Sec. 23001. Birth through five child care and early learning entitlement

8,626 words·~39 min read·/bill/117/hr/5376/eh/section-23001·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

The definitions in section 658P of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858n ) shall apply to this section, except as provided in subsection

(b)and as otherwise specified. In this section: The term child care certificate means a certificate (that may be a check or other disbursement) that is issued by a State, Tribal, territorial, or local government under this section directly to a parent who shall use such certificate only as payment for child care services or as a deposit for child care services if such a deposit is required of other children being cared for by the provider. Nothing in this section shall preclude the use of such certificates for sectarian child care services if freely chosen by the parent. For the purposes of this section, child care certificates shall be considered Federal financial assistance to the provider. The term child experiencing homelessness means an individual who is a homeless child or youth under section 725 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11434a ). The term eligible activity , with respect to a parent, shall include, at minimum, activities consisting of— full-time or part-time employment; self-employment; job search activities; job training; secondary, postsecondary, or adult education, including education through a program of high school classes, a course of study at an institution of higher education, classes towards an equivalent of a high school diploma recognized by State law, or English as a second language classes; health treatment (including mental health and substance use treatment) for a condition that prevents the parent from participating in other eligible activities; activities to prevent child abuse and neglect, or family violence prevention or intervention activities; employment and training activities under the supplemental nutrition assistance program established under section 6(d)(4) the Food and Nutrition Act of 2008 ( 7 U.S.C. 2015(d)(4) ); employment and training activities under the Workforce Innovation and Opportunity Act; a work activity described in subsection

(d)of section 407 of the Social Security Act ( 42 U.S.C. 607 ) for which, consistent with clauses

(ii)and

(iii)of section 402(a)(1)(A) of such Act ( 42 U.S.C. 602(a)(1)(A) ), a parent or caretaker is treated as being engaged in work for a month in a fiscal year for purposes of the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act; and taking leave under the Family and Medical Leave Act of 1993 (or equivalent provisions for Federal employees), a State or local paid or unpaid leave law, or a program of employer-provided leave. The term eligible child means an individual, subject to subsection (g)(1)(C)(i)(III)— who is less than 6 years of age; who is not yet in kindergarten; whose family income— does not exceed 100 percent of the State median income for a family of the same size for fiscal year 2022; does not exceed 125 percent of such State median income for fiscal year 2023; does not exceed 150 percent of such State median income for fiscal year 2024; and does not exceed 250 percent of such State median income for each of the fiscal years 2025 through 2027; and who— resides with a parent or parents who are participating in an eligible activity; is included in a population of vulnerable children identified by the lead agency involved, which at a minimum shall include children with disabilities, infants and toddlers with disabilities, children experiencing homelessness, children in foster care, children in kinship care, and children who are receiving, or need to receive, child protective services; or resides with a parent who is more than 65 years of age. A child who is eligible to receive services under this subparagraph shall be treated as an eligible child for the other provisions of this section. Notwithstanding subparagraph (A)(iii), a State may use the payments under subsection (g)(1) for fiscal year 2022, 2023, or 2024, to provide direct child care services described in subsection (h)(1)(A) to children who meet the requirements of clauses (i), (ii), and

(iv)of subparagraph

(A)and whose family income exceeds the percentage specified in subparagraph (A)(iii) (but does not exceed 250 percent) of State median income for a family of the same size for a given fiscal year, if the State has appropriately prioritized, subject to approval by the Secretary, assistance for such services based on family income. In determining eligibility under this subparagraph, the State may take into consideration geographic variation in the cost of living among regions of the State and expand eligibility for children described in clause

