Tri-Share Child Care Pilot Act of 2025

The Tri-Share Child Care Pilot Act of 2025, HR6312, establishes a federal pilot program under Section 418 of the Social Security Act. This program provides competitive grants to state lead agencies to implement a cost-sharing model for child care expenses, where one-third is paid by the parent, one-third by a participating employer, and one-third by the lead agency. This directly increases the affordability and accessibility of child care, driving up demand for services and providing a stable funding stream for providers. The bill is sponsored by Rep. Scholten (D-MI-3) with 3 cosponsors, indicating moderate legislative momentum, but its referral to Ways and Means and Education and Workforce committees signifies a serious legislative path. The money trail for this bill flows from federal grants to state lead agencies, which then disburse funds to approved child care providers. The mechanism is competitive grants, meaning states must apply and demonstrate unmet demand, capacity, and employer commitment. This directly benefits child care providers by ensuring a portion of their costs are covered by government and employers, reducing reliance solely on parent payments. Companies that operate child care centers, such as Bright Horizons Family Solutions ($BFAM) and KinderCare Learning Centers (owned by KinderCare Education, a private company, but its impact would be felt across the sector), will see increased enrollment and more stable revenue. Additionally, companies that provide child care benefits administration or employer-sponsored child care solutions, like Bright Horizons Family Solutions ($BFAM) and potentially human resources software providers such as Ceridian HCM Holding Inc. and Automatic Data Processing, Inc. ($ADP) that integrate benefits administration, will experience increased demand for their services as more employers participate. Historically, government initiatives to subsidize child care have led to increased demand and revenue for providers. For example, during the COVID-19 pandemic, the American Rescue Plan Act of 2021 allocated $39 billion to child care, including stabilization grants. While not a direct comparison to a pilot program, this funding provided a significant boost to the sector. Companies like Bright Horizons Family Solutions ($BFAM) saw their stock price increase by approximately 15% from March 2021 to June 2021 following the passage of the ARPA, reflecting investor confidence in increased sector funding. This bill, while a pilot, establishes a new, recurring funding mechanism. Specific winners include child care providers like Bright Horizons Family Solutions ($BFAM), which operates employer-sponsored child care centers and provides backup care. Smaller, regional child care chains and independent providers will also benefit significantly. Companies that offer child care benefits administration or platforms for employers, such as Bright Horizons Family Solutions ($BFAM) and potentially HR tech companies like Ceridian HCM Holding Inc. and Automatic Data Processing, Inc. ($ADP) that can integrate these benefits, stand to gain. Companies providing educational materials or services to child care centers, such as PlayCore ($PLAB) and Kaplan, Inc. (a subsidiary of Graham Holdings Company $GHC), may also see indirect benefits. Losers are not directly apparent, as the bill expands access and funding without creating new burdens. This bill is currently referred to two committees. The next step involves committee hearings and potential markups. If it passes committee, it moves to a floor vote in the House. Given its introduction in November 2025, it is unlikely to see significant movement until late 2026 or 2027. However, the establishment of a federal pilot program sets a precedent for future, broader child care funding initiatives.