S.B. No. 1739 proposes the establishment and regulation of the Child Care Protection and Enhancement Fund, which is intended to expand childcare capacity and enhance subsidized childcare rates in Texas. The bill introduces new sections to the Labor Code, specifically Section 302.0052, which defines key terms such as "Fund," "Trust company," and "Agency." The fund will be managed by the Texas Treasury Safekeeping Trust Company and will be held outside the state treasury. The trust company is responsible for investing the fund while ensuring sufficient liquidity to meet its objectives. The bill also stipulates that the Texas Workforce Commission must submit requests for disbursements from the fund to increase subsidized childcare rates and capacity, with a default approval mechanism for such requests.

Additionally, the bill outlines prohibited expenditures from the fund, which cannot be used for salaries, employee benefits, or operational costs of the department, nor for the maintenance of a state agency. All expenditures made under this chapter will be subject to audit by the state auditor. The department is also required to report on acquisitions funded by the Child Care Protection and Enhancement Fund in its strategic plans. This act is set to take effect on January 1, 2026, contingent upon the approval of a related constitutional amendment by voters.