The bill establishes a Child Care Solutions Fund under the control of the Iowa Department of Health and Human Services (HHS) to support child care workers and enhance wages in designated communities. The fund will consist of appropriated moneys from the general assembly, interest from investments, and donations intended for its purposes. HHS will distribute funds to communities, providing a state match of $2 for every $1 of private investment aimed at increasing child care worker wages. The bill also mandates HHS to set eligibility requirements for community designation and to continue designating communities until the entire state is covered.

Additionally, the bill requires HHS to submit an annual report detailing the fund's impact, including the amount distributed to each community, expenditures, the number of child care providers supported, and the number of child care workers retained or hired. HHS is also tasked with adopting rules for the fund's administration. Furthermore, the bill appropriates $6 million for the fiscal year 2025-2026 to support the fund and continues to provide state matching funds to communities participating in HHS's child care wage enhancement project during the fiscal year 2024-2025.