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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9901 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 9901

      To enhance the supply of child care, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 1, 2024

  Mr. Khanna introduced the following bill; which was referred to the 
   Committee on Education and the Workforce, and in addition to the 
  Committees on Ways and Means, Agriculture, Energy and Commerce, and 
 Financial Services, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
      To enhance the supply of child care, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Child Care for 
America Act of 2024''.
    (b) Table of Contents.--The table of contents of this Act is the 
following:

Sec. 1. Short title; table of contents.
                    TITLE I--CHILD CARE FOR AMERICA

Sec. 101. Definitions.
Sec. 102. Funding.
Sec. 103. Child care for America grant program.
        TITLE II--STAY-AT-HOME PARENT CHILD CARE SUPPORT PROGRAM

Sec. 201. Definitions.
Sec. 202. Establishment of stay-at-home parent support benefit program.
Sec. 203. Funding authorization and allocation.
Sec. 204. Application process.
Sec. 205. Responsibilities of the Secretary of the Treasury.
Sec. 206. Responsibilities of the Secretary.
Sec. 207. Coordination.
Sec. 208. Waste, fraud, and abuse.
Sec. 209. Outreach and education.
Sec. 210. Evaluation metrics.
Sec. 211. Sunset provision/reauthorization requirement.
Sec. 212. Interaction with other benefits.
Sec. 213. Benefit structure and payment mechanism.
  TITLE III--KIN CARE: FAMILY, FRIEND, AND NEIGHBOR (FFN) CARE PROGRAM

Sec. 301. Definitions.
Sec. 302. Authorization of appropriations.
Sec. 303. Parent roles and responsibilities in the FFN Care Program.
Sec. 304. FFN provider responsibilities in the Kin Care Program.
Sec. 305. Child care practices for family, friend, and neighbor 
                            providers.
Sec. 306. FFN provider verification procedures and ongoing monitoring.
Sec. 307. FFN Provider Payment Process.
Sec. 308. Data privacy and security measures.
Sec. 309. Transition to licensed family child care.
Sec. 310. Supports for serving children with special needs.
Sec. 311. Collaboration with other early childhood programs.
Sec. 312. Evaluation and research.
Sec. 313. Community engagement for the Kin Care Program.

                    TITLE I--CHILD CARE FOR AMERICA

SEC. 101. DEFINITIONS.

    For purposes of this Act:
            (1) Eligible child.--The term``eligible child'' means a 
        child who is below the age of 6 and not yet in kindergarten, 
        with no other eligibility conditions unless the context 
        specifies otherwise.
            (2) Eligible child care provider.--Unless the context 
        specifies otherwise, the term ``eligible child care provider'' 
        is any program that provides child care which--
                    (A) is not an individual who is related to all 
                children from whom child care services are provided;
                    (B) is licensed, regulated or registered under 
                State law; and
                    (C) agrees to requirements as laid out in this Act.
            (3) Eligible family.--The term ``eligible family'' means--
                    (A) a married couple with a combined annual income 
                not exceeding $250,000;
                    (B) an individual with an annual income not 
                exceeding $125,000; or
                    (C) a family under 85 percent State median income.
            (4) Low-income.--The term ``low-income'' means an eligible 
        child with a family income that is not more than 85 percent of 
        State median income.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (6) Tribal organization.--The term ``Tribal organization'' 
        means the recognized governing body of any Native tribe, or any 
        legally established organization of Natives, which is 
        controlled, sanctioned or chartered by such governing body or 
        which is democratically elected by the adult members of the 
        Native community to be served by such organization and which 
        includes the maximum participation of Natives in all phases of 
        its activities.

SEC. 102. FUNDING.

    (a) Authorization of Appropriations.--To carry out this title, 
there are authorized to be appropriated--
            (1) $78,000,000,000 for fiscal years 2024 through 2028, and
            (2) $78,000,000,000 for fiscal years 2029 through 2034.
    (b) Uses of Funds.--
            (1) Fiscal years 2024 through 2028.--Funds appropriated for 
        fiscal years 2024 through 2028 shall be distributed to States 
        under section 658O(b) of the Child care and Development Block 
        Grant Act of 1990 (42 19 U.S.C. 9858m(b)).
            (2) Requirements.--
                    (A) Matching funds.--To be eligible to received 
                funds under this title--
                            (i) in fiscal years 2026 and 2027, a State 
                        shall agree to match at least 5 percent of 
                        Federal funds; and
                            (ii) in fiscal years 2028 through 2034, a 
                        State shall agree to match at least 10 percent.
                    (B) Maintenance of effort.--To be eligible to 
                receive funds under this title for a fiscal year a 
                State shall--
                            (i) agree spend at least as much as the 
                        average of its expenditures on child care 
                        services. over the previous 3 previous fiscal 
                        years; and
                            (ii) use such funds to supplement not 
                        supplant other Federal, State, or local public 
                        funds to support child care services;
                            (iii) continue spending its own funds on 
                        child care services, not just Federal funds.
    (c) Allocation of Funds.--To carry out this Act--
            (1) funds appropriated to carry out the section 4 shall be 
        allocated--
                    (A) to carry out a child care program for low- and 
                moderate- income parents,
                    (B) to carry out a Parent Fee Reduction Program 
                with $20,000,000,000 annually every fiscal year from 
                fiscal year 2024 through fiscal year 2034; and
                    (C) to establish a Worker Wage Ladder;
            (2) to implement a Child care Facilities Fund with 
        $250,000,000 annually every fiscal year from fiscal year 2024 
        through fiscal year 2034;
            (3) to implement a Homecare Fund with $250,000,000 annually 
        every fiscal year from fiscal year 2024 through fiscal year 
        2034; and
            (4) to implement a Child Care Innovation Fund with 
        $250,000,000 annually every fiscal year from fiscal year 2024 
        through fiscal year 2034.

SEC. 103. CHILD CARE FOR AMERICA GRANT PROGRAM.

