State policymakers remain at the forefront in shaping and maintaining child care systems that allow families to access high quality and affordable care and ensuring child care programs are supported. This blog offers a first look at the state legislative landscape in 2026, including the how states are preparing for challenges in upcoming budget years and how Governors are proposing to expand, sustain, or contract child care and early learning funding in their proposed budgets.

All states have considerable flexibility in the design and operation of their child care systems under existing federal statute and rules. This includes the payment practices they implement for their child care subsidy program. Consistent and timely subsidy payment policies and practices are critical to support the stability of child care operations, strengthen provider participation, and increase family choice by expanding access to child care that meets families’ individual needs.

On Tuesday, February 3, Congress passed—and President Trump signed into law—five full-year FY26 spending bills, including the Labor, Health and Human Services, Education, and Related Agencies (Labor-H) bill. This package includes increased funding for child care and early education and brought a brief government shutdown to an end. The shutdown occurred after Congress missed the January 30 deadline set by the Continuing Resolution (CR), which had temporarily funded the government following this fall’s prolonged shutdown.

Beverly thought she had seen everything. That is, until her hometown of Lafayette, Louisiana, was upended in 2005 by the one-two punch of Hurricane Katrina followed by Hurricane Rita. Beverly, a child care provider with more than two decades of experience, got to work.

On January 2, 2026, the U.S. Department of Health and Human Services, Administration for Children and Families announced a notice of proposed rulemaking (NPRM) in the Federal Register. The NPRM proposes to remove or modify some of the mandatory provisions included in the 2024 CCDF Final rule changes. Comments are due 30 days from publication on February 4, 2026.

Despite 2025 being an ‘off’ year election child care was very much ‘on’ the ballot.