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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4967 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  2d Session
                                S. 4967

  To amend the Child Care and Development Block Grant Act of 1990 to 
        reauthorize and update the Act, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 1, 2024

 Mrs. Fischer (for herself, Ms. Collins, Mr. Grassley, Mr. Tillis, Mr. 
Ricketts, and Mr. Young) introduced the following bill; which was read 
 twice and referred to the Committee on Health, Education, Labor, and 
                                Pensions

_______________________________________________________________________

                                 A BILL

 
  To amend the Child Care and Development Block Grant Act of 1990 to 
        reauthorize and update the Act, 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.

    This Act may be cited as the ``Child Care and Development Block 
Grant Reauthorization Act of 2024''.

SEC. 2. PURPOSES.

    (a) Redesignation.--Section 658A of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9857) is redesignated as section 658 
of such Act.
    (b) Amendment.--Subsection (b) of that section 658 is amended to 
read as follows:
    ``(b) Purposes.--The purposes of this subchapter are--
            ``(1) to allow each State maximum flexibility in developing 
        and implementing a mixed delivery system to provide child care 
        that best suits the needs of children and working parents 
        within that State;
            ``(2) to promote parental choice to empower working parents 
        to make their own decisions regarding the child care services 
        that best suit their family's needs;
            ``(3) to encourage States to provide consumer education 
        information to help parents make informed choices about child 
        care services and to promote involvement by parents and family 
        members in the development of their children in child care 
        settings;
            ``(4) to assist States in delivering high-quality, 
        coordinated child care services to maximize parents' options to 
        cover the full workday and full work year, to support 
        continuity of care for children, and to support parents trying 
        to achieve independence from public assistance;
            ``(5) to assist States in improving the overall quality of 
        child care by implementing the health, safety, licensing, early 
        learning and development, professional, and oversight standards 
        established in this subchapter and in State law (including 
        State regulations);
            ``(6) to assist States--
                    ``(A) in supporting the education and professional 
                development of child care staff; and
                    ``(B) in supporting child care providers in the 
                recruitment of, professional development for, and 
                retention of a qualified child care workforce; and
            ``(7) to increase the number and percentage of low-income 
        children in high-quality child care settings.''.

SEC. 3. DEFINITIONS.