(ii)in a region of the State based on such variation, subject to approval by the Secretary. The term eligible child care provider means a center-based child care provider, a family child care provider, or other provider of child care services for compensation that— is licensed to provide child care services under State law or, in the case of an Indian Tribe or Tribal organization, meets the rules set by the Secretary; participates in the State’s tiered system for measuring the quality of eligible child care providers described in subsection (f)(4)(B), or, in the case of an Indian Tribe or Tribal organization, meets the rules set by the Secretary— not later than the last day of the third fiscal year for which the State receives funds under this section; and for the remainder of the period for which the provider receives funds under this section; and satisfies the State and local requirements, including those requirements described in section 658E(c)(2)(I) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858c(c)(2)(I) ). A child care provider who is eligible to provide child care services in a State for children receiving assistance under the Child Care and Development Block Grant Act of 1990 on the date the State submits an application for funds under this section, and remains in compliance with any licensing or registration standards, or regulations, of the State, shall be deemed to be an eligible child care provider under this section for 3.5 years after the State first receives funding under this section. The term FMAP has the meaning given the term Federal medical assistance percentage in the first sentence of section 1905(b) of the Social Security Act ( 42 U.S.C. 1396d(b) ). The term family child care provider means one or more individuals who provide child care services, in a private residence other than the residences of the children involved, for less than 24 hours per day per child, or for 24 hours per day per child due to the nature of the work of the parent involved. The term inclusive , with respect to care (including child care), means care provided by an eligible child care provider— for whom the percentage of children served by the provider who are children with disabilities or infants or toddlers with disabilities reflects the prevalence of children with disabilities and infants and toddlers with disabilities (whichever the provider serves) among children within the State involved; and that provides care and full participation for children with disabilities and infants and toddlers with disabilities (whichever the provider serves) alongside children who are— not children with disabilities; and not infants and toddlers with disabilities. The term infant or toddler means an individual who is less than 3 years of age. The term infant or toddler with a disability has the meaning given the term in section 632 of the Individuals with Disabilities Education Act ( 20 U.S.C. 1432 ). The term lead agency means the agency designated under subsection (e). The term State means any of the 50 States and the District of Columbia. The term territory means the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— $11,460,000,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(A) in fiscal year 2022; $5,730,000,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(B) in fiscal year 2022; $4,125,600,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph

(A)or

(B)of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2022; and $1,604,400,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph (A), (B), or

(C)of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2022; $16,235,000,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(A) in fiscal year 2023; $8,117,500,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(B) in fiscal year 2023; $5,844,600,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph

(A)or

(B)of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2023; and $2,272,900,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph (A), (B), or

(C)of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2023; and $20,055,000,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(A) in fiscal year 2024; $10,027,500,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subsection (h)(1)(B) in fiscal year 2024; $7,219,800,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph

(A)or

(B)of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2024; and $2,807,700,000, to remain available until September 30, 2027, for States and the Commonwealth of Puerto Rico, to carry out the activities described in subparagraph (A), (B), or

(C)of subsection (h)(1), as determined by the State or Commonwealth, in fiscal year 2024. In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for each of fiscal years 2025 through 2027, for payments to States, for carrying out this section (other than carrying out activities described in paragraph (4), (5), or (6)). In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, for grants to Indian Tribes and Tribal organizations for the purpose of carrying out the child care program described in this section (other than carrying out activities described in paragraph (4), (5), or (6)), consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States— $960,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2022; $1,360,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2023; and $1,680,000,000 to remain available until September 30, 2027, to carry out the child care program in fiscal year 2024. In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for each of fiscal years 2025 through 2027, for payments to Indian Tribes and Tribal organizations, for the purpose of carrying out the child care program described in this section (other than carrying out activities described in paragraph (4), (5), or (6)), consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, for grants to Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands for the purpose of carrying out the child care program described in this section (other than carrying out activities described in paragraph (4), (5), or (6)), consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States— $120,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2022; $170,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2023; and $210,000,000, to remain available until September 30, 2027, to carry out the child care program in fiscal year 2024. In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, such sums as may be necessary for each of fiscal years 2025 through 2027, for payments to territories, for the purpose of carrying out the child care program described in this section (other than carrying out activities described in paragraph (4), (5), or (6)), consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2023; $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2024; $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2025; $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2026; and $950,000,000, to remain available until September 30, 2027, to carry out the program of grants to localities described in subsection (i)(2) in fiscal year 2027. In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2023; $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2024; $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2025; $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2026; and $2,850,000,000, to remain available until September 30, 2027, to carry out the program of awards to Head Start agencies described in subsection (i)(3) in fiscal year 2027. In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services for fiscal year 2022, out of any money in the Treasury not otherwise appropriated— $130,000,000, to remain available until September 30, 2027, to carry out subsections

(k)and

(l)in fiscal year 2022; $130,000,000, to remain available until September 30, 2027, to carry out subsections

(k)and

(l)in fiscal year 2023; $130,000,000, to remain available until September 30, 2027, to carry out subsections

(k)and

(l)in fiscal year 2024; and $130,000,000, to remain available until September 30, 2027, to carry out subsections

