Building off a busy legislative year in 2023, states continued to make progress in 2024 on advancing policies and investments for their child care systems. This year, states had multiple factors to juggle related to child care policy, including spending down remaining American Rescue Plan Act (ARPA) funding, developing new Child Care and Development Fund (CCDF) Plans for 2025-2027, and addressing new federal requirements in CCDF regulations.  

On July 31, Senator Tim Kaine (D-VA) and Senator Katie Britt (R-AL) introduced two bipartisan child care bills that aim to ease the burden of child care costs for families, encourage businesses to support additional child care supply, and support the child care workforce. CCAoA supports Senator Kaine and Senator Britt’s bills and applauds their bipartisan effort to strengthen the child care system.  

Child care received $52.5 billion in temporary federal relief funding to help the sector recover and rebuild in the wake of the pandemic. Research shows that the investments have made a difference in lowering prices for families and increasing child care employment and wages, which helped stabilize the market in a time of turmoil. This funding, especially stabilization grants made available under the American Rescue Plan Act (ARPA), gave each state an opportunity to make much-needed improvements to their child care system. States are required to spend any remaining amounts by September 2024 and, unfortunately, further federal investments have not been made. 

Currently, states are finalizing their FY 2025-2027 Child Care and Development Fund (CCDF) Plans. Every three years when states undergo this planning process, they must provide the public with an opportunity to comment. This must happen before submitting a final version to the Administration for Children and Families (ACF) by July 1, 2024. As states release draft CCDF Plans ahead of their required public hearings, CCAoA has been monitoring how they respond to questions, especially those aligned to new policy requirements in the 2024 CCDF Final Rule.  

The American Rescue Plan Act (ARPA), passed in March 2021, included $15 billion in supplemental Child Care and Development Fund (CCDF) discretionary dollars and $24 billion to make child care stabilization grants available to providers.While states have until September 2024 to spend the supplemental CCDF discretionary funds, states were required to spend stabilization grant funding by September 2023.