This legislation, known as the "Building Child Care for a Better Future Act," aims to substantially enhance the nation's child care system by providing increased and sustained federal funding. It amends the Social Security Act to significantly boost appropriations for the Child Care Entitlement to States (CCETS) program. Beginning in fiscal year 2026, the bill appropriates $20 billion , with subsequent annual increases tied to the consumer price index, ensuring a growing and stable funding stream. These CCETS funds are allocated to states, territories, and Indian tribes or tribal organizations, with specific percentages reserved for each. A portion is also set aside for technical assistance, dissemination activities, and research and evaluation of the Child Care and Development Block Grant (CCDBG) program. The bill also establishes a process for redistributing any unused tribal grants to other tribes or organizations that can utilize the funds. Furthermore, the legislation removes a restriction on applying updated Federal Medical Assistance Percentage (FMAP) rates for child care assistance. All funds provided under the CCETS program are to be transferred to the lead agencies responsible for the CCDBG Act and integrated into their existing programs, making them subject to the requirements and limitations of that Act. In addition to the increased CCETS funding, the bill creates a new, permanent grant program, appropriating $5 billion annually , specifically designed to improve the child care workforce, supply, quality, and access in areas of particular need. This funding is also distributed to states, territories, and Indian tribes or tribal organizations, with reserves for technical assistance, evaluation, and administrative expenses. To receive these new grants, lead agencies must submit a plan detailing how they will use the funds, including identifying specific areas of need and outlining proposed activities. These activities can include contracting with providers to secure child care slots, expanding family child care networks, offering start-up funding and technical assistance to providers, and supporting staff recruitment and professional development. A key provision allows for financial support for projects involving the purchase, construction, or major renovation of child care facilities , with special rules regarding federal interest retention. Importantly, the bill mandates that all laborers and mechanics employed on construction, alteration, or repair work funded by these grants must be paid prevailing wage rates, aligning with federal labor standards. The new grants do not require a state match but do include a maintenance of effort provision, ensuring states continue their existing child care investments. Priority for funding is given to services that operate during nontraditional hours, serve vulnerable populations like dual language learners or children with disabilities, operate in rural areas, or are provided by public, non-profit, or small disadvantaged businesses. Funds can also be used to support Head Start and Early Head Start programs. The bill requires lead agencies to report regularly on how the grant funds are spent, including detailed 1-year and 3-year post-award reports on the impact on child care supply, quality, and access. The Secretary is also mandated to conduct regular, independent evaluations of the program's effectiveness, focusing on improvements in child care availability, parental choice, workforce recruitment and retention, and various quality indicators such as staff-to-child ratios, curriculum, and staff compensation. These evaluation findings will be publicly available and reported to Congress.