Child Care Modernization Act of 2025

The Child Care Modernization Act of 2025 amends the Child Care and Development Block Grant Act to improve access to high-quality child care for working parents. It requires states to develop plans with input from parents, providers, and employers, and to set payment rates that cover providers' full costs including staff salaries and benefits. The bill creates a new grant program to expand child care supply through facilities improvements and support for providers serving priority populations like homeless children, rural communities, and children with disabilities. It clarifies eligibility requirements, including income limits for families and definitions for "eligible child" and "eligible activity." The act aims to increase the number of low-income children in high-quality child care settings while supporting the child care workforce.