(k)and

(l)in fiscal year 2025. In addition to amounts otherwise available, there is appropriated to the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, for each of fiscal years 2026 and 2027, an amount equal to 1.06 percent of the prior year’s appropriation under paragraph (1)(B), to carry out subsections

(k)and (l). The Secretary is authorized to administer a child care and early learning entitlement program under which an eligible child, in a State, territory, or Indian Tribe, or served by a Tribal organization, with an approved application under subsection

(f)or (g), shall be provided an opportunity to obtain high-quality child care services, subject to the requirements of this section. Beginning on October 1, 2024, every child who applies for assistance under this section, who is in a State with an approved application under subsection (g), or in a territory or Indian Tribe or served by a Tribal organization with an approved application under subsection (f), and who is determined, by a lead agency (or other entity designated by a lead agency) for the State, territory, Indian Tribe, or Tribal organization involved, following standards and procedures established by the Secretary by rule, to be an eligible child, shall be offered assistance for direct child care services in accordance with and subject to the requirements and limitations of this section. The Governor of a State or the head of a territory or Indian Tribe, desiring for the State, territory, or Indian tribe or a related tribal organization to receive a payment under this section, shall designate a lead agency (such as a State agency or joint interagency office) to administer the child care program carried out under this section. To be eligible to receive assistance under this section, a State shall prepare and submit to the Secretary for approval an application containing a State plan that— for a transitional State plan, meets the requirements under paragraph

(3)and contains such information as the Secretary may require, to demonstrate the State will meet the requirements of this section; and for a full State plan, meets the requirements under paragraph

(4)and contains that information. A State plan contained in the application shall be designed to be implemented— for a transitional State plan, during a period of not more than 3 years; and for a full State plan, during a period of not more than 3 years. For a period of not more than 3 years following the date of enactment of this Act, the Secretary shall award funds under this section to States with an approved application that contains a transitional State plan, submitted under paragraph (1)(A) at such time, in such manner, and containing such information as the Secretary shall require, including, at a minimum— an assurance that the State will submit a State plan under paragraph (4); and a description of how the funds received by the State under this section will be spent to expand access to assistance for direct child care services and increase the supply and quality of child care providers within the State, in alignment with the requirements of this section. The Secretary shall award funds under this section to States with an approved application that contains a full State plan, submitted under paragraph (1)(B), at such time, in such manner, and containing such information as the Secretary shall by rule require, including, at a minimum, the following: The State plan shall certify that payment rates for the provision of direct child care services for which assistance is provided in accordance with this section for the period covered by the plan, within 3 years after the State first receives funds under this section— will be sufficient to meet the cost of child care, and set in accordance with a cost estimation model or cost study described in clause

(ii)that is approved by the Secretary; and will correspond to differences in quality (including improved quality) based on the State’s tiered system for measuring the quality of eligible child care providers described in subparagraph (B). Such State plan shall— demonstrate that the State has, after consulting with relevant entities and stakeholders, developed and uses a statistically valid and reliable cost estimation model or cost study for the payment rates for direct child care services in the State that reflect rates for providers at each of the tiers of the State’s tiered system for measuring the quality of eligible child care providers described in subparagraph (B), and variations in the cost of direct child care services by geographic area, type of provider, and age of child, and the additional costs associated with providing inclusive care; certify that the State’s payment rates for direct child care services for which assistance is provided in accordance with this section— are set in accordance with the most recent estimates from the most recent cost estimation model or cost study under subclause (I), so that providers at each tier of the tiered system for measuring provider quality described in subparagraph

