Rep. Ro Khanna Introduces $1 Trillion Universal Childcare Plan
The proposal, backed by the California Democrat, aims to create a decade-long universal childcare system and could serve as a cornerstone for a potential 2028 presidential campaign.
Rep. Ro Khanna has unveiled a nearly $1 trillion, 10-year proposal for a universal childcare system, outlining a plan that he suggests could form the basis of a presidential campaign in 2028. Khanna, a Democrat representing California, told ABC News that the "Free Child Care for America Act" is intended as a "north star" and blueprint for legislative action.
Khanna's plan involves creating three taxpayer-funded pathways to provide families with childcare options. He suggested offsetting the cost through measures such as ending military spending in Iran, implementing a 5% "billionaire tax" to generate $400 billion, or reducing the Pentagon's budget by $200 billion. The proposal allocates billions for grants to states and tribal organizations to cover licensed childcare costs, increase childcare supply, support providers, and raise wages for the childcare workforce. Khanna estimated that a comprehensive system would cost between $80 billion and $90 billion annually.
Khanna's proposal contrasts with an administration idea championed by Vice President JD Vance, which would offer federal childcare subsidies of up to $9,000 annually to married couples with a stay-at-home parent. Khanna argued that his plan offers greater flexibility by remaining "value neutral" among staying at home, using a childcare center, or relying on friends and family.
He cited his own upbringing in Pennsylvania and his experience as a father juggling a demanding career as motivations for the proposal. "Economic patriotism is all about making the future economy work -- not just for the billionaires in my district, but work for the people I grew up with in Pennsylvania," Khanna stated. He noted that concerns about childcare frequently arise in conversations with families in swing states.
Khanna, first elected in 2016, has cultivated a progressive record and is positioning himself as a potential successor to national progressive leaders. He described his broader agenda as "America’s next new deal." While acknowledging the $1 trillion cost of his childcare plan, which includes up to $1,000 per month for eligible stay-at-home parents with young children and low-to-median household incomes, Khanna defended it as a necessary investment in early childhood development. He referred to childcare as a "public good" that is currently subject to market failure due to its high cost and low provider compensation.
House Democratic leaders have not officially endorsed Khanna's bill but agree that addressing childcare costs should be a priority. Khanna expressed hope that elements of his proposal could be adopted if Democrats regain the House majority, even if the full $90 billion annual price tag is not immediately realized. He aims for the 2028 Democratic presidential primary to be a forum for "big ideas" that address the economic concerns of working and middle-class families.