The Protecting Childcare from Private Equity Act would stop predatory investors from squeezing Upstate New York families for profit
WASHINGTON, DC – Today, Congressman Josh Riley (NY-19) introduced the Protecting Childcare from Private Equity Act to stop Wall Street investors from hiking up childcare costs, and to protect local, high-quality daycare options for Upstate New York families.
“Wall Street investors don’t care about the bills hitting our kitchen tables or the number of preschool slots open to Upstate New York families – all they care about is profit for their shareholders. We can’t let them swoop into our communities, buy up daycares, and squeeze families for every dollar they can get,” said Congressman Riley. “This is about creating guardrails to stop predatory investors from pricing out families, and making sure every parent has access to local, high-quality childcare they can actually afford.”
Today, private equity backs 13 of the 16 largest for-profit childcare chains in America, including well-known names like KinderCare and Bright Horizons. Rather than expanding the number of slots available or opening new locations, these chains have largely expanded by buying and absorbing independent childcare providers, limiting options for families, driving up costs, and raising concerns over quality of care.
Studies show that after acquisition, childcare centers often raise tuition and fee rates in order to maintain profitability and pass operating cost changes on to families. A nonpartisan congressional analysis also found that investor-owned childcare centers experience a decline in quality of care driven by high employee turnover and low wages.
The Protecting Childcare from Private Equity Act stops the “buy, strip, and flip” playbook. If a private equity firm acquires a childcare provider, it must hold onto it for at least four years rather than reselling it quickly for a profit. During that same period, the firm is barred from pulling money out of the business through dividends, other payouts, or stock buybacks. That means investors who want in, have to commit to running the provider responsibly, not extracting value and moving on.
The bill also increases oversight of the industry. It requires the SEC to track who owns childcare providers and when they are bought and sold, and it directs a government study on how private equity ownership affects tuition, staff wages, quality of care, and the availability of childcare slots.
The Protecting Childcare from Private Equity Act is cosponsored by Congressman Greg Casar (TX-35), Congressman Gil Cisneros (CA-31), Congresswoman April McClain Delaney (MD-06), Congressman Suhas Subramanyam (VA-10), and Congressman Eugene Vindman (VA-07).
“We should be making childcare more affordable for working families, not letting private equity squeeze them for every dollar. I am grateful to Rep. Riley for leading the charge on this bill,” said Congressman Casar.
“Taking care of our children is investing in their future. I’m proud to champion childcare that strengthens our communities and lifts the burden of care off parents’ shoulders,” said Congressman Cisneros. “As a father, I will always support essential guardrails that protect access to childcare. I am proud to co-lead the Protecting Childcare from Private Equity Act with Rep. Riley to prevent private firms from harming access to childcare. This legislation is a critical step towards corporate transparency and accountability. No private equity firm should restrict families’ access to the quality care they rely on.”
“As Americans continue to struggle with affordability, we must find solutions that expand access to affordable, high-quality childcare. Congress should know how private equity ownership affects the cost, service, and wages at childcare centers. Our families deserve care that values people over profit, and I’m proud to join Congressman Josh Riley in introducing the Protecting Childcare from Private Equity Act,” said Congresswoman McClain Delaney.
“Private equity firms have turned early childhood care into a profit machine, pushing up costs for working families while degrading the quality of care. We need to ensure every family, regardless of their income or zip code, has access to reliable, affordable childcare. This bill puts children and parents ahead of corporate bottom lines,” said Congressman Subramanyam.
“Childcare is essential for working families and for our economy — not just another opportunity for private equity firms to make a quick profit. This legislation helps keep the focus where it belongs: on giving every child a safe, high-quality place to grow and every parent the peace of mind they need to go to work and support their family,” said Congressman Vindman. “I’m proud to support this bill that would ensure child care remains a lifeline for working families rather than just another investment opportunity for Wall Street.”
Full text of the bill can be found HERE.
###
