Respect Parents’ Childcare Choices Act

S. 535 would reauthorize and reform the Child Care and Development Block Grant program. The bill would increase federal funding by $5.25 billion annually from 2026 through 2031, replacing the existing Child and Dependent Care Tax Credit. If enacted, the legislation would allow states to issue childcare vouchers that parents could use more flexibly, including to pay relatives like grandparents or aunts and uncles for childcare, or to support married parents who work a combined 40 hours per week while one parent stays home to provide childcare. The bill would also streamline regulations on relative caregivers and protect faith-based childcare providers from discrimination. Additionally, the bill would establish pilot programs to prevent fraud in childcare assistance and require states to review regulations that may unnecessarily burden relative caregivers. The bill is currently in committee and has not yet been voted on by the full Senate.