    (a) In General.--Section 658P of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--
            (1) by redesignating paragraphs (5) through (7), (8) and 
        (9), and (10) through (15), as paragraphs (6) through (8), (10) 
        and (11), and (13) through (18), respectively;
            (2) in paragraph (3)--
                    (A) in subparagraph (B), by inserting ``and'' at 
                the end;
                    (B) in subparagraph (C), by striking ``; and'' at 
                the end and inserting a period; and
                    (C) by striking subparagraph (D);
            (3) by striking paragraph (4) and inserting the following:
            ``(4) Eligible activity.--The term `eligible activity', 
        means an activity consisting of--
                    ``(A) full-time or part-time employment;
                    ``(B) self-employment;
                    ``(C) job search activities;
                    ``(D) job training;
                    ``(E) secondary, postsecondary, or adult education, 
                including education through a program of high school 
                classes, a course of study at an institution of higher 
                education, classes towards an equivalent of a high 
                school diploma recognized by State law, or English as a 
                second language classes;
                    ``(F) health treatment (including mental health and 
                substance use treatment) for a condition that prevents 
                the parent involved from participating in other 
                eligible activities;
                    ``(G) activities to prevent child abuse or neglect, 
                or family violence prevention or intervention 
                activities;
                    ``(H) employment and training activities under the 
                employment and training program, of the supplemental 
                nutrition assistance program, established under section 
                6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 
                2015(d)(4));
                    ``(I) employment and training activities under the 
                Workforce Innovation and Opportunity Act (29 U.S.C. 
                3101 et seq.); or
                    ``(J) a work activity described in subsection (d) 
                of section 407 of the Social Security Act (42 U.S.C. 
                607) for which, consistent with clauses (ii) and (iii) 
                of section 402(a)(1)(A) of such Act (42 U.S.C. 
                602(a)(1)(A)), a parent is treated as being engaged in 
                work for a month in a fiscal year for purposes of the 
                program of block grants to States for temporary 
                assistance for needy families established under part A 
                of title IV of the Social Security Act (42 U.S.C. 601 
                et seq.).
            ``(5) Eligible child.--The term `eligible child' means an 
        individual--
                    ``(A) who is less than 13 years of age;
                    ``(B)(i) whose family income does not exceed--
                            ``(I) 85 percent of the State median income 
                        for a family of the same size; or
                            ``(II) a higher percentage of that income 
                        in a State with a waiver under section 
                        658I(c)(1)(B); and
                    ``(ii) whose family assets do not exceed $1,000,000 
                (as certified by a member of such family); and
                    ``(C) who--
                            ``(i) resides with a parent or parents who 
                        are participating in an eligible activity;
                            ``(ii) is a child experiencing 
                        homelessness, a child in kinship care, or a 
                        child who is receiving, or needs to receive, 
                        child protective services; or
                            ``(iii) resides with a parent who is more 
                        than 65 years of age.'';
            (4) in paragraph (7), as so redesignated--
                    (A) in subparagraph (A), by striking ``or'' at the 
                end;
                    (B) in subparagraph (B)--
                            (i) by inserting ``the child (if the spouse 
                        of such provider is engaged in an eligible 
                        activity),'' after ``decree,''; and
                            (ii) by striking the period at the end and 
                        inserting ``; or''; and
                    (C) by added at the end the following:
                    ``(C) notwithstanding section 645(a)(1)(B) of the 
                Head Start Act (42 U.S.C. 9840(a)(1)(B)), a Head Start 
                agency.'';
            (5) by striking paragraph (8), as so redesignated, and 
        inserting the following:
            ``(8) Family child care provider.--The term `family child 
        care provider' means an individual who provides child care 
        services in a private residence--
                    ``(A) for fewer than 24 hours per day per child; or
                    ``(B) for 24 hours per day per child due to the 
                nature of the work of the parent involved.
            ``(9) Homeless child.--The term `homeless child' means an 
        individual described in section 725(2) of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a(2)).'';
            (6) in paragraph (10), as so redesignated, by striking 
        ``(10)'' and all that follows through ``meaning'' and inserting 
        the following:
            ``(10) Indian tribe; indian tribe.--The term `Indian Tribe' 
        or `Indian tribe' has the meaning'';
            (7) by inserting after paragraph (11), as so redesignated, 
        the following:
            ``(12) Mixed delivery system.--The term `mixed delivery 
        system' means a system of child care services that--
                    ``(A) promotes parental choice to empower working 
                parents to make their own decisions regarding the child 
                care services that best suit their family's needs;
                    ``(B) delivers services through a combination of 
                programs offered by eligible child care providers 
                (including faith-based and community-based child care 
                providers) in a variety of settings (including family 
                child care homes, child care centers, Head Start 
                centers, and public and private schools); and
                    ``(C) is supported with a combination of public and 
                private funds.'';
            (8) in paragraph (15), as so redesignated, by striking 
        ``unless the context specifies otherwise''and inserting 
        ``except as otherwise specified''; and
            (9) in paragraph (18), as so redesignated, by striking 
        ``(18)'' and all that follows through ``has the meaning'' and 
        inserting the following:
            ``(18) Tribal organization; tribal organization.--
                    ``(A) In general.--The term `Tribal organization' 
                or `tribal organization' has the meaning''.
    (b) Redesignation.--The Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9857 et seq.) is amended--
            (1) by redesignating section 658P as section 658A; and
            (2) by moving section 658A, as so redesignated, to follow 
        section 658, as redesignated by section 2.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    (a) Part.--The Child Care and Development Block Grant Act of 1990 
is amended by inserting before section 658B the following:

                    ``PART I--CHILD CARE SERVICES''.

    (b) In General.--Section 658B of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858) is amended to read as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this 
subchapter (other than section 658T) such sums as may be necessary for 
each of fiscal years 2025 through 2029.''.

SEC. 5. LEAD AGENCY.