(B)receive a payment that is sufficient to meet the requirements of such tier; are set so as to provide payments to providers not at the top tier of the tiered system that are sufficient to enable the providers to increase quality to meet the requirements for the next tier; ensure adequate wages for staff of child care providers providing such direct child care services that— at a minimum, provide a living wage for all staff of such child care providers; and are equivalent to wages for elementary educators with similar credentials and experience in the State; and are adjusted on an annual basis for cost of living increases to ensure those payment rates remain sufficient to meet the requirements of this section; and certify that the State will update, not less often than once every 3 years, the cost estimation model or cost study described in subclause (I). Such State plan shall include an assurance that the State will implement payment practices that support the fixed costs of providing direct child care services. Such State plan shall certify that the State has implemented, or assure that the State will implement within 3 years after first receiving funds under this section, a tiered system for measuring the quality of eligible child care providers who provide child care services for which assistance is made available under this section. Such tiered system shall— include a set of standards, for determining the tier of quality of a child care provider, that— uses standards for a highest tier that at a minimum are equivalent to Head Start program performance standards described in section 641A(a)(1)(B) of the Head Start Act ( 42 U.S.C. 9836a(a)(1)(B) ) or other equivalent evidence-based standards approved by the Secretary; and includes quality indicators and thresholds that are appropriate for child development in different types of child care provider settings, including child care centers and the settings of family child care providers, and are appropriate for providers serving different age groups (including mixed age groups) of children; include a different set of standards that includes indicators, when appropriate, for care during nontraditional hours of operation; and provide for sufficient resources and supports for child care providers at tiers lower than the highest tier to facilitate progression toward meeting higher quality standards. Such State plan shall certify the State has implemented, or will implement within 3 years after first receiving funds under this section, policies and financing practices that will ensure all eligible children can choose to attend child care at the highest quality tier within 6 years after the date of enactment of this Act. Such plan shall provide a certification that the State has or will have within 3 years after first receiving funds under this section, a wage ladder for staff of eligible child care providers receiving assistance under this section, including a certification that wages for such staff, at a minimum, will meet the requirements of subparagraph (A)(ii)(II)(cc). Except as provided in clause (ii)(I), the State plan shall provide an assurance that the State will for the period covered by the plan use a sliding fee scale described in clause

(ii)to determine a copayment for a family receiving assistance under this section (or, for a family receiving part-time care, a reduced copayment that is the proportionate amount of the full copayment). A full copayment described in clause

(i)shall use a sliding fee scale that provides that, for a family with a family income— of not more than 75 percent of State median income for a family of the same size, the family shall not pay a copayment, toward the cost of the child care involved for all eligible children in the family; of more than 75 percent but not more than 100 percent of State median income for a family of the same size, the copayment shall be more than 0 but not more than 2 percent of that family income, toward such cost for all such children; of more than 100 percent but not more than 125 percent of State median income for a family of the same size, the copayment shall be more than 2 but not more than 4 percent of that family income, toward such cost for all such children; of more than 125 percent but not more than 150 percent of State median income for a family of the same size, the copayment shall be more than 4 but not more than 7 percent of that family income, toward such cost for all such children; and of more than 150 percent but not more than 250 percent of the State median income for a family of the same size, the copayment shall be 7 percent of that family income, toward such cost for all such children. The State plan shall certify that the State will not permit a child care provider receiving financial assistance under this section to charge, for child care for an eligible child, more than the total of— the financial assistance provided for the child under this section; and any applicable copayment pursuant to subparagraph (E). The State plan shall assure that each child who receives assistance under this section will be considered to meet all eligibility requirements for such assistance, and will receive such assistance, for not less than 12 months unless the child has aged out of the program, and the child’s eligibility determination and redetermination, including any determination based on the State’s definition of eligible activities, shall be implemented in a manner that supports child well-being and reduces barriers to enrollment, including continuity of services. The State plan shall demonstrate that the State will prioritize increasing access to, and the quality and the supply of, child care in the State for underserved populations, including at a minimum, low-income children, children in underserved areas, infants and toddlers, children with disabilities and infants and toddlers with disabilities, children who are dual language learners, children experiencing homelessness, children in foster or kinship care, children who receive care during nontraditional hours, and vulnerable children as defined by the lead agency pursuant to subsection (b)(4)(A)(iv)(II). The State plan shall include a certification that the State will apply, under this section, the policies and procedures described in subparagraphs (A), (B), (I), (J), (K)(i), (R), and

(U)of section 658E(c)(2) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858c(c)(2) ), and the policies and procedures described in section 658H of such Act ( 42 U.S.C. 9858f ), to child care services provided under this section. The State plan shall demonstrate that the State has consulted or will consult with organizations (including labor organizations) representing child care directors, teachers, or other staff, early childhood education and development experts, and families to develop, within 2.5 years after first receiving funds under this section, licensing standards appropriate for child care providers and a pathway to such licensure that is available to and appropriate for child care providers in a variety of settings, that will offer providers eligible under the Child Care and Development Block Grant Act of 1990 a reasonable pathway to become eligible providers under this section, and that will assure an adequate supply of child care. Such plan shall describe the timeline the State will use to ensure sufficient time for providers described in subsection (b)(5)(B) to comply with such licensing standards in order to remain eligible providers after 3.5 years after the State first receives funding under this section. For purposes of this paragraph— the term State means the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico; and the term territory means Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and the United States Virgin Islands. For each of fiscal years 2022 through 2024, the Secretary shall, from the amount appropriated under subsection (c)(1)(A) for such fiscal year, make allotments to each State with an application approved under subsection

