39–010 

Calendar No. 199 

109TH CONGRESS REPORT " ! SENATE 1st Session 109–130 

CARING FOR CHILDREN ACT OF 2005 

AUGUST 31, 2005.—Ordered to be printed 

Filed, under authority of the order of the Senate of July 29, 2005 

Mr. ENZI, from the Committee on Health, Education, Labor, and 

Pensions, submitted the following 

R E P O R T 

[To accompany S. 525] 

The Committee on Health, Education, Labor, and Pensions, to 

which was referred the bill (S. 525) to amend the Child Care and 

Development Block Grant Act of 1990 to reauthorize the Act, to improve early learning opportunities and promote school preparedness, and for other purposes, having considered the same, reports 

favorably thereon with an amendment in the nature of a substitute 

and recommends that the bill (as amended) do pass. 

CONTENTS 

Page 

I. Purpose and summary ................................................................................... 1 

II. Background and need for legislation ............................................................ 2 

III. Legislative history and committee action .................................................... 4 

IV. Explanation of legislation and committee views ......................................... 4 

V. Cost estimate .................................................................................................. 15 

VI. Application of law to the legislative branch ................................................ 17 

VII. Regulatory impact statement ........................................................................ 17 

VIII. Section-by-section analysis ............................................................................ 17 

IX. Changes in existing law ................................................................................ 26 

I. PURPOSE AND SUMMARY

It is the purpose of S. 525, the Caring for Children Act of 2005 

to renew, improve, and strengthen the Child Care and Development Block Grant Act of 1990 for the next 5 years. The Caring for 

Children Act of 2005 is designed to maintain State flexibility and 

improve access to high quality child care for low income working 

families. 

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II. BACKGROUND AND NEED FOR LEGISLATION

The current system of child care assistance, which is supported 

by Federal, State, and local funds, is largely a result of Federal legislative activity over the last 16 years. In 1988, the Family Support 

Act, which at the time represented groundbreaking legislation to 

reform the Aid to Families with Dependent Children (AFDC) program, for the first time provided a child care entitlement for families on welfare. Originated by the Senate Finance Committee, the 

Family Support Act created a child care entitlement for AFDC parents who were working, enrolled in job training, or enrolled in an 

educational program, and for parents needing transitional child 

care assistance for 12 months after leaving welfare (Transitional 

Child Care or TCC). 

In 1990, two more child care programs were created: the Child 

Care and Development Block Grant (CCDBG) program under the 

jurisdiction of the Senate Labor Committee (now renamed the Senate Health, Education, Labor, and Pensions Committee), and the 

title IV–A At Risk Child Care program under the jurisdiction of the 

Senate Finance Committee. Both of these programs were designed 

to help low income working families, and CCDBG was designed to 

improve the quality of child care as well. Unlike the Family Support Act child care programs, these two new programs were block 

grants to the States (not individual entitlements) and were not designed to assist welfare families. 

In 1996, the four Federal child care programs (the AFDC child 

care entitlement, the Transitional Child Care entitlement, the IV– 

A At Risk Child Care program and the Child Care and Development Block Grant) were consolidated under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). The 

Act eliminated the entitlement to child care assistance for parents 

receiving welfare and for those transitioning from welfare to work. 

The three Finance Committee programs were consolidated into one 

funding stream referred to as mandatory funding because the funding is specified in law and does not need to compete against other 

funding in the regular appropriations process. Funding for the 

Child Care and Development Block Grant (CCDBG) remained 

under the jurisdiction of the Senate Health, Education, Labor, and 

Pensions (HELP) Committee and was retained as a discretionary 

program. 

CHILD CARE FUNDING

Since funding for child care is made through a combination of 

discretionary and mandatory funding, the U.S. Department of 

Health and Human Services (HHS) refers to the combined funding 

streams as the Child Care and Development Fund (CCDF). Since 

1988, funding for child care has grown dramatically. Federal child 

care spending through the CCDF has increased by over 200 percent 

since 1996. However, in the absence of Temporary Assistance for 

Needy Families (TANF) reauthorization which has been extended 

10 times over the last 4 years, funds for child care have not been 

increased since fiscal year 2002. Discretionary funding for CCDBG 

is $2.1 billion for fiscal year 2005. Mandatory funding is set at $2.7 

billion, for a total of $4.8 billion in direct Federal spending for fisVerDate Aug 18 2005 04:00 Sep 02, 2005 Jkt 039010 PO 00000 Frm 00002 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130
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cal year 2005. HHS estimates that about 2.3 million children receive child care assistance today. 

In addition to Federal dollars provided through mandatory and 

discretionary funding, States currently may transfer up to 30 percent of their TANF block grant to CCDBG. In fiscal year 2003, 

States transferred $1.9 billion to the block grant. 

States also may spend additional TANF money directly on child 

care services outside of the CCDBG. In fiscal year 2003, States reported spending $1.7 billion of their TANF grants for child care directly within the TANF program. From 1996 through 2000 TANF 

direct expenditures for child care doubled. In fiscal year 2000 

TANF direct child care funding was at an all time high of $2.2 billion. However, since 2001 spending has been stagnant at the $1.6 

billion to $1.7 billion range. 

Expenditure data show that in fiscal year 2003, States spent more than $9 billion in Federal and State money from the Child 

Care and Development Block Grant (this amount includes spending 

from the TANF transfers to the CCDBG). In addition, States spent 

over $2 billion on child care within the TANF system. Therefore, 

in total, over $11 billion was spent on child care through the 

CCDBG and TANF in fiscal year 2003 (of which $8.9 billion were 

Federal funds). 

As a result of the CCDF, TANF, and Social Services Block Grant 

(SSBG) spending for child care services, 2.3 million children are estimated to have received child care assistance in fiscal year 2004. 

States may use CCDBG, TANF and the SSBG Grants to directly 

support child care for low-income families. Other Federal programs 

also provide funds for early childhood development and targeted assistance for children. These include Head Start (funded at $6.8 billion in fiscal year 2005), the Child and Adult Care Food Program 

($2.1 billion), the Individuals with Disabilities Education Act 

(IDEA) preschool and infant/toddler grants ($826 million), and, for 

after-school and weekend activities for school age children, the 21st 

Century Community Learning Centers ($991 million). In total, 

combined annual funding for child care, early education and targeted assistance programs is estimated by HHS to exceed $19 billion. 

ASSISTANCE FOR LOW-INCOME WORKING FAMILIES

Between June 1996 and June 2004, the welfare caseload dropped 

by 2.3 million families. The majority of welfare leavers are now employed. The share of TANF families working or participating in 

work-related activities while receiving TANF was 626,000 in Fiscal 

Year 2003 (the most recent year for which data are available). Between 1996 and 2004, the number of working single mothers grew 

from 6.3 million to 7.3 million. And, according to Congressional Research Service, estimates based on analysis of U.S. Census data, 

the employment rate for single mothers was 63.5 percent in 1996, 

and has increased to 70 percent in 2004. Many of these parents 

need child care assistance to stay employed. 

The committee believes that the challenge for Congress this year 

is to build on the 1996 welfare reform law—by putting even more 

Americans on the path to self-reliance. The increase in the number 

of women participating in the labor force, and the number of these 

women who are the sole or primary financial supporters of their 

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children are the most important factors affecting the demand for 

child care. 

Increasingly, the affect of child care on children also has become 

a significant public issue. Research in the field of child development demonstrates that low-income children can benefit from child 

care with an early childhood development focus. Therefore, the 

quality of child care available is important so that all young children are developmentally prepared to enter and succeed in school. 

The Caring for Children Act strengthens the Federal commitment 

to foster quality environments and early learning experiences for 

young children. 

Concerns about the supply, quality and affordability of child care 

for many low-income families led to a national debate over the nature and extent of the Nation’s child care problems and what, if 

any, Federal intervention would be appropriate. Federal lawmakers 

recognized the need to ensure that parents have an affordable 

choice and access to child care so that parents participate in the 

workforce. 

III. LEGISLATIVE HISTORY AND COMMITTEE ACTION

On March 3, 2005, Senators Alexander, Dodd, Enzi, Kennedy, 

Hatch, and Roberts, introduced S. 525, the Caring for Children Act 

of 2005. On March 9, 2005, the committee met in Executive Session 

to consider the Caring for Children Act of 2005. Senator Enzi offered an amendment as a complete substitute and it was agreed to 

unanimously by all members present. 

IV. EXPLANATION OF LEGISLATION AND COMMITTEE VIEWS

Title I—Child Care and Development Block Grant 

OVERVIEW

The Caring for Children Act of 2005 reauthorizes the Child Care 

and Development Block Grant (CCDBG) through 2010 at a level of 

$2.3 billion for fiscal year 2006, $2.5 billion for fiscal year 2007, 

$2.7 billion for fiscal year 2008, $2.9 billion for fiscal year 2009, 

and $3.1 billion for fiscal year 2010. The current 2005 appropriation is $2.1 billion. 

PROGRAM GOALS

The Caring for Children Act amends the existing goals to emphasize that the Block grant is intended to serve both low-income 

working families who receive cash assistance and those who do not. 

It continues to provide States maximum flexibility in developing 

child care programs and policies and promotes parental choice so 

that parents can select the type of child care and setting that they 

prefer. 

The legislation creates three new goals: (1) To assist States in 

improving the quality of child care available to families; (2) to promote school preparedness by encouraging children, families and 

care-givers to engage in developmentally and age appropriate activities in child care settings that will improve children’s social, 

emotional and behavioral skills and foster their early cognitive, 

pre-reading and language development and prenumeracy and 

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mathematics skills; and (3) to promote parental and family involvement in the education of their young children in child care settings. 

The new goals that have been added to encourage States to improve the quality of child care and to promote cognitive development and school readiness are consistent with the President’s early 

childhood education initiative, Good Start, Grow Smart, designed to 

address the cognitive and other developmental needs of young children so that they are prepared to enter and succeed in school. 

LEAD AGENCY

The committee bill amends the act to let States designate a collaborative agency or establish a joint interagency office to serve as 

the lead agency responsible for administering the program. 

STATE PLAN REQUIREMENTS

The Caring for Children Act modifies the State plan in several 

ways. The legislation asks States to collect and disseminate information to both parents of eligible children and child care providers 

about: the quality and availability of child care services; resources 

to assist families in obtaining child care; research and best practices on children’s development; and, other programs and services 

for which families may be eligible, including the food stamp, WIC, 

Medicaid and SCHIP programs. 

This legislation requires States to describe partnerships between 

public and private entities that will increase the supply and quality 

of child care services, and coordination of child care services provided by this act with other child care and early childhood education programs, such as Head Start, Early Reading First, Even 

Start, Ready to Learn television, Part C and Part B 619 of IDEA 

and State-sponsored pre-kindergarten. 

Beginning in 2006, State plans will contain the outline of the 

State’s strategy to address the quality of child care available to 

children in that State. States will report on the use of quantifiable, 

objective measures for evaluating the quality of child care services 

and progress in improving child care quality. 

Finally, States are asked to address factors that can make finding care difficult for some parents. States will report how the State 

is working to meet the child care needs of parents eligible for assistance who have children with special needs, work non-traditional hours, or require infant and toddler care. The intent of the 

language in this section is to ensure that State redetermination 

policies do not interfere with parents’ ability to maintain employment while maintaining their eligibility for assistance. The committee encourages States to explore approaches to eligibility redetermination that support the work schedules of families receiving 

assistance, such as: the provision of extended office hours (including office hours before 8 a.m., after 6 p.m., or on the weekend); and 

the use of postal mail or electronic communications such as communications by telephone, fax, or electronic mail, and provision of 

a receipt providing confirmation that required documents have 

been submitted. 

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APPLICATION AND STATE PLAN REQUIREMENTS

Under current law, each State that applies for a Federal block 

grant is required to submit a State plan to the Secretary of HHS. 

The State plan is designed to ensure that States are complying 

with minimal Federal guidelines before receiving their grant. 

