CHIPS Child Care Act

The CHIPS Child Care Act authorizes the Secretary of Labor to award competitive grants to States to support individuals participating in semiconductor-related workforce programs. These grants aim to cover child care costs through monthly stipends for those in training, apprenticeships, or pre-apprenticeships related to semiconductor manufacturing. Additionally, funds can assist eligible child care providers in semiconductor-heavy regions with acquiring, constructing, or improving facilities to expand capacity. Grant periods are two years, and priority is given to geographically diverse States with significant semiconductor investment. States receiving grants must prioritize certain individuals for stipends, including first generation college students , HBCU graduates , rural residents , and veterans , with stipends not less than $500 per dependent child. For facility improvements, priority is given to providers serving low-income populations , infants and toddlers , those with capacity issues, or operating non-traditional hours. All construction, renovation, or improvement projects funded by these grants must adhere to Davis-Bacon Act prevailing wage requirements for laborers and mechanics. The bill mandates comprehensive reporting from States on stipend impact, program retention, and wage outcomes, disaggregated by race, ethnicity, and gender. The Secretary of Labor will then report to Congress summarizing these findings and the overall effect of the grant program. Importantly, these child care stipends are excluded from federal taxation and will not affect eligibility for other federal, state, or local benefits. The Act authorizes $10 million for each of fiscal years 2025 and 2026 to fund these initiatives.