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The Direct CARE Opportunity Act of 2026 aims to address workforce shortages and improve job quality in the direct care sector by authorizing the Secretary of Labor to award grants to eligible entities such as states, labor organizations, nonprofits, tribal organizations, and educational institutions. These grants are intended to fund strategies that recruit new direct care workers, retain existing workers, and help them advance in their careers. Direct care workers include those providing in-home or community-based care, respite care, and support services to individuals with disabilities or older adults.

Eligible entities must develop and implement strategies that may include education and training programs, career pathway development, career planning, wage and benefit improvements, supportive services, mentoring, and other innovative approaches. The bill requires collaboration with various stakeholders, including state workforce boards, educational institutions, health agencies, and organizations representing direct care workers and service recipients. Grants are awarded for a minimum of five years, with a focus on equitable geographic and demographic distribution and prioritization of underserved populations.

The bill also mandates data collection and reporting on program outcomes, including workforce participation, job placement, and satisfaction of workers and service recipients. Technical assistance will be provided to grant recipients to ensure effective implementation and compliance with reporting requirements. Funding is authorized at $300 million annually from 2027 through 2032 for grants, with additional funds for technical assistance and a national technical assistance center to support state systems and stakeholders. Overall, the bill seeks to strengthen the direct care workforce, improve care quality, and support individuals who rely on these essential services.