States are asked to certify that parents have unlimited access to 

their children while in care and the ability to choose their child’s 

care provider and setting. States also must assure compliance with 

State licensing, health and safety requirements, address the child 

care needs of certain population groups, and substantiate that payment rates for child care services are sufficient to ensure equal access to services available to children not eligible for subsidized 

care. 

The Caring for Children Act enhances the State plan in several 

ways to improve the quality of child care services provided to eligible families. This includes encouraging States to: (1) Collect and 

disseminate information to parents to assist them in making informed child care choices; (2) put in place procedures and policies 

to protect working parents such as providing assistance for eligible 

families for at least 6 months before re-determining eligibility; (3) 

coordinate this program with other Federal, State and local programs (including Head Start, Early Head Start, Early Reading 

First, Title I preschool program, Part 619 and Part C of IDEA, 

Ready to Learn television, State pre-kindergarten programs and 

other early childhood education programs); (4) describe any training requirements that are in effect that are designed to enable 

childcare providers to promote the social, emotional, physical, and 

cognitive development of children; (5) encourage partnerships with 

private and other public entities to leverage existing service delivery systems of early childhood and increase the supply and quality 

of childcare services; (6) address the child care needs of parents eligible for child care services who have children with special needs, 

work nontraditional hours, or require child care services for infants 

or toddlers; and (7) inform parents receiving assistance under a 

program funded under part A of Title IV of the Social Security Act 

(TANF) and low-income parents about eligibility for assistance 

under this subchapter. 

Beginning in 2006, State plans will contain the outline of the 

State’s strategy to address the quality of child care available to 

children in that State. States will report on the use of quantifiable, 

objective measures for evaluating the quality of child care services 

and its progress in improving child care quality. The committee 

does not intend or desire to create any Federal standards for quality of child care and intends for States to have complete discretion 

in fulfilling these provisions. 

CHILD CARE RESOURCE AND REFERRAL SYSTEM

The Caring for Children Act allows States to use block grant 

funds to support child care resource and referral organizations. 

State and local child care resource and referral agencies (CCR&R) 

are often a community’s vital link between parents and child care 

providers. Most States have in place a comprehensive child care resource and referral network that supports families in finding child 

care; compiles, analyzes, and shares information with parents, proVerDate Aug 18 2005 04:00 Sep 02, 2005 Jkt 039010 PO 00000 Frm 00006 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130
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viders and communities on the supply, cost, and quality of child 

care and the availability of child care subsidies; and, supports individuals and programs providing care for children. Child care resource and referral organizations can be a cost-effective resource 

because of their ability to leverage public dollars with contributions 

from private sources. 

PAYMENT RATES AND MARKET RATE SURVEYS

Under current law, States are required to set payment rates that 

are sufficient to ensure equal access for eligible children to comparable child care services in the State for children who are not eligible for assistance. Federal guidelines suggest payment rates set 

at or above the 75th percentile as a benchmark States should consider in providing equal access. 

States use a variety of means to determine and establish reimbursement and payment rates for subsidized child care. According 

to the Government Accountability Office, most States report using 

the results of market rate surveys to help set these rates but also 

report considering other factors such as budgets, the age group of 

the child needing care, and the geographic location of the care. The 

committee recognizes and intends to maintain the flexibility that 

States currently have to design and implement payment and reimbursement rates in ways that reflect their particular circumstances 

consistent with equal access. 

The Caring for Children Act requires the State to conduct a statistically valid survey of the market rates for child care services in 

the State within 2 years preceding the date of submission of the 

application (although the committee encourages States to conduct 

their survey as close as possible to the development of the State 

plan) and to describe how the State will set payment rates to reflect the results of the market rates survey without reducing the 

number of families served. However, this requirement is not intended to encourage a State to increase the number of families assisted before it increases payment rates. This requirement is not 

intended to preclude a State from raising payment rates if the 

State has previously found it necessary to reduce the number of 

families assisted for other programmatic or fiscal reasons. 

The committee bill further requires States to publish the results 

of the survey within 30 days. Additionally, if in a fiscal year a 

State receives funds in an amount that exceeds the funds it received in fiscal year 2005 to carry out the CCDBG, the State is encouraged to consider using a portion of the excess to increase payment rates, support the establishment of tiered payment rates or 

to support payment rate increases for child care for children in 

communities served by elementary and secondary schools in need 

of improvement. In addition, the committee encourages States to 

examine the usual and customary practices with regard to payment 

for child absentee days. 

The committee bill preserves the equal access standard that 

State payment rates be sufficient to provide children receiving 

CCDBG funded assistance equal access to comparable child care 

services available to families which are not financially eligible to 

receive subsidy assistance. The committee reminds States that a 

key factor of equal access is determined by the degree to which low 

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income families have access to care that is of comparable quality 

to other families. 

The provision on payment rates differentiation clarifies that 

nothing in the CCDBG statute is intended to prohibit States from 

having differentiated payment rates using such factors as geographic location of child care providers, age or particular needs of 

children (such as children with special needs and children served 

by child protective services), and care provided during weekends 

and other nontraditional hours. This provision is not intended to 

prevent States from developing and implementing differential rates 

for other appropriate reasons, such as a tiered rate structure which 

permits higher payments for care with specific quality standards. 

The committee intends to maintain flexibility in the ways in 

which the State gathers information used to inform the process as 

they set payment and reimbursement rates. The committee recognizes that there are multiple ways States actually survey the child 

care market. Some do telephone or mailed surveys to a sample of 

providers, others rely on the data collected by resource and referral 

agencies in the course of maintaining an accurate data base. Research indicates that both of these approaches can be statistically 

valid. Additionally, child care markets vary across States based on 

population demographics and density, culture, licensing and subsidy policies, provider practices and parent preferences, to name a 

few. A market rate survey that works in New York may not in a 

rural State such as Wyoming or Utah. Similarly, in a rural State, 

there may be little variation in the cost of care across geographic 

areas and types of care, while in other States child care center care 

may cost twice as much in metropolitan as rural areas. In one case, 

the cost of a more complex survey may be justified, in another case 

not. Because of these variances, the committee has asked the Secretary to provide technical assistance to States on the design and 

implementation of statistically valid market rate surveys. 

CHILD CARE QUALITY

The Caring for Children Act of 2005 increases from 4 to 6 percent the amount of the total block grant that a State must spend 

on activities to improve the quality of child care provided to eligible 

families in that State, and establishes permissible uses for those 

funds. The quality set-aside may be used to support: programs that 

provide training, education, and other professional development activities to enhance the skills of the child care workforce, including 

informal caregivers; activities to enhance early learning and foster 

school readiness; initiatives to increase the retention and compensation of child care providers; and, other activities deemed by 

the States to improve the quality of child care services (for children 

up to age 13) provided in the State. 

In recognition of the importance of the quality of child care on 

all aspects of child development, including cognitive development, 

the bill seeks to emphasize the importance of early childhood development and encourages States to improve the quality of child care. 

Knowledge about children’s learning has expanded greatly during the past 2 decades. Research in the neurobiological and behavioral sciences related to young children suggests the importance of 

the first years of life for healthy brain development. From birth 

through age 5, children rapidly develop the capabilities on which 

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subsequent development builds. In addition to linguistic and cognitive gains, children exhibit dramatic progress in their emotional 

and social capacities. According to child development expert Dr. T. 

Berry Brazelton: 

A child’s experiences in the first months and years of life 

determine whether he or she will enter school eager to 

learn or not. By school age, family and caregivers have already prepared the child for success or failure. The community has already helped or hindered the family’s capacity to nurture the child’s development. 

High quality child care involves much more than the essential ingredients of love, nurture, and care. The committee included school 

preparedness activities as a permissible use to encourage States to 

invest in initiatives that will help foster children’s social and cognitive skills, including literacy, numeracy, and language and mathematics skills. These skills provide the foundation for school readiness and are easily attainable when young children are exposed to 

language-rich environments with caregivers who engage them in 

interactive activities, promote curiosity and challenge children to 

develop self-confidence and problem-solving skills. 

While many of a State’s school preparedness activities are likely 

to be directed at preschool children, such activities also concern 

younger or older children. A State’s responsibilities under CCDBG 

include providing child care services for children up to age 13 (or, 

at State option, 19 when the child is physically or mentally incapable of caring for himself or herself or under court supervision). 

School preparedness is a continuing process and does not stop simply because a child has entered school. 

There is also general agreement among experts that the ways 

that parents, families and other caregivers relate and respond to 

a young child directly affect cognitive development. Research suggests that the quality of child care and early education is ultimately dependent on the quality of the relationship between the 

caregiver and child. Studies indicate that children are more advanced in all realms of development when their parents, teachers 

or caregivers provide regular verbal and cognitive stimulation, are 

sensitive and responsive, and give generous amounts of attention 

and support in safe and healthy environments. 

Based on this research, the Caring for Children Act stipulates 

permissible uses for the quality set-aside to help ensure that States 

spend their quality allocation on activities that have been proven 

to improve the quality of child care. Beginning in 2006, States are 

asked to report how these funds are used. 

The committee notes the importance of States evaluating and assessing child care programs in order to ensure their continued high 

quality and identify and correct weaknesses and has authorized 

such evaluations and assessments as allowable uses. However, 

nothing in this section should be construed to require formal testing of pre-school age children. 

The committee has allowed States to exercise broad discretion in 

additional quality activities (such as enforcing compliance with 

State licensing requirements and State and local health and safety 

standards) so long as those activities can be directly linked to improving child safety, child health, child-well being, or school preVerDate Aug 18 2005 04:00 Sep 02, 2005 Jkt 039010 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130
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paredness and are capable of being measured for outcomes. This requirement is intended to ensure that States consider the connection 

between a proposed activity and desired outcome goals, but it is not 

intended to require States to establish, track, or determine child 

outcomes in order for a particular activity to be allowable; it is sufficient that the State has determined that measurement of outcomes is possible in relation to child safety, child well-being, or 

school preparedness. The committee does not require States to actually measure or produce such outcomes in order to support its 

discretionary quality activities. 

DATA COLLECTION AND REPORTING REQUIREMENTS

Under current law, lead State agencies are required to collect 

and submit data regarding the children, families, and child care 

providers participating in the program on both a quarterly and annual basis. The quarterly report collects disaggregate data for each 

family receiving child care assistance, and the annual report collects aggregate numbers over the course of a fiscal year. 

The committee bill streamlines data requirements so that lead 

agencies are only required to submit quarterly reports. The fourth 

quarterly report each year would preserve some of the data elements formerly required in the annual report. For any new requirements, States would need to begin submitting data 2 years from 

the date of enactment of the Act. The bill provides the Secretary 

with the authority to grant waivers from the 2 year requirement 

if a State can show that it has plans to procure a data system. 

The bill deletes reporting elements that have proven to be unnecessary: receipt of housing assistance, receipt of food stamps; receipt 

of ‘‘other’’ assistance programs; and length of subsidy receipt. The 

bill requires a single data element regarding whether a family receives assistance under TANF or separate maintenance of effort 

State programs, and clarifies that the cost of child care data element should require both a statement about the amount of the 

State’s subsidy payment and a separate statement of the amount 

of the family’s co-payment. The bill clarifies that data on the type 

of care provided to a family should include all those types listed in 

the subchapter’s definition of eligible child care provider. 

New data elements are added: household size, whether the parent reports that the child has an Individualized Education Plan or 

an Individualized Family Services Plan under IDEA, and case closure codes for each family that no longer receives child care assistance under the subchapter. 

States will no longer have to report an annualized unduplicated 

count of the number of children and families served. A requirement 

to submit data on the manner and number of parents receiving 

consumer education information is moved to the biennial State 

plan. In the fourth quarterly report of the year, lead agencies will 

be required to submit some annual information formerly required 

in the annual report: the annual number and type of child care providers receiving payments under the subchapter, and the annual 

number of those payments made by type of child care provider 

through vouchers, under contracts, or by payment to parent. 

The bill would also require States to collect monthly data on the 

number of children and families that receive child care assistance, 

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submit this information in their quarterly reports, and to post this 

information on their websites. 

REPORTING REQUIREMENTS

Current law requires the Secretary of HHS to file biennial reports to Congress summarizing and analyzing the disaggregate and 

aggregate data reports that States submit, as well as other relevant information. 