    Section 658D(b) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858b(b)) is amended by striking paragraph (2) and 
inserting the following:
            ``(2) Development of plan.--The lead agency shall develop 
        the State plan described in paragraph (1)(B) in meaningful 
        consultation with--
                    ``(A) parents of children eligible for services 
                under this subchapter, which shall include parents of 
                children in a priority population described in section 
                658E(c)(2)(M);
                    ``(B) eligible child care providers that represent 
                the various geographic areas and types of providers in 
                the State;
                    ``(C) employers of various sizes and with various 
                hours and days of operations whose employees rely on 
                reliable and accessible child care to work; and
                    ``(D) appropriate representatives of units of 
                general purpose local government and, as appropriate, 
                of Indian Tribes and Tribal organizations.''.

SEC. 6. APPLICATION AND PLAN.

    Section 658E(c) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858c(c)) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A)(i)(I), by striking ``a 
                child'' and inserting ``an eligible child'';
                    (B) in subparagraph (D), by striking ``, not 
                later'' and all that follows through ``subparagraph 
                (K)(i),'';
                    (C) in subparagraph (E)(i)--
                            (i) in the matter preceding subclause (I), 
                        by inserting ``, offered through a mixed 
                        delivery system,'' after ``full diversity of 
                        child care services'';
                            (ii) in subclause (I), by inserting 
                        ``(including information on the hours and days 
                        of operation and ages served)'' after ``of 
                        child care services''; and
                            (iii) in subclause (IV)--
                                    (I) by striking ``and'' before 
                                ``the Medicaid''; and
                                    (II) by inserting before the 
                                semicolon the following: ``, and the 
                                Maternal, Infant, and Early Childhood 
                                Home Visiting Programs under section 
                                511 of the Social Security Act (42 
                                U.S.C. 711)'';
                    (D) in subparagraph (G)--
                            (i) in the subparagraph heading, by 
                        striking ``Training and professional'' and 
                        inserting ``Professional'';
                            (ii) in clause (i) and clause (ii) (in the 
                        matter preceding subclause (I)), by striking 
                        ``training and'' before ``professional 
                        development'';
                            (iii) in clause (ii)(II), by striking ``, 
                        and may engage'' and all that follows through 
                        ``training framework''; and
                            (iv) in clause (iii), by striking 
                        ``training'' and inserting ``professional 
                        development'';
                    (E) in subparagraph (I)(i)(IX), by striking ``if 
                applicable,'';
                    (F) in subparagraph (J)--
                            (i) by striking ``that procedures'' and 
                        inserting the following: ``that--
                            ``(i) procedures'';
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                            (iii) by adding at the end the following:
                            ``(ii) the State will undertake a review of 
                        State and local health and safety requirements 
                        (including requirements for inspections under 
                        this subchapter and the child and adult care 
                        food program established under section 17 of 
                        the Richard B. Russell National School Lunch 
                        Act (42 U.S.C. 1766)) to determine redundancies 
                        and oversights that may exist, to ensure--
                                    ``(I) children receive child care 
                                services in healthy and safe 
                                environments; and
                                    ``(II) child care providers can 
                                easily identify, understand, and comply 
                                with applicable health and safety 
                                requirements.'';
                    (G) in subparagraph (K)(i)--
                            (i) in the matter preceding subclause (I), 
                        by striking ``, not later'' and all that 
                        follows through ``2014,''; and
                            (ii) in subclause (IV), by striking 
                        ``section 658P(6)(B)'' and inserting ``section 
                        658A(7)(B)'';
                    (H) in subparagraph (M)--
                            (i) by redesignating clauses (ii) through 
                        (iv) as clauses (iii) through (v), 
                        respectively;
                            (ii) by striking clause (i) and inserting 
                        the following:
                            ``(i) children in underserved areas, 
                        including areas that have significant 
                        concentrations of poverty and unemployment and 
                        that do not have a supply of eligible child 
                        care providers;
                            ``(ii) children in rural areas;''; and
                            (iii) in clause (iv), as so redesignated, 
                        by striking ``, as defined by the State'';
                    (I) in subparagraph (N)(iii), by striking ``At the 
                option of the State, the'' and inserting ``The'';
                    (J) in subparagraph (O)(i), by striking ``full-day 
                services'' and inserting ``full workday and full work 
                year services'';
                    (K) in subparagraph (S)(ii), by striking ``, to the 
                extent'' and all that follows through ``fixed costs'' 
                and inserting ``implement enrollment and eligibility 
                policies that support the fixed and operational 
                costs'';
                    (L) in subparagraph (T)(i), by striking ``or 
                implement'' and all that follows through ``of 2014)'' 
                and inserting ``and implement developmental 
                guidelines'';
                    (M) in subparagraph (U)--
                            (i) in clause (ii), by inserting ``State 
                        and local health agencies,'' after ``licensing 
                        of child care providers,''; and
                            (ii) in clause (iii)(II), by striking 
                        ``following the emergency or disaster, which 
                        may include'' and inserting ``during and 
                        following the emergency or disaster, which 
                        shall include guidelines for the''; and
                    (N) in subparagraph (V), by striking ``develop'' 
                and all that follow through ``services.'' and inserting 
                ``support child care business technical assistance 
                including supporting--
                            ``(i) provision of strategies to support 
                        management coaching and the use of core best 
                        business practices;
                            ``(ii) development and use of shared 
                        services initiatives including initiatives 
