ACFProposed Rule

Restoring Flexibility in the Child Care and Development Fund

EducationLabor & WorkplaceHousing

Summary

This proposed rule would give states and child care programs more flexibility in how they use federal child care funding to help families afford quality care. The change aims to make it easier for child care providers to serve more children and families by reducing strict rules about how money must be spent.

Key Points

  • 1States would have more freedom to decide how to spend federal child care dollars rather than following rigid federal requirements
  • 2Child care providers could potentially use funds in new ways to expand services and help lower-income families access affordable care
  • 3The rule is still in the proposal stage and the government is accepting public comments until February 5, 2026
  • 4Families seeking child care assistance may see changes in how programs operate in their state
  • 5The change could affect how federal child care subsidies work in practice, though specific impacts depend on how individual states choose to use their flexibility

Key Dates

Published

January 5, 2026

Comment Deadline

February 5, 2026

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This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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