The committee bill updates the current requirements for the Secretary to summarize and analyze State collected data on children 

and families, requiring that starting in April 2006, and then on an 

annual basis, the Secretary submit reports summarizing and analyzing State data provided on children and families, with regard to 

activities to improve the quality of child care, and in State plans. 

The language adds a requirement that the Secretary include information on the supply, demand, and quality of child care, early education, and non-school-hour programs, and a progress report that 

describes State progress in meeting the new data requirements, 

plans for technical assistance to help States meet these requirements, and the explanation of any barriers States are facing in 

meeting the timeline for reporting on these new requirements. The 

Secretary must post these reports on the HHS website no later 

than 30 days after submitting them to the relevant Congressional 

committees. 

NATIONAL ACTIVITIES: INFANTS AND TODDLERS

Many States are experiencing problems with access to quality, affordable infant and toddler care. This, combined with the increase 

in the number of mothers with babies and toddlers in the workforce, makes the need for quality child care even more critical. Approximately 60 percent of mothers with children under age 3 are 

in the workforce, at least on a part-time basis. The committee has included an authorization for a $100 million 

set-aside, subject to the availability of appropriates for this purpose. With this authorization, the committee intends that States 

maintain the flexibility that they now have to coordinate activities 

to enhance infant and toddler child care. States are encouraged to 

continue to support activities under the set aside that are designed 

to protect the health and well-being of infants and toddlers; offer 

specialized training for such providers that emphasizes the unique 

developmental needs of infants and toddlers; create statewide networks of specialists on infants and toddlers, to provide training and 

consultations for such providers who are center-based child care 

providers, group home child care providers, or relatives of the infants and toddlers; and establish local networks of support for family child care home providers and other activities to improve the 

quality and availability of infant care. 

Research indicates that the strongest effects of quality child care 

are found with at-risk children—children from families with the 

fewest resources and under the greatest stress. Yet, at-risk babies 

and toddlers receive some of the poorest quality care that exists in 

communities across the United States resulting in poorer cognitive, 

social, and emotional developmental outcomes. Research confirms 

that most child care centers do not meet infants and toddlers needs 

for health, safety, nurturing relationships, and learning. A child’s 

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first 3 years are a critical time for child development. Numerous 

studies show that high quality care improves school readiness and 

prevents crime in the long-term. It is especially critical that access 

to high quality infant and toddler care be expanded to allow more 

parents who must work to leave their children in a safe and nurturing environment while they work. 

The committee recognizes the need for a toll-free hotline that is 

assisting families nationwide in accessing local information on 

child care options and providing consumer education and has authorized $1 million, subject to the availability of appropriations for 

such purposes. 

FEDERAL ELIGIBILITY GUIDELINES AND DIRECT SERVICES

The Caring for Children Act eliminates the Federal income limit 

for eligibility, previously set at 85 percent of the State median income, which included families at both the lowest and more moderate income levels. Across all States 85 percent of SMI for a family of three ranged from $53,940 a year in Connecticut to $30,156 

in Mississippi for a family of the same size. The committee recognizes that there is wide variation in cost of living and in the expense of child care between and within States. In some areas, child 

care costs can potentially limit low-income families from absorbing 

the costs of child care relative to the costs of living and working 

in a particular State. 

Many potentially eligible children may not receive subsidies due 

to limited resources. ‘‘According to the Government Accountability 

Office, since January 2001, two-thirds of the States have made key 

changes that affect the availability of child care assistance (some 

expanding access to child care subsidies and some limiting access 

to child care subsidies). Of the 49 States that responded to GAO’s 

survey, 48 States responded that TANF families, transitioning families, and low income working families are eligible for assistance. 

However, States often give TANF and transitioning families a higher priority when program resources are limited. In over half the 

States, not all eligible families who apply for assistance receive it.’’ 

By eliminating the Federal maximum income threshold, the committee does not intend for States to restrict access to child care assistance to only welfare recipients. 

However, the demand for child care services and the number of 

eligible families in need of subsidies may be overestimated because 

potentially not all low-income parents need subsidized child care. 

In fact, not all parents who receive welfare or are transitioning off 

welfare are working, and many parents make in-home or other informal care arrangements with friends or relatives instead of applying for child care assistance through the block grant. 

Estimates of subsidies needed by children through CCDBG and 

TANF might be reduced further by taking into account the availability of other programs and funding sources serving children, including State-funded pre-kindergarten programs and Head Start. 

However, the part-time nature of these programs, on average 3 

hours per day, presents very real challenges to working parents 

who need care for more than 3 hours a day, particularly parents 

on welfare who are required to work 20–30 hours per week. Therefore, the committee encourages States and local governments to 

help child care providers coordinate with Head Start and State preVerDate Aug 18 2005 04:00 Sep 02, 2005 Jkt 039010 PO 00000 Frm 00012 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130
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school programs to ensure that children receive continuity of care 

and education while their parents work. A well integrated system 

of child care and education will help to ensure available resources 

provide child care services to more families. 

The committee received comments that States might interpret 

the elimination of a Federal eligibility limit as a suggestion that 

assistance provided through the block grant should be targeted to 

TANF families only. This is not the intent of the committee. The 

legislation amends the CCDBG goals to clarify the congressional 

intent to provide assistance to low-income working families, not exclusively those on or transitioning off TANF. States and territories 

must spend 70 percent of their mandatory child care money to subsidize child care for TANF families, families transitioning off 

TANF, and families at risk of becoming dependent on public assistance. 

The Caring for Children Act has included a new requirement 

that States also must ensure that 70 percent of the State grant is 

used to provide direct services to low-income working families. 

Though these services will be defined by the States, the committee 

intends at a minimum, to include services that are designed to assist families with the purchase of child care from an eligible child 

care provider such as vouchers for families and contracts and 

grants with child care providers in the definition of direct services. 

CHILDREN WITH SPECIAL NEEDS

Families with children with disabilities often have difficulty finding high quality child care for their children. This problem is compounded for many low-income families. Early intervention services 

for pre-school age children can help identify, address, and sometimes prevent cognitive, physical and emotional disabilities at a 

young age. Unfortunately, many child care professionals have no 

experience with disabled children making accessing quality child 

care for children with special needs a challenge for many families. 

Fortunately, in addition to CCDBG there are several Federal programs that have been designed specifically to respond to the needs 

of children with special needs. 

First, the Americans with Disabilities Act (ADA) prevents discrimination against children with disabilities by child care providers and requires providers to make reasonable accommodations 

to ensure their participation. 

IDEA has two main service programs for young children with 

disabilities (Part C Early Intervention Program for Infants and 

Toddlers with Disabilities and section 619 Pre-School Program). 

IDEA’s Part C supports developmental services for infants and toddlers, up to age 3, and their families. More than 270,000 children 

participated in Part C in 2004. Most of the children who received 

Part C supports in 2001 were served in their homes or in a child 

care setting. 

IDEA’s Section 619 pre-school program provides special education and related services to preschool-aged children with disabilities. More than 679,000 children participated in the IDEA Section 

619 preschool program in 2004, receiving services in public schools, 

child care, Head Start, or other settings. A child between the ages 

of 3 and 5 is eligible for section 619 services if he or she has a disability and needs special education and related services. 

14 

To further respond to the child care needs of families with children who have special needs, the committee has included language 

requiring States to demonstrate how they are addressing the child 

care needs of parents who have children who have special needs. 

Additionally, the committee has authorized States to use funds 

under the quality set-aside to offer training professional development, and educational opportunities for child care providers, and 

specifically providers who care for children with special needs. The 

committee recognizes the need of providers to be equipped to offer 

quality child care services to children with special needs, and believes additional opportunities for specialized training will assist in 

this effort. 

TRIBAL CHILD CARE ISSUES

Under current law, the Secretary determines child care licensing 

requirements for child care services in areas served by tribes or organizations, but only in consultation with Indian tribes or tribal organizations. The committee bill makes significant improvements 

with respect to tribal sovereignty and self-determination. The bill 

treats tribes like States by requiring tribes to verify that they have 

child care licensing requirements in effect, to provide descriptions 

of these requirements, and to detail how the requirements are effectively enforced. Additionally, the bill provides that health and 

safety requirements applicable to child care providers in areas 

served by Indian tribes or tribal organizations are established according to tribal law. Further, to assist Indian tribes and tribal organizations provide quality child care to Indian children, the committee bill increases the amount of funds reserved for Indian tribes 

from 1 to 2 percent to 2 percent. Recognizing the importance of increasing child care capacity, the committee bill encourages small 

businesses to establish and operate child care programs, and provides grants to States, as well as Indian tribes and tribal organizations, to help establish these programs. 

GRANTS TO SMALL BUSINESSES FOR CHILD CARE

The committee recognizes that small businesses play a critical 

role in providing child care options to millions of working parents. 

Unfortunately, small businesses generally do not have the resources required to start up and support a child care center. The 

committee bill includes a short-term, flexible grant program to encourage small businesses to work together or with other local agencies to provide child care services for employees. This grant program takes the necessary steps to ensuring small businesses and 

other local organizations, especially in our rural areas, are able to 

work together and find innovative approaches to provide child care 

for employees. 

Small businesses will be eligible for grants for start-up costs, 

training, scholarships, or other related activities. Priority will be 

given to small businesses who work with other small businesses, 

large businesses, local child care organizations, or other appropriate entities. Grantees will be eligible for grants up to $500,000, 

but they are required to match Federal funds to encourage self-sustaining facilities well into the future. Business must continue to 

meet State quality and health standards. 

15 

V. COST ESTIMATE

U.S. CONGRESS, 

CONGRESSIONAL BUDGET OFFICE, 

Washington, DC, March 16, 2005. 

Hon. MIKE ENZI, 

Chairman, Committee on Health, Education, Labor, and Pensions, 

U.S. Senate, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for S. 525, the Caring for Children 

Act of 2005. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Sheila Dacey. 

Sincerely, 

ELIZABETH M. ROBINSON

(For Douglas Holtz-Eakin, Director). 

Enclosure. 

S. 525—Caring for Children Act of 2005 

Summary: S. 525, the Caring for Children Act of 2005, would 

amend and reauthorize the Child Care and Development Block 

Grant Act of 1990. The Child Care and Development Block Grant 

(CCDBG) program was authorized through 2002 by that act and 

has been authorized in appropriation acts since then; it is currently 

authorized through 2005 by the Consolidated Appropriation Act, 

2005 (Public Law 108–447). The bill also would create a new demonstration grant program and increase set-asides for quality improvements and other activities. If enacted, the bill would authorize appropriations totaling $2.35 

billion in 2006 and increasing amounts in subsequent years. Authorizations would total $13.55 billion over the 2006–2010 period. 

CBO estimates that appropriations of these amounts would result 

in additional outlays of $12.5 billion over the 2006–2010 period. 

Enacting the bill would not affect direct spending or receipts. 

The bill contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA). 

Any costs resulting from additional requirements of the bill would 

be incurred by states voluntarily as conditions or receiving the 

grant. 

Estimated cost to the Federal Government: The estimated budgetary impact for S. 525 is shown in the following table. The costs 

of this legislation fall within budget function 600 (income security). 

By fiscal year, in millions of dollars— 

2005 2006 2007 2008 2009 2010 

SPENDING SUBJECT TO APPROPRIATION 

Spending Under Current Law: 

Budget Authority .............................................................................. 2,083 0 0 0 0 0 

Estimated Outlays ........................................................................... 2,094 614 113 21 0 0 

Proposed Changes: 

Child Care and Development Block Grant Program: 

Authorization Level ................................................................. 0 2,300 2,500 2,700 2,900 3,100 

Estimated Outlays .................................................................. 0 1,633 2,327 2,609 2,830 3,030 

Small Business Child Care Grant Program: 

Authorization Level ................................................................. 0 50 0 0 0 0 

Estimated Outlays .................................................................. 0 3 20 15 10 2 

16 

By fiscal year, in millions of dollars— 

2005 2006 2007 2008 2009 2010 

Total Proposed Changes: 

Authorization Level ................................................................. 0 2,350 2,500 2,700 2,900 3,100 

Estimated Outlays .................................................................. 0 1,636 2,347 2,624 2,840 3,032 

Total Spending Under the Bill: 

Authorization Level 1 ............................................................... 2,083 2,350 2,500 2,700 2,900 3,100 

Estimated Outlays .................................................................. 2,094 2,250 2,460 2,645 2,840 3,032 

1 The 2005 level is the amount appropriated for that year. 

Basis of estimate: CBO assumes that S. 525 will be enacted during the current fiscal year, and that the authorized amounts will 

be appropriated for each fiscal year. The estimated outlays reflect 

historical rates of spending for the affected programs or similar 

programs. 