                        involving provider networks such as child care 
                        center alliances and family child care provider 
                        networks; and
                            ``(iii) coordination of activities with 
                        programs of the Small Business Administration, 
                        programs of the Department of Agriculture, and 
                        other Federal, State, and local programs 
                        supporting child care businesses.'';
            (2) in paragraph (3)--
                    (A) in subparagraph (B)(ii), by striking ``Not 
                later'' and all that follows through ``shall prepare'' 
                and inserting ``Not later than September 30 of each 
                fiscal year, the Secretary shall prepare''; and
                    (B) in subparagraph (D)--
                            (i) by striking ``with respect to'' and all 
                        that follows through ``2020'' and inserting 
                        ``with respect to each fiscal year)''; and
                            (ii) by striking ``described in clause (i), 
                        (ii), (iii), or (iv) of'' and inserting ``in 
                        priority populations described in'';
            (3) in paragraph (4)--
                    (A) by striking subparagraphs (A) and (B) and 
                inserting the following:
                    ``(A) In general.--The State plan shall certify 
                that, not later than the later of the date that is 5 
                years after the date of submission of the application, 
                and September 30, 2030, payment rates for the provision 
                of child care services for which assistance is provided 
                in accordance with this subchapter--
                            ``(i) will be sufficient to meet the cost 
                        of providing the child care services, including 
                        the fixed and operational costs of providing 
                        the child care services; and
                            ``(ii) will be set and paid in accordance 
                        with a cost estimation model described in 
                        subparagraph (B).
                    ``(B) Cost estimation model.--The State plan 
                shall--
                            ``(i) demonstrate that the State, after 
                        consulting with eligible child care providers 
                        that represent the various geographic areas of 
                        the State and types of providers within the 
                        State's mixed delivery system, local child care 
                        program administrators, local child care 
                        resource and referral agencies, and other 
                        appropriate entities, has developed and uses 
                        (or if the State has not used such a model 
                        certify that the State, after such consultation 
                        but not later than the later of the date that 
                        is 5 years after the date of submission of the 
                        application described in subsection (a), and 
                        September 30, 2030, will develop and use) a 
                        statistically valid and reliable cost 
                        estimation model for the payment rates for 
                        providers of child care services in the State, 
                        that--
                                    ``(I) reflects the costs of service 
                                delivery, including fixed costs, 
                                operating expenses, and staff salaries 
                                and benefits necessary to recruit, 
                                train, and retain qualified staff;
                                    ``(II) reflects variations in the 
                                costs of service delivery by submarket, 
                                type of provider, and children served, 
                                including by--
                                            ``(aa) geographic area 
                                        (such as location in a urban or 
                                        rural area);
                                            ``(bb) ages of children;
                                            ``(cc) whether the children 
                                        have particular needs (such as 
                                        needs of children with 
                                        disabilities and children 
                                        served by child protective 
                                        services);
                                            ``(dd) whether the 
                                        providers provide services 
                                        during weekend and other 
                                        nontraditional hours; and
                                            ``(ee) quality of child 
                                        care provider as determined by 
                                        the State; and
                                    ``(III) is reviewed not less often 
                                than once every 2 years and adjusted as 
                                may be necessary to--
                                            ``(aa) ensure payment rates 
                                        remain sufficient to meet the 
                                        requirements of this 
                                        subchapter; and
                                            ``(bb) provide a cost of 
                                        living increase to maintain the 
                                        level of services provided 
                                        during the year prior to the 
                                        review; and
                            ``(ii) describe how the State will provide 
                        for timely payments, set in accordance with the 
                        model described in clause (i), for child care 
                        services provided under this subchapter.'';
                    (B) in subparagraph (C)--
                            (i) by striking clause (ii); and
                            (ii) by striking ``(C)'' and all that 
                        follows through ``Nothing'' and inserting the 
                        following:
                    ``(C) Construction.--Nothing''; and
                    (C) by adding at the end the following:
                    ``(D) No federal control.--The Secretary may offer 
                guidance to States on cost estimation models described 
                in subparagraph (B), but shall not require a State to 
                adopt a particular cost estimation model or element of 
                a particular cost estimation model.''; and
            (4) by striking paragraph (5) and inserting the following:
            ``(5) Sliding fee scale.--
                    ``(A) In general.--The State plan shall provide 
                that the State will establish and periodically revise 
                by rule a sliding fee scale to determine a full 
                copayment for a family receiving assistance under this 
                subchapter (or, for a family receiving part-time care, 
                a reduced copayment that is an appropriate amount of 
                the full copayment) and that is not a barrier that 
                restricts families from accessing child care services 
                under this subchapter.
                    ``(B) No federal control.--The Secretary may offer 
                guidance to States on sliding fee scales described in 
                subparagraph (A), but shall not require a State to 
                adopt a particular sliding fee scale or element of a 
                particular sliding fee scale.''.

