Federal child care policy activity continues to move quickly in Congress and across federal agencies. Below is a snapshot of major developments impacting family child care (FCC) educators, children, and families, along with updates on legislation aligned with the National Association for Family Child Care (NAFCC) Policy Priorities.
Federal Policy Updates
Two Bipartisan Child Care Bills Pass the House
The House recently advanced two bipartisan child care measures with important implications for family child care educators and rural communities. The unanimously passed SEED Act would extend the educator expense tax deduction to early childhood educators for the first time, helping FCC educators offset out-of-pocket classroom supply costs and advancing NAFCC priorities around workforce recognition and economic stability.
The House also advanced a Farm Bill package that includes rural child care investments through the Expanding Child Care in Rural America Act, which would use USDA programs to help address child care shortages in rural communities. While these rural child care investments are promising, NAFCC remains concerned about broader Farm Bill provisions that reduce nutrition supports for children and families, ultimately undermining child and family well-being even as child care access expands.
MCCDF Final Rule Released
The U.S. Department of Health and Human Services (HHS) released its final rule related to the Child Care and Development Fund (CCDF). The final rule rolls back several 2024 requirements related to capping family co-payments, enrollment-based and prospective payment practices, and contracts and grants for certain populations. While states may continue implementing these policies, they are no longer federally required to do so.
For FCC educators, this could create significant state-by-state variation in payment stability, family affordability, administrative requirements. NAFCC remains concerned that rolling back stable payment policies could disproportionately harm home-based educators operating on narrow margins. NAFCC shared a statement earlier this week on the final rule. Resources for advocating during your state’s CCDF planning process can be found here.
Head Start NPRM Released
HHS also released a Notice of Proposed Rulemaking (NPRM) related to Head Start regulations. The proposal would roll back portions of prior regulations related to staff wages and benefits.
NAFCC is closely monitoring these changes and their broader impact on the early childhood workforce, particularly as FCC educators continue advocating for compensation parity and sustainable wages across the sector.
Recently Introduced Legislation
H.R. 1207 — Stop Private Equity Harms Resolution
Sponsored by Ro Khanna (D-CA), this resolution aims to address private equity ownership in various sectors including child care, citing concerns around affordability, quality, and reduced family choice. NAFCC Policy Priority: Sustainable Family Child Care Businesses
H.R. 7767 | S. 3956 — Make Billionaires Pay Their Fair Share Act
Sponsored by Sen. Bernie Sanders (D-VA) and Rep. Ro Khanna (D-CA), this comprehensive legislation would invest in child care and early learning, by establishing a federal entitlement to affordable child care, introducing sliding fee scales for families, increasing provider compensation and making investments in high-quality inclusive care. NAFCC Policy Priority: Increased Funding for Home-Based Child Care
H.R. 8453 — Rural Child Care Facility Expansion Act
Sponsored by April McClain Delaney (D-MD) and Mariannette Miller-Meeks (R-IA), this bipartisan legislation would establish a USDA low-interest loan program to help educators renovate or expand facilities in rural communities. NAFCC Policy Priority: Increased Funding for Home-Based Child Care and Sustainable Family Child Care Businesses
H.R. 8456 — Rural Child Care Access Act
Sponsored by Chris Pappas (D-NH), this bill would authorize grants for construction, upgrades, and expansion of rural child care facilities serving communities with fewer than 50,000 residents. NAFCC Policy Priority: Increased Funding for Home-Based Child Care and Sustainable Family Child Care Businesses
H.R. 8465 — Funding Early Childhood is the Right IDEA Act
Sponsored by Mark DeSaulnier (D-CA), this proposed legislation would increase funding for IDEA Part C and Part B Section 619 programs supporting young children with disabilities. NAFCC Policy Priority: Increased Funding for Home-Based Child Care
H.R. 8614 — Safe Water in Schools Act of 2026
Sponsored by John James (R-MI), this bill would provide grants to install certified drinking water filtration systems in schools and child care programs. NAFCC Policy Priority: Increased Funding for Home-Based Child Care and Sustainable Family Child Care Businesses
S. 4378 — Protecting American Taxpayers Act
Sponsored by Joni Ernst (R-IA), this broad package includes provisions requiring attendance-based billing and limiting prospective payment practices in child care programs. NAFCC is concerned these proposals could destabilize payment systems for FCC educators and increase administrative burdens on educators.
Looking Ahead
NAFCC will continue monitoring federal legislation and regulatory changes impacting family child care educators and the families they serve. As policymakers debate the future of child care funding, workforce supports, and program oversight, NAFCC remains committed to elevating the voices of FCC educators to advance equitable and sustainable child care policies.
We encourage you to stay engaged and continue sharing your experiences to help shape federal child care policy discussions.
