Child Care Modernization Act of 2026

The Child Care Modernization Act of 2026 updates federal rules to help states create flexible child care systems that offer parents more choices across different settings like homes, centers, and schools. It expands eligibility for assistance to include children of parents who are job seekers, students, or those receiving health treatment, while also raising the income limit for some families. The bill requires states to use cost-based models to set payment rates that cover provider expenses and mandates the creation of new grants to help build and expand child care facilities. Additionally, it establishes new reporting requirements to track how much families spend on care and measures progress on improving workforce quality and access.