(f)in the same manner as the Secretary makes such allotments using the formula under section 658O(b) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858m(b) ). For each of fiscal years 2022 through 2024, from the amount appropriated for Indian Tribes and Tribal organizations under subsection (c)(2)(A), the Secretary shall make payments to Indian Tribes and Tribal organizations with an application approved under subclause (II), and the Tribes and Tribal organizations shall be entitled to such payments for the purpose of carrying out the child care program described in this section, consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. An Indian Tribe or Tribal organization seeking a payment under this clause shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may specify, including an agreement to provide reports under subsection (j)(7). The Secretary shall determine eligibility criteria for children from Indian tribes who are less than 6 years of age and not yet in kindergarten, which eligibility criteria shall not be more stringent than the eligibility criteria under subsection (b)(4)(A). For each of fiscal years 2022 through 2024, from the amount appropriated for territories under subsection (c)(3)(A), the Secretary shall make payments to the territories with an application approved under subclause (II), and the territories shall be entitled to such payments, for the purpose of carrying out the child care program described in this section, consistent, to the extent practicable as determined by the Secretary, with the requirements applicable to States. A territory seeking a payment under this clause shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may specify, including an agreement to provide reports under subsection (j)(7). For each of fiscal years 2022 through 2024, each State that has an application approved under subsection

(f)shall be entitled to a payment under this clause in the amount equal to its allotment under subparagraph

(B)for such fiscal year. Notwithstanding any other provision of this paragraph, for each of fiscal years 2022 through 2024, the Secretary shall have the authority— to reallot funds that were allotted under subparagraph

(B)from any State without an approved application under subsection

(f)by the date required by the Secretary, to States with an approved application under that subsection; and to reallot any amounts available for payments under subparagraph

(C)that the Secretary elected to allot for— an Indian Tribe or Tribal organization without an approved application under subparagraph (C)(i)(II) by the date required by the Secretary, to Tribes or Tribal organizations with such an approved application; and any territory without an approved application under subparagraph (C)(ii)(II) by the date required by the Secretary, to territories with such an approved application. Notwithstanding any other provision of this section, on October 1, 2024, the Secretary shall have the authority to reallot funds from payments made under subparagraph

(C)that are unobligated on such date, to any entity without such unobligated funds that is a State with an approved application under subsection (f), an Indian Tribe or Tribal organization with an approved application under subparagraph (C)(i)(II), or a territory with an approved application under subparagraph (C)(ii)(II), to carry out the purposes of this section. For each of fiscal years 2025 through 2027: The Secretary shall pay to each State with an approved application under subsection (f), and that State shall be entitled to, an amount for each quarter equal to 95.440 percent of expenditures (which shall be the Federal share of such expenditures) in the quarter for direct child care services described under subsection (h)(2)(B) for eligible children. Funds reserved from the total under subsection (h)(2)(C) shall be subject to clause (ii). Activities described in clause

(ii)and clause

(iii)may not be included in the cost of direct child care services described in this clause. The Secretary shall pay to each State with such an approved application, and that State shall be entitled to, an amount equal to the product of 1.06045 and the FMAP of expenditures (which product shall be the Federal share of such expenditures) to carry out activities to improve the quality and supply of child care services under subsection (h)(2)(C) subject to the limit specified in clause

(i)of such subsection. The Secretary shall pay to each State with such an approved application, and that State shall be entitled to, an amount equal to 53.022 percent of expenditures (which shall be the Federal share of such expenditures) for the costs of administration incurred by the State— which shall include costs incurred by the State in carrying out the child care program established in this section; and which may include, at the option of the State, costs associated with carrying out requirements, policies, and procedures described in section 658H of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858f ). For each of fiscal years 2025 through 2027, the Secretary shall make payments under this paragraph for a period on the basis of advance estimates of expenditures submitted by the State and such other investigation as the Secretary may find necessary, and shall reduce or increase the payments as necessary to adjust for any overpayment or underpayment for previous periods. No interest shall be charged or paid on any amount due because of an overpayment or underpayment for previous periods. For each of fiscal years 2025 through 2027, from the amounts appropriated under paragraph (2)(B) or (3)(B) of subsection

