January 22, 2026
Ms. Bynum introduced the following bill; which was referred to the Committee on Education and Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To establish a grant program for States to support individuals participating in semiconductor-related workforce programs, and for other purposes.
Section 1. Short title
This Act may be cited as the CHIPS Child Care Act
.
Sec. 2. Grant program
(a) Grants authorized
(1) In general
From the amount appropriated under subsection (i)(1) that is not reserved under subsection (i)(2), the Secretary of Labor shall award grants, on a competitive basis, to States to—
(A)
provide monthly stipends to eligible child care providers on behalf of individuals to assist the individuals in covering the costs of child care—
(i)
while participating in semiconductor-related workforce programs;
(ii)
in the case of an individual who is participating in, or has completed within the preceding 5-year period, an apprenticeship program, while engaging in a construction project related to semiconductor manufacturing; or
(iii)
while participating in pre-apprenticeship programs with a demonstrated history of successfully placing individuals in jobs or apprenticeships connected to construction projects related to semiconductor manufacturing; or
(B)
assist eligible child care providers in regions receiving significant private and public investment related to semiconductor manufacturing to acquire, construct, renovate, or improve child care facilities, including to adapt, reconfigure, or expand such facilities.
(2) Grant periods
A grant awarded under this section shall be awarded—
(A)
for a period of two years; and
(B)
in equal amounts for each year of such period.
(3) Grant priority
In awarding grants under this section, the Secretary shall ensure that States that are awarded the grants—
(A)
are geographically diverse; and
(B)
are receiving significant private and public investment related to semiconductor manufacturing.
(b) Application
To be eligible for a grant under this Act, a State shall submit to the Secretary an application, in such form, at such time, and containing such information as the Secretary may require, which shall include the following:
(1)
If the State intends to provide monthly stipends as described in subsection (a)(1)(A)—
(A)
information regarding how the State intends to distribute monthly stipends in accordance with subsection (c); and
(B)
in the case of any individual who is selected to benefit from a stipend under subsection (c) and participating in a semiconductor-related workforce program that will end after the end of the grant period, any plan the State may have to provide child care support for such an individual for the period of such program during which the individual will not be benefitting from such stipends.
(2)
A plan to use a portion of the grant funds to report back to the Secretary on the impact of using the grant funds to assist eligible child care providers as described in subsection (a)(1)(B).
(c) Uses of funds
(1) In general
A State that receives a grant under this Act shall—
(A)
give priority in accordance with the requirements of paragraph (3); and
(B)
if the State uses such grants to provide monthly stipends as described in paragraph (A) of subsection (a)(1)—
(i)
select individuals to benefit from a monthly stipend who—
(I)
have one or more dependent children; and
(II)
meet the requirements of clause (i) or (ii) of such paragraph; and
(ii)
distribute such stipends to eligible child care providers directly on behalf of the individuals described under clause (i).
(2) Monthly stipend amounts
A monthly stipend described in paragraph (1)(A) shall not be less than $500 per dependent child.
(3) Priority
A State shall prioritize—
(A)
in selecting individuals to benefit from a monthly stipend as described in subsection (a)(1)(A)—
(i)
first generation college students;
(ii)
graduates of historically Black colleges and universities;
(iii)
residents of rural communities; and
(iv)
veterans; and
(B)
in selecting eligible child care providers to assist as described in subsection (a)(1)(B)—
(i)
eligible child care providers primarily serving low-income populations;
(ii)
eligible child care providers primarily serving children who have not attained the age of 5 years with a significant percentage of infants and toddlers enrolled;
(iii)
eligible child care providers that—
(I)
are currently unable to serve young children, had to significantly reduce capacity, or are unable to serve more children, due to factors such as the inadequate condition, quality, or availability of facilities; or
(II)
are seeking to build capacity and expand the number of children served;
(iv)
eligible child care providers that operate under nontraditional hours; and
(v)
eligible child care providers located in rural or underserved communities.
(4) Labor standards for certain grants
(A)
All laborers and mechanics employed by contractors or subcontractors in the performance of construction, renovation, improvement, repair, alteration, adaptation, reconfiguration, or expansion of child care facilities funded in whole or in part under this section shall be paid wages at rates not less than those prevailing on projects of a character similar in the locality as determined by the Secretary of Labor in accordance with subchapter IV of chapter 31 of part A of subtitle II of title 40, United States Code (commonly referred to as the Davis-Bacon Act
).
(B)
The Secretary shall require that each entity, including grantees and subgrantees, that applies for a grant for constructing, renovating, or improving child care facilities, including adapting, reconfiguring, or expanding such facilities, which is funded in whole or in part under this section, shall include in its application written assurance that all laborers and mechanics employed by contractors or subcontractors in the performance of construction, alternation or repair, as part of such project, shall be paid wages in accordance with paragraph (1). The Secretary shall not approve any such funding without first obtaining adequate assurance that required labor standards will be maintained with respect to any such construction work.
(C)
The Secretary of Labor shall have, with respect to the labor standards specified in paragraph (1), the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 Fed. Reg. 3176; 5 U.S.C. App.) and section 276c of title 40, United States Code.
