The content on this page is to serve as a resource of pending federal legislation, information from national partners and relevant updates to the Child Care Development & Block Grant (CCDBG) law and to the Child Care and Development Fund (CCDF) updated as of March 20, 2024. 

Click here to go to Federal Code of Regulations PART 98 - CHILD CARE AND DEVELOPMENT FUND

Click here to see Child Care Aware's one-pager on the CCDBG

Click here to watch live US Senate Floor proceedings. 

Click here to watch US House of Representatives hearings.

Click here to see the Notice of Proposed Rule Changes for CCDF

(Updated: 2/08/26)

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2026 CCDF Updates 

NEW Update Federal Judge Orders ACF to Release CCDF Funds Until Lawsuit Concludes
ACF Notifies California of Freeze on CCDF, TANF, and SSBG Funds

A federal lawsuit brought by New York and several other states challenges the Administration for Children and Families’ decision to withhold billions of dollars in child care and social service funding, arguing the action was unlawful and would harm families. U.S. District Judge Vernon Broderick has blocked the federal government from enforcing the funding freeze, ordering that the money continue to flow while the case proceeds. The funds support critical programs such as child care subsidies and other safety-net services that help stabilize families and support working parents. In his ruling, the judge found that allowing the freeze to move forward could cause immediate and widespread disruption to services relied on by millions of families. The order is a preliminary injunction, meaning it stays in effect for the duration of the lawsuit unless it is changed by the court or overturned on appeal. While the case itself is still ongoing, the decision ensures that states can continue operating these programs without interruption for now.

History of CCDF Funding Freeze:

On January 6, 2026, the Administration for Children and Families (ACF) informed Governor Newsom that the ACF is restricting drawdown for all Child Care Development Fund (CCDF) funds and Temporary Assistance for Needy Families (TANF) provided by ACF until further notice. Additionally, the ACF sent a letter to Governor Newsom freezing any additional drawdown of Social Services Block Grant (SSBG) funds.

NEW Update President Trump Signs Federal Appropriations Package, DHS Negotiations Continue
Federal Appropriations Process

02/05/26 President Trump signed the appropriations package (H.R.7148 - Consolidated Appropriations Act, 2026) passed by the House and Senate.  All full-year appropriations bills with the exception of the Department of Homeland Security (DHS) have now been passed.  DHS has flat funding through a continuing resolution that will expire February 13. 

Click here for the Labor, Health and Human Services, Education, and Related Agencies (LHSS) bill summary. Included in the LHSS bill was:

  • $8.8B for the Child Care and Development Block Grant (increase of $85M above 2025 level)
  • $12.4B for Head Start (increase of $85M above 2025 level)
  • Programs that were proposed to be eliminated in the House bill
    • $315M for the Preschool Development Grant
    • $75M for Child Care Access Means Parents in School Program (CCAMPIS)

Click here to view the congressional appropriations status tracker, including the Labor-HHS-Education bill.
Click here to view a summary of child care appropriations in FY2025 for comparison.

Proposed Federal Rule

Notice of Proposed Rulemaking (NPRM): Restoring Flexibility in the Child Care and Development Fund (CCDF)
Click here to read the side-by-side comparison of the proposed federal rule, the 2024 ACF rule, and what is in California's statutes and collective bargaining.

Public comment closed on February 4th EOD.

On January 5th, 2025, the Department of Health and Human Services (HHS), Administration for Children and Families (ACF) released a proposed federal rule that proposes to amend the Child Care and Development Fund (CCDF) regulations (45 CFR part 98) to reduce costs and burden for states and territories administering the CCDF program. 

The rule proposes rescinding the four requirements outlined in the 2024 ACF final ruling which instructed Lead Agencies (such as the Dept. of Social Services in California) to implement the following:

  • Payment to providers based on child's enrollment
  • Pay providers prospectively
  • Limit family co-payments to 7% of family income
  • Provide some direct services through grants or contracts rather than through voucher-based programs

The proposed rule gives states the choice to continue implementing these policies if they choose. It does not instruct states to rescind these policies.


Resources:

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 2025 Federal Budget Reconciliation

2025 Actions & Directives

2025-27 California State Plan 

Introduction

The federal Child Care and Development Fund (CCDF) is an aggregate of several funding sources that is distributed in block grants by the federal government to the states and territories. The majority of the funds are to be used to provide child care services to families who meet certain income and need criteria. A portion of the funding is to be used for activities to improve the quality of child care. Another portion is to be used to pay for costs of administering the CCDF.

The purpose of the CCDF is to increase the availability, affordability, and quality of child care services. States and territories receiving CCDF funds must prepare and submit to the federal government a plan detailing how these funds will be allocated and expended.

Federal Fiscal Years (FFY) 2025–27

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Federal Organizations Tracking Child Care and Early Education:

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RESOURCES:

Click here to find and contact your representative in congress.

For information on child care in the President's budget, click below:

U.S. Department of Health and Human Services: Office of Early Childhood Development 

The Office of Early Childhood Development (ECD) oversees early care and education programs in the Administration of Children and Families (ACF). ECD provides leadership to support a national agenda focused on young children, their families, and the early care and education workforce. ECD works on administration priorities, interagency projects, budget proposals, and various policy strategies related to early childhood programs and services. 

Taxes

We encourage you to visit the following sources:

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