Appropriates $30,000,000 for each year of the 2025-2027 biennium from the General Fund to the Department of Health and Human Services, Division of Child Development and Early Education (Division) to establish a two-year pilot program for grants to child care providers who are employed providing direct care to assist in recruiting and retaining more employees to expand the supply of licensed child care. Defines child care provider to include lead teachers, teachers, teacher assistants, and administrators.

Specifies that eligible child care providers must earn at or below 85% of the State median income and be employed full time at a licensed child care center or family child care home.

Allows any licensed child-care program to apply to the Division for a grant, but only when there is capacity at the program to serve an eligible employee's child without displacing other children already in care in the program. Mandates that the Division will pay 75% of the published child care tuition rate to the licensed program for each eligible staff member for up to two children, and the child care program employers will cover at least 25% of the published tuition rate for each child. Allows the Division discretion to distribute the grants quarterly or monthly. Requires employers to inform the Division within 30 days of an eligible employee’s departure.

Directs the Division to distribute the grants statewide, but prioritize counties with the highest unmet demand or longest wait lists for subsidized child care funded by the federal Child Care Assistance Program.

Requires the Division to provide a progress report to the Joint Legislative Oversight Committee on Health and Human Services and the Fiscal Research Division by March 31, 2026, and a final report by December 31, 2027. Outlines the items to be included in the report, such as the number of licensed programs and providers participating in the pilot, the new child care slots created, and the additional children served by age, group, and county.

Effective July 1, 2025.