Title I—Child Care and Development Block Grant Act of 1990 

Title I of the bill would amend and reauthorize the CCDBG pro- gram. The bill would authorize appropriations of $2.3 billion in 

2006, $2.5 billion in 2007, $2.7 billion in 2008, $2.9 billion in 2009, 

and $3.1 billion in 2010. Funding in 2005 was $2.083 billion. 

The CCDBG program provides funding to states for child-care 

subsidies to low-income families, quality improvement, and other 

activities. It is one of the two federal funding programs for childcare subsidies within a program grouping often referred to as the 

Child Care and Development Fund. The other program is the Child 

Care Entitlement to States, a mandatory program that would not 

be affected by the bill. 

Title II—Enhancing Security at Child Care Centers in Federal Facilities 

Title II would direct certain federal officials to develop regulations for enhancing the security of and fostering effective disaster 

plans in child-care facilities operated by the federal government. 

CBO expects that the regulations would not have any significant 

effects on federal costs. Many of these facilities already have security procedures in place, while others are anticipated to implement 

such measures in the future even without the enactment of further 

legislation. 

Title III—Removal of Barriers to Increasing the Supply of Quality 

Child Care 

Title III would authorize appropriations totaling $50 million over 

the 2006–2010 period to create a new program to award grants to 

states. The program would encourage small businesses to establish 

and operate child-care programs by providing grants to cover part 

of the costs of the programs. CBO estimates that outlays would be 

around $3 million in 2006 and $50 million over the 2006–2010 period. The bill specifies that the program would be terminated September 30, 2010. 

Intergovernmental and private-sector impact: The bill contains 

no intergovernmental or private-sector mandates as defined in 

UMRA. It would increase the authorization of funds for the Child 

Care and Development Block Grant and increase some of the requirements for using those funds. The bill also would establish a 

new grant program for states to provide assistance to small busiVerDate Aug 18 2005 04:00 Sep 02, 2005 Jkt 039010 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130
17 

ness consortiums and other entities to increase the availability of 

child care. The requirements associated with these programs would 

be conditions of assistance resulting from the states’ voluntary participation in the program and thus not intergovernmental mandates as defined by UMRA. 

Estimate prepared by: Federal costs: Sheila Dacey; impact on 

state, local, and tribal governments: Leo Lex; impact on the private 

sector: Molly Dahl. 

Estimate approved by: Robert A. Sunshine, Assistant Director for 

Budget Analysis. 

VI. APPLICATION OF LAW TO THE LEGISLATIVE BRANCH

This bill does not amend any act that applies to the legislative 

branch. 

VII. REGULATORY IMPACT STATEMENT

Pursuant to the requirements of paragraph 11(b) of Rule XXVI 

of the Standing Rules of the Senate, the committee has determined 

that the bill will not have a significant regulatory impact. 

VIII. SECTION-BY-SECTION ANALYSIS

Sec. 1. Short title 

This Act may be cited as the Caring for Children Act of 2005. 

Sec. 2. Table of contents 

Sec. 101. Short title and goals 

This section modifies the goals of the Child Care and Development Block Grant (CCDBG) in Section 658A(b) to add three new 

goals: (1) to assist States in improving the quality of child care 

available to families; (2) to promote school preparedness by encouraging children, families, and caregivers to engage in developmentally appropriate and age-appropriate activities in child care 

settings that will (A) improve the children’s social, emotional, and 

behavioral skills; (B) foster their early cognitive, pre-reading, and 

language development; and (3) to promote parental and family involvement in the education of young children in child care settings. 

Sec. 102. Authorization of appropriations 

This section amends section 658B to authorize $2.3 billion for fiscal year 2006, $2.5 billion for fiscal year 2007, $2.7 billion for fiscal 

year 2008, $2.9 billion for fiscal year 2009, and $3.1 billion for fiscal year 2010. 

Sec. 103. Lead agency 

This section amends Section 658D of CCDBG by allowing a State 

receiving funds under this act to designate an agency (which may 

be an appropriate collaborative agency), or establish a joint interagency office to serve as the lead agency for the State under this 

act. 

Sec. 104. State plan 

Section 658E of CCDBG is amended to require a State receiving 

funds under this act to collect and disseminate, through resource 

18 

and referral services and other means, to parents of eligible children, child care providers, and the general public, information regarding (I) the promotion of informed child care choices, including 

information about the quality and availability of services; (II) research and best practices concerning children’s development, including early cognitive development; (III) the availability of assistance to obtain child care services; and (IV) other programs for 

which families may be eligible, including the food stamp program, 

the special supplemental nutrition program for women, infants, 

and children, the child and adult care food program, and the Medicaid and State children’s health insurance programs. The State 

must also report to the Secretary the manner in which the consumer education information described was provided to parents 

and the number of parents to whom such consumer education information was provided. This section also requires the State to inform parents receiving assistance under TANF and low-income parents about eligibility for child care assistance. 

This section requires that a State has procedures and policies in 

place to ensure that working parents are not required to unduly 

disrupt their employment in order to comply with the State’s requirements for eligibility redetermination, and requires that each 

child that receives assistance will receive such assistance for not 

less than 6 months before redetermination. This section also gives 

States the option to not terminate child care assistance based on 

a parent’s loss of work or cessation of attendance at a job training 

or educational program without continuing the assistance for not 

less than 1 month. 

This section requires the State to describe how it will coordinate 

early child education activities assisted under this act with programs such as Head Start, Early Head Start, Early Reading First, 

Even Start, title I preschool, Section 619 and part C of IDEA, and 

other early childhood education programs. A State must also describe any training requirements in effect designed to enable providers under this act to promote the social, emotional, physical, and 

cognitive development of children. A State must describe how it is 

encouraging partnerships between State and other public agencies, 

and private entities, to leverage existing service delivery systems 

and to increase the supply and quality of services for children ages 

0–13. A State must describe how it is addressing the child care 

needs of eligible parents, who have children with special needs, 

work nontraditional hours, or require child care services for infants 

and toddlers. 

This section allows the State to use funds to establish or support 

a system of local child care resource and referral organizations coordinated by a statewide private, nonprofit, community-based lead 

child care resource and referral organization to provide parents 

with information, and consumer education concerning the full 

range of child care options (including care provided during nontraditional hours and through emergency child care centers). This 

network may also collect and analyze data on the supply of and demand for child care in political subdivisions within the State; submit reports to the State containing the data and analysis; and work 

to establish partnerships with public agencies and private entities 

to increase the supply and quality of child care services. 

19 

From amounts provided to a State for a fiscal year, the State 

shall reserve the minimum amount required for the quality set 

aside, administration, and other set asides, and from the remainder, use not less than 70 percent to fund direct services (as defined 

by the State). 

This section requires the State to develop and conduct a statistically valid and reliable survey of the market rates for child care 

services in the State (reflecting variations in the cost of child care 

services by geographic area, type of provider, and age of child) 

within the 2 years preceding the date of the submission of the application containing the State plan. The State should also detail 

the results of the market rates survey; describe how the State will 

provide for timely payment for child care services, and set payment 

rates for child care services in accordance with the results of the 

market rates survey without reducing the number of families in the 

State receiving assistance (as of the date of introduction of the Caring for Children Act of 2005). The State shall make the results of 

the survey available to the public no later than 30 days after the 

completion of the survey. The State plan shall include a certification that the payment rates are sufficient to ensure equal access 

for eligible children to child care services comparable to child care 

services in the State or sub-state area. 

This section includes a rule of construction stating that nothing 

shall prevent a State from differentiating the payment rates to providers on the basis of geographic location, the age or particular 

needs of children, and whether the providers provide child care 

during weekend and other nontraditional hours. 

Sec. 105. Activities to improve the quality of child care 

Section 658G of CCDBG is amended to require each State receiving funds under this act to reserve not less than 6 percent of the 

funds provided directly, or through grants or contracts with resource and referral organizations or other appropriate entities that 

are designed to improve the quality of child care services. This section requires that funds be used only: 

(A) to develop and implement voluntary guidelines on prereading and language skills, prenumeracy and mathematics 

skills, and activities that are aligned with State standards for 

kindergarten through grade 12 or the State’s general goals for 

school preparedness; 

(B) support activities and provide technical assistance in 

Federal, State, and local child care settings to enhance early 

learning for young children, to promote literacy, and to foster 

school preparedness; 

(C) offer training, professional development, and educational 

opportunities for child care providers that relate to the use of 

developmentally appropriate and age-appropriate curricula, 

and early childhood teaching strategies, that are scientifically 

based and aligned with the social, emotional, physical, and cognitive development of children, including: (i) developing and 

operating distance learning child care training infrastructures; 

(ii) developing model technology-based training courses; (iii) offering training for caregivers in informal child care settings; 

and (iv) offering training for child care providers who care for 

infants and toddlers and children with special needs; 

20 

(D) engage in programs designed to increase the retention 

and improve the competencies of child care providers, including 

wage incentive programs and initiatives that establish tiered 

payment rates for providers that meet or exceed child care 

services guidelines, as defined by the State; 

(E) evaluate and assess the quality and effectiveness of child 

care programs and services offered in the State to young children on improving overall school preparedness; and 

(F) carry out other activities determined by the State to improve the quality of child care services for which measurement 

of outcomes relating to improved child safety, child well-being, 

or school preparedness is possible. 

This section also requires that beginning with fiscal year 2006, 

the State shall submit an annual certification to the Secretary that 

the State was in compliance with the quality activities described 

above and describes how the State used quality during that preceding fiscal year. Beginning with fiscal year 2006, the State is required to submit an annual report to the Secretary that outlines 

the strategy the State will use to address the quality of child care 

in the State, including a description of quantifiable, objective measures that the State will use to evaluate the State’s progress in improving the quality of the child care services and a list of Statedeveloped child care services quality targets quantified for such 

measures. This section requires that beginning with fiscal year 

2007, the State shall submit a report on its progress in achieving 

targets for the preceding fiscal year. A State failing to make 

progress in quality improvements shall submit an improvement 

plan to the Secretary, and that State shall comply with the improvement plan within 1 year. 

Nothing in this act shall be construed to require that the State 

apply measures for evaluating quality of child care services to specific types of child care providers. 

Sec. 106. Optional priority use of additional funds 

This section amends Section 658G of CCDBG to require a State 

receiving funds under this act to consider using a portion of any 

funds exceeding the amount of funds the State received to carry 

out this act for fiscal year 2005 to support payment rate increases; 

to support the establishment of tiered payment rates for providers; 

and to support payment rate increases for care for children in communities served by local educational agencies that have been identified for improvement under Section 1116(c)(3) of the Elementary 

and Secondary Education Act of 1965 (20 U.S.C. 6316(c)(3)). 

This section also states that nothing in section 106 shall be construed to require a State to take an action that the State determines would result in a reduction of child care services to families 

of eligible children. 

This section also defines ‘‘payment rate’’ to mean the rate of 

State payment or reimbursement to providers for subsidized child 

care. 