(d) Reports by States
(1) Initial report
Not later than 180 days after the end of the grant period of the grant awarded to a State under this Act, the State shall submit to the Secretary a report that includes information on, as applicable—
(A)
if the State uses such grants to provide monthly stipends as described in subsection (a)(1)(A)—
(i)
the individuals that benefitted from monthly stipends, including with respect to each such individual—
(I)
the total number of months such stipends were provided to an eligible child care provider on behalf of the individual;
(II)
the total amount provided by such stipends; and
(III)
in the case of an individual enrolled in a semiconductor-related workforce program, the wage rate, benefits, stipends, or other compensation provided to such individual—
(aa)
while enrolled in such program; and
(bb)
after exiting the program and beginning work in the industry of such program;
(ii)
for each semiconductor-related workforce program for which the State provided stipends to eligible child care providers on behalf of such individuals—
(I)
the retention and completion rates for the individuals described in clause (i); and
(II)
the retention and completion rates for the individuals not described in clause (i); and
(iii)
the method the State used to distribute the stipends to eligible child care providers;
(B)
if the State used such grants to assist eligible child care providers as described in subsection (a)(1)(B), the effects of the grant in assisting eligible child care providers to construct, renovate, or improve child care facilities, and any effects on access to and quality of child care; and
(C)
such other information as the Secretary may require.
(2) Follow-up reports
For each of the 3 years after the date that a State submits the report under paragraph (1), the State shall submit to the Secretary a report on the retention and completion rates described in subparagraph (A)(ii) of such paragraph for the preceding year.
(3) Disaggregation
The information submitted under paragraphs (1) and (2) shall be disaggregated by race, ethnicity, and gender, except that such disaggregation shall not be required in the case in which the number of apprentices in a subgroup is insufficient to yield statistically reliable information or the results would reveal personally identifiable information about an apprentice.
(e) Report by the Secretary
(1) Initial report
Not later than 180 days after the Secretary receives the last report under subsection (d), the Secretary shall submit to Congress a report that summarizes—
(A)
the effect monthly stipends described in subsection (a)(1)(A) had—
(i)
on the semiconductor-related workforce program retention and completion rates of individuals who received monthly stipends; and
(ii)
the wage rates and benefits received by such individuals after exiting a semiconductor-related workforce program;
(B)
the methods the States used to distribute such monthly stipends to eligible child care providers;
(C)
any unanticipated effect or consequence on—
(i)
individuals receiving the monthly stipend;
(ii)
the sponsors of the semiconductor-related workforce programs; and
(iii)
the local areas in which the individuals who received a monthly stipend participated in such programs; and
(D)
the effect of assistance provided to eligible child care providers as described in subsection (a)(1)(B).
(2) Follow-up reports
For each of the 3 years after the date that the Secretary submits the report under paragraph (1), the Secretary shall submit to Congress a report that summarizes the information in the reports received from the States under subsection (d)(2) for the preceding year.
(3) Disaggregation
The information submitted under paragraph (1)(A) shall be disaggregated in accordance with the disaggregation requirements of subsection (d)(2).
(f) Stipend amounts excluded from Federal taxation
Stipend amounts awarded under this Act may not be included in the gross income of the individual who benefitted from such stipend for purposes of the Internal Revenue Code of 1986.
(g) Disregard stipend amounts in other Federal programs
Notwithstanding any other provision of law, a stipend distributed to an eligible child care provider under this Act shall not be taken into account in determining the need or eligibility of the individual who benefitted from such stipend for benefits or assistance, or the amount of such benefits or assistance, under any Federal, State, or local program financed in whole or in part with Federal funds.
(h) Supplement and not supplant
Any monthly stipend distributed to an eligible child care provider on behalf of an individual under this Act shall supplement and not supplant the wages such individual earns while participating in a semiconductor-related workforce program.
(i) Authorization of appropriations
(1) In general
There are authorized to be appropriated to carry out this Act $10,000,000 for each of fiscal years 2025 and 2026.
(2) Reservation
The Secretary shall reserve 1.5 percent of the funds appropriated under paragraph (1) for each fiscal year to carry out the study and report required by subsection (e).
(j) Definitions
In this Act:
(1) Apprenticeship program
The term apprenticeship program means an apprenticeship program registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act
; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.), including any requirement, standard, or rule promulgated under such Act.
(2) Eligible child care provider
The term eligible child care provider has the meaning given the term in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n).
(3) Historically Black college and university
The term historically Black college and university has the meaning given such term in section 631(a)(5) of the Higher Education Act of 1965 (20 U.S.C. 1132(a)(5)).
(4) Semiconductor
The term semiconductor has the meaning given such term in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651).
(5) Semiconductor manufacturing
The term semiconductor manufacturing has the meaning given such term in section 9902 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4652).
(6) Semiconductor-related workforce program
The term semiconductor-related workforce program means an apprenticeship, career upskilling, remote education, training, or workforce development program offered by an institute of higher education (as defined in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002)), non-profit entity (as defined in section 9901 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651)), or local government in partnership with an entity that has received financial assistance through title XCIX of division H of such Act (15 U.S.C. 4651 et seq.) or a similar State program.
(7) State board
The term State board means a State workforce development board established under section 101 of the Worker Innovation and Opportunity Act (29 U.S.C. 3101).
(8) WIOA terms
The terms local area and State have the meaning given such terms in section 3 of the Worker Innovation and Opportunity Act (29 U.S.C. 3103).