    (a) Establishment of Program.--The Secretary shall establish and 
carry out a grant program entitled the ``Child care for America Grant 
Program'' to make grants to States and Tribal organizations to provide 
child care services in accordance with this section.
    (b) Allocation of Funds.--Of the funds appropriated for a fiscal 
year, the Secretary shall--
            (1) reserve for Tribal organizations a portion of such 
        funds based on the number of eligible children served by the 
        Tribal organization and the demonstrated need for child care 
        services in the Tribal community, and
            (2) allocate the remainder of such funds for grants to 
        eligible States to provide child care services.
    (c) Eligibility of States.--To be eligible to receive a grant under 
this section, a State shall submit to the Secretary an application that 
includes--
            (1) identification of the lead agency and key contact 
        information;
            (2) a description of the lead agency's roles, 
        responsibilities, and organizational structure for 
        administering the grant program;
            (3) a certification that the State will comply with all 
        requirements of this section and applicable Federal laws and 
        regulations;
            (4) an assurance that the State will administer the program 
        in a manner that supports equal access and parental flexibility 
        in child care services pursuant to assurances States are making 
        to receive such funds;
            (5) a detailed plan for conducting meaningful consultation 
        with stakeholders, including parents, child care providers, 
        employers, child care workers, and local government 
        representatives, in the development and implementation of the 
        program; and
            (6) a proposed time line for implementing key components of 
        the program, including--
                    (A) providing advance disbursement of parent fees 
                and wage supplements, subgranting with eligible 
                providers, and establishing a wage and benefits ladder;
                    (B) a description of the State's process for 
                determining eligibility and prioritizing eligible child 
                care providers for subgrants and funding;
                    (C) the State's proposed formula for allocating 
                subgrant amounts to eligible providers pursuant to 
                section 103(m);
                    (D) an outline of the State's plan for establishing 
                and implementing a wage and benefits ladder for staff 
                of eligible providers receiving assistance;
                    (E) a plan for providing wage supplements to staff 
                of eligible providers within 12 months of the program's 
                implementation;
                    (F) a description of the State's strategies for 
                increasing access to high-quality child care services 
                for underserved populations, including low-income 
                families, children with disabilities, and families in 
                need of non-traditional hour care;
                    (G) a plan for conducting data collection and 
                reporting on the use of funds and the effectiveness of 
                the program;
                    (H) any reasonable and relevant information or 
                assurances required by the Secretary of Health and 
                Human Services;
                    (I) the Secretary will review the applications and 
                provide feedback or requests for additional information 
                as needed;
                    (J) funds allocated to States and Tribal 
                organizations under this section shall be used in 
                accordance with the requirements and priorities 
                outlined in subsection (f); and
                    (K) applications shall be approved by the Secretary 
                of Health and Human Services before the State can 
                receive grant funding.
    (d) Eligibility of Lead Agency.--To receive grant funding the lead 
agency shall agree to the following certifications and assurances--
            (1) all communities in their State or respective territory 
        will be served;
            (2) establish and administer a system for subgranting with 
        eligible child care providers to cover annual operational 
        expenses pursuant to subsection (i) of this section and 
        subsection (m) of this section;
            (3) establish a wage and benefits ladder for staff of 
        eligible child care providers receiving assistance under this 
        grant, including assurances that wage and benefits for such 
        staff, at minimum will meet subsection (p) of this section;
            (4) within the first 12 months after the date of the 
        enactment of this Act, the State will establish a system for 
        providing wage supplements to all full time and part-time staff 
        members of eligible child care providers pursuant to subsection 
        (p) of this section;
            (5) within the first 12 months after the date of the 
        enactment of this Act, the State shall provide every eligible 
        child care provider, who is accepted with--
                    (A) 50 percent of their total parent fees charged 
                in the previous fiscal year,
                    (B) advance wage supplement disbursements; and
                    (C) an assurance that programs already offering 
                free services shall continue doing so, pursuant to 
                subsection (h) of this section;
            (6) will provide necessary accommodations to ensure family 
        child care, faith-based care, care during non-traditional 
        hours, and care for children with disabilities are available, 
        equitable and viable options for families, including but not 
        limited to offering an incentive for providers to expand care 
        offerings during non-traditional hours;
            (7) reserve no more than 5 percent of grants to administer 
        subgrants, provide technical assistance and support for 
        applicants to apply for and access the grant opportunity and to 
        carry out the activities in this Act;
            (8) existing health and safety measures will be continued;
            (9) provide explanations to the Secretary as necessary; and
            (10) States may reserve up to 5 percent of their total 
        grant allocation each fiscal year for administrative costs 
        associated with implementing this section, including activities 
        such as developing and implementing the State plan, providing 
        technical assistance to child care providers, conducting 
        monitoring and oversight, and compensating parents for 
        providing input to the lead agency. This compensation shall be 
        used to ensure consumers are included in the development of the 
        State plan prior to submission and as an advisory body 
        thereafter.
    (e)  Eligibility of Tribal Organizations.--
            (1) Tribal organizations are eligible to apply for and 
        receive funding under this section.
            (2) The Secretary shall reserve a portion of the total 
        appropriation for the program each fiscal year to be allocated 
        to Tribal organizations based on the number of eligible 
        children served by the Tribal organization and the demonstrated 
        need for child care services in the Tribal community.
            (3) Tribal organizations that receive funding under this 
        section shall comply with all the requirements outlined in the 
        ``Requirements for States Administering Subgrants to Eligible 
        Child care Providers'' section except that they may use their 
        own Tribal licensing, regulatory, or monitoring systems in lieu 
        of State systems, provided that such Tribal systems meet 
        minimum Federal standards as established by the Secretary.
            (4) Tribal organizations that receive funding under the 
        program established in this section are eligible to apply for 
        and receive additional funding under the Low-Moderate Income 
        Fee Reduction Program. Tribal organizations shall comply with 
        all the requirements outlined in subsection (n)(7) of this 
        section, except that they may use their own median income data 
        and eligibility criteria, provided that such criteria align 
        with the overall goals and requirements of the program.
            (5) Tribal organizations that receive funding under this 
        section may reserve up to 15 percent of their total grant 
        allocation each fiscal year for administrative costs, in 
        recognition of the unique challenges and costs associated with 
        administering child care programs in Tribal communities.
    (f) Use of Funds.--Funds appropriated to carry out the program 
under this section shall be used to support the provision of high-
quality, affordable child care services for eligible, children and 
families, in accordance with the requirements and priorities 
established in this section.
            (1) Particular uses.--State and Tribal organizations shall 
        use the funds to--
                    (A) expand access to child care services, 
                especially for low-income families and underserved 
                populations;
                    (B) improve the quality of child care services 
                through investments in workforce development, 
                facilities and other key areas;
                    (C) provide financial assistance to eligible 
                families to help them access child care services; and
                    (D) support the implementation and administration 
                of the grant received under this section and related 
                initiatives.
            (2) Specific allocations.--States and Tribal organizations 
        will allocate funds received under this section in accordance 
        with the following requirements:
                    (A) At least 70 percent of the funds shall be used 
                to provide direct services to eligible children and 
                families, including through grants and subgrants with 
                eligible child care providers and other initiatives 
                designed to expand access and affordability.
                    (B) At least 10 percent of the funds shall be used 
                for quality improvement activities that are defined and 
                co-created with families and the child care workforce.
                    (C) No more than 5 percent of the funds may be used 
                for State or Tribal administrative costs, as outlined 
                in subsections (i) and (e) of this section.
                    (D) Remaining funds may be used for other 
                activities that support the goals and requirements of 
                this section, as approved by the Secretary.
            (3) Prohibited uses.--Funds appropriated under this section 
        shall not be used for the following:
                    (A) The purchase or improvement of land, or the 
                purchase, construction, or permanent improvement of any 
                building or facility, except as authorized under the 
                Quality Child Care Facilities Grant Program established 
                in subsection (p)(9) of this section.
                    (B) Any sectarian purpose or activity, including 
                religious worship or instruction.
                    (C) Any lobbying or political activity, as defined 
                by the Secretary.
                    (D) Any other purpose or activity that is not 
                consistent with the goals and requirements of this 
                section, as determined by the Secretary.
            (4) Reporting and accountability.--
                    (A) States and tribal organizations receiving funds 
                under the child care for America Grant Program shall 
                maintain detailed records on the use of funds and shall 
                submit annual reports to the Secretary on the 
                allocation and impact of these funds.
                    (B) The Secretary shall establish reporting 
                requirements and performance measures to ensure that 
                funds are being used effectively and in accordance with 
                the requirements of this Act.
                    (C) The Secretary shall have the authority to 
                withhold or recapture funds from States or tribal 
                organizations that fail to comply with the requirements 
                of this Act or that do not demonstrate adequate 
                progress toward meeting the goals and priorities 
                established in their State or tribal plans.
    (g) Preventing Waste, Fraud and Abuse.--
            (1) Policy and practices.--
                    (A) States and tribal organizations receiving funds 
                under this section will have in place policies and 
                practices that reduce the risk of waste, fraud and 
                abuse including:
                            (i) Establish procedures for verifying the 
                        accuracy of the reported parent fees. Such 
                        procedures should be as streamlined as 
                        reasonably possible in order to minimize 
                        administrative burden on providers.
                            (ii) Monitoring child care providers to 
                        ensure compliance with program requirements, 
                        with a focus on supporting providers to meet 
                        these requirements rather than punitive 
                        measures. This monitoring shall be conducted in 
                        a manner that is culturally responsive, 
                        minimizes administrative burden, and 
                        prioritizes program quality and child well-
                        being over strict procedural compliance.
                            (iii) Maintaining records sufficient to 
                        document compliance with program requirements 
                        through appropriate measures, including 
                        investigating and recovering fraudulent 
                        payments and imposing sanctions on clients or 
                        providers in response to fraud.
                    (B) Internal controls and accountability 
                measures.--
                            (i) Internal controls.--States and Tribal 
                        organizations receiving funds under this 
                        section shall have in place effective internal 
                        control procedures to ensure integrity and 
                        accountability in the program, including--
                                    (I) fiscal controls and accounting 
                                procedures sufficient to permit the 
                                tracing of funds to a level of 
                                expenditure adequate to establish that 
                                these funds have not been used in 
                                violation of the provisions of this Act 
                                or any other applicable Federal or 
                                State law;
                                    (II) record keeping requirements 
                                sufficient to ensure that all 
                                expenditures and receipts are accounted 
                                for and available for audit and 
                                examination; and
                                    (III) regular monitoring and 
                                inspection of child care providers to 
                                ensure compliance with health, safety, 
                                and quality standards, as well as 
                                proper use of grant funds.
                            (ii) Guidance.--The Secretary will issue 
                        guidance and provide technical assistance to 
                        States and Tribal organizations on implementing 
                        effective internal control procedures and will 
                        monitor compliance through regular reporting 
                        and oversight.
            (2) Eligibility determination and verification.--
                    (A) Verification.--States and Tribal organizations 
                will have in place procedures for documenting and 
                verifying the eligibility of children and families for 
                assistance under this section, including--
                            (i) verifying family income through 
                        automatic enrollment if already enrolled in 
                        another public assistance program or by pay 
                        stubs, tax returns or other reliable sources 
                        which can be submitted electronically (the 
                        State agency should make verification as simple 
                        and efficient to reduce the burden on families 
                        to prove their eligibility) or other reliable 
                        resources;
                            (ii) establishing eligibility 
                        redetermination periods of a minimum of 12 
                        months, with provisions for interim reporting 
                        of changes in income or employment status; and
                            (iii) safeguarding the confidentiality and 
                        security of eligibility information and 
                        records, in accordance with applicable Federal 
                        and State privacy laws.
                    (B) Guidance.--The Secretary shall provide guidance 
                and technical assistance to States and Tribal 
                organizations on implementing effective eligibility 
                determination and verification procedures, and shall 
                monitor compliance through regular reporting and 
                oversight.
            (3) Identification of risk.--States and Tribal 
        organizations will identify areas of risk for waste, fraud and 
        abuse in their program under this sections, including 
        conducting criminal background checks on child care providers, 
        including prospective providers, in accordance with Federal 
        requirements.
            (4) Training and technical assistance.--The Secretary will 
        provide training and technical assistance to States and Tribal 
        organizations on effective policies and practices for 
        preventing waste, fraud, and abuse, including--
                    (A) conducting periodic training for State and 
                Tribal staff on identifying and preventing fraud,
                    (B) providing guidance on implementing risk 
                assessment tools and procedures, and
                    (C) developing and disseminating best practices for 
                monitoring child care providers and enforcing program 
                requirements.
            (5) Reporting and investigation.--
                    (A) Procedures.--States and Tribal organizations 
                will have procedures in place for reporting and 
                investigating suspected cases of waste, fraud and abuse 
                including--
                            (i) establishing mechanisms for the public 
                        to report suspected fraud, such as hotlines or 
                        online reporting systems;
                            (ii) conducting prompt and thorough 
                        investigations of suspected fraud, in 
                        coordination with law enforcement agencies and 
                        as appropriate;
                            (iii) referring substantiated cases of 
                        fraud for criminal prosecution and taking steps 
                        to recover fraudulent payments; and
                            (iv) reporting instances of waste, fraud 
                        and abuse to the Secretary, along with any 
                        actions taken in response.
                    (B) Transparency and public reporting.--States and 
                Tribal organization will make available to the public, 
                in a consumer friendly and easily accessible format--
                            (i) the results of monitoring and 
                        inspection reports for child care providers, 
                        including any violation of health, safety or 
                        quality standards and any corrective actions 
                        taken;
                            (ii) aggregate data on the number of 
                        serious injuries, deaths, and substantiated 
                        cases of child abuse or neglect occurring in 
                        child care settings, by provider type and 
                        licensing status; and
                            (iii) information on the availability and 
                        quality of child care services in different 
                        geographic areas and for different age groups 
                        and populations. At minimum, such information 
                        should include gathering data from parents and 
                        practitioners in a way that is reasonably 
                        representative of the State.
                    (C) Annual reports.--The Secretary will compile and 
                publish annual reports on the implementation and 
                outcomes of the program established in this section, 
                including data on program enrollment, expenditures and 
                service delivery, as well as any instance of waste, 
                fraud or abuse identified and corrective actions taken.
            (6) Penalties and sanctions.--
                    (A) Procedures.--States and Tribal organizations 
                shall have in place procedures for imposing penalties 
                and sanctions on child care providers or clients who 
                engage in waste, fraud or abuse, including--
                            (i) terminating the eligibility of clients 
                        who engage in fraud and disqualifying them from 
                        future participation in the program;
                            (ii) suspending or terminating the 
                        eligibility of providers who engage in fraud 
                        and prohibiting them from receiving future 
                        payments under the program; and
                            (iii) recovering fraudulent payments from 
                        providers or clients through repayment plans or 
                        other means.
                    (B) Fraud detection and repayment.--States and 
                Tribal organizations shall have in place for 
                identifying and investigating possible instances of 
                fraud by child care providers or recipients of 
                assistance under the this section, including--
                            (i) conducting regular audits and reviews 
                        of provider records and claims for 
                        reimbursement, using risk-based sampling, and 
                        targeting methods;
                            (ii) establishing mechanism for reporting 
                        suspected fraud by the public, including 
                        anomalously and for protecting whistleblowers 
                        from retaliation; and
                            (iii) promptly referring substantiated 
                        cases of fraud to law enforcement for criminal 
                        investigation and prosecution.
                    (C) Penalty.--Any child care provider or recipient 
                of assistance found to have engaged in fraud shall be 
                subject to repayment of all misused funds, plus 
                interest and penalties, and shall be disqualified from 
                future participation in the program for a period of not 
                less than five years.
                    (D) Guidance and technical assistance.--The 
                Secretary shall provide guidance and technical 
                assistance to States and Tribal organizations on 
                implementing effective fraud detection and repayment 
                procedures and shall monitor compliance through regular 
                reporting and oversight.
            (7) Federal oversight.--The Secretary will monitor State 
        and Tribal compliance with the requirements of this section 
        through--
                    (A) reviewing and approving State and Tribal plans 
                for preventing waste, fraud or abuse;
                    (B) conducting periodic reviews and audits of State 
                and Tribal programs to identify potential instances of 
                waste, fraud, or abuse; and
                    (C) investigating and taking enforcement action in 
                response to substantiated cases of waste, fraud or 
                abuse, including imposing penalties on States or Tribal 
                organizations that fail to comply with the program 
                requirements.
    (h) Income Eligibility.--
            (1) Only eligible families, as defined in section 101, may 
        access the $10 per day child care program under this grant.
            (2) Families with incomes exceeding the thresholds 
        specified in section 101 are not eligible for the $10 per day 
        program but may still access child care services at rates 
        determined by the State, subject to the other provisions of 
        this Act.
            (3) States shall establish procedures to verify family 
        income annually and to adjust eligibility accordingly.
            (4) The Secretary shall adjust the income thresholds 
        specified in section 101 annually for inflation, using the 
        Consumer Price Index for All Urban Consumers (CPI-U) as 
        published by the Bureau of Labor Statistics.
    (i) Initial Funding for Eligible Child Care Providers.--
            (1) Amount of funds.--Within 12 months after the date of 
        enactment of this Act, each State shall provide all eligible 
        child care providers whose applications have been accepted with 
        the sum of the following:
                    (A) An amount equal to 50 percent of the total 
                parent fees charged by the provider in the previous 
                fiscal year.
                    (B) Disbursements of wage supplements for the 
                provider's staff, as determined by the State's wage and 
                benefits ladder established under this Act.
            (2) Base level of funds.--The amounts provided in this 
        section will serve as the base level of funding for each 
        eligible child care provider on an annual basis until the 
        provider enters a permanent subgrant with the State under this 
        Act.
            (3) Disbursement of funds.--States will disburse the funds 
        described in subsection (a) to eligible child care providers 
        within 12 months of the date of enactment of this Act, 
        regardless of whether the provider's application for a 
        permanent subgrant is still pending review or approval amount.
            (4) Amount.--In determining the amount of--
                    (A) parent fees charged in the previous fiscal 
                year, the State will--
                            (i) require eligible child care providers 
                        to submit documentation or attestation of their 
                        total parent fees charged during the applicable 
                        fiscal year;
                            (ii) establish procedures for verifying the 
                        accuracy of the reported parent fees; and
                            (iii) provide guidance to providers on the 
                        calculation and reporting of parent fees, 
                        including any allowable deductions or 
                        adjustments;
                    (B) in determining the advance disbursements of 
                wage supplements, the State will--
                            (i) apply the wage and benefits ladder 
                        established in accordance with the requirements 
                        of this section;
                            (ii) require eligible child care providers 
                        to submit information on their current staffing 
                        levels and compensation rates; and
                            (iii) provide guidance to providers on the 
                        calculation and disbursement of wage 
                        supplements, including the frequency of 
                        payments and any necessary adjustments based on 
                        staffing changes or other factors; and
                    (C) at minimum, States are required to establish 
                procedures for eligible child care providers to appeal 
                or seek reconsideration of the initial funding amounts 
                determined under this section, in cases where the 
                provider believes an error or miscalculation has 
                occurred.
            (5) Guidance.--The Secretary will issue regulations and 
        guidance as necessary to ensure consistent and equitable 
        implementation of this section by States, including standards 
        for documentation, verification, and calculation of initial 
        funding amounts.
    (j) Requirements for States Administering Subgrants to Eligible 
Child Care Providers.--
            (1) Subgrants.--To receive funds under this subsection, 
        each State will establish a program for subgranting with 
        eligible child care providers within 3 years of enactment of 
        this section.
            (2) Purpose.--The purpose of this program is to ensure 
        affordable, accessible, and high-quality child care options for 
        families.
            (3) Definition of state.--For the purpose of this 
        subsection the term ``State'' includes Tribal organizations. 
        Tribal organizations that receive funding under this subsection 
        shall comply with all requirements outlined in this subsection, 
        except that they may use Tribal licensing, regulatory, or 
        monitoring systems in lieu of State systems, provided that such 
        Tribal systems meet minimum Federal standards as established by 
        the Secretary.
            (4) Formula.--Within the first 12 months after the 
        enactment of this Act, each State will develop and publish a 
        formula for allocating subgrant amounts to eligible child care 
        providers.
            (5) Subgrants program.--To receive funds under this 
        subsection, each State will establish a program for subgrants 
        to eligible child care providers within 3 years of enactment of 
        this Act. The purpose of this program is to ensure affordable, 
        accessible, and high-quality child care options for families.
            (6) Allocation of subgrants.--Within the first 12 months 
        after the enactment of this Act, each State will develop and 
        publish a formula for allocating subgrant amounts to eligible 
        child care providers. The formula will be used to calculate the 
        operational costs necessary for providers to operate 
        sustainably while maintaining high-quality standards.
            (7) Guidance.--The Secretary will provide guidance and 
        minimum standards for States to follow in developing their 
        subgrant allocation formulas. At a minimum these formulas will 
        consider the following cost components:
                    (A) Personnel costs, including wages, benefits, and 
                professional development.
                    (B) Facility maintenance and improvement costs, 
                including outdoor environments.
                    (C) Curricular materials, educational resources and 
                other supplies.
                    (D) Costs associate with meeting the needs of 
                enrolled children with disabilities or special needs.
                    (E) Food costs, if applicable.
                    (F) Administrative and operational costs.
            (8) Submission of subgrant formula.--Each State will submit 
        its proposed subgrant allocation formula to the Secretary of 
        Health and Human Services for review and approval. The 
        Secretary will ensure that formulas comply with the minimum 
        standards and guidance provided.
    (k) Publication of Application Process for Subgrants.--The lead 
agency in each State will develop and make available on its website an 
application process for child care providers to apply for and receive 
subgrants under this program. States will accept, process, and disburse 
funds for subgrants from eligible child care providers on a rolling and 
continuous basis pursuant to State Subgrants to Eligible Providers 
section of this Act. The application shall include at minimum the 
following:
            (1) The assurances outline in the State Subgrants to 
        Eligible Providers section of this Act.
            (2) Process advance disbursement of funds pursuant to the 
        Initial Funding for Child care Providers section of this Act.
    (l) Priority.--States will establish a process to prioritize the 
disbursement of funds and the awarding of subgrants to eligible child 
care providers pursuant to the Low-Moderate Income section of this Act.
    (m) Monitoring and Compliance.--States will establish a monitoring 
and oversight system to ensure that subgranted child care providers 
maintain compliance with the terms of their subgrants, quality 
standards, and all applicable requirements under this section.
    (n) State Subgrants to Eligible Child Care Providers.--
            (1) To be eligible to receive a subgrant funded under this 
        section, a child care provider shall--
                    (A) be licensed, regulated or registered under 
                State law to provide child care services;
                    (B) submit an application to the State lead agency 
                and agree to the provider requirements in section c; 
                and
                    (C) meet the quality standards established by the 
                State.
            (2) Child care provider application and selection.--To 