Sec. 107. Reporting requirements 

This section amends section 658K to require a State receiving 

funds under this act to collect, with respect to a family unit receiving assistance under this act, information concerning family inVerDate Aug 18 2005 04:00 Sep 02, 2005 Jkt 039010 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130
21 

come; county of residence; the gender, race, and age of children receiving such assistance; whether the head of the family unit is a 

single parent; the sources of family income (including employment, 

including self-employment and assistance under a State program 

funded under part A of Title IV of the Social Security Act and a 

State program for which States’ spending is counted toward the 

maintenance of effort requirement under Section 409 (a)(7) of the 

Social Security Act); the type, amount and cost of child care; household size; whether the parent involved reports that the child has 

an individualized education plan under IDEA and the reason for 

any termination of benefits under this act (including the child’s age 

exceeding the allowable limit; the family income exceeding the 

State eligibility limit; the State recertification or administrative requirements not being met; parent work, training, or education status no longer meeting State requirements; a non income related 

change in status). 

A State shall, on a quarterly basis, submit to the Secretary the 

information required to be collected and the number of children 

and families receiving assistance. Information on the number of 

families receiving the assistance shall also be posted on the website 

of the State. In the fourth quarterly report of each year, a State 

shall also submit to the Secretary information on the annual number and type of child care providers that received funding under 

this act and the annual number of payments made by the State 

through vouchers, under contracts, or by payment to parents reported by type of child care provider. 

A State may comply with the requirement to collect the information through the use of disaggregated case record information on a 

sample of families selected through the use of scientifically acceptable sampling methods approved by the Secretary. The Secretary 

shall provide the States with such case sampling plans and data 

collection procedures as the Secretary determines necessary to 

produce statistically valid samples of the information. The Secretary may develop and implement procedures for verifying the 

quality of data submitted by the States. 

This section requires States to comply with the changes in data 

collection and reporting requirement within 2 years from the date 

of enactment of this Act. The Secretary of HHS may grant a waiver 

to States with plans to procure data systems. 

Sec. 108. National activities 

This section amends section 658L to require the Secretary to no 

later than April 30, 2006, and annually thereafter, prepare and 

submit to the Committee on Education and the Workforce of the 

House of Representatives and the Committee on Health, Education, 

Labor, and Pensions of the Senate, and, not later than 30 days 

after the date of such submission, post on the HHS website, a report containing a summary and analysis of the data and information provided to the Secretary in the State reports submitted under 

sections 658E, 658G(c), and 658K; aggregated statistics on and an 

analysis of the supply of, demand for, and quality of child care, 

early education, and non-school hour programs; an assessment and, 

where appropriate, recommendations for Congress concerning efforts that should be undertaken to improve the access of the public 

to quality and affordable child care in the United States; and a 

22 

progress report describing the progress of the States in streamlining data reporting, the Secretary’s plans and activities to provide 

technical assistance to States, and an explanation of any barriers 

to getting data in an accurate and timely manner. 

This section also allows the Secretary to make arrangements 

with resource and referral organizations, to utilize the child care 

data system of the resource and referral organizations at the national, State, and local levels, to collect the information required by 

paragraph (1)(B). 

This section also directs the Secretary to provide technical assistance to States on developing and conducting the State market rates 

survey. 

Under this section, the Secretary is instructed to award grants 

to States, to improve the quality of and access to child care for infants and toddlers, subject to the availability of appropriations for 

this purpose. The Secretary shall also award a grant or contract, 

or enter into a cooperative agreement for the operation of a national toll-free hotline to assist families in accessing local information on child care options and providing consumer education materials, subject to the availability of appropriations for this purpose. 

Sec. 109. Grants and hotline 

This section amends Section 658O(a) of CCDBG to require the 

Secretary to reserve an amount not to exceed $100 million for each 

fiscal year to carry out activities designed to improve the quality 

of and access to child care for infants and toddlers. The section also 

requires the Secretary to reserve an amount not to exceed $1 million to carry out operation of a national toll-free hotline to assist 

families in accessing local information on child care options and 

providing consumer education materials. 

Sec. 110. Definitions 

This section amends Section 658P of CCDBG by allowing States 

to set the income eligibility level for families, with priority given 

by need as defined by the State. The term ‘‘child with special 

needs’’ was defined in Section 602 of IDEA (20 U.S.C. 1401); and 

a child who is eligible for early intervention services under part C 

of IDEA (20 U.S.C. 1431 et seq). Section 658P is also amended by 

redefining ‘‘Native Hawaiian organization’’ as it is defined in Section 7207 of the Elementary and Secondary Education Act of 1965 

(20 U.S.C. 7517). 

Sec. 111. Rules of construction 

Section 658P is amended to include a rule of construction stating 

that nothing in this act shall be construed to require a State to impose State child care licensing requirements on any type of early 

childhood provider, including any such provider who is exempt 

from State child care licensing requirements on the date of enactment of the Caring for Children Act of 2005. 

23 

Title II—Enhancing Security at Child Care Centers in Federal 

Facilities 

Sec. 201. Definitions 

This section defines the term ‘‘Administrator’’ as the Administrator of General Services. The term ‘‘corresponding child care facility’’, used with respect to the Chief Administrative Officer of the 

U.S. House of Representatives, the Librarian of Congress, or the 

head of a designated entity in the Senate, means a child care facility operated by, or under a contract or licensing agreement with, 

an office of the U.S. House of Representatives, the Library of Congress, or an office of the Senate, respectively. The term ‘‘entity 

sponsoring,’’ used with respect to a child care facility, means a Federal agency that operates, or an entity that enters into a contract 

or licensing agreement with a Federal agency to operate, a child 

care facility primarily for the use of Federal employees. 

This section defines the term ‘‘Executive agency’’ as defined in 

Section 105 of title 5, United States Code, except that the term— 

(A) does not include the Department of Defense and the Coast 

Guard; and (B) includes the General Services Administration, with 

respect to the administration of a facility described in paragraph 

(5)(B). The term ‘‘executive facility’’—(A) means a facility that is 

owned or leased by an Executive agency; and (B) includes a facility 

that is owned or leased by the General Services Administration on 

behalf of a judicial office. The term ‘‘Federal agency’’ means an Executive agency, a legislative office, or a judicial office. 

This section also defines the term ‘‘judicial facility’’ means a facility that is owned or leased by a judicial office (other than a facility 

that is also a facility described in paragraph (5)(B)). The term ‘‘judicial office’’ means an entity of the judicial branch of the Federal 

Government. 

Lastly, this section defines the term ‘‘legislative facility’’ to mean 

a facility that is owned or leased by a legislative office. The term 

‘‘legislative office’’ means an entity of the legislative branch of the 

Federal Government. 

Sec. 202. Enhancing Security 

This section (1) directs the Administrator of General Services to 

issue regulations for child care facilities, and entities sponsoring 

child care facilities, in executive facilities; (2) directs the Chief Administrative Officer of the U.S. House of Representatives, the Librarian of Congress, and the head of a designated entity in the 

U.S. Senate to issue the regulations for corresponding child care facilities, and entities sponsoring the corresponding child care facilities, in legislative facilities; and (3) the Director of the Administrative Office of the U.S. Courts to issue the regulations described in 

subsection for child care facilities, and entities sponsoring child 

care facilities, in judicial facilities. 

This section directs the officers described above to issue regulations that concern matters relating to an occupant emergency plan 

and evacuations, such as providing for building security committee 

membership for each director of a child care facility; establishing 

a separate section in an occupant emergency plan for a facility; promoting familiarity with procedures and evacuation routes for different types of emergencies; strengthening onsite relationships beVerDate Aug 18 2005 04:00 Sep 02, 2005 Jkt 039010 PO 00000 Frm 00023 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130
24 

tween security personnel and the personnel of such a facility; providing specific, clear, and concise evacuation instructions for a facility; providing for good evacuation equipment, especially cribs; and 

promoting the ability to evacuate without outside assistance; and 

This section also directs the above officers to issue regulations 

that concern matters relating to relocation sites, such as promoting 

an informed parent body that is knowledgeable about evacuation 

procedures and relocation sites; providing regularly updated parent 

contact information (regarding matters such as names, locations, 

electronic mail addresses, and cell phone and other telephone numbers); establishing remote telephone contact for parents, to and 

from areas that are not less than 10 miles from such a facility; and 

providing for an alternate site (in addition to regular sites) in the 

event of a catastrophe, which site may include (i) a site that would 

be an unreasonable distance from the facility under normal circumstances; and (ii) a facility with 24-hour operations, such as a 

hotel or law school library. 

Title III—Removal of Barriers to Increasing the Supply of Quality 

Child Care 

Sec. 301. Small Business Child Care Grant Program 

This section requires the Secretary of HHS to establish a program to award grants to States, on a competitive basis, to assist 

States in providing funds to encourage the establishment and operation of employer-operated child care programs. The Secretary 

shall determine the amount of a grant to a State under this section 

based on the population of the State as compared to the population 

of all States receiving grants under this section. 

This section allows a State to use awarded funds to provide assistance to a small business located in the State to enable the small 

businesses to establish and operate child care programs. Such assistance may include technical assistance in the establishment of 

a child care program; assistance for the startup costs related to a 

child care program; assistance for the training of child care providers; scholarships for low-income wage earners; the provision of 

services to care for sick children or to provide care to school-aged 

children; the entering into of contracts with local resource and referral or local health departments; assistance for care for children 

with disabilities; or assistance for any other activity determined appropriate by the State. 

A small business is required by this section to apply to the State 

for grants. A State is required to give priority to an applicant that 

desires to form a consortium to provide child care in a geographic 

area within the State where such care is not generally available or 

accessible. A consortium shall be made up of two or more entities 

that shall include small businesses and that may include large 

businesses, nonprofit agencies or organizations, local governments, 

or other appropriate entities. A State may not provide in excess of 

$500,000 in assistance from such funds to any single applicant. 

To be eligible to receive a grant under this section, a State shall 

provide assurances to the Secretary that, with respect to the costs 

to be incurred by an entity receiving assistance from the State to 

carry out activities under this section the entity will make available non-Federal contributions to such costs in an amount equal to: 

25 

(A) for the first fiscal year in which the entity receives such assistance, not less than 50 percent of such costs; (B) for the second fiscal year in which the entity receives such assistance, not less than 

662.3 percent of such costs; and (C) for the third fiscal year in 

which the entity receives such assistance, not less than 75 percent 

of such costs. 

To be eligible to receive assistance under a grant awarded under 

this section, a child care provider shall comply with all applicable 

State and local licensing and regulatory requirements and all applicable health and safety standards in effect in the State. 

A State may not retain more than three percent of awarded 

funds for State administration and other State-level activities. The 

Secretary requires that the State has responsibility for administering the awarded grant under this section and for monitoring 

entities that receive assistance under such grant. Each State shall 

require each entity receiving assistance under the grant awarded 

to conduct an annual audit with respect to the activities of the entity. Such audits shall be submitted to the State. If the State determines, through an audit or otherwise, that an entity has misused 

the assistance, the State shall notify the Secretary of the misuse. 

The Secretary, upon such a notification, may seek from such an entity the repayment of an amount equal to the amount of any such 

misused assistance plus interest. 

This section requires the Secretary to by regulation provide for 

an appeals process with respect to repayments under this paragraph. 

This section requires the Secretary to conduct a study not later 

than 2 years after the date on which the Secretary first awards 

grants under this section to determine the capacity of the grantees 

to meet the child care needs of communities within States; the 

kinds of consortia that are being formed with respect to child care 

at the local level to carry out programs funded under this section; 

and who is using the programs funded under this section and the 

income levels of such individuals. 

This section requires the Secretary to prepare and submit to the 

appropriate committees of Congress not later than 28 months after 

the date on which the Secretary first awards grants under this section, a report on the results of the study conducted in accordance 

with subparagraph (A). 

This section requires that not later than 4 years after the date 

on which the Secretary first awards grants under this section, the 

Secretary shall conduct a study to determine the number of child 

care facilities that are funded through covered entities that received assistance through a grant awarded under this section and 

that remain in operation, and the extent to which such facilities 

are meeting the child care needs of the individuals served by such 

facilities. 

This section requires that not later than 52 months after the 

date on which the Secretary first awards grants under this section, 

the Secretary shall prepare and submit to the appropriate committees of Congress a report on the results of the study conducted in 

accordance with subparagraph (A). 

As defined by this section, the term ‘‘covered entity’’ means a 

small business or a consortium formed in accordance with subsection (d)(3). The term ‘‘small business’’ as defined by this section 

26 

is an employer who employed an average of at least 2 but not more 

than 50 employees on business days during the preceding calendar 

year. 