(c)the Secretary shall make payments to territories, and Indian Tribes and Tribal organizations, as the case may be, with applications submitted as described in paragraph (1), and approved by the Secretary for the purpose of carrying out the child care program described in this section, consistent, to the extent practicable as determined by the Secretary (subject to subsection (d)(2)), with the requirements applicable to States. The Secretary shall make the payments to such territories, Indian Tribes, and Tribal organizations on the basis of their relative need. Each entity that is such a territory, Indian Tribe, or Tribal organization shall be entitled to such a payment as may be necessary to carry out the activities described in subsection (h)(2), and to pay for the costs of administration incurred by the entity, which shall include costs incurred by the entity in carrying out the child care program, and which may include, at the option of the entity, costs associated with carrying out requirements, policies, and procedures described in section 658H of the Child Care and Development Block Grant Act of 1990. For each of fiscal years 2022 through 2024, a State (as defined in subsection (g)(1)) that receives a payment under subsection (g)(1) shall use such payment for— assistance for direct child care services, which shall consist only of— assistance for direct child care services for eligible children through grants and contracts, and child care certificates; increasing child care provider payment rates to support the cost of providing high-quality direct child care services, including rates sufficient to support increased wages for staff of eligible child care providers; and waiving or reducing copayments, to ensure that the families of children receiving assistance under this section do not pay more than 7 percent of family income toward the cost of the child care involved for all eligible children in the family; activities described in paragraph (2)(C), without regard to the requirement in clause (i)(I) of such paragraph or to the references to a quality child care amount in such paragraph; and costs of administration incurred by the State, which shall include the costs described in subclause

(I)of subsection (g)(2)(A)(iii) and may, at the option of the State, include the costs described in subclause

(II)of such subsection. Starting on October 1, 2024, a State shall use amounts provided to the State under subsection (g)(2) for direct child care services (provided on a sliding fee scale basis), activities to improve the quality and supply of child care services consistent with paragraph (C), and State administration consistent with subsection (g)(2)(A)(iii). For each of fiscal years 2025 through 2027, from payments made to the State under subsection (g)(2) for that particular fiscal year, the State shall ensure that parents of eligible children can access direct child care services provided by an eligible child care provider under this section through a grant or contract as described in clause

(ii)or a certificate as described in clause (iii). The State shall award grants or contracts to eligible child care providers, consistent with the requirements under this section, for the provision of child care services for eligible children under this section that, at a minimum— support providers’ operating expenses to meet and sustain health, safety, quality, and wage standards required under this section; and address underserved populations described in subsection (f)(4)(H). The State shall issue a child care certificate directly to a parent who shall use such certificate only as payment for direct child care services or as a deposit for direct child care services if such a deposit is required of other children being cared for by the provider, consistent with the requirements under this section. For each of fiscal years 2025 through 2027, from the total of the payments made to the State for a particular fiscal year, the State shall reserve and use a quality child care amount equal to not less than 5 percent and not more than 10 percent of the amount made available to the State through such payments for the previous fiscal year. Each State shall use the quality child care amount described in subclause

(I)to implement activities described in this subparagraph to improve the quality and supply of child care services by eligible child care providers, and increase the number of available slots in the State for child care services funded under this section, prioritizing assistance for child care providers who are in underserved communities and who are providing, or are seeking to provide, child care services for underserved populations identified in subsection (f)(4)(H). Activities funded under this subparagraph may be administered— directly by the lead agency; or through other State government agencies, local or regional child care resource and referral organizations, community development financial institutions, other intermediaries with experience supporting child care providers, or other appropriate entities that enter into a contract with the State to provide such assistance. Activities funded under the quality child care amount described in clause