        receive funds from the State, the child care provider shall do 
        the following:
                    (A) make the following certifications, assurances:
                            (i) When open and available, to provide 
                        child care services, implement policies in line 
                        with guidance from their State.
                            (ii) Implement all State health, safety and 
                        quality standards and policies.
                            (iii) Use subgrant funds solely for 
                        allowable expenses outlined in Allowable Use of 
                        Subgrant Funds.
                            (iv) Limit annual increases in parent 
                        tuition fees to no more than 3 percent above 
                        the prior year.
                            (v) Not charge mandatory parents ancillary 
                        fees expect as approved by the lead agency and 
                        after written approval from the Secretary.
                            (vi) Cap total executive compensation at no 
                        more than 10 times the median employee wage.
                            (vii) Not use funds for undue profit or to 
                        pay interest or dividends to investors.
                            (viii) Maintain or increase wage and 
                        benefits in accordance with Wage Supplement 
                        section of this Act.
                            (ix) Meet lead teacher qualifications 
                        standards pursuant to Lead Teacher 
                        Qualifications subsection.
                            (x) Prioritize serving low-income 
                        populations pursuant to Low-Mod Income. The 
                        eligible child care provider will provider 
                        relief from co-payments and tuition payments 
                        for the families enrolled in the providers 
                        program, to the extent possible, with the goal 
                        of fees not exceeding $10 a day for full-time 
                        care. If available funds do not allow for this 
                        goal to be met, providers shall prioritize 
                        relief for families struggling to make either 
                        type of payment pursuant to Low- to Moderate-
                        Income section.
                            (xi) not engage in a sale-leaseback 
                        transaction that leaves a provider site with 
                        more debt than it previously held.
                            (xii) if a child care company or its 
                        affiliate brands holds more than 20 licenses 
                        across all States, agree to submit detailed 
                        annual financial reports to the Department of 
                        Health and Human Services, the specifics of 
                        which will be determined by the Secretary.
                    (B) Subgrants will be for every 2 years, and 
                renewable.
                    (C) Funds provided to eligible child care providers 
                through State subgrants shall be used to support the 
                provision of high-quality child care services and to 
                meet the requirement outlined in the subgrant, such as 
                improving compensation for workers, reducing fees for 
                families and meeting quality standards established by 
                the State.
            (3) Allowable use of subgrant funds.--
                    (A) Providers can use funds received under the 
                subgrant, at minimum, for the following allowable 
                operational expenses:
                            (i) Personnel costs (wages, benefits, 
                        professional development).
                            (ii) Mortgage, rent, and facility 
                        maintenance and improvement.
                            (iii) Educational materials, supplies and 
                        technology.
                            (iv) Food service, if applicable.
                            (v) Administrative and general operating 
                        expenses.
                    (B) The Secretary will establish guidance for State 
                on categories of additional allowable expenses.
                    (C) The Secretary will establish procedures for 
                regularly getting feedback from States, parents, and 
                providers and adjust the guidance as needed in 
                response.
            (4) Subgrant amount determination.--
                    (A) Within 12 months after the date of the 
                enactment of this Act, each State lead agency will 
                develop a formula to determine annual subgrant amounts 
                for eligible providers.
                    (B) The subgrant amount formula will consider at 
                minimum:
                            (i) Staffing and personnel costs based on 
                        enrollment.
                            (ii) Facility, maintenance, and improvement 
                        costs.
                            (iii) Costs of curricula, materials, and 
                        other quality inputs.
                            (iv) Administrative and operating expenses.
                            (v) Regional cost of living adjustments.
                            (vi) Other factors identified by the 
                        Secretary.
                    (C) States will submit formulas to the Secretary 
                for approval.
                    (D) Subgrant amounts will be adjusted annually 
                based on the State's formula.
                            (i) For each employee, the eligible child 
                        care provider will not pay less than the full 
                        compensation, including any benefits, that was 
                        provided to the employee as of the date of 
                        their subgrant in the last full year prior to 
                        the subgrant application or date of the 
                        subgrant application (whichever was higher 
                        application submission of the application for 
                        the subgrant and will not take any action that 
                        reduces the weekly amount of the employee's 
                        compensation, or that reduces the employee's 
                        rate of full compensation, or that reduces the 
                        employee's rate of full compensation in 
                        compliance with subsection (p) of this section.
                            (ii) The eligible child care provider will 
                        provider relief from co-payments and tuition 
                        payments for the families enrolled in the 
                        providers program, to the extent possible, with 
                        the goal of fees not exceeding $10 a day for 
                        full-time care. If available funds do not allow 
                        for this goal to be met, providers shall 
                        prioritize relief for families struggling to 
                        make either type of payment pursuant to 
                        subsection (n)(7) of this section.
                    (E) The amount awarded in a subgrant to the 
                eligible child care provider will be based on the 
                providers current operating expenses for fiscal year 
                2024. This includes the costs associated with providing 
                or preparing to provide child care services and to the 
                extent practicable, cover sufficient operating expenses 
                to ensure continuous operations for the intended part 
                of the subgrant so that parent fees are significantly 
                reduced overtime.
            (5) Monitoring, enforcement and appeals.--
                    (A) The Secretary will establish monitoring 
                requirements for State lead agencies to ensure provider 
                compliance.
                    (B) States shall implement enforcement mechanisms, 
                including subgrant termination and funds recoupment for 
                non-compliance.
                    (C) States will provide an appeals process for 
                providers to dispute subgrant amounts, termination or 
                other adverse actions.
    (o) Parent Fee Reduction Program.--
            (1) Establishment and appropriations.--
                    (A) The Secretary shall establish the parent fee 
                reduction program as a mandatory component of the 
                program under this section to assist States in reducing 
                parent fees for child care services.
                    (B) The parent fee reduction program will be funded 
                through the appropriations authorized for the program 
                under this section, as outlined in section 102 of this 
                Act.
                    (C) From the total appropriations to carry out this 
                section, the Secretary will allocate sufficient funds 
                each fiscal year to enable States to provide the 
                initial 50 percent fee reduction to all eligible child 
                care providers and to support ongoing fee reductions as 
                needed.
                    (D) The Secretary will work with States to 
                determine the amount of funding needed for the parent 
                fee reduction program based on the number of eligible 
                child care providers, the total amount of parent fees 
                collected by these providers, and other relevant 
                factors.
                    (E) If the appropriations authorized for the 
                program under this section are insufficient to fully 
                fund the parent fee reduction program, the Secretary 
                will prioritize funding for this program, after the 
                Low-Moderate Income Program.
            (2) Eligibility.--
                    (A) Eligible Child care providers that meet the 
                requirements for participation in the program under 
                this section, as outlined in the State Subgrants to 
                Eligible Child care Providers section, shall be 
                eligible to receive funding through the 50 percent fee 
                reduction program.
                    (B) Eligible Child care Providers shall serve 
                eligible children and shall agree to reduce fees by at 
                least 50 percent for all families enrolled in their 
                programs (since they would be receiving at least 50 
                percent of these parents fees through the program under 
                this section to subsidize parent fees).
                    (C) Eligible Child care Providers shall comply with 
                all State and Federal health, safety and quality 
                standards as established in these sections within this 
                Act, as well as any additional requirements established 
                by the State for participation in the parent fee 
                reduction program.
            (3) Use of funds.--
                    (A) Funds provided to eligible child care providers 
                through the parent fee reduction program established in 
                this section will be used solely for the purpose of 
                reducing parent fees.
                    (B) Eligible child care providers are not allowed 
                to use these funds to supplant other funding sources or 
                to cover expenses not directly related to reducing 
                parent fees.
                    (C) Eligible child care provide shall maintain 
                detailed records documenting the use of funds received 
                through the 50 percent fee reduction program and shall 
                make these records available to the State and the 
                Secretary upon request.
                    (D) Any funds not used for the purpose of reducing 
                parent fees will be returned. The Secretary will 
                establish guidance on how returning excess funds will 
                work.
            (4) Secretary requirements.--
                    (A) The Secretary will provide guidance and 
                technical assistance to States implementing the parent 
                fee reduction program, including establishing 
                guidelines for determining the amount of initial 
                funding on ongoing support needed by eligible child 
                care providers.
                    (B) The Secretary will review and approve State 
                plans that include States plans to administer the 50 
                percent fee reduction program, ensuring that they 
                comply with the requirement.
            (5) State requirements.--
                    (A) States will be responsible for administering 
                the 50 percent fee reduction program and disbursing 
                funds to eligible child care providers in accordance 
                with the requirements of this section.
                    (B) Within their State plan, lead agencies will 
                codify a process for implementing the parent fee 
                reduction program and disbursing funds to eligible 
                child care providers in accordance with the 
                requirements of this section.
                    (C) States will require eligible child care 
                providers to submit documentation verifying the total 
                amount of parent fees collected in the previous fiscal 
                year and will establish a process for reviewing and 
                verifying this documentation.
                    (D) States will disburse the initial funding for 
                the parent fee reduction program to eligible child care 
                providers within 3 months of receiving the necessary 
                documentation and will establish a process for 
                transferring these funds.
                    (E) States will establish a process for determining 
                the amount of ongoing funding needed by each eligible 
                child care providers to maintain reduced parent fees 
                and will disburse this funding on a quarterly basis.
                    (F) States will require eligible child care 
                providers to submit quarterly reports documenting the 
                amount of parent fees collected, the number of families 
                served, and the use of funds received for fee 
                reductions, and will review these reports and conduct 
                periodic audits to ensure compliance with program 
                requirements.
                    (G) States will submit annual reports to the 
                Secretary detailing the implementation and impact of 
                the parent fee reduction program, including the total 
                amount of funds disbursed, the number of families 
                benefitting from reduced fees and challenges, successes 
                encountered.
                    (H) States will prioritize fee reductions and 
                waivers for families enrolled in the Low- to Moderate-
                Income Fee Reduction Program.
            (6) Provider requirements.--
                    (A) Eligible child care providers will submit 
                documentation to the State verifying the total amount 
                of parent fees collected in the previous fiscal year 
                and shall cooperate with the State in reviewing and 
                verifying this documentation.
                    (B) Eligible child care providers will work to use 
                the funds received through the parent fee reduction 
                program solely for the purpose of reducing parent fees 
                and shall maintain records documenting the use of these 
                funds.
                    (C) Eligible child care providers will cooperate 
                will submit quarterly reports to the State documenting 
                the amount of parent fees collected, the number of 
                families served and the use of funds received pursuant 
                to this section.
                    (D) Eligible child care providers will cooperate 
                with the State in any audits or reviews conducted to 
                ensure compliance with the requirement of the parent 
                fee reduction program.
            (7) Low-moderate income fee reduction program.--
                    (A) Establishment and appropriations.--
                            (i) The Secretary shall establish the Low-
                        Moderate Income Fee Reduction Program as a 
                        mandatory component of the program under this 
                        section to assist States in reducing child care 
                        fees for families with low to moderate incomes.
                            (ii) For purposes of section, the term 
                        family with low to moderate income means a 
                        family with an income that is not more than 85 
                        percent of State median income.
                            (iii) Carve out $6 Billion annually from FY 
                        2024 through FY 2026, $7 Billion from FY 2027 
                        through FY 2029 and $8 Billion annually from FY 
                        2030 through FY 2034 from the total new 
                        appropriations funding established for the 
                        entire grant program in Funding for Entire Bill 
                        section of this Act.
                    (B) State eligibility and requirements.--States 
                applying for the program under this section shall 
                substantially agree to--
                            (i) use the funding carve out in this 
                        section exclusively to cover 100 percent of 
                        parent fees for families making less than 85 
                        percent State median income;
                            (ii) use the funds exclusively to cover all 
                        child care fees for families with--
                                    (I) incomes at or below 85 percent 
                                of the State median income; and
                                    (II) children enrolled in licensed, 
                                registered, or regulated child care 
                                programs;
                            (iii) prioritize funding for eligible 
                        families with incomes at or below 50 percent of 
                        the State median income if funding is limited;
                            (iv) collect and report annual data on the 
                        use of funds to the Secretary, as a mandatory 
                        condition for receiving future funds;
                            (v) promote policy changes that maximize 
                        the availability of funds and streamline 
                        determination procedures to improve the 
                        customer experience;
                            (vi) provide explanations to the Secretary 
                        as needed;
                            (vii) establish a process to prioritize 
                        disbursing funds to eligible child care 
                        providers serving underserved populations, as 
                        defined in this section and concurrently 
                        abiding by the requisites in section103(m) of 
                        this Act;
                            (viii) include their plan for implementing 
                        this section in their grant application;
                            (ix) be responsible for determining family 
                        eligibility for the Low-Moderate Income Fee 
                        Reduction Program based on income and other 
                        criteria established by the State in accordance 
                        with Federal guidelines;
                            (x) develop and implement a streamlined 
                        application and eligibility determination 
                        process for the Low-Moderate Income Fee 
                        Reduction Program that minimizes the burden on 
                        families and providers;
                            (xi) automatically deem families eligible 
                        for the Low-Moderate Income Fee Reduction 
                        Program if they are currently enrolled in other 
                        means-tested programs, such as WIC, SNAP, TANF, 
                        Section 8 housing assistance, or Medicaid; No 
                        additional income verification is required for 
                        these families;
                            (xii) for families not enrolled in means-
                        tested programs, States shall use existing data 
                        sources, such as State income records or 
                        eligibility determinations for other programs, 
                        to verify income whenever possible (when such 
                        data is not available States may use a 
                        simplified income verification process, such as 
                        self-attestation of income, with a random 
                        sample of applications selected for more 
                        rigorous verification);
                            (xiii) States shall provide clear and 
                        timely communication to families and providers 
                        regarding eligibility determinations and any 
                        required documentation or verification; and
                            (xiv) States will work with providers to 
                        establish a system to recertify parents every 
                        12 months.
                    (C) Provider requirements.--Eligible child care 
                providers receiving funds through the program under 
                this section shall--
                            (i) provide relief from co-payments and 
                        tuition for enrolled families pursuant to the 
                        parent fee reduction section;
                            (ii) prioritize fee relief for low-moderate 
                        income families;
                            (iii) assist families ``or work with 
                        relevant partner agencies and organizations to 
                        assist families,'' in completing the 
                        application for the Low-Moderate Income Fee 
                        Reduction Program and will provide any 
                        necessary documentation to the State to support 
                        eligibility determinations, as appropriate;
                            (iv) providers will not be responsible for 
                        determining family eligibility for the Low-
                        Moderate Income Fee Reduction Program but shall 
                        relay on eligibility determinations made by the 
                        State;
                            (v) comply with State reporting 
                        requirements and provide necessary 
                        documentation to verify the use of funds;
                            (vi) can provide parents with continuous 
                        eligibility for 12 months following the 
                        determination, and at the conclusion of the 12 
                        months, be responsible for working with lead 
                        agencies to re-certify parents to ensure the 
                        provider is meeting their responsibility to 
                        uphold the mandatory prioritization of low-
                        moderate income providers subsection and to be 
                        eligible for continued grant funding;
                            (vii) collect and report annual data on the 
                        use of funds to the State, as a mandatory 
                        condition for receiving future funds; and
                            (viii) provide explanations to the State as 
                        needed.
                    (D) Secretarial requirements.--
                            (i) The Secretary will review State plans 
                        for implementing, and approve or deny funding 
                        based on compliance with the requirements I 
                        outlined in this section.
                            (ii) The Secretary will provide guidance 
                        and technical assistance to States in 
                        developing and implementing their Low-Moderate 
                        Income Fee Reduction Programs.
                            (iii) The Secretary will compile and report 
                        to Congress annually on the outcomes and 
                        effectiveness of this section, including State-
                        level data on the use of funds and the impact 
                        on families' access to affordable child care.
                    (E) Mandatory prioritization of low-moderate income 
                providers.--
                            (i) States will prioritize awarding 
                        subgrants funded by program under this section 
                        to providers serving families based on clause 
                        (ii).
                            (ii) In each fiscal year, States will 
                        allocate all funds appropriate for the program 
                        under this section to eligible child care 
                        providers based on the following priority 
                        order:
                                    (I) Providers serving high 
                                proportions of families with incomes at 
                                or below 50 percent of the State median 
                                income then.
                                    (II) Providers serving families 
                                with incomes between 51 percent and 85 
                                percent of the State median income 
                                then.
                                    (III) Providers serving families 
                                with incomes above 85 percent of the 
                                State median income, up to a maximum of 
                                250 percent of the State median income 
                                (approximately $125,000 for single 
                                parents and $250,000 for married 
                                parents).
                                    (IV) All the funds carved out in 
                                this section, specifically, shall be 
                                given to families with low to moderate 
                                incomes to cover their parent fees and 
                                child care costs to ensure they pay $0 
                                for child care.
                                    (V) States will develop a mechanism 
                                to ensure that providers serving the 
                                neediest populations receive priority 
                                funding and that funding progressively 
                                expands to serve higher-income families 
                                over time.
                            (iii) Priority for low-income families.--
                        States will prioritize the use of funds 
                        allocated through the Low-Moderate Income Fee 
                        Reduction Program to reduce and waive fees for 
                        families at the lowest income levels first, 
                        before expanding.
            (8) Minimum requirement for lead teachers.--
                    (A) States retain the authority to set higher 
                qualification standards for lead child care teachers if 
                deemed necessary.
                    (B) Lead child care teachers employed by a eligible 
                child care provider, at minimum, hold at least a 
                certificate from an accredited institution related to 
                child development within 3 years of the provider 
                receiving funds. Employees with six years or more of 
                full-time experience with a licensed child care 
                provider this work experience is enough, an alternative 
                to fulfill this requirement.
            (9) Child care facilities grant program.--
                    (A) Establishment and purpose.--
                            (i) The Secretary will establish the Child 
                        care Facilities Grant Program to support the 
                        improvement, renovation, and construction of 
                        child care facilities.
                            (ii) The purpose of the fund is to address 
                        the need for facilities improvements in the 
                        child care sector and to expand access to safe, 
                        healthy and high-quality learning environments 
                        for children.
                    (B) Funding allocation and grant types.--
                            (i) $3,000,000,000 will be allocated 
                        annually for the Child Care Facilities Grant 
                        Program from fiscal year 2024 through fiscal 
                        year 2034.
                            (ii) Funding will be awarded for no longer 
                        than 3 years.
                            (iii) The funding will be allocated as 
                        follows:
                                    (I) 50 percent for renovation 
                                grants to support the repair, 
                                innovation and modernization of 
                                existing child care facilities.
                                    (II) 40 percent for construction 
                                grants to support the construction of 
                                new child care facilities in 
                                underserved areas.
                                    (III) 10 percent for planning 
                                grants to support the planning and re-
                                development activities for child care 
                                facility projects.
                            (iv) The Secretary may adjust these 
                        allocations based on the quality and quantity 
                        of applications received, as well as the needs 
                        and priorities of the child care sector.
                    (C) Eligibility and application process.--
                            (i) The following entities are eligible to 
                        apply for grants from the Child Care Facilities 
                        Fund: States, Tribes, Territories, local 
                        governments and non-profit organizations.
                            (ii) Applicants will submit a detailed 
                        application to the Secretary which should at 
                        minimum include.
                                    (I) A comprehensive project plan 
                                that describes the proposed facility 
                                improvements, including the need for 
                                the project, the target population to 
                                be served and the expected outcomes.
                                    (II) A detailed budget that 
                                outlines the costs associated with the 
                                proposed project, including any 
                                matching funds or other sources of 
                                support.
                                    (III) A time line for completing 
                                the proposed project, including key 
                                milestones and deliverables. o 
                                Documentation of the applicant's 
                                experience and expertise in developing 
                                or financing child care facilities.
                            (iii) Priority will be give to applications 
                        that do the following:
                                    (I) Serve low-income communities or 
                                other underserved populations o Address 
                                urgent health and safety needs or other 
                                critical facility deficiencies.
                                    (II) Demonstrate strong 
                                partnerships and collaboration with 
                                stakeholders, including child care 
                                providers, community organizations and 
                                families.
                                    (III) Propose projects that will 
                                result in a significant expansion of 
                                child care capacity or improvement in 
                                the quality of child care facilities.
                                    (IV) Commit to use at least 30 
                                percent of their funding to improve 
                                home-based child care programs.
                                    (V) Grant funds may not be used for 
                                the following purposes:[(aa) [text is 
                                missing.
                            (iv) Applicants shall make the following 
                        assurances to be eligible to receive funding:
                                    (I) Agree to prioritize child care 
                                facilities that primarily service 
                                eligible children in.
                                    (II) Mainly serve families with low 
                                income.
                                    (III) Take care of children under 
                                6years old.
                                    (IV) Made significant changes for 
                                health and safety due to COVID-19 ? Are 