This section authorizes $50 million for the period of fiscal years 

2006 through 2010 to carry out the grant program. With respect to 

the total amount appropriated for such period in accordance with 

this subsection, not more than $2.5 million of that amount may be 

used for expenditures related to conducting evaluations required 

under, and the administration of, this section. The grant program 

established by this section shall terminate on September 30, 2010. 

IX. CHANGES IN EXISTING LAW

In compliance with rule XXVI paragraph 12 of the Standing 

Rules of the Senate, the following provides a print of the statute 

or the part or section thereof to be amended or replaced (existing 

law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, existing law in which no change is proposed 

is shown in roman): 

CHILD CARE AND DEVELOPMENT BLOCK 

GRANT ACT OF 1990 

* * * * * * * 

Subchapter C—Child Care and Development Block Grant 

øSEC. 658A. SHORT TITLE AND GOALS.¿ 

SEC. 658A. SHORT TITLE AND GOALS. 

(a) SHORT TITLE.— * * * 

(b) GOALS.—The goals of this subchapter are— 

(1) * * * 

* * * * * * * 

(3) to øencourage¿ assist States to provide consumer education information to help parents make informed choices 

about child care; 

(4) to assist States to provide child care to øparents trying 

to achieve independence from public assistance; and¿ low-income working parents; 

(5) to assist States in improving the quality of child care 

available to families; 

(6) to promote school preparedness by encouraging children, 

families, and caregivers to engage in developmentally appropriate and age-appropriate activities in child care settings that 

will— 

(A) improve the children’s social, emotional, and behavioral skills; and 

(B) foster the children’s early cognitive, pre-reading, and 

language development, and prenumeracy and mathematics 

skills; 

(7) to promote parental and family involvement in the education of young children in child care settings; and 

27 

ø(5)¿ (8) to assist States in implementing the health, safety, 

licensing, and registration standards established in State regulations. 

* * * * * * * 

SEC. 658B. AUTHORIZATION OF APPROPRIATIONS. 

There is authorized to be appropriated to carry out this øsubchapter $1,000,000,000 for each of the fiscal years 1996 through 

2002.¿ subchapter $2,300,000,000 for fiscal year 2006, $2,500,000,000 for fiscal year 2007, $2,700,000,000 for fiscal year 

2008, $2,900,000,000 for fiscal year 2009, and $3,100,000,000 for 

fiscal year 2010. 

* * * * * * * 

SEC. 658D. LEAD AGENCY. 

(a) DESIGNATION.—The chief executive officer of a State desiring 

to receive a grant under this subchapter shall ødesignate, in an application submitted to the Secretary under section 658E, an appropriate State agency that complies with the requirements of subsection (b) to act as the lead agency.¿ designate an agency (which 

may be an appropriate collaborative agency), or establish a joint 

interagency office, that complies with the requirements of subsection 

(b) to serve as the lead agency for the State under this subchapter. 

* * * * * * * 

SEC. 658E. APPLICATION AND PLAN. 

(a) APPLICATION.— * * * 

* * * * * * * 

(c) REQUIREMENTS OF A PLAN.— 

(1) LEAD AGENCY.—The State plan shall identify the lead 

agency ødesignated¿ designated or established under section 

658D. 

(2) POLICIES AND PROCEDURES.—The State plan shall: 

(A) PARENTAL CHOICE OF PROVIDERS.—Provide assurances that— 

(i) the parent or parents of each eligible child within 

the State who receives or is offered child care services 

for which financial assistance is provided under this 

subchapter are given the option either— 

(I) to enroll such child with a child care provider 

that has a grant or contract for the provision of 

such services; or 

(II) to receive a child care certificate as defined 

in øsection 658P(2)¿ section 658T(2); 

* * * * * * * 

ø(D) CONSUMER EDUCATION INFORMATION.—Certify that 

the State will collect and disseminate to parents of eligible 

children and the general public, consumer education information that will promote informed child care choices.¿ 

(D) CONSUMER AND CHILD CARE PROVIDER EDUCATION INFORMATION.—Certify that the State will— 

(i) collect and disseminate, through resource and referral services and other means as determined by the 

28 

State, to parents of eligible children, child care providers, and the general public, information regarding— 

(I) the promotion of informed child care choices, 

including information about the quality and availability of child care services; 

(II) research and best practices concerning children’s development, including early cognitive development; 

(III) the availability of assistance to obtain child 

care services; and 

(IV) other programs for which families that receive child care services for which financial assistance is provided under this subchapter may be eligible, including the food stamp program established under the Food Stamp Act of 1977 (7 U.S.C. 

2011 et seq.), the special supplemental nutrition 

program for women, infants, and children established by section 17 of the Child Nutrition Act of 

1966 (42 U.S.C. 1786), the child and adult care 

food program established under section 17 of the 

Richard B. Russell National School Lunch Act (42 

U.S.C. 1766), and the medicaid and State children’s health insurance programs under titles XIX 

and XXI of the Social Security Act (42 U.S.C. 1396 

et seq. and 1397aa et seq.); and 

(ii) report to the Secretary the manner in which the 

consumer education information described in clause (i) 

was provided to parents and the number of parents to 

whom such consumer education information was provided, during the period of the previous State plan. 

ø(E) COMPLIANCE WITH STATE LICENSING REQUIREMENTS.— 

ø(i) IN GENERAL.—Certify that the State has in effect licensing requirements applicable to child care 

services provided within the State, and provide a detailed description of such requirements and of how 

such requirements are effectively enforced. Nothing in 

the preceding sentence shall be construed to require 

that licensing requirements be applied to specific types 

of providers of child care services. 

ø(ii) INDIAN TRIBES AND TRIBAL ORGANIZATIONS.—In 

lieu of any licensing nad regulatory requirements applicable under State and local law, the Secretary, in 

consultation with Indian tribes and tribal organizations, shall develop minimum child care standards 

(that appropriately reflect tribal needs and available 

resources) that shall be applicable to Indian tribes and 

tribal organizations receiving assistance under this 

subchapter.¿ 

(E) COMPLIANCE WITH STATE AND TRIBAL LICENSING RE- QUIREMENTS.— (i) IN GENERAL.—Certify that the State (or the Indian 

tribe or tribal organization) involved has in effect licensing requirements applicable to child care services 

provided within the State (or area served by the tribe 

29 

or organization), and provide a detailed description of 

such requirements and of how such requirements are 

effectively enforced. 

(ii) CONSTRUCTION.—Nothing in clause (i) shall be 

construed to require that licensing requirements be applied to specific types of providers of child care services. 

(F) ESTABLISHMENT OF HEALTH AND SAFETY REQUIREMENTS.—Certify that there are in effect øwithin the State, 

under State or local law,¿ within the State (or area served 

by the Indian tribe or tribal organization), under State or 

local law (or tribal law), requirements designed to protect 

the health and safety of children that are applicable to 

child care providers that provide services for which assistance is made available under this subchapter. Such requirements shall include— 

(i) * * * 

* * * * * * * 

Nothing in this subparagraph shall be construed to require the establishment of additional health and safety requirements for child 

care providers that are subject to health and safety requirements 

in the categories described in this subparagraph on the date of enactment of this subchapter under øState or local law¿ State or local 

law (or tribal law). 

* * * * * * * 

(H) MEETING THE NEEDS OF CERTAIN POPULATIONS.— 

* * * 

(I) PROTECTION FOR WORKING PARENTS.— 

(i) REDETERMINATION PROCESS.—Describe the procedures and policies that are in place to ensure that 

working parents (especially parents in families receiving assistance under a State program funded under 

part A of title IV of the Social Security Act (42 U.S.C. 

601 et seq.)) are not required to unduly disrupt their 

employment in order to comply with the State’s requirements for redetermination of eligibility for assistance 

under this subchapter. 

(ii) MINIMUM PERIOD.—Demonstrate that each child 

that receives assistance under this subchapter in the 

State will receive such assistance for not less than 6 

months before the State redetermines the eligibility of 

the child under this subchapter, except as provided in 

clause (iii). 

(iii) PERIOD BEFORE TERMINATION.—At the option of 

the State, demonstrate that the State will not terminate 

assistance under this subchapter based on a parent’s 

loss of work or cessation of attendance at a job training 

or educational program for which the family was receiving the assistance, without continuing the assistance for a reasonable period of time, of not less than 

1 month, after such loss or cessation in order for the 

parent to engage in a job search and resume work, or 

resume attendance of a job training or educational program, as soon as possible. 

30 

(J) COORDINATION WITH OTHER PROGRAMS.—Describe 

how the State, in order to expand accessibility and continuity of quality early care and early education, will coordinate the early childhood education activities assisted 

under this subchapter with— 

(i) programs carried out under the Head Start Act 

(42 U.S.C. 9831 et seq.), including the Early Head 

Start programs carried out under section 645A of that 

Act (42 U.S.C. 9840a); 

(ii)(I) Early Reading First and Even Start programs 

carried out under subparts 2 and 3 of part B of title 

I of the Elementary and Secondary Education Act of 

1965 (20 U.S.C. 6371 et seq., 6381 et seq.); 

(II) other preschool programs carried out under title 

I of that Act (20 U.S.C. 6301 et seq.); and 

(III) the Ready-to-Learn Television program carried 

out under subpart 3 of part D of title II of that Act (20 

U.S.C. 6775 et seq.); 

(iii) programs carried out under section 619 and part 

C of the Individuals with Disabilities Education Act 

(20 U.S.C. 1419 and 1431 et seq.); 

(iv) State prekindergarten programs; and 

(v) other early childhood education programs. 

(K) TRAINING IN EARLY LEARNING AND CHILDHOOD DEVELOPMENT.—Describe any training requirements that are in 

effect within the State that are designed to enable child 

care providers to promote the social, emotional, physical, 

and cognitive development of children and that are applicable to child care providers that provide services for which 

assistance is made available under this subchapter in the 

State. 

(L) PUBLIC-PRIVATE PARTNERSHIPS.—Demonstrate how 

the State is encouraging partnerships among State agencies, other public agaencies, and private entities, to leverage 

existing delivery systems (as of the date of submission of the 

State plan) for early childhood education and to increase 

the supply and quality of child care services for children 

who are less than 13 years of age. 

(M) ACCESS TO CARE FOR CERTAIN POPULATIONS.—Demonstrate how the State is addressing the child care needs 

of parents eligible for child care services for which assistance is provided under this subchapter, who have children 

with special needs, work nontraditional hours, or require 

child care services for infants and toddlers. 

(N) COORDINATION WITH TITLE IV OF THE SOCIAL SECURITY ACT.—Describe how the State will inform parents receiving assistance under a State program funded under 

part A of title IV of the Social Security Act (42 U.S.C. 601 

et seq.) and low-income parents about eligibility for assistance under this subchapter. 

(3) USE OF BLOCK GRANT FUNDS.— 

(A) GENERAL REQUIREMENT.—The State plan shall provide that the State will use the amounts provided to the 

State, for each fiscal year under this subchapter øas reVerDate Aug 18 2005 04:00 Sep 02, 2005 Jkt 039010 PO 00000 Frm 00030 Fmt 6659 Sfmt 6602 E:\HR\OC\SR130.XXX SR130
31 

quired under¿ in accordance with subparagraphs (B) 

through ø(D)¿ (E). (B) CHILD CARE SERVICES AND RELATED ACTIVITIES.— øThe State¿ 

(i) IN GENERAL.—The State shall use amounts provided to the State for each fiscal year under this subchapter for child care services on a sliding fee scale 

basis, activities that improve the quality or availability of such services, and any other activity that the 

State deems øappropriate to realize any of the goals 

specified in paragraphs (2) through (5) of section 

658A(b)¿ appropriate (which may include an activity 

described in clause (ii)) to realize any of the goals specified in paragraphs (2) through (8) of section 658A(b), with priority being given for services provided to children of families with very low family incomes (taking 

into consideration family size) and to children with 

special needs. 

