Rep. Ro Khanna Proposes $1 Trillion Universal Child Care Plan

Rep. Ro Khanna of California has introduced a sweeping child care proposal that he says would cost nearly $1 trillion over ten years, a plan widely seen as an early marker for a possible 2028 presidential run.

The Free Child Care for America Act would create three taxpayer-funded paths for families. It would send grants to states and tribal organizations to cover licensed child care, expand the supply of providers, help with operating costs and raise pay for child care workers. It would also provide a $1,000 monthly stipend to eligible stay-at-home parents with children under age 3.

Who would qualify

The benefits would be aimed at households earning at or below 100% of their state's median income. Khanna estimates the annual cost at $80 billion to $90 billion.

How he would pay for it

Khanna proposes covering the cost by ending the war in Iran, imposing a 5% tax on billionaires that he says would raise about $400 billion, and cutting the Pentagon budget by $200 billion.

A "big ideas" pitch

Khanna called child care costs one of the biggest burdens on working families and said he wants the policy to stay neutral among stay-at-home care, child care centers and family-based care. He framed the plan as economic patriotism and contrasted it with Vice President JD Vance's proposal to subsidize stay-at-home parents.

House Democratic leaders have not endorsed the bill, although they say lowering child care costs is a priority. Some have raised concerns about the price tag.

Sources: ABC News