SEC. 7. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

    Section 658G(a) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858e(a))--
            (1) in paragraph (1), by adding at the end the following: 
        ``The State shall include, in the State's activities, 
        developing and expanding initiatives to assist child care 
        providers in their efforts to recruit, train, and retain 
        qualified staff.''; and
            (2) in paragraph (2)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) to carry out the activities described in 
                paragraph (1), not less than 9 percent of the funds 
                described in paragraph (1) for each fiscal year; and''; 
                and
                    (B) in subparagraph (B), by striking ``received not 
                later'' and all that follows through ``succeeding full 
                fiscal year'' and inserting ``received for each fiscal 
                year''.

SEC. 8. WAIVERS OF INCOME REQUIREMENT.

    Section 658I(c) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858g(c)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``of not more than three years'' and inserting 
                ``described in paragraph (5)'';
                    (B) in subparagraph (A), by striking ``(A)'' and 
                inserting ``(A)(i)'';
                    (C) in subparagraph (B), by striking ``(B)'' and 
                inserting the following:
                            ``(ii)'';
                    (D) in subparagraph (C), by striking ``(C)'' and 
                inserting the following:
                            ``(iii)''; and
                    (E) in subparagraph (D)--
                            (i) by striking ``(D)'' and inserting the 
                        following:
                            ``(iv)''; and
                            (ii) in clause (iv), as so redesignated, by 
                        striking the period and inserting ``; or''; and
                    (F) by adding at the end the following:
                    ``(B) the State, on the date of the request, has a 
                maximum income standard that meets section 
                658A(5)(B)(i), and requests the waiver to raise that 
                standard.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) if the State seeks a waiver of section 
                658A(5)(B)(i)(I) under paragraph (1)(B), state the 
                maximum income standard that the State wishes to use, 
                information demonstrating that the State is serving all 
                eligible children below the maximum income standard in 
                that section, information demonstrating that the State 
                is meeting the requirements of the State plan under 
                section 658E(c), particularly the requirements of 
                subparagraphs (M) and (Q) of paragraph (2) of that 
                section, and (effective on the later of the 2 dates 
                specified in section 658E(c)(4)(A)) information 
                demonstrating that the payment rates described in that 
                section are set and paid in accordance with a cost 
                estimation model described in section 658E(c)(4)(B).''; 
                and
            (3) in paragraph (7)--
                    (A) by striking ``The Secretary may'' and inserting 
                the following:
                    ``(A) General renewals.--The Secretary may'';
                    (B) in the first sentence, by inserting before the 
                period the following: ``, in the case of a request for 
                a waiver of a provision other than section 
                658A(5)(B)(i)(I)'';
                    (C) in the second sentence, by striking ``seeking 
                to renew their waiver approval must'' and inserting 
                ``seeking that renewal shall'';
                    (D) in the third sentence, by striking ``extension 
                request'' and inserting ``renewal request''; and
                    (E) by adding at the end the following:
                    ``(B) Renewals of income requirement waivers.--A 
                State may seek a renewal, of an existing waiver of 
                section 658A(5)(B)(i)(I) under paragraph (1)(B) 
                (including a previously renewed waiver), for a period 
                no longer than 3 years. A State seeking that renewal 
                shall inform the Secretary of this intent no later than 
                30 days prior to the expiration date of the waiver. The 
                State shall re-certify in its renewal request the 
                provisions in paragraph (2). On determining that the 
                State has accurately re-certified those provision, the 
                Secretary shall grant the renewal.''; and
            (4) in paragraph (8), by inserting ``, other than paragraph 
        (1)(B),'' after ``this subchapter''.

