Day Care

Plain English Breakdown

The bill summary and text do not provide specific details about the funding amounts for future years beyond FY27-28.

Child Care Workforce Improvement Act

This bill requires the commissioner of human services to develop and implement programs by January 1, 2026, providing supplemental payments for child care workers who earn $20 or less per hour and have worked at least six months in a licensed program, as well as assistance payments for early childhood educators who are parents of children attending licensed centers where they work.

What This Bill Does

• Requires the commissioner of human services to develop and implement by January 1, 2026, a Child Care WAGE$ Tennessee program providing supplemental payments to eligible child care workers based on their time in service.
• Establishes eligibility criteria for child care workers: working at least six months in a licensed program earning $20 or less per hour, and being employed when funding is available.
• Requires the commissioner of human services to develop and implement by January 1, 2026, a program providing assistance payments to eligible early childhood educators who are parents of children attending licensed centers where they work.
• Excludes all income from eligibility determination for assistance programs for early childhood educators.
• Prohibits child care agencies from placing dependent children of eligible early childhood educators on waitlists behind other children unless federal or state law says otherwise.

Who It Names or Affects

• Child care workers who earn $20 per hour or less and have worked at least six months in a licensed program.
• Early childhood educators working at least 20 hours per week at licensed child care centers, family child care homes, or group child care homes.

Terms To Know

Child Care WAGE$ Tennessee

A supplemental payment program for eligible child care workers based on their time in service.

Early Childhood Educator

An employee who works at least 20 hours per week at a licensed child care center, family child care home, or group child care home.

Limits and Unknowns

• The exact amount of funding from the Child Care Improvement Fund and federal grants is not clearly stated.
• It's unclear how much money will be needed for these programs in future years beyond FY27-28.

Official Summary Text

CHILD CARE WORKFORCE IMPROVEMENT ACT

This bill enacts
the "Child Care Workforce Improvement Act
,
"
which requires the
commissioner
of human services to
develop, and,
no later than January 1, 2026, implement a Child Care WAGE$ Tennessee program to provide supplemental payments to full- and part-time child care workers in this state based upon time in service.

The commissioner may use funds from the child care improvem
ent fund to support and supplement the program.

Eligibility Requirements

This bill provides that a
child care worker is eligible to receive a supplemental payment under the program if the child care worker
meets all of the following criteria:



Works at a child care program licensed by the department
;


Earns
$
20 per hour or less
;


Has worked at least six months in the same child care program, at least 10

classroom hours per week, with children from birth to five
; and


Is employed at the same child care program at a time when funding is available and a final confirmation has been completed
.

Payment Adjustments

E
ach January
, this bill requires
the commissioner
to
annually adjust the payments for the program by the percentage increase in the consumer price
index's United States average for all urban consumers, as prepared by the United State
s
department of labor's bureau of labor statistics.

CHILD CARE ASSISTANCE FOR EARLY CHILDHOOD EDUCATORS

This bill requires the
commissioner
of human services to
develop, and, no later than January 1, 2026, implement a program to provide assistance payments to eligible early childhood educators in this state through the child care payment assistance program.

As used in
this provision
,
an
"early childhood
educator" means an employee who works at least 20 hours per week at a licensed child care center, family child care home, or group child care home, regardless of the employee's income.

The commissioner may use funds from the child care improvement fund to
support and supplement the program.

Eligibility Requirements

This bill provides that

a
n early childhood educator is eligible to receive an assistance payment under the program if
all of the following criteria is met
:



The early childhood educator is a resident of this state
;


The early childhood educator is the parent of a child that attends

(i)
t
he licensed child care center, family child care home, or group child care home where the early childhood educator is employed o
r
(ii) any licensed child care center, family child care home, or group child care home in this state
;


The facility
described above
is approved to accept, and accepts, child care assistance payments
; and


The early childhood educator provides proof of employment to the satisfaction of the department
of human services
.

Determination of Income

This bill requires

t
he commissioner
to
exclude all of an applicant early childhood educator's income, earned and unearned, when making an eligibility determination for assistance payments under th
e program
.

Waitlist and Priority

U
nless otherwise prohibited by federal or state law,
this bill generally prohibits
a child care agency licensed
from
plac
ing
a dependent child of an early childhood educator who is a recipient of assistance payments under the program on a wait list behind a child whose parent or guardian is not an early childhood educator receiving assistance payments under such program.

A chi
ld care agency
must
give first priority on the agency's wait list to children
with
a
parent or guardian serving on active duty in
the
armed forces
, if any.

Payment Adjustments

E
ach January 1
, this bill requires
the commissioner
to
annually adjust the p
ayments for the program by the percentage increase in the consumer price index's United States average for all urban consumers, as prepared by the United States department of labor's bureau of labor statistics.

