Sec. 3. Mandatory child care funding for families with infants or toddlers
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Section 418 of the Social Security Act ( 42 U.S.C. 618 ) is amended by adding at the end the following: Each State to which an amount is required to be paid under subsection (a)(2)(C) for a fiscal year shall, for the purpose of providing child care assistance for families with a child who has not attained 3 years of age, be entitled to payments for the fiscal year under a grant made under this subsection. The amount of the grant payable to a State under this subsection for a fiscal year shall be the lesser of— the allotment of the State under paragraph
(3)for the fiscal year; or the Federal medical assistance percentage for the State for the fiscal year (as defined in section 1905(b), as such section was in effect on September 30, 1995) of the total amount of the State's expenditures for child care in the fiscal year not taken into account under subsection (a)(2) for the fiscal year. The allotment of a State under this paragraph for a fiscal year shall be— the total amount available for payments to States under this subsection for the fiscal year, after making the reservation required by paragraph (6); multiplied by the number of children who have not attained 3 years of age who reside in the State; divided by the total number of such children who reside in all States. The 1st sentence of subsection (a)(2)(D)(i) shall apply with respect to amounts appropriated under paragraph
(5)of this subsection in the same manner in which that sentence applies with respect to amounts appropriated under subsection (a)(3). The amounts available for redistribution by reason of the preceding sentence shall be redistributed to a State based on the formula set forth in paragraph (3)(B) of this subsection. Subsection (a)(2)(D)(ii) shall apply with respect to amounts appropriated under paragraph
(5)of this subsection in the same manner in which subsection (a)(2)(D)(ii) applies with respect to amounts appropriated under subsection (a)(3). For grants under this subsection, there are appropriated $2,000,000,000 for each fiscal year. The Secretary shall reserve not less than 1 percent, and not more than 2 percent, of the aggregate amount appropriated to carry out this section in each fiscal year for payments to Indian tribes and tribal organizations. Notwithstanding subsection (c), subsection
(b)shall apply with respect to amounts appropriated under paragraph
(5)of this subsection in the same manner in which subsection
(b)applies with respect to amounts appropriated under subsection (a)(3), except that amounts received by a State under this subsection shall be used— to provide child care assistance only to families described in paragraph
(1)of this subsection who are not otherwise receiving child care assistance under this section; and to increase reimbursement rates to providers of child care services to such families. .
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Sec. 3
Mandatory child care funding for families with infants or toddlers
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