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HR 9875

Protecting Childcare from Private Equity Act

119th Congress Introduced by Greg Casar and 3 co-sponsors

Requires SEC to collect and anonymize private equity ownership data on childcare, with a 4-year restriction after acquisition and a GAO study on impacts.

Introduced in House
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WeVote Research Nonpartisan
Bill Summary · HR 9875

Overview

  • Bill: HR 9875
  • Session: 119th Congress, 2nd Session
  • Title: Protecting Childcare from Private Equity Act
  • Introduced: July 22, 2026 by Rep. Riley (and cosponsors: Delaney, Casar, Subramanyam, VIndman)
  • Committees: Financial Services; Education and Workforce

Purpose and Intent

The bill seeks to increase transparency around private equity ownership of childcare providers and to impose limited behavioral restrictions on newly acquired childcare entities by covered private funds. It also mandates a study on how private equity ownership affects childcare quality, access, costs, and labor conditions.

Key Provisions

  1. Information Collection (SEC)

    • Within 1 year of enactment, the SEC must require each “covered private fund” to report information on ownership, purchases, and sales of legal entities that provide childcare.
    • The SEC will conduct this in consultation with the Secretary of Health and Human Services.

  2. Annual Reporting to Congress

    • The SEC must issue an anonymized annual report to Congress within 1 month after the end of each fiscal year, detailing the anonymized data collected in that year.

  3. Restrictions on Newly Acquired Childcare Entities (4-year window)

    • For up to 4 years after a covered private fund first gains control of a childcare legal entity:
      • The fund may not sell any interest in that legal entity.
      • The childcare entity may not make dividends, capital distributions, or share buybacks to the fund.
    • Purpose: Limit immediate extraction or transferring value from newly controlled childcare providers.

  4. Study on Private Equity and Childcare (GAO/CG Study)

    • A study, led by the Comptroller General in coordination with HHS and the SEC, to examine:
      • Quality of care
      • Availability of childcare spots
      • Tuition levels
      • Employee wages
      • Other relevant factors determined appropriate
    • Deadline: A final report to Congress within 2 years of enactment.

  5. Definitions

    • “Controls”: A person who owns or can vote more than 50% of the equity voting securities of a legal entity.
    • “Covered private fund”: An issuer that would be an investment company under the Investment Company Act, has more than $150 million in assets under management, and provides childcare (through legal entities it controls) at more than 25 locations.

Who Is Affected

  • Covered private funds meeting the definition (AIM/size thresholds and childcare provision scope) and their ownership of childcare entities.
  • Childcare providers that are owned or controlled by such funds (through subsidiaries or legal entities).
  • Regulatory bodies: Securities and Exchange Commission and the Secretary of Health and Human Services in implementing reporting requirements and coordinating on data collection.
  • General public/ Congress: Access to anonymized data and comprehensive study findings.

Timeline and Procedural Aspects

  • Enactment triggers:
    • Within 1 year: SEC must collect required information from covered private funds.
    • Ongoing: Annual anonymized reports to Congress, one per fiscal year.
    • Start of 4-year protective period: Commences when a covered private fund first gains control of a childcare entity.
  • Study: Comptroller General study due within 2 years of enactment.

Potential Impacts

  • Increased visibility into the role of private equity in the childcare sector.
  • Possible behavioral changes by funds during the 4-year restriction period after acquiring a childcare entity (e.g., restrained profit-shifting activities).
  • Data-driven assessment of how private equity ownership correlates with childcare quality, access, and labor conditions.
  • Administrative burden on covered private funds to collect and report ownership data.
  • Informing policymakers on whether further regulatory actions or oversight are warranted in the childcare market.

Notes

  • The bill defines “covered private fund” with concrete thresholds to target larger private equity entities.
  • Emphasizes anonymized data to protect privacy while enabling congressional oversight.
  • Co-sponsors include April McClain Delaney, Josh Riley, Greg Casar, and Suhas Subramanyam.

Compiled from official sources — confirm details with the bill’s official record.

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