                                open during non-standard hours.
                                    (V) Are in rural areas or places 
                                that don't have enough child care 
                                options.
                                    (VI) Are not owned by for-profit 
                                corporations, or corporate affiliates, 
                                with annual operating budgets above $1 
                                million.
                    (D) Use of funds.--
                            (i) Grant funds may be used for the 
                        following purposes:
                                    (I) Renovation grants for repair, 
                                renovation, and modernization of 
                                existing child care facilities, 
                                including upgrades to meet the health 
                                and safety standards, improve energy 
                                efficiency and enhance learning 
                                environments.
                                    (II) Construction grant for new 
                                construction of child care facilities 
                                in underserved areas, including site 
                                acquisition, design, engineering, and 
                                construction costs.
                                    (III) Planning grants for needs 
                                assessments to determine the demand for 
                                child care facilities in a given area, 
                                feasibility studies to assess viability 
                                of proposed facilities projects, and 
                                pre-development activities such as site 
                                selection and preliminary design.
                            (ii) Grant funds may not be used for the 
                        following purposes:
                                    (I) Purchase of land or buildings, 
                                except as necessary for the 
                                construction of a new child care 
                                facility.
                                    (II) Debt service or retirement of 
                                bonds or other financing mechanisms.
                                    (III) Lobbying or political 
                                activities.
                                    (IV) Supplanting other Federal, 
                                State, or local funds.
                            (iii) No more than 10 percent of grant 
                        funds may be used for administrative expenses.
                            (iv) The maximum allowable grant amount is 
                        $15,000,000.
                            (v) Any grant funded under this program 
                        shall pay workers at least the prevailing wage 
                        in the area, following the Davis-Bacon Act, 
                        which ensures fair wages for construction work.
                    (E) Preference is to be given to those with a 
                proven track record in financing child care, can help 
                States and local governments develop child care places, 
                and propose to focus on facilities for children under 
                5, homecare-based programs and low-income families.
            (10) Matching requirements.--
                    (A) Grantees will provide a match of at least 10 
                percent of the total project cost, which may include 
                cash or in-kind contributions.
                    (B) The Secretary may waive or reduce the matching 
                requirement for applicants that demonstrate significant 
                financial hardship or service high-need communities.
            (11) Reporting and oversight.--
                    (A) Grantees will submit quarterly progress reports 
                to the Secretary, including financial Statements, 
                project milestones, and any challenges or delays 
                encountered.
                    (B) The Secretary or his designee may conduct 
                periodic site visits and audits to monitor grantee 
                compliance and project performance.
                    (C) The Secretary may withhold or recapture funds 
                from grantees that fail to comply with program 
                requirements or demonstrate progress towards program 
                completion.
            (12) Technical assistance and dissemination.--
                    (A) States shall to tell the Secretary how they 
                plan to use the money, including how they will report 
                on what the funding achieved in the State plan.
                    (B) A State may not receive more than $40,000,000 a 
                year from this fund.
                    (C) The government will prefer States that--
                            (i) want to improve both in-home and 
                        center-based child care, including programs 
                        like Head Start, and
                            (ii) plan to address child care needs in 
                        different types of areas (urban, suburban, 
                        rural) together with local governments, other 
                        State agencies, non-profits, and community 
                        organizations.
    (p) Home-Based Child Care Training and Support Fund.--
            (1) Establishment of program.--
                    (A) The Secretary will establish the Home-Based 
                Child Care Training and Support Fund to address the 
                unique challenges faced by family child care providers 
                and to promote their success and sustainability.
                    (B) Appropriate $750 million annually from FY 2024 
                through FY 2034.
            (2) Eligibility and application process.--
                    (A) The following entities are eligible to apply 
                for subgrants:
                            (i) Institutions of higher education, with 
                        priority given to community colleges.
                            (ii) Nonprofit organizations with expertise 
                        in supporting and advocating for FCC providers.
                            (iii) State and local government agencies 
                        responsible for child care licensing and 
                        regulation.
                    (B) Eligible entities will submit an application to 
                the Secretary that includes--
                            (i) a description of the proposed 
                        activities to support FCC providers, including 
                        but not limited to coaching, mentoring and 
                        business training;
                            (ii) a plan for engaging and recruiting FCC 
                        providers, particularly those from historically 
                        underserved populations;
                            (iii) partnership with relevant 
                        stakeholders (such as local child care 
                        resources and referral agencies, business 
                        development organization and other regulatory 
                        bodies); and
                            (iv) a budget and sustainability plan for 
                        the subgrant activity.
            (3) Use of funds.--Grantees will use the funds to support 
        the success and sustainability of FCC providers through 
        activities like--
                    (A) developing and implementing coaching and 
                mentoring programs that provide individualized guidance 
                and support to FCC providers;
                    (B) offering high-quality certificate and degree 
                programs aimed at enhancing child care educator 
                training and preparation;
                    (C) offering business training and classes on 
                topics such as financial management, marketing and 
                record-keeping;
                    (D) providing resources and technical assistance to 
                help FCC providers navigate licensing and regulatory 
                requirements;
                    (E) creating online platforms and resource to 
                connect FCC providers with relevant support services;
                    (F) establishing networks or cooperative that offer 
                shared services and benefits to FCC providers (such as 
                retirement plans, insurance, and bulk purchasing); and
                    (G) offering business training and classes to scale 
                an FCC facilities.
            (4) Grantee responsibilities.--Grantees will--
                    (A) design and implement high-quality programs and 
                services that meet the unique needs of FCC providers;
                    (B) engage and recruit a diverse range of FCC 
                providers, particularly those from historically 
                underserved populations;
                    (C) collaborate with relevant stakeholders, 
                including parents and child care providers who 
                participate in the child care assistance program, to 
                leverage resources and expertise;
                    (D) collect and report data on program outcomes and 
                impact to the Secretary annually;
                    (E) establish a 20-member advisory council 
                consisting of 10 parents and 10 providers who 
                participate in the Child Care for America program to--
                            (i) inform the lead agency of program 
                        improvements;
                            (ii) provide feedback on program 
                        development and new initiatives; and
                            (iii) center their expertise in program 
                        decisions; and
                    (F) compensate participants in the advisory council 
                using the quality set-aside funds.
            (5) Secretary responsibilities.--The Secretary will--
                    (A) establish an application process and criteria 
                for awarding grants from the Home-Based Child care and 
                Training and Support Fund;
                    (B) review and approve applications based on their 
                alignment with the purposes and requirements of this 
                section;
                    (C) provide guidance and technical assistance to 
                grantees in developing and implementing their programs;
                    (D) monitor grantee compliance and performance and 
                take appropriate action in cases of non-compliance or 
                under-performance;
                    (E) gather leading practices and lessons learned as 
                a result of the subgrant on a publicly available 
                website;
                    (F) report to appropriate congressional committees 
                annually on the outcomes and impact of the subgrant; 
                and
                    (G) coordinate the subgrant with other Federal 
                programs supporting child care providers within the 
                Department of Health and Human Services and with the 
                Administrator of Small Business, as appropriate.
    (q) Child Care Innovatioin Fund.--
            (1) Establishment and appropriations.--
                    (A) The Secretary will establish the Child Care 
                Innovatioin Fund to support the development and 
                implementation of innovative pilots, strategies and 
                models that aim to improve the quality, accessibility, 
                affordability and sustainability of child care 
                programs.
                    (B) $250,000,000 million is appropriated annually 
                for the Fund from fiscal year 2024 through fiscal year 
                2034.
            (2) Funding allocation and grant types.--60 percent of 
        funds shall be allocated for grants to pilot innovative 
        approaches to child care delivery that address one or more of 
        the following key areas:
                    (A) Improving the quality of child care services.
                    (B) Increasing accessibility of child care, 
                particularly in underserved areas.
                    (C) Enhancing affordability of child care for 
                families.
                    (D) Supporting workforce development and retention 
                in the child care sector.
                    (E) Improving child care facilities and 
                infrastructure.
            (3) Eligibility and application process.--
                    (A) The following entities are eligible to apply 
                for the Child Care Innovatioin Fund:
                            (i) Municipalities.
                            (ii) State and local government agencies.
                            (iii) Tribal organizations
                            (iv) Nonprofit organizations.
                            (v) Institutions of higher education.
                            (vi) For-profit organizations.
                            (vii) Consortia of the above entities.
                    (B) Eligible entities will submit an application to 
                the Secretary that includes--
                            (i) a description of the proposed project, 
                        including its objectives, target population, 
                        and anticipated outcomes;
                            (ii) a plan for implement the pilot, 
                        including key activities, time lines, and 
                        partnering organizations;
                            (iii) a description of how the pilot 
                        project addresses one or more of the following 
                        areas:
                                    (I) quality improvement;
                                    (II) accessibility;
                                    (III) affordability;
                                    (IV) workforce development; or
                                    (V) facility improvement;
                            (iv) evidence supporting the effectiveness 
                        of the pilot, such as research findings or 
                        results from previous pilots;
                            (v) a plan for evaluating the innovation, 
                        including key metrics and data collection 
                        methods; and
                            (vi) a budget proposal and sustainability 
                        plan.
                    (C) In selecting grant recipients, the Secretary 
                will consider the following factors:
                            (i) The potential of the innovation to 
                        significantly improve the quality, 
                        accessibility, affordability or sustainability 
                        of child care programs.
                            (ii) The strength of the evidence base 
                        support the proposal.
                            (iii) The capacity of the application to 
                        implement the innovation effectively and 
                        efficiently.
                            (iv) The potential for the proposal to be 
                        scaled or replicated in other settings.
                            (v) The extent to which the innovation 
                        addresses the needs of underserved populations 
                        or areas.
                            (vi) The level of collaboration and 
                        partnerships proposed.
            (4) Use of funds.--
                    (A) Grantees will use the funds to develop, 
                implement and evaluate innovative approaches to child 
                care delivery that aims to improve--
                            (i) access to child care, particularly for 
                        underserved populations and areas;
                            (ii) affordability of child care for 
                        families; and
                            (iii) workforce development, compensation, 
                        and retention in the child care sector o Child 
                        care Facilities and Infrastructure.
                    (B) Funds may be used for planning and design, 
                training and professional development of child care 
                providers, facility improvement and construction, 
                technology and infrastructure development, community 
                outreach and engagement, data collection, and 
                evaluations.
                    (C) Grant recipients shall not use more than 15 
                percent of their total award for administrative costs.
                    (D) Examples of innovative approaches may include, 
                but are not limited to--
                            (i) shared services models that help 
                        providers reduce costs and improve quality;
                            (ii) technology solutions that streamline 
                        enrollment, pay and reporting processes;
                            (iii) alternative financing mechanisms, 
                        such as pay-for-success or social impact bonds; 
                        and
                            (iv) strategies for integrating child care 
                        with other family support services, such as 
                        health care or housing assistance.
                    (E) Grantee responsibilities.--Grantees shall--
                            (i) design and implement their proposal in 
                        according with the approved application and 
                        time line;
                            (ii) collect and report data on project 
                        outcomes and impact to the Secretary annually;
                            (iii) participate in knowledge-sharing 
                        activities and contribute to the ``what works 
                        clearinghouse for early care and education; and
                            (iv) develop plans for scaling and 
                        sustaining successful approaches beyond the 
                        grant period.
                    (F) Secretarial responsibilities.--The Secretary 
                shall--
                            (i) establish an application process and 
                        criteria for awarding grants from the Child 
                        Care Innovatioin Fund;
                            (ii) review and approve applications based 
                        on their alignment with the purposes and 
                        requirements of this subsection;
                            (iii) provide guidance and technical 
                        assistance to grantees in developing and 
                        implementing their projects;
                            (iv) monitor grantee compliance and 
                        performance and take appropriate action in 
                        cases of non-compliance or under-performance;
                            (v) compile and disseminate best practice 
                        and lesson learned from grantees;
                            (vi) establish and maintain the ``What 
                        Works Clearinghouse for Early Care and 
                        Education'' to facilitate knowledge sharing and 
                        replication of successful approaches; and
                            (vii) report to Congress annually on the 
                        outcomes and impact of the Child Care 
                        Innovatioin Fund.
            (5) General sections.--
                    (A) Workforce support and compensation.--
                            (i) A Wage and Benefits Ladder shall 
                        require as a condition of receiving funding 
                        under section that States shall establish a 
                        wage and benefits ladder for staff of eligible 
                        child care providers receiving assistance.
                            (ii) The Wage and Benefits Ladder will, at 
                        minimum--
                                    (I) provide a clear pathway for 
                                staff to increase their compensation 
                                and benefits based on factors such as 
                                education, training and experience and 
                                performance;
                                    (II) ensure that staff wages and 
                                benefits meet or exceed the minimum 
                                wage and benefit standards established 
                                by the Secretary under this Act;
                                    (III) be developed in consultation 
                                with early childhood education experts, 
                                labor organizations and other relevant 
                                stakeholders;
                                    (IV) require States to submit their 
                                proposed wage and benefits ladder to 
                                the Secretary for approval as part of 
                                their application for a grant under 
                                this section; and
                                    (V) require the Secretary to 
                                provide guidance and technical 
                                assistance to State in developing and 
                                implementing their wage and benefits 
                                ladders.
                            (iii) Minimum wage requirements will 
                        require wage supplements for full-time staff 
                        members will be sufficient to ensure that--
                                    (I) the median wage for full-time 
                                workers employed by eligible child care 
                                providers is at least $24 per hour; and
                                    (II) full-time workers receive an 
                                additional wage supplement of at least 
                                $4 per hour.
                            (iv) Wage supplements for part-time staff 
                        members will be sufficient to ensure that--
                                    (I) the median wage for part-time 
                                workers employed by eligible child care 
                                providers is at least $15 per hour; and
                                    (II) part-time workers receive a 
                                wage supplement of at least $2 per hour 
                                if the median hourly wage for part-time 
                                staff exceeds $15 per hour.
                            (v) Eligible child care providers receiving 
                        assistance under this section will--
                                    (I) comply with the wage and 
                                benefits ladders established by their 
                                State;
                                    (II) provide documentation to the 
                                State demonstrating compliance with the 
                                minimum wage requirements outlined in 
                                this section; and
                                    (III) report data on staff wages, 
                                benefits and turnover to the State as 
                                required for program monitoring and 
                                evaluation.
                            (vi) States will--
                                    (I) disburse wage supplement funds 
                                to eligible child care providers within 
                                12 months of the enactment of this Act;
                                    (II) monitor provider compliance 
                                with the wage and benefits ladder and 
                                minimum wage requirements and take 
                                appropriate action in cases of non-
                                compliance; and
                                    (III) report data on staff wages, 
                                benefits and turnover to the Secretary 
                                annually, as a condition of continued 
                                funding under the program under this 
                                section.
                            (vii) The Secretary shall--
                                    (I) review and approve State wage 
                                and benefits ladders as part of the 
                                application process under this section;
                                    (II) provide guidance and technical 
                                assistance to States in implementing 
                                their wage and benefits ladders and 
                                minimum wage requirements; and
                                    (III) compile and report to 
                                Congress annually on the impact of the 
                                workforce support and compensation 
                                provisions on staff wages, benefits and 
                                turnover in the child care sector.
                    (B) Labor standards and workforce protections.--
                            (i) Right to organize.--Providers receiving 
                        funds under this title shall inform their 
                        employees of their rights under the National 
                        Labor Relations Act (29 U.S.C. 151 et seq.), 
                        including the right to organize and 
                        collectively bargain.
                            (ii) Neutrality.--No provider receiving 
                        funds under this title shall use any funds to 
                        deter union organizing or shall in any way 
                        interfere with employees' rights to form, join, 
                        or assist labor organizations.
                            (iii) Employee classification.--For 
                        purposes of this title and any other Federal 
                        labor laws, all individuals employed by 
                        providers receiving funds under this title 
                        shall be considered employees rather than 
                        independent contractors, unless they meet all 
                        criteria for independent contractor status 
                        under applicable Federal law.
                            (iv) Enforcement.--The Secretary of Labor 
                        shall have authority to investigate and enforce 
                        compliance with this section. Violations may 
                        result in civil penalties and ineligibility for 
                        funds under this title.
                            (v) Professional development.--The 
                        Secretary shall establish a comprehensive 
                        professional development program for workers, 
                        developed in consultation with labor unions 
                        representing such workers. This program shall 
                        include:
                                    (I) Ongoing training opportunities.
                                    (II) Career ladder programs to 
                                support professional advancement; and 
                                (3) Mentoring and leadership 
                                development initiatives.
                            (vi) Whistleblower protections.--No 
                        provider receiving funds under this title may 
                        discharge or discriminate against any employee 
                        because such employee has filed any complaint 
                        or instituted or caused to be instituted any 
                        proceeding under or related to this title, or 
                        has testified or is about to testify in any 
                        such proceeding.
    (r) Nondiscrimination.--The nondiscrimination requirements 
applicable under following Act shall apply with respect to financial 
assistance provided under this section:
            (1) Title IX of the Education Amendments of 1972 (20 U.S.C. 
        1681 et seq) (2).
            (2) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
        2000Det seq.).
            (3) Section 504 of the Rehabilitation Act of 1973 (29 
        U.S.C. 794).
            (4) The Americans with Disabilities Act of 1990 (42.U.S.C. 
        12101 et seq).
    (s) Research and Evaluation.--
            (1) In general.--
                    (A) The Secretary will conduct research, 
                demonstrations and evaluations that are directly 
                relevant to the program under this section and the 
                overall goals of expanding access to high-quality, 
                affordable child care.
                    (B) The Secretary may award grants or subgrants to 
                eligible entities to conduct research, demonstrations 
                and evaluations.
                    (C) Eligible entities include State agencies, 
                Tribal organizations, institutions of higher education, 
                and other nonprofit or for-profit organizations with 
                expertise in child care research and evaluation.
            (2) Priority areas.--The Secretary will prioritize 
        research, demonstrations and evaluations that focus on the 
        following areas:
                    (A) Identifying leading practices and strategies 
                for improving the quality of child care services, 
                including those related to workforce development, 
                curriculum and instruction, family engagement, and 
                program administration.
                    (B) Evaluating the impact of the child care 
                policies, programs and mechanisms in this section on 
                child outcomes, family well-being, and the overall 
                supply and quality of child care services.
                    (C) Examining the factors that contribute to the 
                disparities in access to high-quality child care, 
                particularly for low-income families, rural 
                communities, and other underserved populations.
                    (D) Analyzing the costs and benefits of different 
                approaches to child care financing, including the 
                program under this section and other Federal, State, 
                and local funding streams.
                    (E) Explore the use of technology and data systems 
                to improve the delivery, coordination, and evaluation 
                of child care services.
            (3) Dissemination.--The Secretary will make sure--
                    (A) the results of research, demonstrations, and 
                evaluations conducted under this section are publicly 
                available through various means, such as websites, 
                reports and conferences; and
                    (B) the results from the research, demonstrations 
                to inform the administration of the program under this 
                section and provide technical support. The Secretary 
                will provide assistance to States, Tribal 
                organizations, and other entities involved in the 
                delivery of child care services.
            (4) Coordination.--
                    (A) The Secretary will coordinate the research, 
                demonstrations and evaluations conducted under this 
                section with other relevant Federal research and 
                evaluation activities, including those carried out by 
                the Department of Education, the Department of Labor, 
                and other agencies as appropriate.
                    (B) The Secretary can use funds reserved under this 
                section to support cross-agency research and evaluation 
                initiatives that align with the goals of the program 
                under this section.
            (5) Funding.--The Secretary will reserve and use 1 percent 
        of the total appropriation for the program under this section 
        each fiscal year to carry out the activities described in this 
        subsection.
            (6) Use of funds.--Funds allocated for research and 
        evaluation activities under this subsection shall be used to 
        support studies, assessments and other activities that inform 
        the implementation, improvement, and impact of the program 
        under this subsection and its various initiatives, as 
        determined by the Secretary.
    (t) Federal Administration.--The Secretary will reserve up to 1 
percent of the total appropriation for the program under this section 
each fiscal year for Federal administrative costs, including activities 
such as providing technical assistance to States and Tribal 
organizations, conducting monitoring and oversight, and implementing 
the research and evaluation agenda.
    (u) Child Care and Development Block Grant.--The Child care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858n) shall apply to 
this section except as provided or as otherwise specified.
            (1) Child care and Development Block Grant Act of 1990 (42 
        U.S.C. 9858n) shall apply to this subsection except as provided 
        in clause and as otherwise specified.
            (2) Within 3 years after the date of the enactment of this 
        Act, the Secretary shall propose a plan to transition the Child 
        care and Development Block Grant program to serve school aged 
        children.
            (3) School aged children ages 6 through 13 and will not be 
        eligible for any program in this Act.
    (v) Head Start Funding.--
            (1) There is appropriated $18,000,000 a year for fiscal 
        year 2024 through fiscal year 2034 to carry out the Head Start 
        Act, which shall be in addition to existing funding already 
        appropriated and shall be exempt from the requirements of this 
        Act.
            (2) Funds appropriated under this subsection can be 
        allocated by the Secretary as statutorily directed in Public 
        Law110-134 (121 Stat. 1363).

