support for Vulnerable Populations: The bill directs priority for subgrants toward specific priority populations of children (Section 12, Part II, subsection f, paragraph 5).

Financial Requirements for Families: While the bill mentions a sliding fee scale, it still requires a copayment for families receiving assistance (Section 6, paragraph 4, subparagraph 5).

Compliance Burdens for Providers: Providers must meet various health, safety, and regulatory standards to receive support or participate in the system (Section 2, Purpose 5; Section 12, Part II, subsection f, paragraph 3).