Summary: The FY2026 Conference Bill sustains federal investment in child care. While funding is slightly increasing, the impact on Family Child Care (FCC) educators will be determined by how individual states choose to allocate these new dollars.
1. Child Care and Development Block Grant (CCDBG)
- Total Funding: $8.831 billion
- Increase: +$85 million (~1%)
- Status: CCDBG remains the primary federal funding source for subsidies and state child care systems.
What this means for FCC educators:
- Continued Demand: Funding supports the stability of the subsidy system, ensuring current families maintain access to care.
- State-Level Variables: How you see this money depends on your state’s decisions regarding:
- Reimbursement Rates: Potential for tiered or increased payment rates.
- Eligibility: Changes to which families can qualify for subsidies.
- Support Services: Grants for licensing, quality improvements, or business stabilization.
2. Head Start
- Total Funding: $12.357 billion
- Increase: +$85 million (~0.7%)
What this means for FCC educators:
- Partnership Stability: For educators in Early Head Start-CCP (Child Care Partnerships), this funding sustains those existing collaborations.
- Collaboration Opportunities: Continued investment maintains the door for FCCs to access specialized training, wraparound family services, and administrative supports.
3. Preschool Development Grants (PDG B-5)
- Total Funding: $315 million (Maintained/Flat)
What this means for FCC educators:
- Long-Term Planning: This fund isn’t for direct subsidies; it supports states in designing their systems.
- Visibility: If your state receives a PDG B-5 grant, your participation in their surveys or task forces ensures that FCC-specific needs (like workforce strategies and needs assessments) are included in state-wide plans.
The Road Ahead: Implementation & Advocacy
Now that federal levels are set, the focus shifts from D.C. to your State Capitol.
- Next Steps for States: State agencies must now update their CCDBG State Plans. They will decide if FCCs are explicitly prioritized in the new spending.
- Next Steps for Congress: Oversight of these funds will begin, alongside early conversations for the FY2027 budget and potential “authorizing legislation” (long-term policy changes).
Bottom Line for FCC Educators
Federal funding for CCDBG is secure for FY2026, but implementation is local. State agencies are the ultimate “gatekeepers” of these funds. To ensure FCC programs remain visible, educators should:
- Monitor state agency websites for updated guidance or grant opportunities.
- Participate in state listening sessions or advisory groups.
- Share your story with state leaders to show how these funds directly impact your program’s sustainability.
How to Take Action in 3 Steps
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- Find Your Target: Open this Official Directory of State Child Care Lead Agencies. Find your state and look for the website or email listed under the “Lead Agency” section.
- Copy the “Ask”: Use the short message below. It focuses on the three most important things for Family Child Care (FCC) businesses.
- Send it: Paste the message into their contact form or email.
The Message (Copy & Paste)
Subject: Input for FY2026 Child Care Spending
To [Agency Name]:
I am a Family Child Care educator in [Your City]. As you plan the FY2026 budget, please ensure that Family Child Care programs are explicitly included in your spending.
My Three Asks:
- Fair Rates: Set reimbursement rates that cover the true cost of running a home-based program.
- Direct Grants: Provide stabilization grants specifically for Family Child Care businesses.
- A Seat at the Table: Include Family Child Care voices in your state advisory groups and surveys.
Please keep me informed of any public hearings or opportunities to provide feedback on the state’s child care plan.
Sincerely,
[Your Name]