        TITLE II--STAY-AT-HOME PARENT CHILD CARE SUPPORT PROGRAM

SEC. 201. DEFINITIONS.

    For purposes of this title:
            (1) Stay-at-home parent child care stipend program.--The 
        term ``stay-at-home parent child care stipend program'', means 
        the program established under section 202.
            (2) Support program.--The term ``stipend program'' means 
        the stay-at-home parent child care support program.
            (3) Benefit.--The term ``benefit'' means a stay-at-home 
        parent support benefit received under the support program.
            (4) Eligible child.--The term ``eligible child'' means a 
        child less than 3 years of age who does not participate in a 
        child care program implemented under title I or title III.
            (5) Parent.--The term ``parent'' means a stay-at-home 
        individual who--
                    (A) is the biological parent or legal guardian of 
                an eligible child,
                    (B) is the primary child care provider for an 
                eligible child, and
                    (C) has a household income of not to exceed--
                            (i) 75,000 for single individual, and
                            (ii) $150,000 for married individual filing 
                        jointly.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (7) Secretary of the treasury.--The term ``Secretary of the 
        Treasury'' means the Secretary of the Treasury or the Secretary 
        of the Treasury's delegate.
            (8) Stay-at-home parent.--The term ``stay-at-home parent'' 
        means a parent who chooses to directly care for an eligible 
        child of such parent in such parent's home.

SEC. 202. ESTABLISHMENT OF STAY-AT-HOME PARENT SUPPORT BENEFIT PROGRAM.

    The Secretary shall establish the stay-at-home parent support 
program to provide financial assistance to parents who opt to directly 
care for their eligible children at home.

SEC. 203. FUNDING AUTHORIZATION AND ALLOCATION.

    (a) Authorization of Appropriations.--There is authorized to be 
appropriated $4,000,000,000 for each of the fiscal years 2024 through 
fiscal year 2034 to carry out this title.
    (b) Availability of Funds.--Of the amount appropriated for a fiscal 
year--
            (1) 95 percent shall be available for allocation under 
        subsection (c) for the payment benefits,
            (2) 3 percent shall be available to the Secretary of the 
        Treasury for program administration, and
            (3) 2 percent should be allocated to Secretary for program 
        support and evaluation.
    (c) Allocation of Appropriations Among States.--Funds shall be 
allocated among the States based on the proportion of children under 
age 3 in each State, adjusted for State median levels.

SEC. 204. APPLICATION PROCESS.

    (a) In General.--Except as otherwise provided in this Act, the 
stay-at-home parent child care stipend program shall be administered in 
the same manner as the child tax credit.
    (b) Self-Certification.--Eligible applicants shall annually self-
certify their eligibility through the Internal Revenue Service as part 
of the individual's annual income tax return.
    (c) Penalty of Perjury.--Eligible applicants shall attest under 
penalty of perjury that the applicants meets the eligibility criteria 
to receive the stipend.

SEC. 205. RESPONSIBILITIES OF THE SECRETARY OF THE TREASURY.

    The Secretary of the Treasury shall, with respect to the stay-at-
home parent child care stipend program--
            (1) modify relevant tax forms and systems to allow for 
        claiming the stipend,
            (2) develop and implement systems for processing claims and 
        distributing payments,
            (3) utilize existing programs and databases to verify 
        eligibility based on income and dependent information,
            (4) distribute monthly advanced payments of the stipend 
        using direct deposit,
            (5) verify eligible children and eligible parents,
            (6) process claims and distribute monthly payments,
            (7) conduct periodic audits to ensure program integrity,
            (8) establish procedures for handling overpayments and 
        underpayments,
            (9) implement a system for reconciliation of payments 
        through annual income tax returns, and
            (10) develop a process for mid-year changes in eligibility 
        including, but not limited to, the birth of a child or change 
        in income status.

SEC. 206. RESPONSIBILITIES OF THE SECRETARY.

    The Secretary shall--
            (1) develop and maintain education resources for parents, 
        and
            (2) conduct research on the impact of the support program 
        on child development and the well-being of the families of 
        eligible children whose parents receive benefits, and 
        coordinate the support program with other Federal early 
        childhood programs.

SEC. 207. COORDINATION.

    In carrying out the support program, the Secretary and the 
Secretary of the Treasury shall--
            (1) coordinate their activities,
            (2) work with the Social Security Administration, to verify 
        the eligibility of children whose parents receive benefits, and
            (3) ensure that the Social Security Administration or the 
        Secretary of the Treasury, as appropriate, shall-- (A) send 
        notifications to parents via letter and email, two months prior 
        to their child's third birthday and one month prior to their 
        child's third birthday, informing them that their eligibility 
        is ending; and (B) assume responsibility for pausing payments 
        upon the child's third birthday,
to verify the eligibility of children and parents participating in the 
support program so as to minimize waste, fraud, and abuse involving 
such program.

SEC. 208. WASTE, FRAUD, AND ABUSE.