(i)shall include each of the following: From a portion of the quality child care amount, a State shall make startup and supply expansion grants to support child care providers who are providing, or seeking to provide, child care services to children receiving assistance under this section, with priority for providers providing or seeking to provide child care in underserved communities and for underserved populations identified in subsection (f)(4)(H), to— support startup and expansion costs; and assist such providers in meeting health and safety requirements, achieving licensure, and meeting requirements in the State’s tiered system for measuring the quality of eligible child care providers. As a condition of receiving a startup or supply expansion grant under this subclause, a child care provider shall commit to meeting the requirements of an eligible provider under this section, and providing child care services to children receiving assistance under this section on an ongoing basis. From a portion of the quality child care amount, a State shall provide quality grants to support eligible child care providers in providing child care services to children receiving assistance under this section to improve the quality of such providers, including— supporting such providers in meeting or making progress toward the requirements for the highest tier of the State’s tiered system for measuring the quality of eligible child care providers under subsection (f)(4)(B); and supporting such providers in sustaining child care quality, including supporting increased wages for staff and supporting payment of fixed costs. From a portion of the quality child care amount, a State shall provide support, including through awarding facilities grants, for remodeling, renovation, or repair of a building or facility to the extent permitted under section 658F(b) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858 ). For fiscal years 2022 through 2024, and in subsequent years with approval from the Secretary, a State may award such facilities grants for construction, permanent improvement, or major renovation of a building or facility primarily used for providing direct child care services, in accordance with the following: Federal interest provisions will not apply to the renovation or rebuilding of privately-owned family child care homes under this subclause. Eligible child care providers may not use funds for buildings or facilities that are used primarily for sectarian instruction or religious worship. The Secretary shall develop parameters on the use of funds under this subclause for family child care homes. The Secretary shall not retain Federal interest after a period of 10 years in any facility built, renovated, or repaired with funds awarded under this subclause. For purposes of subclause (III), the Secretary shall not— enter into any agreement related to funds for activities carried out under subclause (III)— that is for a term extending beyond September 30, 2031; and under which any payment could be outlaid after September 30, 2031; or use any other funds available to the Secretary, other than funds provided under this section, to satisfy obligations initially made for activities carried out under subclause (III). A State shall use a portion of the quality child care amount to improve the quality of child care services available for this program, which shall include— supporting the training and professional development of the early childhood workforce, including supporting degree attainment and credentialing for early childhood educators; developing, implementing, or enhancing the State’s tiered system for measuring the quality of eligible child care providers under subsection (f)(4)(B); improving the supply and quality of developmentally appropriate and inclusive child care programs and services for underserved populations described in subsection (f)(4)(H); improving access to child care services for vulnerable children as defined by the lead agency pursuant to subsection (b)(4)(A)(iv)(II); and providing outreach and enrollment support for families of eligible children. From a portion of the quality child care amount, the State shall provide technical assistance to increase the supply and quality of eligible child care providers who are providing, or seeking to provide, child care services to children receiving assistance under this section, including providing support to enable providers to achieve licensure. In this subsection, the term eligible locality means a city, county, or other unit of general local government. The Secretary shall use funds appropriated under subsection (c)(4) to award local Birth Through Five Child Care and Early Learning Grants, in accordance with rules established by the Secretary, to eligible localities located in States that have not received payments under subsection (g). The Secretary shall award the grants to eligible localities in such a State from the allotment made for that State under subparagraph (B). In this subparagraph, the term poverty line means the poverty line defined and revised as described in section 673 of the Community Services Block Grant Act ( 42 U.S.C. 9902 ). For each State described in subparagraph (A), the Secretary shall allot for the State for a fiscal year an amount that bears the same relationship to the funds appropriated under subsection (c)(4) for the fiscal year as the number of children from families with family incomes that are below 200 percent of the poverty line, and who are under the age of 6, in the State bears to the total number of all such children in all States described in subparagraph (A). To receive a grant from the corresponding State allotment under subparagraph (B), an eligible locality shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. The requirements for the application shall, to the greatest extent practicable, be consistent with the State plan requirements applicable to States under subsection (f). The Secretary shall specify the requirements for an eligible locality to provide access to child care, which child care requirements shall, to the greatest extent practicable, be consistent with the requirements applicable to States under this section. Notwithstanding any other provision of this section, for each of fiscal years 2023 through 2027, the Secretary shall have the authority to recoup any unused funds allotted under subparagraph

(B)for awards under paragraph (3)(A) to Head Start agencies in accordance with paragraph (3). The Secretary shall use funds appropriated under subsection (c)(5) or recouped under paragraph

(2)to make awards to Head Start agencies in a State described in paragraph (2)(A) to carry out the purposes of the Head Start Act in such State. For purposes of carrying out the Head Start Act in circumstances not involving awards under this paragraph, funds awarded under subparagraph

