As Democrats and Republicans continue persuasion campaigns to assign blame over the government shutdown, a bipartisan bill introduced in the Senate aims to strengthen child care systems and options for families. The Child Care Modernization Act would reauthorize the Child Care and Development Block Grant, which helps low-income families access child care amid record-high prices for full-time day care.
The legislation, introduced September 17, 2025, by Sens. Deb Fischer, R-Neb., Tim Kaine, D-Va., Katie Britt, R-Ala., and Jacky Rosen, D-Nev., updates the Child Care and Development Block Grant Act of 1990, last reauthorized in 2014. It enables states to better address growing child care needs of working families, providers and employers by expanding supply, quality and capacity of child care options, including licensed centers, home-based providers and faith-based programs.
The bill requires states to design a cost estimation model to calculate more accurate provider payment rates, as historical rates have not covered the actual cost of quality care, with implementation over five years. It maintains state flexibility in using block grants across mixed delivery settings and provides technical assistance to in-home and rural providers.
If passed, the bill would transition to a new model that better estimates costs of high-quality child care for reimbursement, including expenses to recruit, train and retain qualified staff. States must use statistically valid cost estimation models for setting reimbursement rates, adjusting them to reflect full costs like fixed expenses, operating costs and staff benefits. Variations in costs across submarkets, such as geographic area, provider type, child age and special needs, would be accounted for. The bill allows states to expand eligibility above the current 85 percent of state median income through a waiver, after demonstrating service to all eligible children below that threshold. It supports a mixed delivery system with flexibility for centers, family child care homes and other options serving children from birth to age 5, plus school-age care. States must streamline regulatory requirements by reviewing health and safety rules for redundancies. The Department of Agriculture would remove burdens on rural home-based providers.
In Maryland, child care costs exceed in-state tuition for a four-year public college, according to the Economic Policy Institute. Annual costs for an infant in a center average $22,818, or $1,902 monthly, while care for a 4-year-old averages $16,336, or $1,361 monthly. These expenses represent 21 percent of median family income for infant care and 15 percent for 4-year-old care. For minimum-wage workers, infant care consumes 61 percent of annual earnings.
Whitney Pesek, senior director of federal child care policy at the National Women’s Law Center Action Fund, said child care is in crisis and in need of more funding to help parents and workers in the industry.
“Parents are having to pay unaffordable sums if they’re even able to find child care,” Pesek pointed out. “Early educators are paid poverty level wages that really results in a recruitment and retention problem – and hurts the ability for there to be sufficient supply to meet the need of parents.”
Across the country, child care workers are twice as likely to live in poverty. To pay for their own child care, child care workers in Maryland would have to spend more than half their income. Pesek noted the legislation is encouraging in expanding access to child care but any changes to who qualifies should be matched with robust funding to make a real impact.
“Congress is currently debating the federal budget, including fiscal year ’26 appropriations,” Pesek observed. “Lawmakers have an opportunity right now to strengthen the Child Care and Development Block Grant by significantly increasing its funding right now.”
According to the Maryland Family Network, Garrett, Somerset and Cecil counties have been identified as child care deserts, as well as a number of neighborhoods in more urban parts of the state. Statewide, Maryland has 433,208 children from birth through age 5, with demand driven by 305,213 children under 6 having all parents working. Regulated supply includes 4,110 family providers with capacity for 32,220 children and 2,608 centers for 172,592. Average annual cost for full-time care is $24,657, or 28 percent of median household income. The Child Care Scholarship Program served 51,175 children in fiscal 2024 with $415 million expended.
In Southern Maryland, child care challenges mirror statewide trends, with provider numbers declining since 2020. In Calvert County, providers fell 18 percent from January 1, 2020, to January 1, 2024, ranking as the 10th largest decrease statewide. The county has 70 family providers and 47 centers, with annual costs at $19,822, or 13 percent of median family income of $105,556. Charles County saw centers decrease 24 percent from 2017 to 2024, with capacities down 3 percent. It has 147 family providers and 73 centers, with costs at $22,816, or 17 percent of median income of $100,853. In St. Mary’s County, providers dropped 27 percent over the same period, the largest decline in Maryland. The county has 109 family providers and 36 centers, with costs at $20,001, or 15 percent of median income of $94,279.
Statewide, Maryland lost 15 percent of providers and 7 percent of slots from January 1, 2020, to January 1, 2024, exacerbated by the pandemic. In Southern Maryland, families access resources through LOCATE: Child Care, a free referral service at 877-261-0060. The Maryland State Department of Education’s Region 10 office oversees licensing in Calvert, Charles and St. Mary’s counties, allowing family care for up to eight children and large family care for up to 12.
Charles County offers before- and after-school programs at elementary schools and an onsite program in Port Tobacco for ages 6 weeks to 5 years and grades 1 through 5. In St. Mary’s County, commissioners approved plans July 22, 2025, for a new childcare center through the Department of Recreation and Parks to support county employees, slated to open by 2027. Calvert County’s Early Childhood Advisory Council conducts needs assessments and develops action plans to enhance early education.
The Child Care and Development Block Grant, funded at $8.1 billion in fiscal 2025, supports subsidies for over 1.5 million children nationwide. In Maryland, the grant aids the Child Care Scholarship Program, which reimburses providers and helps families with copayments based on income. State funding for fiscal 2025 includes $270 million to expand access. The bill’s waiver for expanded eligibility could benefit more Southern Maryland families, where median incomes range from $94,279 in St. Mary’s to $105,556 in Calvert, potentially above current thresholds.
Maryland’s child care landscape includes a real-time map identifying deserts, though specific data for Southern Maryland counties indicates lower supply density in rural areas. Family providers statewide decreased from 5,132 in 2015 to 4,110 in 2024, projected to 3,533 by 2029. Providers earn low wages, with center teachers at $25,777 annually. In Southern Maryland, community groups like the Southern Maryland Licensed Child Care Facebook group connect parents and providers for licensed options.
The legislation has support from organizations like Child Care Aware of America, noting it recognizes the need for more affordable and available care alongside strong investments. The Afterschool Alliance endorsed it for updating the grant to support low-income families. The National Association of Counties highlighted its role in removing barriers for homeless families.
Maryland’s child care system dates to the 1990 federal act, with state enhancements through the Blueprint for Maryland’s Future, allocating funds for prekindergarten expansion. In Southern Maryland, programs like SouthPoint Early Learning Center in Charlotte Hall offer care from 6 weeks to 12 years using structured curricula. The region 10 office handles complaints and licensing, ensuring compliance with state standards for health, safety and staff qualifications.