    (a) Payment Recoupment.--
            (1) Eligibility changes.--Stipend recipients must report 
        changes affecting eligibility within 30 days of the occurrence 
        of such change. Changes affecting eligibility include 
        enrollment in an eligible child care program, income exceeding 
        threshold, and employment exceeding 10 hours per week.
            (2) Notification process.--The Internal Revenue Service 
        shall provide multiple notification methods, including an 
        online portal, mail, and phone, for reporting changes. Failure 
        to report changes may result in penalties, including program 
        disqualification.
            (3) Repayment procedures.--
                    (A) Ineligibility.--If ineligibility is determined, 
                the Internal Revenue Service will immediately cease 
                future payments.
                    (B) Methods of recoupment.--Overpayments will be 
                recouped through the following methods:
                            (i) Reduction of future tax refunds.
                            (ii) Establishment of a repayment plan, not 
                        exceeding 12 months.
                            (iii) Deduction from other Federal tax 
                        benefits, subject to applicable laws.
                    (C) Hardship exemption.--Hardship exemptions may be 
                granted for repayment on the basis for criteria 
                established by the Internal Revenue Service.
            (4) Grace period.--A 90-day grace period will be granted 
        for repayment without interest or penalties if the parent 
        voluntarily reports the change.
    (b) Appeals.--
            (1) In general.--Stipend recipients may appeal recoupment 
        decisions through the existing Internal Revenue Service appeals 
        process.
            (2) Grounds for appeal.--Grounds for Appeal include--
                    (A) Denial of eligibility.
                    (B) Disagreement with benefit amount.
                    (C) Recoupment decisions.
                    (D) Program disqualification.
            (3) Timeline.--
                    (A) Filing of appeal.--Stipend recipients must file 
                an appeal within 60 days of receiving an adverse 
                decision.
                    (B) Acknowledgment.--The Internal Revenue Service 
                shall acknowledge receipt of appeals within 30 days.
                    (C) Decision.--A decision on the appeal shall be 
                made within 90 days of receipt.
            (4) Appeal submission.--Appeals may be submitted online, by 
        mail, or by fax. The appeal must at least include the taxpayers 
        identification information, specific reason for the appeal and 
        supporting documentation.
            (5) Review process.--An independent Internal Revenue 
        Service appeals office will review each case. The officer may 
        request additional information from the stipend recipient or 
        relevant agencies.
            (6) Final decision.--Decisions of the Internal Revenue 
        Service will be provided in writing, including the rationale. 
        If the appeal is denied, information of further review options 
        (including the Tax Court) shall be provided.
            (7) Continued benefits.--Benefits shall continue during the 
        appeals process if the appeal is filed within 10 days of the 
        adverse decision. If the appeal is denied, any benefits paid 
        during the appeal process may be subject to recoupment.
    (c) Privacy and Data Protections.--
            (1) Data collection limitations.--Only information 
        necessary for determining eligibility and administering the 
        program shall be collected. Social Security numbers will be 
        collected and used in accordance with section 7 of the Privacy 
        Act.
            (2) Data usage.--Information collected shall be used solely 
        for the administration of the stay-at-home parent child care 
        stipend program and related tax administration purposes. o Data 
        sharing between the Internal Revenue Service, Department of 
        Health and Human Service, and Social Security Administration 
        will be limited to information necessary for program 
        administration and evaluation.
            (3) Data retention and disposal.--Personal data will be 
        retained only for the duration necessary for program 
        administration and in accordance with Internal Revenue Service 
        records retention schedules. Secure data disposal methods will 
        be used when destroying records.
            (4) Transparency and consent.--Stipend recipients will 
        provide informed consent for the collection and use of their 
        data when applying for the program. Stipend recipients will 
        have the right to request access to their data and correct any 
        inaccuracies. Any third-party contractors handling program data 
        will be contractually bound to the same privacy and security 
        standards as Federal employees.

SEC. 209. OUTREACH AND EDUCATION.

    (a) In General.--The Secretary of the Treasury, in collaboration 
with the Secretary of Health and Human Services, shall develop and 
implement a comprehensive outreach strategy within 6 months of the date 
of the enactment of this Act to inform families of options available 
for childcare.
    (b) Program Requirements.--At minimum, the strategy must include:
            (1) Targeted messaging for potentially eligible families.
            (2) Partnerships with State and local agencies, community 
        organizations and tax preparation services.
            (3) Multilingual materials and outreach effort including 
        the use of multiple mediums of communication delivery including 
        online, mail, and print.
    (c) Educational Resources.--
            (1) Internal revenue service.--Pursuant to such strategy, 
        the Internal Revenue Service shall develop and maintain--
                    (A) a dedicated website with program information, 
                eligibility calculator, and answers to frequently asked 
                questions (FAQ),
                    (B) printed materials for distribution at Internal 
                Revenue Service offices, community centers, and 
                healthcare facilities, and
                    (C) a toll-free help line for program inquiries.
            (2) Health and human services.--The Secretary shall 
        develop--
                    (A) resources on child development and effective 
                home-based early learning practices, and
                    (B) guides on transitioning children to formal 
                childcare (including the programs authorized in this 
                Act) or preschool programs (including making 
                connections to relevant State agencies so parents have 
                more of a seamless experience during the transition).
            (3) Tax preparer training.--The Internal Revenue Service 
        shall provide training materials and guidance to tax preparers 
        on the program and its interaction with other tax credits.
            (4) Annual awareness campaign.--The Secretary of the 
        Treasury shall conduct an annual awareness campaign prior to 
        tax filing season to remind eligible parents about the program.

SEC. 210. EVALUATION METRICS.

    (a) Establishment of Metrics.--Not later than 6 months after the 
date of the enactment of this Act, the Secretary of Secretary shall 
establish a set of evaluation metrics.
    (b) Data Collection.--The Secretary shall establish a data 
collection system to gather information on these metrics.
    (c) Annual Evaluation.--The Secretary of shall conduct an annual 
evaluation of the program using these metrics and submit a report to 
Congress.
    (d) Longitudinal Study.--The Secretary of shall initiate a 
longitudinal study to track long-term outcome for child and families 
participating in the program.
    (e) Independent Review.--Every 3 years the Government 
Accountability Office shall conduct an independent review of the 
program's effectiveness based on these metrics.

SEC. 211. SUNSET PROVISION/REAUTHORIZATION REQUIREMENT.

    (a) Program Duration.--The stay-at-home parent support program is 
authorized for a period of 10 years from the date of enactment.
    (b) Reauthorization Process.--Not later than 18 months prior to the 
program's expiration, the Secretary of the Treasury and the Secretary 
shall jointly submit a report to Congress on the program's 
effectiveness and recommendations for continuation, modification or 
termination.
    (c) Congressional Review.--Congress shall review the program and 
vote on its reauthorization not later than 6 months prior to its 
expiration date.
    (d) Transition Plan.--If Congress decides not to reauthorize the 
program, the Secretary in collaboration with relevant agencies shall 
develop and implement a transition plan to phase out benefits over a 
12-month period.

SEC. 212. INTERACTION WITH OTHER BENEFITS.

    (a) Child Tax Credit.--The stay-at-home parent support program 
benefit will be in addition to any child tax credit for which a family 
is eligible and not a substitute. Receipt of the stay-at-home parent 
child care stipend shall not affect child tax credit eligibility or 
amount.
    (b) Earned Income Tax Credit.--For the purposes of calculating the 
earned income tax credit, the stay-at-home parent support program 
stipend will not be considered earned income or counted as income for 
determining earned income tax credit eligibility.
    (c) Child and Dependent Care Credit.--Individuals receiving the 
stay-at-home parent support program stipend with respect to any child 
are not be eligible for the child and dependent care credit with 
respect to such child for any taxable year during which such stipend is 
received.
    (d) Head Start and Early Head Start.--Head Start and Early Head 
Start.--Receipt of the benefit will not affect eligibility for Head 
Start or Early Head Start programs'', although the decision to enroll 
in Head Start or Early Head Start for more than 10 hours a week will 
render a family ineligible for the benefit under this title.
    (e) Temporary Assistance for Needy Families.--States shall not take 
into account the stay-at-home parent support program stipend for 
purposes of determining TANF eligibility or benefit amounts.
    (f) Supplemental Assistance for Needy Families.--The stay-at-home 
parent support program stipend shall not be counted as income for SNAP 
eligibility or benefit calculation purposes.
    (g) Medicaid and CHIP.--The stay-at-home parent support program 
stipend shall not be counted as income for determining eligibility for 
Medicaid or the Children's Health Insurance Program CHIP.
    (h) Housing Assistance.--The stay-at-home parent support program 
stipend shall not be counted as income for determining eligibility for 
Federal housing assistance programs.
    (i) Annual Review.--The Secretary of the Treasury, the Secretary, 
and other relevant agency heads shall conduct an annual review of the 
program's interaction with other Federal benefits and tax credits, and 
report to Congress any unintended consequences or recommended 
adjustments.

SEC. 213. BENEFIT STRUCTURE AND PAYMENT MECHANISM.

    (a) Benefit Amount.--
            (1) In general.--Eligible stay-at-home parents will receive 
        $300 per month per eligible child.
            (2) Cost-of-living adjustment.--The Secretary of the 
        Treasury shall have the authority to adjust the benefit amount 
        annually based on cost-of-living increases, subject to 
        Congressional approval.
    (b) Payment Distribution.--
            (1) Monthly.--The Internal Revenue Service shall distribute 
        payments monthly through accessible payment methods to families 
        including but not limited to direct deposit to the bank account 
        designated by the parent, prepaid debit cards for parents 
        without bank accounts, paper checks as a last report if neither 
        of the above options is feasible. Payments shall be made on a 
        set date each month, to be determined by the Secretary of the 
        Treasury.
            (2) First payment.--The first payment shall be made within 
        30 days of the eligibility determination or recertification.
    (c) Duration of Benefits.--
            (1) In general.--Benefits will continue until the eligible 
        child reaches the age of 3 or enters another childcare program 
        funded by the Child Care for America Grant Program or the 
        program under title III for more than 10 hours a week, 
        whichever comes first.
            (2) Annual recertification.--Annual recertification shall 
        be completed not later than the due date (determined without 
        regard to any extensions) for the income tax return of the 
        eligible recipient of the benefits.
    (d) Recertifcation Process.--
            (1) Reminders.--The Internal Revenue Service shall provide 
        multiple reminders to parents about the recertification 
        requirement, including but not limited to the following:
                    (A) Notices with monthly benefit payments starting 
                three months before the tax filing deadline.
                    (B) Email and text message reminders if parents 
                have opted in for such communications.
            (2) Suspension of benefits.--Parents who fail to recertify 
        by the deadline may have their benefits suspended 30 days after 
        the due date referred to in subsection (c)(2).
            (3) Recertifications within 90 days of deadline.--If 
        recertification is completed within 90 days after the deadline:
                    (A) Benefits shall be reinstated prospectively from 
                the date of recertification.
                    (B) Any missed payments due to late recertification 
                shall be paid retroactively in a lump sum within one 
                year after the original deadline.
            (4) Methods of recertification.--The Internal Revenue 
        Service shall provide multiple channels for recertification 
        including but not limited to:
                    (A) Automatic recertification on income tax returns 
                other relevant tax documents during tax filing season.
                    (B) A process for recertification and disclosure of 
                change of status that may make a parent ineligible 
                throughout the calendar year in the form of a website 
                or other accessible service delivery channel.
    (e) Mid-Year Changes.--
            (1) In general.--Benefits will continue until the eligible 
        child reaches the age of 3 or enters another childcare program 
        funded by the Child Care for America Grant Program or the 
        program under title III for more than 10 hours a week, 
        whichever comes first:
                    (A) Child enrolling in a childcare program for more 
                than 10 hours a week that makes them ineligible for the 
                benefit.
                    (B) Changes in income affecting eligibility.
            (2) On-line portal and dedicated phone line.--The Internal 
        Revenue Service shall provide an online portal and a dedicated 
        phone line for reporting changes.
            (3) Benefits.--Benefits shall be adjusted or terminated as 
        appropriate based on reported changes, effective from the month 
        following the change.
    (f) Appeals Process.--
            (1) In general.--Benefit recipients will have the right to 
        appeal decisions regarding benefit amounts, eligibility 
        determinations or recoupment of overpayments.
            (2) Deadline.--Appeals must be filed within 60 days of 
        receiving notice of the decision.
            (3) Expedited appeals.--The Internal Revenue Service shall 
        establish an expedited review process for such appeals.
    (g) Payment Security and Fraud Prevention.--
            (1) In general.--The Internal Revenue Service shall 
        implement robust security measures to prevent unauthorized 
        access to payment information.
            (2) Audits.--The Internal Revenue Service shall conduct 
        regular audits to identify and prevent fraudulent claims.
            (3) Penalties.--Penalties for fraudulent claims shall 
        include repayment of benefits, fines and potential criminal 
        prosecution.
    (h) Report to Congress.--The Secretary of the Treasury shall submit 
an annual report to Congress describing the number of families 
receiving the benefit, total amount distributed and any significant 
issues or challenges in benefit distribution.
    (i) Program Evaluation.--The Secretary of the Treasury and the 
Secretary shall conduct an annual evaluation of the payment mechanism 
and benefit structure. The evaluation must also assess the efficiency 
of benefit distribution, impact on eligible families and any 
recommended improvements.

  TITLE III--KIN CARE: FAMILY, FRIEND, AND NEIGHBOR (FFN) CARE PROGRAM

SEC. 301. DEFINITIONS.

    For purposes of this title--
            (1) the term ``FFN provider'' means an individual who 
        provides childcare services to eligible children in a home 
        setting and is not required to be licensed under State law;
            (2) the term ``eligible FFN provider'' means a FFN provider 
        who meets the requirements set forth in this section and is 
        registered with the State law; and
            (3) the term ``FFN care'' means child care services 
        provided by an eligible FFN provider.

SEC. 302. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated $5,000,000,000 annually for 
fiscal years 2024 through 2034 to carry out this title, to be allocated 
as follows:
            (1) 75 percent for direct payments to verified FFN 
        provider;
            (2) 15 percent for State-level program administration and 
        support services;
            (3) 8 percent for Federal administration, including the 
        development and maintenance of a national FFN database and 
        verification system; and
            (4) 2 percent for research, evaluation, and continuous 
        improvement initiatives.

SEC. 303. PARENT ROLES AND RESPONSIBILITIES IN THE FFN CARE PROGRAM.