(A)shall not be included in the calculation of a base grant as such term is defined in section 640(a)(7)(A) of the Head Start Act ( 42 U.S.C. 9835(a)(7)(A) ). In this paragraph, the term Head Start agency means an entity designated or eligible to be designated as a Head Start agency under section 641(a)(1) of the Head Start Act or as an Early Head Start agency (by receiving a grant) under section 645A(a) of such Act. In making determinations to award a grant or make an award under this subsection, the Secretary shall give priority to entities serving a high percentage of individuals from underserved populations described in subsection (f)(4)(H). The following provisions of law shall apply to any program or activity that receives funds provided under this section: Title IX of the Education Amendments of 1972. Title VI of the Civil Rights Act of 1964. Section 504 of the Rehabilitation Act of 1973. The Americans with Disabilities Act of 1990. Section 654 of the Head Start Act. No individual shall be determined, by the Secretary, a State, or another recipient of funds under this section, to be ineligible for child care services provided under this section, except on the basis of eligibility requirements specified in or under this section. A State that receives payments under this section for a fiscal year, in using the funds made available through the payments, shall maintain the expenditures of the State for child care services at the average level of such expenditures by the State for the 3 preceding fiscal years. State expenditures counted for purposes of meeting the requirement in subparagraph

(A)may also be counted for purposes of meeting the requirement to provide a non-Federal share under clause (i), (ii), or (iii), as appropriate, of subsection (g)(2)(A). Funds received under this section shall be used to supplement and not supplant other Federal, State, and local public funds expended to provide child care services in the State on the date of enactment of this Act, calculated as the average amount of such Federal, State, and local public funds expended for fiscal years 2019, 2020, and 2021. For purposes of providing the non-Federal share required under subsection (g)(2), a State’s non-Federal share— for direct child care services described in subsection (g)(2)(A)(i)— shall not include contributions being used as a non-Federal share or match for another Federal award; and shall be provided from State or local sources, contributions from philanthropy or other private organizations, or a combination of such sources and contributions; and for activities to improve the quality and supply of child care services described in subsection (g)(2)(A)(ii), and administration described in subsection (g)(2)(A)(iii)— shall not include contributions being used as a non-Federal share or match for another Federal award; shall be provided from State or local sources, contributions from philanthropy or other private organizations, or a combination of such sources and contributions; and may be in cash or in kind, fairly evaluated, including facilities or property, equipment, or services. For purposes of determinations of participation in an eligible activity, the provision of information for such determinations by Federal agencies other than the Department of Health and Human Services shall not be required. A State, Indian Tribe, Tribal organization, or territory receiving funds under this section shall provide to the Secretary such periodic reports, providing a detailed accounting of the uses of the funds received under this section, as the Secretary may require for the administration of this section. The State, Indian Tribe, Tribal organization, or territory shall begin to provide the reports beginning not later than 60 days after its initial receipt of a payment under subsection (g)(1). The Secretary shall review and monitor compliance of States, territories, Tribal entities, and local entities with this section and State compliance with the plan described in subsection (f)(4). The Secretary shall establish by rule procedures for— receiving, processing, and determining the validity of complaints or findings concerning any failure of a State to comply with the State plan or any other requirement of this section; notifying a State when the Secretary has determined there has been a failure by the State to comply with a requirement of this section; and imposing sanctions under this subsection for such a failure. Using funds reserved under subsection (c)(6), the Secretary shall carry out administration of this section, shall provide (including through the use of grants or cooperative agreements) technical assistance to States, territories, Indian Tribes, and Tribal organizations, and shall carry out research, and evaluations related to this section. For each of fiscal years 2025, 2026, and 2027, a State receiving assistance under this section shall not use more than 10 percent of any funds received under the Child Care and Development Block Grant Act of 1990 to provide assistance for direct child care services to children who are under the age of 6, are not yet in kindergarten, and are eligible under that Act. Any child who is less than 6 years of age, is not yet in kindergarten, and is receiving assistance under the Child Care and Development Block Grant Act of 1990 on the date funding is first allocated to the lead agency for the State, territory, Indian Tribe, or Tribal organization involved under this section— shall be deemed immediately eligible to receive assistance under this section; and may continue to use the child care provider of the family’s choice. The Secretary is authorized to institute procedures for implementing this section, including issuing guidance for States receiving funds under subsection (g)(1).

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