(ii) CHILD CARE RESOURCE AND REFERRAL SYSTEM.— A State may use amounts described in clause (i) to establish or support a system of local child care resource 

and referral organizations coordinated, to the extent 

determined appropriate by the State, by a statewide 

private, non-profit, community-based lead child care 

resource and referral organization. The local child care 

resource and referral organizations shall— 

(I) provide parents in the State with information, and consumer education, concerning the full 

range of child care options, including child care 

provided during nontraditional hours and through 

emergency child care centers, in their communities; 

(II) collect and analyze data on the supply of 

and demand for child care in political subdivisions within the State; 

(III) submit reports to the State containing data 

and analysis described in subclause (II); and 

(IV) work to establish partnerships with public 

agencies and private entities to increase the supply 

and quality of child care services. 

* * * * * * * 

(D) ASSISTANCE FOR CERTAIN FAMILIES.— * * * 

(E) DIRECT SERVICES.—From amounts provided to a 

State for a fiscal year to carry out this subchapter, the 

State shall— 

(i) reserve the minimum amount required to be reserved under section 658G, and the funds for costs described in subparagraph (C); and 

(ii) from the remainder, use not less than 70 percent 

to fund direct services (as defined by the State). 

(4) PAYMENT RATES.— (A) IN GENERAL.—øThe State plan shall certify that payment rates for the provision of child care services for 

which assistance is provided under this subchapter are 

sufficient to ensure equal access for eligible children to 

comparable child care services in the State or substate 

32 

area that are provided to children whose parents are not 

eligible to receive assistance under this subchapter or for 

child care assistance under any other Federal or State programs and shall provide a summary of the facts relied on 

by the State to determine that such rates are sufficient to 

ensure such access.¿ 

(i) SURVEY.—The State plan shall— 

(I) demonstrate that the State has, after consulting with local area child care program administrators, developed and conducted a statistically 

valid and reliable survey of the market rates for 

child care services in the State (that reflects variations in the cost of child care services by geographic area, type of provider, and age of child) 

within the 2 years preceding the date of the submission of the application containing the State 

plan; 

(II) detail the results of the State market rates 

survey conducted pursuant to subclause (I); 

(III) describe how the State will provide for timely payment for child care services, and set payment 

rates for child care services, for which assistance is 

provided under this subchapter in accordance with 

the results of the market rates survey conducted 

pursuant to subclause (I) without reducing the 

number of families in the State receiving such assistance under this subchapter, relative to the 

number of such families on the date of introduction of the Caring for Children Act of 2005; and 

(IV) describe how the State will, not later than 

30 days after the completion of the survey described in subclause (I), make the results of the 

survey widely available through public means, including posting the results on the Internet. 

(ii) EQUAL ACCESS.—The State plan shall include a 

certification that the payment rates are sufficient to ensure equal access for eligible children to child care 

services comparable to child care services in the State 

or substate area that are provided to children whose 

parents are not eligible to receive child care assistance 

under any Federal or State program. 

(B) CONSTRUCTION.—øNothing¿ (i) NO PRIVATE RIGHT OF

ACTION.—Nothing in this paragraph shall be construed to 

create a private right of action. 

(ii) NO PROHIBITION OF CERTAIN DIFFERENT RATES.— 

Nothing in this subchapter shall be construed to prevent a 

State from differentiating the payment rates described in 

subparagraph (A) on the basis of such factors as— 

(I) geographic location of child care providers (such 

as location in an urban or rural area); 

(II) the age or particular needs of children (such as 

children with special needs and children served by 

child protective services); 

(III) whether the providers provide child care during 

weekend and other nontraditional hours; or 

33 

(IV) the State’s determination that such differentiated payment rates are needed to enable a parent to 

choose child care that the parent believes to be of high 

quality. 

* * * * * * * 

øSEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE. 

øA State that receives funds to carry out this subchapter for a 

fiscal year, shall use not less than 4 percent of the amount of such 

funds for activities that are designed to provide comprehensive consumer education to parents and the public, activities that increase 

parental choice, and activities designed to improve the quality and 

availability of child care (such as resource and referral services).¿ 

SEC. 658G. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE. 

(a) IN GENERAL.— (1) RESERVATION.—Each State that receives funds to carry 

out this subchapter for a fiscal year shall reserve and use not 

less than 6 percent of the funds for activities provided directly, 

or through grants or contracts with resource and referral organizations or other appropriate entities, that are designed to improve the quality of child care services. 

(2) ACTIVITIES.—The funds reserved under paragraph (1) may 

only be used to— 

(A) develop and implement voluntary guidelines on prereading and language skills and activities, and 

prenumeracy and mathematics skills and activities, for 

child care programs in the State, that are aligned with 

State standards for kindergarten through grade 12 or the 

State’s general goals for school preparedness; 

(B) support activities and provide technical assistance in 

Federal, State, and local child care settings to enhance 

early learning for preschool and school-aged children, to 

promote literacy, to foster school preparedness, and to support later school success; 

(C) offer training, professional development, and educational opportunities for child care providers that relate to 

the use of developmentally appropriate and age-appropriate 

curricula, and early childhood teaching strategies, that are 

scientifically based and aligned with the social, emotional, 

physical, and cognitive development of children, including— 

(i) developing and operating distance learning child 

care training infrastructures; 

(ii) developing model technology-based training 

courses; 

(iii) offering training for caregivers in informal child 

care settings; and 

(iv) offering training for child care providers who 

care for infants and toddlers and children with special 

needs; 

(D) engage in programs designed to increase the retention 

and improve the competencies of child care providers, including wage incentive programs and initiatives that establish tiered payment rates for providers that meet or exceed 

child care services guidelines, as defined by the State; 

34 

(E) evaluate and assess the quality and effectiveness of 

child care programs and services offered in the State to 

young children on improving overall school preparedness; 

and 

(F) carry out other activities determined by the State to 

improve the quality of child care services provided in the 

State and for which measurement of outcomes relating to 

improved child safety, child well-being, or school preparedness is possible. 

(b) CERTIFICATION.—Beginning with fiscal year 2006, the State 

shall annually submit to the Secretary a certification in which the 

State certifies that the State was in compliance with subsection (a) 

during the preceding fiscal year and describes how the State used 

funds made available to carry out this subchapter to comply with 

subsection (a) during that preceding fiscal year. 

(c) STRATEGY.—The State shall annually submit to the Secretary— 

(1) beginning with fiscal year 2006, an outline of the strategy 

the State will implement during that fiscal year to address the 

quality of child care services for which financial assistance is 

made available under this subchapter, including— 

(A) a statement specifying how the State will provide for 

the activities carried out under subsection (a); 

(B) a description of quantifiable, objective measures that 

the State will use to evaluate the State’s progress in improving the quality of the child care services (including 

measures regarding the impact, if any, of State efforts to 

improve the quality by increasing payment rates, as defined 

in section 658H(c)), evaluating separately the impact of the 

activities listed in each of the subparagraphs of subsection 

(a)(2) on the quality of the child care services; and 

(C) a list of State-developed child care services quality 

targets quantified for such fiscal year for such measures; 

and 

(2) beginning with fiscal year 2007, a report on the State’s 

progress in achieving such targets for the preceding fiscal year. 

(d) IMPROVEMENT PLAN.—If the Secretary determines that a State 

failed to make progress as described in subsection (c)(2) for a fiscal 

year— 

(1) the State shall submit an improvement plan that describes 

the measures the State will take to make that progress; and 

(2) the State shall comply with the improvement plan by a 

date specified by the Secretary but not later than 1 year after 

the date of the determination. 

(e) CONSTRUCTION.—Nothing in this subchapter shall be construed to require that the State apply measures for evaluating quality of child care services to specific types of child care providers. 

* * * * * * * 

SEC. 658H. OPTIONAL PRIORITY USE OF ADDITIONAL FUNDS. 

(a) IN GENERAL.—If a State receives funds to carry out this subchapter for a fiscal year, and the amount of the funds exceeds the 

amount of funds the State received to carry out this subchapter for 

fiscal year 2005, the State shall consider using a portion of the excess— 

35 

(1) to support payment rate increases in accordance with the 

market rates survey conducted pursuant to section 658E(c)(4); 

(2) to support the establishment of tiered payment rates as described in section 658G(a)(2)(D); and 

(3) to support payment rate increases for care for children in 

communities served by local educational agencies that have 

been identified for improvement under section 1116(c)(3) of the 

Elementary and Secondary Education Act of 1965 (20 U.S.C. 

6316(c)(3)). 

(b) NO REQUIREMENT TO REDUCE CHILD CARE SERVICES.—Nothing in this section shall be construed to require a State to take an 

action that the State determines would result in a reduction of child 

care services to families of eligible children. 

(c) PAYMENT RATE.—In this section, the term ‘‘payment rate’’ 

means the rate of State payment or reimbursement to providers for 

subsidized child care. 

* * * * * * * 

SEC. 658I. ADMINISTRATION AND ENFORCEMENT. 

(a) ADMINISTRATION.—The Secretary shall— 

(1) * * * 

* * * * * * * 

SEC. 658J. PAYMENTS. 

(a) IN GENERAL.— * * * 

* * * * * * * 

øSEC. 658K. REPORTS AND AUDITS.¿ 

SEC. 658K. REPORTS AND AUDITS. 

ø(a) REPORTS.— ø(1) COLLECTION OF INFORMATION BY STATES.— ø(A) IN GENERAL.—A State that receives funds to carry 

out this subchapter shall collect the information described 

in subparagraph (B) on a monthly basis. 

ø(B) REQUIRED INFORMATION.—The information required 

under this subparagraph shall include, with respect to a 

family unit receiving assistance under this subchapter information concerning— 

ø(i) family income; 

ø(ii) county of residence; 

ø(iii) the gender, race, and age of children receiving 

such assistance; 

ø(iv) whether the head of the family unit is a single 

parent; 

ø(v) the sources of family income, including— 

ø(I) employment, including self-employment; 

ø(II) cash or other assistance under— 

ø(aa) the temporary assistance for needy 

families program under part A of title IV of 

the Social Security Act (42 U.S.C. 601 et seq.); 

and 

ø(bb) a State program for which State 

spending is counted toward the maintenance 

of effort requirement under section 409(a)(7) 

36 

of the Social Security Act (42 U.S.C. 

609(a)(7)); 

ø(III) housing assistance; 

ø(IV) assistance under the Food Stamp Act of 

1977; and 

ø(V) other assistance programs; 

ø(vi) the number of months the family has received 

benefits; 

ø(vii) the type of child care in which the child was 

enrolled (such as family child care, home care, or center-based child care); 

ø(viii) whether the child care provider involved was 

a relative; 

ø(ix) the cost of child care for such families; and 

ø(x) the average hours per month of such are; during the period for which such information is required 

to be submitted. 

ø(C) SUBMISSION TO SECRETARY.—A State described in 

subparagraph (A) shall, on a quarterly basis, submit the 

information required to be collected under subparagraph 

(B) to the Secretary. 

ø(D) USE OF SAMPLES.— 

ø(i) AUTHORITY.—A State may comply with the requirement to collect the information described in subparagraph (B) through the use of disaggregated case 

record information on a sample of families selected 

through the use of scientifically acceptable sampling 

methods approved by the Secretary. 

ø(ii) SAMPLING AND OTHER METHODS.—The Secretary 

shall provide the States with such case sampling plans 

and data collection procedures as the Secretary deems 

necessary to produce statistically valid samples of the 

information described in subparagraph (B). The Secretary may develop and implement procedures for 

verifying the quality of data submitted by the States. 

ø(2) ANNUAL REPORTS.—Not later than December 31, 1997, 

and every 12 months thereafter, a State described in paragraph (1)(A) shall prepare and submit to the Secretary a report 

that includes aggregate data concerning— 

ø(A) the number of child care providers that received 

funding under this subchapter as separately identified 

based on the types of providers listed in section 658P(5); 

ø(B) the monthly cost of child care services, and the portion of such cost that is paid for with assistance provided 

under this subchapter, listed by the type of child care services provided; 

ø(C) the number of payments made by the State through 

vouchers, contracts, cash, and disregards under public benefit programs, listed by the type of child care services provided; 

ø(D) the manner in which consumer education information was provided to parents and the number of parents to 

whom such information was provided; and 

37 

ø(E) the total number (without duplication) of children 

and families served under this subchapter; during the period for which such report is required to be submitted. 