    (a) Eligibility and Initial Enrollment.--
            (1) Eligibility criteria.--To be eligible for the FFN Care 
        Program, a parent shall meet income eligibility requirements 
        (up to 100 percent of State median income).
            (2) Application process.--An eligible parent shall--
                    (A) complete the FFN care subsidy application 
                through the Kin Care Interface within 30 days of 
                seeking care; and
                    (B) provide accurate and complete information, 
                including--
                            (i) proof of income;
                            (ii) number and ages of children needing 
                        care; and
                            (iii) hours of care needed.
            (3) Provider selection.--An eligible parent shall--
                    (A) nominate their FFN provider to the Interface 
                for verification, after which time FFN providers may 
                voluntarily join the Interface and seek verification as 
                set out in the provider section; and
                    (B) confirm the care arrangement with the chosen 
                provider through the Kin Care Interface within 5 days 
                of selection.
    (b)  Care Arrangement Confirmation and Documentation.--
            (1) Written agreement.--The parent shall--
                    (A) enter into a standard consent agreement with 
                the FFN provider within 7 days of selection, 
                outlining--
                            (i) care schedule; and
                            (ii) expectations for both parties; and
                    (B) enter into a written agreement with the FFN 
                provider within 7 days of selection, outlining--
                            (i) care schedule;
                            (ii) compensation details;
                            (iii) expectations for both parties; and
                            (iv) upload the signed agreement to the Kin 
                        Care Interface within 3 days of signing.
            (2) Care setting verification.--For care in the child's 
        home, the parent shall--
                    (A) provide written confirmation about the 
                suitability of their home for childcare within 5 days 
                of provider selection;
                    (B) complete a home safety checklist provided 
                through the Kin Care Interface within 10 days of 
                provider selection; and
                    (C) allow for virtual or in-person safety 
                assessments of the home environment as required by the 
                State agency.
            (3) Ongoing responsibilities.--
                    (A) Attendance verification.--The parent shall 
                verify child attendance through the Kin Care Interface 
                on a weekly basis, within 2 days of the end of each 
                care week.
                    (B) Provider evaluation and feedback.--The parent 
                shall--
                            (i) complete semi-annual care quality 
                        surveys through the Kin Care Interface;
                            (ii) provide additional feedback or 
                        concerns as they arise, within 24 hours for 
                        urgent matters; and
                            (iii) any major safety incidents while the 
                        child is in FFN care, with major safety 
                        incidents defined as hospitalization resulting 
                        from provider neglect, or any incident leading 
                        to suspicion of child abuse.
                    (C) Reporting changes.--The parent shall report the 
                following changes within 10 days of occurrence--
                            (i) income changes that may affect 
                        eligibility;
                            (ii) employment or education/training 
                        status changes;
                            (iii) family size or composition changes; 
                        and
                            (iv) relocation or contact information 
                        updates.
                    (D) Cooperation with monitoring and 
                investigations.--The parent shall--
                            (i) participate in annual re-certification 
                        processes;
                            (ii) completing all required documentation 
                        within 30 days of request;
                            (iii) cooperate with any investigations or 
                        follow-ups regarding reported incidents or 
                        concerns within the timeframe specified by the 
                        investigating agency; and
                            (iv) allow for and facilitate visits by 
                        State agency representatives if care is 
                        provided in the child's home.
                    (E) Training and education.--The parent shall 
                complete any required parent orientation or training 
                modules within 30 days of enrollment in the FFN care 
                program.
                    (F) Health and safety.--The parent shall--
                            (i) provide up-to-date immunization records 
                        for the child to the provider within 7 days of 
                        care commencement or any updates; and
                            (ii) inform the provider of any health 
                        concerns, allergies, or special needs of the 
                        child before care begins and as new information 
                        arises.
                    (G) Program compliance.--The parent shall--
                            (i) adhere to all rules and regulations of 
                        the FFN care program as outlined in the parent 
                        handbook; and
                            (ii) acknowledge that failure to comply 
                        with these responsibilities may result in 
                        termination from the program or repayment of 
                        subsidies.

SEC. 304. FFN PROVIDER RESPONSIBILITIES IN THE KIN CARE PROGRAM.

    (a) Eligibility and Initial Registration.--
            (1) Eligibility criteria.--To be eligible as an FFN 
        provider, an individual shall--
                    (A) be at least 18 years old as of the date of 
                application;
                    (B) be a grandparent, aunt or uncle of the child;
                    (C) not have any criminal record involving violent 
                offenses, nor prior credible child abuse findings, nor 
                be present on any sex offender registry; and
                    (D) after the first three years of the Kin Care 
                program, the Secretary may, in consultation with 
                relevant stakeholders, elect to extend eligibility to 
                additional family members, trusted friends, and trusted 
                neighbors.
            (2) Interaction with ccdbg.--
                    (A) Transition from ccdbg.--A FFN caregiver 
                currently registered as a subsidy-receiving provider 
                via the Child Care and Development Block Grant Act of 
                1990 shall discontinue their participation upon being 
                verified to be part of the Kin Care program and 
                beginning to receive payments via the Kin Care program.
                    (B) Continued ccdbg participation.--FFN caregivers 
                who are not eligible for the Kin Care program but who 
                are eligible for payment under CCDBG may continue to 
                participate in that program.
                    (C) Potential ccdbg repeal.--In the case that the 
                Secretary elects to extend eligibility for the Kin Care 
                program to cover all those FFN providers eligible under 
                CCDBG, the relevant sections of CCDBG are to be 
                repealed.
            (3) Registration process.--The provider shall--
                    (A) complete the online registration form through 
                the Kin Care Interface within 30 days of deciding to 
                become an FFN provider;
                    (B) provide accurate and complete information as 
                required by the Kin Care Interface; and
                    (C) submit to comprehensive background checks 
                within 10 days of registration.
            (4) Care setting verification.--The provider shall--
                    (A) for care in provider's home--
                            (i) submit clear, recent photos or a video 
                        tour of all areas used for child care within 7 
                        days of registration;
                            (ii) participate in a virtual safety 
                        assessment within 14 days of registration; and
                            (iv) allow for an in-person home visit 
                        within 30 days of approval.
                    (B) for care in child's home--
                            (i) sign an agreement to maintain safe 
                        practices in the child's home within 5 days of 
                        registration; and
                            (ii) schedule a home familiarization visit 
                        with the family within 10 days of registration.
            (5) Training and education.--
                    (A) Initial training.--The provider shall--
                            (i) complete 20 hours of mandatory online 
                        health and safety training within 30 days of 
                        registration;
                            (ii) achieve a minimum score of 80 percent 
                        on module quizzes to progress; and
                            (iii) complete a standardized knowledge 
                        assessment within 7 days of completing all 
                        training modules.
                    (B) Ongoing education.--The provider shall--
                            (i) complete 10 hours of approved ongoing 
                        training annually;
                            (ii) obtain and maintain certification in 
                        pediatric first aid and CPR; and
                            (iii) submit certificates of completion for 
                        all training through the Kin Care Interface 
                        within 7 days of completion.
            (6) Operational requirements.--
                    (A) Child care practices.--The provider shall--
                            (i) care for no more than 6 children at a 
                        time, including the provider's own children 
                        under age 13;
                            (ii) maintain a daily log of all children 
                        in care;
                            (iii) maintain direct sight or sound 
                        supervision of all children at all times; and
                            (iv) make reasonable efforts to implement 
                        daily activities that support child's 
                        development and early learning, including 
                        reading and outdoor play.
                    (B) Health and safety standards.--The provider 
                shall--
                            (i) maintain a smoke-free environment at 
                        all times during hours of operation;
                            (ii) ensure all areas used for child care 
                        are free from visible safety hazards;
                            (iii) implement safe sleep practices for 
                        infants and toddlers;
                            (iv) store all medications and hazardous 
                        materials in locked containers out of 
                        children's reach;
                            (v) maintain a fully stocked first aid kit 
                        and emergency preparedness plan; and
                            (vi) have and maintain working carbon 
                        monoxide and smoke detectors and fire 
                        extinguisher(s).
                    (C) Nutrition and meals.--If providing meals, the 
                provider shall--
                            (i) develop weekly meal plans that meet 
                        USDA Child and Adult Care Food Program (CACFP) 
                        guidelines;
                            (ii) maintain current food handler's 
                        certification if preparing meals; and
                            (iii) follow proper food safety and hygiene 
                        practices.
                    (D) Program compliance and reporting.--
                            (i) Kin care interface utilization.--The 
                        provider shall submit weekly care hours through 
                        the Kin Care Interface within 2 days of the end 
                        of each care week.
                            (ii) Financial responsibilities.--The 
                        provider shall report all income from child 
                        care services on annual tax returns.
                            (iii) Incident reporting.--The provider 
                        shall--
                                    (I) report any injuries requiring 
                                medical attention within 24 hours of 
                                occurrence; and
                                    (II) report any suspected child 
                                abuse or neglect immediately to the 
                                appropriate authorities and the State 
                                agency.
                            (iv) Cooperation with monitoring.--The 
                        provider shall--
                                    (I) participate in annual re-
                                verification process, completing all 
                                requirements within 30 days of 
                                notification;
                                    (II) be available for random 
                                virtual check-ins during declared hours 
                                of operation; and
                                    (III) allow for both announced and 
                                unannounced in-person visits by State 
                                agency representatives.

SEC. 305. CHILD CARE PRACTICES FOR FAMILY, FRIEND, AND NEIGHBOR 
              PROVIDERS.

    (a)  Child-to-Provider Ratio.--
            (1) An FFN provider shall not care for more than 4children 
        at any given time, including the provider's own children under 
        the age of 13.
            (2) The provider shall indicate via the Kin Care Interface 
        the number, age, and initials of children cared for each day.
            (3) The provider shall ensure that no more than 2 children 
        under the age of 2 are in care at any time.
            (4) For children with special needs, the provider shall 
        adjust ratios as required by the child's individual care plan, 
        in consultation with the child's parents and Kin Care Program 
        administrators.

SEC. 306. FFN PROVIDER VERIFICATION PROCEDURES AND ONGOING MONITORING.

    (a)  Development and Maintenance of the Kin Care Interface.--
            (1) System development.--The Secretary shall--
                    (A) contract with a reputable software development 
                firm to create the Kin Care Interface within 100 days 
                after the date of the enactment of this Act;
                    (B) ensure the interface is web-based and includes 
                a mobile application version;
                    (C) incorporate robust security measures, including 
                end-to-end encryption and multi-factor authentication;
                    (D) develop user-friendly interfaces for providers, 
                parents, and State administrators;
                    (E) be prepared to launch the Interface within one 
                year of passage of this Act;
                    (F) collect only minimum required data to meet the 
                intent and requirements of this Act; and
                    (G) ensure that at launch, the interface is 
                available in at least English and Spanish, and that it 
                is made available in all languages spoken by at least 1 
                percent of the U.S. population within one year of 
                launch, and all languages spoken by at least 0.1 
                percent of the U.S. population within two years of 
                launch.
            (2) Functionality requirements.--The Kin Care Interface 
        shall include--
                    (A) provider registration and profile management 
                capabilities;
                    (B) document upload capabilities for ID's, 
                background check results, and training certificates;
                    (C) a secure messaging system between providers, 
                parents, and State administrators;
                    (D) an automated alert system for expired documents 
                or pending re-verifications;
                    (E) integration with State and Federal databases 
                for background check verificationl;
                    (F) a secure payment system, including a method for 
                providing compensation to individuals who, at 
                registration, lack a bank account;
                    (G) capabilities for States or the Department to 
                design or upload training modules, and for providers to 
                complete said modules; and
                    (H) all other functionalities as needed to carry 
                out the provisions of this Act.
            (3) Ongoing maintenance.--The Secretary shall--
                    (A) conduct quarterly system updates to address 
                bugs and improve functionality;
                    (B) perform annual security audits and penetration 
                testing; and
                    (C) maintain a 24/7 technical support helpline for 
                users and State administrators.
            (4)  Establishment of federal guidelines.--
                    (A) Identity verification standards.--The Secretary 
                shall--
                            (i) specify acceptable forms of government-
                        issued photo ID;
                            (ii) set requirements for third-party 
                        identity verification services; and
                            (iii) define acceptable documents for 
                        address confirmation, such as utility bills no 
                        older than 60 days.
                    (B) Background check standards.--The Secretary 
                shall--
                            (i) establish a comprehensive list of 
                        disqualifying offenses; and
                            (ii) set standards for an appeals process 
                        for providers with concerning but non-
                        disqualifying results.
                    (C) Care setting assessment standards.--The 
                Secretary shall--
                            (i) develop a standardized checklist for 
                        virtual safety assessments which includes items 
                        necessary to ensure safety but do not present 
                        an undue burden to providers;
                            (ii) establish means for providers to 
                        remedy any concerns and receive a timely re-
                        assessment; and
                            (iii) establish minimum photo/video 
                        documentation requirements for provider's home 
                        assessments.
                    (D) Training and education standards.--The 
                Secretary shall--
                            (i) develop a mandatory online health and 
                        safety training curriculum; and
                            (ii) require training to be available in at 
                        least 5 languages.
                    (E) Ongoing monitoring and re-verification 
                standards.--The Secretary shall--
                            (i) set a 30-day window for annual re-
                        verification completion; and
                            (ii) establish required components of re-
                        verification.
                    (F) Continuous background check monitoring.--The 
                Secretary shall--
                            (i) establish partnerships with State law 
                        enforcement agencies for real-time arrest 
                        notifications for violent offenses, child abuse 
                        offenses, or offenses resulting in addition to 
                        sex offender registries. No such partnerships 
                        shall be construed by the Secretary or States 
                        as means to provide law enforcement agencies 
                        with information outside the relevant scope of 
                        the Kin Care program, notwithstanding 
                        information sharing required under existing 
                        State and Federal law;
                            (ii) develop a system for providers to 
                        self-report new criminal charges or child 
                        protective services involvement within 48 
                        hours; and
                            (iii) set a 3-year cycle for full 
                        background check renewals.
                    (G) Incident reporting and investigation.--The 
                Secretary shall--
                            (i) develop a standardized incident report 
                        form; and
                            (ii) establish a tiered response system 
                        based on incident severity.
            (5) Compliance and enforcement.--The Secretary shall--
                    (A) establish a graduated system of enforcement 
                actions; and
                    (B) develop an appeals process for providers facing 
                adverse actions.
    (b) State Agency Responsibilities.--Each State agency shall--
            (1) designate a State-level administrator to oversee the 
        Kin Care Interface;
            (2) review all provider registrations within 10 business 
        days of submission;
            (3) conduct identity verification processes within 
        specified timeframes;
            (4) administer background checks according to Federal 
        guidelines;
            (5) conduct care setting verifications for both provider's 
        home and child's home care settings;
            (6) verify completion of required training and education by 
        providers;
            (7) manage the annual re-verification process for 
        providers;
            (8) conduct random virtual check-ins with 5 percent of 
        approved providers each month;
            (9) maintain a system for continuous background check 
        monitoring;
            (10) manage the parent feedback system and respond to 
        concerns in a timely manner;
            (11) investigate and respond to reported incidents 
        according to the tiered response system;
            (12) implement compliance and enforcement actions as 
        necessary;
            (13) provide quality improvement support to providers as 
        needed;
            (14) submit required reports to the Secretary on program 
        operations and outcomes;
            (15) establish a localized schedule of payment rates, and 
        ensure timely payment to providers (no more than five business 
        days after the end of a payment period);
            (16) ensure all State Kin Care Interface materials and 
        related materials are available in, at minimum, all languages 
        spoken by more than 1 percent of the population in their State;
            (17) establish a process for parents and providers to offer 
        feedback, complaints and concerns regarding monitoring, 
        enforcement and program operations; and
            (18) create or utilize an existing FFN advisory or 
        governance structure to give input and oversee implementation; 
        this committee must be provided data and information regarding 
        the program including numbers of participants and participant 
        complaints/concerns with program operations.
    (c) Reporting and Evaluation.--
            (1) The Secretary shall establish a system for regular 
        reporting and evaluation of the FFN Provider Verification 
        Procedures and Ongoing Monitoring processes.
            (2) State agencies shall submit monthly and quarterly 
        reports as specified by the Secretary.
            (3) The Secretary shall conduct an annual evaluation of the 
        effectiveness of these procedures and make recommendations for 
        improvements as necessary.
            (4) The States and Secretary shall gather participant 
        experience data to understand barriers, administrative and 
        paperwork burdens, use of technology challenges, etc., that may 
        be limiting participation.

