Childcare Cost Relief Act of 2026

This Act may be cited as the “Childcare Cost Relief Act of 2026”.

The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) is amended by adding at the end the following:

“658T. Increase for certain States and territories.—

(a) Distribution of funds.—

(1) In general.— Notwithstanding any other provision of law, in making grants under this subchapter for a fiscal year described in paragraph (2), the Secretary shall, prior to making reservations under subsection (a)(1) of section 658O or allotments under subsection (b) of such section (as applicable), provide to each affected State and territory an amount that is equal to 2 percent of the difference between—

(A) the total amount available for such reservations and allotments for the fiscal year for which the Secretary is making grants; and

(B) the total amount available for such reservations and allotments for the fiscal year immediately preceding such fiscal year.

(2) Applicable fiscal years.— The distribution of funds described in paragraph (1) shall apply with respect to a fiscal year for which the total amount available for reservations and allotments under section 658O is greater than such amount for the fiscal year immediately preceding such fiscal year.

(3) Amount available.— The total amount available for reservations and allotments described in this subsection does not include amounts made available pursuant to supplemental appropriations.

(b) Determination of affected status for States and territories.—

(1) Determination.— Not later than the first day of the first fiscal year that begins after the date of the enactment of this section, and on an annual basis thereafter, the Secretary shall determine the affected States or territories for purposes of the distribution of funds described in subsection (a).

(2) Report.— Not later than 30 days after the date on which the determination is made under paragraph (1) each year, the Secretary shall submit to Congress a report containing the following information:

(A) The median cost of child care for each State and territory, calculated as a percentage of State median income.

(B) An assessment of the child care workforce in each State and territory, including whether such workforce meets the child care needs for each such State or territory, as determined by the Secretary in consultation with the State or territory.

(C) A list of the affected States and territories determined by the Secretary under paragraph (1).

(D) Such other information determined by the Secretary to be necessary.

(c) Definitions.— In this section:

(1) Affected State or territory.— The term affected State or territory means a State or territory that—

(A) is entitled to a payment under section 658J for a fiscal year described in subsection (a)(2); and

(B) has disproportionately high aggregate child care costs (as determined by the Secretary), calculated as a percentage of State median income.

(2) Aggregate child care costs.— The term aggregate child care costs means, with respect to a State or territory, the average value of total child care costs paid per family, calculated as a percentage of State median income.

(3) State or territory.— The term State or territory has the meaning given the term State in section 658P.”.