SEC. 9. REPORTS AND AUDITS.

    Section 685K(a)(2) of the Child Care and Development Block Grant 
Act of 1990 (42 U.S.C. 9858i(a)(2)) is amended--
            (1) in the matter preceding subparagraph (A)--
                    (A) by striking ``Not later than'' and all that 
                follows through ``a State'' and inserting ``A State''; 
                and
                    (B) by inserting ``annually'' before ``prepare'';
            (2) in subparagraph (A), by striking ``section 658P(6)'' 
        and inserting ``section 658A(7)''; and
            (3) in subparagraph (F), by striking ``section 658P(6)(B)'' 
        and inserting ``section 658A(7)(B)''.

SEC. 10. REPORTS, HOTLINE, AND WEBSITE.

    Section 658L(a) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858j(a)) is amended by striking ``Not later'' and 
all that follows through ``the Secretary shall'' and inserting ``The 
Secretary shall biennially''.

SEC. 11. TECHNICAL AMENDMENTS.

    Section 658O(a) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858m(a)) is amended--
            (1) in paragraphs (1), (3), and (4) by striking ``this 
        subchapter'' and inserting ``section 658B''; and
            (2) in paragraph (5) by striking ``this subchapter'' the 
        first place it appears and inserting ``section 658B''.

SEC. 12. CHILD CARE SUPPLY AND FACILITIES GRANTS.

    The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9857 et seq.) is amended by adding at the end the following:

              ``PART II--CHILD CARE SUPPLY AND FACILITIES

``SEC. 658T. CHILD CARE SUPPLY AND FACILITIES GRANTS.