SEC. 307. FFN PROVIDER PAYMENT PROCESS.

    (a) Payment Rates.--
            (1) The Secretary shall establish a national base rate for 
        FFN care that is no less than 75 percent of the State's rate 
        for licensed family child care homes.
            (2) States may adjust the base rate to account for--
                    (A) geographic cost of living differences;
                    (B) number and ages of children in care;
                    (C) non-traditional hours care (evenings, weekends, 
                overnight);
                    (D) care for children with special needs;
                    (E) provider education and training levels; and
                    (F) the Secretary shall review and update the 
                national base rate annually to reflect changes in the 
                cost of living and child care market rates.
    (b) Payment Frequency and Method.--
            (1) FFN providers shall submit number of weekly hours of 
        service through the Kin Care Interface within 2 days of the end 
        of each care week.
            (2) The Kin Care Interface shall automatically calculate 
        payment amounts based on--
                    (A) reported hours;
                    (B) approved rate for the provider; and
                    (C) any adjustments for non-traditional hours, 
                special needs care, or other adjustments.
            (3) Parents shall verify reports via the Kin Care Interface 
        within a reasonable timeframe.
    (c) Reporting and Payment Calculation.--
            (1) FFN providers shall submit weekly attendance reports 
        through the Kin Care Interface within 2 days of the end of each 
        care week.
            (2) The Kin Care Interface shall automatically calculate 
        payment amounts based on--
                    (A) reported attendance;
                    (B) approved rate for the provider;
                    (C) any adjustments for non-traditional hours or 
                special needs care.
            (3) Parents shall verify the attendance reports within 1 
        day of submission by the provider.
    (d) Payment Processing.--
            (1) The State agency shall process payments within 3 
        business days of verified submission.
            (2) The Kin Care Interface shall generate a detailed 
        payment Statement for each pay period, accessible to both the 
        provider and the State agency.
    (e) Overpayments and Underpayments.--
            (1) In cases of overpayment due to error or misreporting--
                    (A) the State agency shall notify the provider 
                within 5 business days of discovery; and
                    (B) recovery of overpayments shall be through 
                reduced future payments, not to exceed 10 percent of 
                each payment until the overpayment is recovered.
            (2) In cases of underpayment, The State agency shall issue 
        an additional payment to correct the underpayment within 5 
        business days of discovery.
    (f) Payment for Training and Professional Development.--
            (1) FFN providers shall be compensated at their regular 
        rate for time spent in required training and professional 
        development activities, which providers shall record as normal 
        hours of service.
            (2) The State agency shall pay for any fees associated with 
        required training courses or materials.
    (g) Tax Reporting.--
            (1) The Kin Care Interface shall generate annual tax 
        documents (e.g., 1099 forms) for FFN providers by January 31st 
        of each year.
            (2) FFN providers shall be responsible for reporting all 
        income and paying applicable taxes.
    (h) Payment Disputes.--
            (1) FFN providers may file a payment dispute through the 
        Kin Care Interface within 30 days of the payment date.
            (2) The State agency shall investigate and resolve payment 
        disputes within 10 business days of filing.
            (3) If the dispute is not resolved to the provider's 
        satisfaction, they may appeal to a designated State appeal 
        board within 15 days of the State agency's decision.

SEC. 308. DATA PRIVACY AND SECURITY MEASURES.

    (a) Data Protection Standards.--
            (1) The Secretary shall establish comprehensive data 
        protection standards for the Kin Care Interface, including--
                    (A) end-to-end encryption for all data 
                transmissions;
                    (B) multi-factor authentication for user access; 
                and
                    (C) regular security audits and penetration 
                testing.
            (2) All data stored in the Kin Care Interface shall be 
        classified according to sensitivity level and protected 
        accordingly.
    (b) Data Collection and Use.--
            (1) The Kin Care Interface shall collect only information 
        necessary for program administration and evaluation.
            (2) Personal identifying information shall be used solely 
        for the purposes of:
                    (A) verifying eligibility;
                    (B) facilitating payments;
                    (C) conducting background checks; and
                    (D) communicating with program participants.
    (c) Data Sharing.--
            (1) Data sharing between State agencies and the Federal 
        Government shall be governed by formal data sharing agreements.
            (2) Any data shared for research purposes shall be de-
        identified to protect individual privacy.
    (d) User Rights.--FFN providers and parents shall have the right 
to--
            (1) access their personal data stored in the Kin Care 
        Interface;
            (2) request corrections to inaccurate data; and
            (3) receive notification of any data breaches affecting 
        their information within 72 hours.
    (e) Data Retention and Disposal.--
            (1) The Secretary shall establish data retention schedules 
        for different types of data collected.
            (2) Data shall be securely disposed of when no longer 
        necessary, using methods that prevent reconstruction.

SEC. 309. TRANSITION TO LICENSED FAMILY CHILD CARE.

    (a) Transition Support Program.--
            (1) The Secretary shall establish a Transition Support 
        Program to assist FFN providers in voluntarily becoming 
        licensed family child care providers.
            (2) The program shall include--
                    (A) guidance on State licensing requirements;
                    (B) financial assistance for meeting licensing 
                standards; and
                    (C) mentorship from experienced licensed providers.
    (b) Eligibility.--FFN providers who have participated in the Kin 
Care Program for at least one year shall be eligible for the Transition 
Support Program.
    (c) Financial Assistance.--Eligible providers may receive grants of 
up to $5,000 to cover costs associated with meeting licensing 
requirements, including--
            (1) home modifications for safety compliance;
            (2) purchase of required equipment and materials; and
            (3) fees for required training and certifications.
    (d) Training and Education.--The State agency shall provide 
specialized training to support the transition, including--
            (1) business management for family child care;
            (2) advanced child development courses; and
            (3) curriculum planning and implementation.
    (e) Licensing Process Support.--The State agency shall assign a 
dedicated licensing navigator to each transitioning provider to assist 
with the licensing application and inspection process.

SEC. 310. SUPPORTS FOR SERVING CHILDREN WITH SPECIAL NEEDS.

    (a) Specialized Training.--
            (1) The Secretary shall develop a specialized training 
        module for FFN providers caring for children with special 
        needs.
            (2) The training shall cover--
                    (A) understanding common disabilities and 
                developmental delays;
                    (B) adapting activities and environments;
                    (C) collaborating with early intervention 
                specialists; and
                    (D) supporting families of children with special 
                needs.
    (b) Enhanced Payment Rates.--FFN providers caring for children with 
diagnosed special needs shall receive an enhanced payment rate, to be 
determined by the State agency based on the child's specific needs.
    (c) Equipment and Materials Grants.--FFN providers may apply for 
grants of up to $1,000 annually to purchase specialized equipment or 
materials needed to care for children with special needs.
    (d) Support Network.--The State agency shall facilitate a peer 
support network for FFN providers caring for children with special 
needs.

SEC. 311. COLLABORATION WITH OTHER EARLY CHILDHOOD PROGRAMS.

            (1) Coordination requirement.--State agencies shall 
        establish formal coordination agreements with--
                    (A) Early Head Start and Head Start programs;
                    (B) State pre-kindergarten programs;
                    (C) part C early intervention programs under IDEAl; 
                and
                    (D) State Child Care Resource and Referral 
                Agencies.
            (2) Shared services.--The Secretary shall encourage and 
        facilitate shared services among Kin Care and other early 
        childhood programs, including--
                    (A) joint professional development opportunities;
                    (B) shared curriculum resources; and
                    (C) coordinated developmental screening services.
            (3) Transition support.--State agencies shall develop 
        protocols to support children's transitions between FFN care 
        and other early childhood programs.
            (4) Data sharing.--The Secretary shall establish guidelines 
        for appropriate data sharing between Kin Care and other early 
        childhood programs to support coordinated services and program 
        evaluation.

SEC. 312. EVALUATION AND RESEARCH.

    (a) Annual Program Evaluation.--The Secretary shall conduct an 
annual evaluation of the Kin Care Program, assessing--
            (1) program reach and participation rates;
            (2) care practices;
            (3) family outcomes, including parental employment and 
        economic stability; and
            (4) provider outcomes, including job satisfaction and 
        financial stability.
    (b) Longitudinal Study.--The Secretary shall commission a 10-year 
longitudinal study to assess the long-term impacts of participation in 
FFN care through the Kin Care Program.
    (c) Innovation Research.--The Secretary shall establish a research 
grant program to study innovative approaches to supporting and 
enhancing FFN care.
    (d) Data Collection.--The Kin Care Interface shall include 
mechanisms for ongoing data collection to support evaluation and 
research efforts. o State agencies shall be required to participate in 
all national evaluation efforts as a condition of receiving Kin Care 
Program funds.
    (e) Dissemination of Findings.--The Secretary shall ensure wide 
dissemination of research findings through--
            (1) annual reports to Congress;
            (2) peer-reviewed journal publications;
            (3) presentations at national conferences; and
            (4) easily accessible summaries on the program website.
    (f) Continuous Improvement.--
            (1) The Secretary shall establish a process for using 
        evaluation and research findings to continuously improve the 
        Kin Care Program.
            (2) This process shall include annual review and updating 
        of program policies and practices based on the latest evidence.

SEC. 313. COMMUNITY ENGAGEMENT FOR THE KIN CARE PROGRAM.

    (a) Establishment of Local Community Advisory Boards.--
            (1) LCAB's.--Each State agency shall establish Local 
        Community Advisory Boards (LCABs) to provide input on Kin Care 
        Program implementation and operation. The State may establish a 
        reasonable minimum population size for establishing LCABs, or 
        have one LCAB cover multiple jurisdictions if necessary.
             (2) Composition.--Each LCAB shall consist of--
                    (A) at least two FFN providers participating in the 
                Kin Care Program;
                    (B) at least two parents utilizing FFN care through 
                the Kin Care Program;
                    (C) one representative from the local child care 
                resource and referral agency;
                    (D) one early childhood education expert from a 
                local college or university;
                    (E) one representative from a local community-based 
                organization serving families;
                    (F) one representative from the local business 
                community;
                    (G) one representative from the local government; 
                and
                    (H) one expert from a local (or, if no local, 
                Statewide) FFN-serving organization''.
            (3) Appointment and terms.--
                    (A) The State agency shall develop a fair and 
                transparent process for appointing LCAB members.
                    (B) Members shall serve staggered three-year terms, 
                with the possibility of reappointment for one 
                additional term.
            (4) Responsibilities.--Each LCAB shall--
                    (A) meet at least quarterly to review local Kin 
                Care Program implementation;
                    (B) provide recommendations to the State agency on 
                program improvements;
                    (C) assist in identifying and addressing barriers 
                to program participation;
                    (D) support community outreach efforts; and
                    (E) submit an annual report to the State agency 
                summarizing their activities and recommendations.
    (b) Community Partnerships.--
            (1) The State agency shall establish formal partnerships 
        with community organizations to support the Kin Care Program, 
        including but not limited to--
                    (A) faith-based organizations;
                    (B) cultural and ethnic community groups;
                    (C) public libraries;
                    (D) community centers;
                    (E) local health departments;
                    (F) school districts; and
                    (G) local businesses.
            (2) Partnership agreements.--Each partnership shall be 
        formalized through a written agreement that outlines--
                    (A) the roles and responsibilities of each party;
                    (B) the resources each party will contribute;
                    (C) the expected outcomes of the partnership; and
                    (D) the duration of the partnership and conditions 
                for renewal.
            (3) Collaboration activities.--Community partnerships shall 
        focus on--
                    (A) outreach to potential FFN providers and 
                families;
                    (B) providing venues for training and support group 
                meetings;
                    (C) offering complementary services to Kin Care 
                Program participants;
                    (D) assisting with culturally and linguistically 
                appropriate program implementation; and
                    (E) supporting program evaluation efforts.
    (c) Community Outreach and Engagement.--
            (1) Plan.--The State agency shall develop and implement a 
        comprehensive community outreach and engagement plan that 
        includes--
                    (A) multilingual marketing materials about the Kin 
                Care Program;
                    (B) social media campaigns targeting potential FFN 
                providers and families;
                    (C) information sessions at community events and 
                gatherings;
                    (D) door-to-door outreach in targeted 
                neighborhoods;
                    (E) partnerships with local media outlets, 
                including ethnic media; and
                    (F) a dedicated community liaison position within 
                the State agency.
            (2) Culturally responsive outreach.--The State agency shall 
        ensure that all outreach efforts are culturally responsive and 
        appropriate for the diverse communities served by the Kin Care 
        Program.
            (3) Technology-based engagement.--The State agency shall 
        utilize technology to enhance community engagement, including--
                    (A) a mobile-friendly website with program 
                information and resources;
                    (B) text message reminders and updates for program 
                participants;
                    (C) virtual information sessions and webinars; and
                    (D) an online community forum for FFN providers and 
                families.
    (d) Community Feedback Mechanisms.--
            (1) Feedback channels.--The State agency shall establish 
        multiple channels for ongoing community feedback, including--
                    (A) an annual community survey on the Kin Care 
                Program;
                    (B) focus groups with diverse stakeholders;
                    (C) a dedicated email address and phone line for 
                community input; and
                    (D) public comment periods for proposed program 
                changes.
            (2) Feedback utilization.--The State agency shall--
                    (A) Review all community feedback on a quarterly 
                basis;
                    (B) Incorporate relevant feedback into program 
                improvement efforts; and
                    (C) provide public responses to major themes in 
                community feedback.
            (3) Community-based training and support.--The State agency 
        shall collaborate with community partners to offer--
                    (A) localized training sessions for FFN providers;
                    (B) peer support groups in community settings;
                    (C) family engagement activities; and
                    (D) community-based child development workshops for 
                parents and FFN providers.
            (4) Reporting and evaluation.--
                    (A) The State agency shall include a community 
                engagement section in its annual report to the 
                Secretary, detailing--
                            (i) LCAB activities and recommendations;
                            (ii) outcomes of community partnerships;
                            (iii) reach and impact of outreach efforts;
                            (iv) summary of community feedback 
                        received; and
                            (v) changes made to the program based on 
                        community input.
                    (B) The Secretary shall evaluate the effectiveness 
                of community engagement efforts as part of the annual 
                Kin Care Program evaluation.
            (5) Funding for community engagement.--
                    (A) The State agency shall allocate at least 5 
                percent of its Kin Care Program administrative budget 
                to community engagement activities.
                    (B) The Secretary shall provide supplemental grants 
                to State agencies demonstrating innovative and 
                effective community engagement strategies.
                    (C) The Secretary shall establish a fund of 
                $1,000,000 annually to issue grants to trusted FFN 
                serving organizations in order for those organizations 
                to conduct outreach, support enrollment in the program, 
                and support FFN providers. The application for such a 
                Fund shall be streamlined and simplified to the maximum 
                extent possible under Federal law.
                                 <all>
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