Federal Child Care Development Fund Grant

This bill requires the
commissioner
to
include the eligibility requirements of
this program
in the next available application for the federal child care development fund grant.

RULEMAKING

This bill authorizes the
commissioner of human services to promulgate rules to effectuate this
bill
.

Current Bill Text

HOUSE BILL 992
By Love

SENATE BILL 902
By Oliver

SB0902
003141
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 71,
Chapter 3, relative to child care.

WHEREAS, the provision of child care is an essential service in this State that is relied
upon by many working Tennessee parents; and
WHEREAS, the cost of child care services has become burdensome to many families
due to inflationary and other factors; and
WHEREAS, child care workers and early childhood educators are often underpaid
relative to the quality and necessity of the dedicated services they provide; and
WHEREAS, the high cost of child care is often especially burdensome to child care
workers, even in the very child care agencies or other settings in which they work; and
WHEREAS, the Department of Human Services should utilize the Child Care WAGE$
program as a model to reward early childhood educators for their years of dedicated service and
promote longevity in the profession; now, therefore,
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 71, Chapter 3, Part 5, is amended by
adding the following as new sections:
71-3-522.
(a) This section is known and may be cited as the "Child Care Workforce
Improvement Act."
(b)
(1) The commissioner shall develop, and, no later than January 1, 2026,
implement a Child Care WAGE$ Tennessee program to provide supplemental

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payments to full- and part-time child care workers in this state based upon time in
service.
(2) A child care worker is eligible to receive a supplemental payment
under the program established pursuant to subdivision (b)(1) if the child care
worker:
(A) Works at a child care program licensed by the department;
(B) Earns twenty dollars ($20) per hour or less;
(C) Has worked at least six (6) months in the same child care
program, at least ten (10) classroom hours per week, with children from
birth to five (5) years of age; and
(D) Is employed at the same child care program at a time when
funding is available and a final confirmation has been completed.
(c) Beginning January 1, 2026, and each January 1 thereafter, the commissioner
shall annually adjust the payments for the program described in subsection (b) by the
percentage increase in the consumer price index's United States average for all urban
consumers, as prepared by the United Stated department of labor's bureau of labor
statistics.
(d) The commissioner may use funds from the child care improvement fund
established pursuant to § 71-3-520 to support and supplement the program described in
subsection (b).
71-3-523.
(a) As used in this section, "early childhood educator" means an employee who
works at least twenty (20) hours per week at a licensed child care center, family child
care home, or group child care home, regardless of the employee's income.
(b)

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(1) The commissioner shall develop, and, no later than January 1, 2026,
implement a program to provide assistance payments to eligible early childhood
educators in this state through the child care payment assistance program.
(2) An early childhood educator is eligible to receive an assistance
payment under the program established pursuant to subdivision (b)(1) if:
(A) The early childhood educator is a resident of this state;
(B) The early childhood educator is the parent of a child that
attends:
(i) The licensed child care center, family child care home,
or group child care home where the early childhood educator is
employed; or
(ii) Any licensed child care center, family child care home,
or group child care home in this state;
(C) The facility described in subdivision (b)(2)(B)(i) or (ii) is
approved to accept, and accepts, child care assistance payments; and
(D) The early childhood educator provides proof of employment to
the satisfaction of the department.
(c) The commissioner shall exclude all of an applicant early childhood educator's
income, earned and unearned, when making an eligibility determination for assistance
payments under the program developed pursuant to subdivision (b)(1).
(d)
(1) Except as provided in subdivision (d)(2), and unless otherwise
prohibited by federal or state law, a child care agency licensed under this part
shall not place a dependent child of an early childhood educator who is a
recipient of assistance payments under the program developed pursuant to

- 4 - 003141

subdivision (b)(1) on a wait list behind a child whose parent or guardian is not an
early childhood educator receiving assistance payments under such program.
(2) A child care agency shall give first priority on the agency's wait list to
children described in § 71-3-518, if any.
(e) Beginning January 1, 2026, and each January 1 thereafter, the commissioner
shall annually adjust the payments for the program described in subsection (b) by the
percentage increase in the consumer price index's United States average for all urban
consumers, as prepared by the United States department of labor's bureau of labor
statistics.
(f) The commissioner may use funds from the child care improvement fund
established pursuant to § 71-3-520 to support and supplement the program described in
subsection (b).
(g) The commissioner shall include the eligibility requirements of subdivision
(b)(2) in the next available application for the federal child care development fund grant.
SECTION 2. The commissioner of human services is authorized to promulgate rules to
effectuate this act. The rules must be promulgated in accordance with the Uniform
Administrative Procedures Act, compiled in Tennessee Code Annotated, Title 4, Chapter 5.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.