    ``(a) Purposes.--The purposes of this section are to provide grants 
to States, territories described in section 658O(a)(1) (referred to 
individually in this part as a `territory'), Indian Tribes, and Tribal 
organization to--
            ``(1) expand the supply and capacity of child care 
        providers so that working parents have multiple high-quality 
        child care options to choose from in making their own decisions 
        regarding the child care services that best suit their family's 
        needs; and
            ``(2) ensure child care facilities are designed and 
        equipped to keep children healthy and safe and to enhance 
        children's physical, cognitive, and behavioral development.
    ``(b) Qualified Child Care Provider.--In this section, the term 
`qualified child care provider' means--
            ``(1) an eligible child care provider as defined in section 
        658A(7)(A) that is providing, or seeking to provide, child care 
        services to children eligible for services under this 
        subchapter; or
            ``(2) a child care provider that has applied under this 
        subchapter to become an eligible child care provider as defined 
        in section 658A(7)(A) and that commits to provide child care 
        services to children eligible for services under this 
        subchapter.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2026 through 2028.
    ``(d) Grants Authorized; Allotments.--
            ``(1) In general.--From funds made available under 
        subsection (c), the Secretary shall make grants to States, 
        territories, Indian Tribes, and Tribal organizations to carry 
        out the activities described in subsection (f).
            ``(2) Reservation.--The Secretary shall reserve not more 
        than 1 percent of the amount appropriated under subsection (c) 
        for a fiscal year to carry out this section to pay for the 
        costs of the Federal administration of this section.
            ``(3) Allotments.--From the amount appropriated to carry 
        out this section for a fiscal year that remains after the 
        Secretary makes the reservation under paragraph (2), the 
        Secretary shall award to each lead agency with an approved plan 
        under subsection (e), a child care supply and facilities grant 
        in accordance with paragraphs (1) and (2) of subsection (a), 
        and subsection (b), of section 658O, for the grants authorized 
        under paragraph (1). A grant made under this paragraph in 
        accordance with paragraph (1) or (2) of that subsection shall 
        be for the purpose of carrying out the program described in 
        this section, consistent, to the extent practicable as 
        determined by the Secretary, with the requirements applicable 
        to States.
    ``(e) State Plan.--
            ``(1) In general.--In order to receive a grant under this 
        section, a State shall submit a plan to the Secretary, at such 
        time and in such manner as the Secretary may reasonably 
        require.
            ``(2) Contents.--Each plan submitted by a State under this 
        section shall include each of the following:
                    ``(A) A description of how the State will use funds 
                received under this section for State-level activities 
                under subsection (f)(1).
                    ``(B) A description of how the State will ensure 
                that qualified child care providers in rural, suburban, 
                and urban areas can readily apply for and access 
                funding under this section, which shall include 
                providing technical assistance either directly or 
                through a third party which may include a resource and 
                referral agency or a staffed family child care provider 
                network.
                    ``(C) A description of how the State will determine 
                the prioritization of subgrants to qualified child care 
                providers in accordance with subsection (f)(5).
                    ``(D) An assurance that the State will make 
                available to the public, which shall include, at a 
                minimum, posting to an internet website of the lead 
                agency--
                            ``(i) a notice of funding availability 
                        through subgrants for qualified child care 
                        providers under this section; and
                            ``(ii) the criteria for awarding subgrants 
                        for qualified child care providers, including 
                        the methodology the lead agency will use to 
                        determine the amounts of such subgrants for 
                        qualified child care providers.
    ``(f) State Use of Funds.--
            ``(1) Reservation.--A lead agency that receives a grant 
        under subsection (d) shall reserve not more than 10 percent of 
        the grant funds for State-level activities, consisting of 
        administering subgrants and providing technical assistance and 
        support, for activities supported under this section.
            ``(2) Subgrants.--The lead agency shall use the remainder 
        of the grant funds awarded pursuant to subsection (d) to make 
        subgrants as described in paragraphs (3) and (4).
            ``(3) Startup and supply expansion subgrants.--
                    ``(A) In general.--The lead agency shall make 
                startup and supply expansion subgrants to qualified 
                child care providers that are providing, or seeking to 
                provide, child care services under this subchapter to 
                eligible children, to--
                            ``(i) support the providers in paying for 
                        startup and expansion costs;
                            ``(ii) assist such providers in meeting--
                                    ``(I) the health and safety 
                                requirements (including the 
                                requirements referred to in section 
                                658E(c)(2)(I)) of the State, territory, 
                                Indian Tribe, or local government 
                                involved, as the case may be;
                                    ``(II) licensing and other 
                                regulatory standards of the State, 
                                territory, Indian Tribe, or local 
                                government involved, as the case may 
                                be, for child care providers; and
                                    ``(III) as applicable, the 
                                requirements of a State's tiered 
                                quality rating system for child care 
                                providers; and
                            ``(iii) establishing or expanding the 
                        operation of community- or neighborhood-based 
                        family child care networks.
                    ``(B) Requirement.--As a condition of receiving a 
                startup or supply expansion subgrant under this 
                paragraph, a qualified child care provider shall commit 
                to meeting the requirements for an eligible child care 