ø(b) AUDITS.— ø(1) REQUIREMENT.—A State shall, after the close of each 

program period covered by an application approved under section 658E(d) audit its expenditures during such program period 

from amounts received under this subchapter. 

ø(2) INDEPENDENT AUDITOR.—Audits under this subsection 

shall be conducted by an entity that is independent of the 

State that receives assistance under this subchapter and be in 

accordance with generally accepted auditing principles. 

ø(3) SUBMISSION.—Not later than 30 days after the completion of an audit under this subsection, the State shall submit 

a copy of the audit to the legislature of the State and to the 

Secretary. 

ø(4) REPAYMENT OF AMOUNTS.—Each State shall repay to the 

United States any amounts determined through an audit 

under this subsection not to have been expended in accordance 

with this subchapter, or the Secretary may offset such amounts 

against any other amount to which the State is or may be entitled under this subchapter.¿ 

(a) REPORTS.— (1) IN GENERAL.—A State that receives funds to carry out this 

subchapter shall collect the information described in paragraph 

(2) on a monthly basis. 

(2) REQUIRED INFORMATION.—The information required 

under this paragraph shall include, with respect to a family 

unit receiving assistance under this subchapter, information 

concerning— 

(A) family income; 

(B) county of residence; 

(C) the gender, race, and age of children receiving such 

assistance; 

(D) whether the head of the family unit is a single parent; 

(E) the sources of family income, including— 

(i) employment, including self-employment; and 

(ii) assistance under a State program funded under 

part A of title IV of the Social Security Act (42 U.S.C. 

601 et seq.) and a State program for which State 

spending is counted toward the maintenance of effort 

requirement under section 409(a)(7) of the Social Security Act (42 U.S.C. 609(a)(7)); 

(F) the type of child care in which the child was enrolled 

(such as family child care, home care, center-based child 

care, or other types of child care described in section 

658T(5)); 

(G) whether the child care provider involved was a relative; 

(H) the cost of child care for such family, separately stating the amount of the subsidy payment of the State and the 

amount of the copayment of the family toward such cost; 

(I) the average hours per month of such care; 

(J) household size; 

38 

(K) whether the parent involved reports that the child has 

an individualized education program or an individualized 

family service plan, as such terms are defined in section 

602 of the Individuals with Disabilities Education Act (20 

U.S.C. 1401); and 

(L) the reason for any termination of benefits under this 

subchapter, including whether the termination was due 

to— 

(i) the child’s age exceeding the allowable limit; 

(ii) the family income exceeding the State eligibility 

limit; 

(iii) the State recertification or administrative requirements not being met; 

(iv) parent work, training, or education status no 

longer meeting State requirements; 

(v) a nonincome related change in status; or 

(vi) other reasons; 

during the period for which such information is required to 

be submitted. 

(3) SUBMISSION TO SECRETARY.—A State described in paragraph (1) shall, on a quarterly basis, submit to the Secretary 

the Information required to be collected under paragraph (2) 

and the number of children and families receiving assistance 

under this subchapter (stated on a monthly basis). Information 

on the number of families receiving the assistance shall also be 

posted on the website of such State. In the fourth quarterly report of each year, a State described in paragraph (1) shall also 

submit to the Secretary information on the annual number and 

type of child care providers (as described in section 658T(5)) 

that received funding under this subchapter and the annual 

number of payments made by the State through vouchers, under 

contracts, or by payment to parents reported by type of child 

care provider. 

(4) USE OF SAMPLES.— 

(A) AUTHORITY.—A State may comply with the requirement to collect the information described in paragraph (2) 

through the use of disaggregated case record information 

on a sample of families selected through the use of scientifically acceptable sampling methods approved by the Secretary. 

(B) SAMPLING AND OTHER METHODS.—The Secretary 

shall provide the States with such case sampling plans and 

data collection procedures as the Secretary determines necessary to produce statistically valid samples of the information described in paragraph (2). The Secretary may develop 

and implement procedures for verifying the quality of data 

submitted by the States. 

* * * * * * * 

øSEC. 658L. REPORT BY SECRETARY. 

øNot later than July 31, 1998, and biennially thereafter, the Secretary shall prepare and submit to the Committee on Economic and 

Educational Opportunities of the House of Representatives and the 

Committee on Labor and Human Resources of the Senate a report 

that contains a summary and analysis of the data and information 

39 

provided to the Secretary in the State reports submitted under section 658K. Such report shall include an assessment, and where appropriate, recommendations for the Congress concerning efforts 

that should be undertaken to improve the access of the public to 

quality and affordable child care in the United States.¿ 

SEC. 658L. NATIONAL ACTIVITIES. 

(a) REPORT.— 

(1) IN GENERAL.—The Secretary shall, not later than April 

30, 2006, and annually thereafter prepare and submit to the 

Committee on Education and the Workforce of the House of 

Representatives and the Committee on Health, Education, 

Labor, and Pensions of the Senate, and, not later than 30 days 

after the date of such submission, post on the Department of 

Health and Human Services website, a report that contains the 

following: 

(A) A summary and analysis of the data and information 

provided to the Secretary in the State reports submitted 

under sections 658E, 658G(c), and 658K. 

(B) Aggregated statistics on and an analysis of the supply 

of, demand for, and quality of child care, early education, 

and nonschool-hour programs. 

(C) An assessment and, where appropriate, recommendations for Congress concerning efforts that should be undertaken to improve the access of the public to quality and affordable child care in the United States. 

(D) A progress report describing the progress of the States 

in streamlining data reporting, the Secretary’s plans and 

activities to provide technical assistance to States, and an 

explanation of any barriers to getting data in an accurate 

and timely manner. 

(2) COLLECTION OF INFORMATION.—The Secretary may make 

arrangements with resource and referral organizations, to utilize the child care data system of the resource and referral organizations at the national, State, and local levels, to collect the 

information required by paragraph (1)(B). 

(b) GRANTS TO IMPROVE QUALITY AND ACCESS.— 

(1) IN GENERAL.—The Secretary shall award grants to States, 

from allotments made under paragraph (2), to improve the 

quality of and access to child care for infants and toddlers, subject to the availability of appropriations for this purpose. 

(2) ALLOTMENTS.—From funds reserved under section 

685O(a)(3) for a fiscal year, the Secretary shall allot to each 

State an amount that bears the same relationship to such funds 

as the amount the State receives for the fiscal year under section 658O bears to the amount all States receive for the fiscal 

year under section 658O. 

(c) TOLL-FREE HOTLINE.—The Secretary shall award a grant or 

contract, or enter into a cooperative agreement, for the operation of 

a national toll-free hotline to assist families in accessing local information on child care options and providing consumer education 

materials, subject to the availability of appropriations for this purpose. 

40 

(d) TECHNICAL ASSISTANCE.—The Secretary shall provide technical assistance to States on developing and conducting the State 

market rates survey described in section 658E(c)(4)(A)(i). 

* * * * * * * 

SEC. 658M. LIMITATIONS ON USE OF FINANCIAL ASSISTANCE FOR 

CERTAIN PURPOSES. 

(a) SECTARIAN PURPOSES AND ACTIVITIES.— * * * 

* * * * * * * 

SEC. 658N. NONDISCRIMINATION. 

(a) RELIGIOUS NONDISCRIMINATION.— 

(1) CONSTRUCTION.— 

(2) IN GENERAL.— * * * 

* * * * * * * 

SEC 658O. AMOUNTS RESERVED; ALLOTMENTS. 

(a) AMOUNTS RESERVED.— (1) TERRITORIES AND POSSESSIONS.— * * * 

(2) INDIAN TRIBES.—The Secretary shall reserve ønot less 

than 1 percent, and not more than 2 percent,¿ 2 percent of the 

amount appropriated under section 658B in each fiscal year for 

payments to Indian tribes and tribal organizations with applications approved under subsection (c). 

(3) GRANTS TO IMPROVE QUALITY AND ACCESS.—The Secretary shall reserve an amount not to exceed $100,000,000 for each fiscal year to carry out section 658L(b), subject to the availability 

of appropriations for this purpose. 

(4) TOLL-FREE HOTLINE.—The Secretary shall reserve an amount not to exceed $1,000,000 to carry out section 658L(c), 

subject to the availability of appropriations for this purpose. 

* * * * * * * 

(b) STATE ALLOTMENT.— (1) GENERAL RULE.— * * * 

* * * * * * * 

(c) PAYMENTS FOR THE BENEFIT OF INDIAN CHILDREN.— (1) GENERAL AUTHORITY.—From amounts reserved under 

subjection (a)(2), the Secretary may make grants to or enter 

into contracts with Indian tribes or tribal organizations that 

submit applications under this section (in accordance with the 

requirements of subparagraphs (E) and (F) of section 658E(c)(2) 

for such tribes or organizations), for the planning and carrying 

out of programs or activities consistent with the purposes of 

this subchapter. 

* * * * * * * 

SEC. 658P. RULES OF CONSTRUCTION. 

Nothing in this subchapter shall be construed to require a State 

to impose State child care licensing requirements on any type of 

early childhood provider, including any such provider who is exempt from State child care licensing requirements on the date of enactment of the Caring for Children Act of 2005. 

* * * * * * * 

41 

SEC. 658Q. PARENTAL RIGHTS AND RESPONSIBILITIES. 

* * * * * * * 

SEC. 658R. SEVERABILITY. 

* * * * * * * 

SEC. 658S. MISCELLANEOUS PROVISIONS. 

* * * * * * * 

SEC. ø658P¿ 658T. DEFINITIONS. 

As used in this subchapter: 

(1) CAREGIVER.— * * * 

(2) CHILD CARE CERTIFICATE.— * * * 

(3) CHILD WITH SPECIAL NEEDS.—The term ‘‘child with special 

needs’’ means— 

(A) a child with a disability, as defined in section 602 of 

the Individuals with Disabilities Education Act (20 U.S.C. 

1401); 

(B) a child who is eligible for early intervention services 

under part C of the Individuals with Disabilities Education 

Act (20 U.S.C. 1431 et seq.); and 

(C) a child with special needs, as defined by the State involved. 

(4) ELIGIBLE CHILD.—The term ‘‘eligible child’’ means an individual— 

(A) * * * 

(B) whose family income does not exceed ø85 percent of 

the State median income for a family of the same size¿ an 

income level determined by the State involved, with priority 

based on need as defined by the State; and 

(C) who— 

(i) resides with øa parent or parents¿ a parent (including a legal guardian or foster parent) or parents 

who are working or attending a job training or educational program; or 

ø(ii) is receiving, or needs to receive, protective services and resides with a parent or parents not described 

in clause (i).¿ 

(ii)(I) is receiving, or needs to receive, protective services (which may include foster care) or is a child with 

significant cognitive or physical disabilities as defined 

by the State; and 

(II) resides with a parent (including a legal guardian 

or foster parent) or parents not described in clause (i). 

* * * * * * * 

(8) LEAD AGENCY.—The term ‘‘lead agency’’ means the agency 

designated under øsection 658B(a)¿ section 658D(a). 

(9) PARENT.—The term ‘‘parent’’ includes a legal guardian, 

foster parent, or other person standing in loco parentis. 

* * * * * * * 

(1) TRIBAL ORGANIZATION.— (A) IN GENERAL.— * * * 

(B) OTHER ORGANIZATIONS.—Such term includes a øNative Hawaiian Organization, as defined in section 4009(4) 

42 

of the Augustus F. Hawkins-Robert T. Stafford Elementary 

and Secondary School Improvement Amendments of 1988 

(20 U.S.C. 4909(4)¿ Native Hawaiian organization, as defined in section 7207 of the Elementary and Secondary 

Education Act of 1965 (20 U.S.C. 7517) and a private nonprofit organization established for the purpose of serving 

youth who are Indians or Native Hawaiians. 

* * * * * * * 

Æ