                provider under this subchapter and to providing child 
                care services under this subchapter to eligible 
                children, on an ongoing basis.
            ``(4) Facilities subgrants.--
                    ``(A) In general.--The lead agency shall make 
                facilities subgrants to qualified child care providers 
                that are providing, or seeking to provide, child care 
                services under this subchapter to eligible children, 
                for, notwithstanding section 658F(b)--
                            ``(i) remodeling, renovation, or repair of 
                        a building or facility used for providing 
                        direct child care services; and
                            ``(ii) construction, permanent improvement, 
                        or major renovation of a building or facility 
                        used for providing direct child care services.
                    ``(B) Requirement.--As a condition of receiving a 
                facilities subgrant under this paragraph, a child care 
                provider shall commit to meeting the requirements for 
                an eligible child care provider under this subchapter 
                and to providing child care services under this 
                subchapter to eligible children on an ongoing basis.
                    ``(C) Federal interest.--
                            ``(i) Family child care homes.--Federal law 
                        regarding a Federal interest in real property 
                        shall not apply to the renovation, remodeling, 
                        repair, or permanent improvement of privately 
                        owned family child care homes with funds 
                        provided under this paragraph, and the 
                        Secretary shall develop parameters for the use 
                        of such funds for family child care homes.
                            ``(ii) Retention.--If the Secretary retains 
                        a Federal interest in any facility constructed, 
                        renovated, remodeled, repaired, or permanently 
                        improved with funds provided under this 
                        paragraph, the Secretary shall not retain the 
                        Federal interest for more than 10 years.
            ``(5) Priority.--In awarding subgrants under paragraphs (3) 
        and (4), the lead agency shall give priority to qualified child 
        care providers providing or seeking to provide child care 
        services to priority populations of children described in 
        section 658E(c)(2)(M).
    ``(g) Supplement Not Supplant.--Amounts made available to carry out 
this section shall be used to supplement and not supplant other 
Federal, State, and local public funds expended to increase the supply 
of child care and to improve child care facilities.
    ``(h) Documentation and Reporting Requirements.--
            ``(1) Documentation.--A State receiving a grant under 
        subsection (d) shall provide documentation of any State 
        expenditures from grant funds received under subsection (d) in 
        accordance with section 658K(b), to the independent entity 
        described in that section.
            ``(2) Reports.--
                    ``(A) Lead agency report.--A lead agency receiving 
                a grant under subsection (d) shall, not later than 12 
                months after receiving such grant, submit a report to 
                the Secretary that includes, for the State involved, a 
                description of each lead agency program of subgrants 
                carried out to meet the objectives of this section, 
                including--
                            ``(i) the number of eligible child care 
                        providers in operation at the start of the 
                        grant period, and the number of such providers 
                        11 months later, disaggregated by age of 
                        children served, geographic region, and child 
                        care setting (including whether the provider 
                        was in a center-based or family child care 
                        setting);
                            ``(ii) the number of child care slots, in 
                        the capacity of eligible child care providers 
                        given applicable group size limits and staff-
                        to-child ratios, that were open for attendance 
                        of children at the start of the grant period 
                        and the number of such slots 11 months later, 
                        disaggregated by age of children served, 
                        geographic region, and child care setting 
                        (including whether the slot was in a center-
                        based or family child care setting), and each 
                        priority population of children described in 
                        section 658E(c)(2)(M);
                            ``(iii)(I) the number and percentage of 
                        qualified child care providers that received a 
                        subgrant under subsection (f)(3), disaggregated 
                        by age of children served, geographic region, 
                        and child care setting (including whether the 
                        provider was in a center-based or family child 
                        care setting), and the average and range of the 
                        amounts of the subgrants awarded; and
                            ``(II) the number and percentage of 
                        qualified child care providers that received a 
                        subgrant under subsection (f)(4), disaggregated 
                        by age of children served, geographic region, 
                        and child care setting (including whether the 
                        provider was in a center-based or family child 
                        care setting), and the average and range of the 
                        amounts of the subgrants awarded; and
                            ``(iv) information concerning how qualified 
                        child care providers receiving subgrants under 
                        subsection (f)(3) or (f)(4) used the subgrant 
                        funding received.
                    ``(B) Report to congress.--The Secretary shall 
                transmit annually to the Committee on Health, 
                Education, Labor, and Pensions of the Senate and the 
                Committee on Education and the Workforce of the House 
                of Representatives a report that provides national and 
                State-level data for the information collected under 
                subparagraph (A).
    ``(i) Construction.--No reference in part 1 to `this subchapter' 
shall be considered to refer to a provision of this part.''.

SEC. 13. DEPARTMENT OF AGRICULTURE LOAN RESTRICTIONS.

    The Secretary of Agriculture shall revise section 3555.102(c) of 
title 7, Code of Federal Regulations, as in effect on the date of 
enactment of this Act, to exclude a business that is licensed, 
regulated, or registered as a child care provider under State law.
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