I 

116TH CONGRESS 

2D SESSION H. R. 7327 

Making additional supplemental appropriations for disaster relief requirements 

for the fiscal year ending September 30, 2020, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 25, 2020 

Mrs. LOWEY (for herself, Mr. NEAL, Ms. DELAURO, Ms. CLARK of Massachusetts, Mr. DANNY K. DAVIS of Illinois, and Ms. SA ́NCHEZ) introduced the 

following bill; which was referred to the Committee on Appropriations, 

and in addition to the Committees on the Budget, and Ways and Means, 

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 

Making additional supplemental appropriations for disaster 

relief requirements for the fiscal year ending September 

30, 2020, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Child Care for Eco5 nomic Recovery Act’’. 


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1 SEC. 2. REFERENCES. 

2 Except as expressly provided otherwise, any reference 

3 to ‘‘this Act’’ contained in any division of this Act shall 

4 be treated as referring only to the provisions of that divi5 sion. 

6 DIVISION A—EMERGENCY CHILD CARE 

7 SUPPORT APPROPRIATIONS 

8 The following sums in this Act are appropriated, out 

9 of any money in the Treasury not otherwise appropriated, 

10 for the fiscal year ending September 30, 2020, and for 

11 other purposes, namely: 

12 TITLE I—DEPARTMENT OF THE TREASURY 

13 INTERNAL REVENUE SERVICES

14 TAXPAYER SERVICES

15 For an additional amount for ‘‘Taxpayer Services’’, 

16 $5,000,000, to remain available until expended, for mak17 ing grants under the Community Volunteer Income Tax 

18 Assistance Matching Grants Program established under 

19 section 7526A of the Internal Revenue Code of 1986: Pro20 vided, That the matching funds requirement in section 

21 7526A(b)(2) shall not apply to funds made available under 

22 this heading in this Act: Provided further, That such 

23 amount is designated by the Congress as being for an 

24 emergency requirement pursuant to section 

25 251(b)(2)(A)(i) of the Balanced Budget and Emergency 

26 Deficit Control Act of 1985. 


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1 TITLE II—DEPARTMENT OF HEALTH AND 

2 HUMAN SERVICES 

3 ADMINISTRATION FOR CHILDREN AND FAMILIES

4 SOCIAL SERVICES BLOCK GRANT

5 For an additional amount for ‘‘Social Services Block 

6 Grant’’, $850,000,000, to remain available until Sep7 tember 30, 2021, for making grants to States pursuant 

8 to section 2002 of the Social Security Act: Provided, That 

9 the amount made available under this heading in this Act 

10 shall be used for necessary expenses for family care for 

11 essential workers, pursuant to section 409 of division B 

12 this Act: Provided further, That such amount is designated 

13 by the Congress as being for an emergency requirement 

14 pursuant to section 251(b)(2)(A)(i) of the Balanced Budg15 et and Emergency Deficit Control Act of 1985. 

16 CHILD CARE AND DEVELOPMENT FUND

17 For an additional amount for ‘‘Child Care and Devel18 opment Fund’’, $10,000,000,000, to remain available 

19 until September 30, 2024, for necessary expenses for in20 frastructure grants to improve child care safety, including 

21 needs assessments, pursuant to section 418A of Part A 

22 of title IV of the Social Security Act, as added by division 

23 B of this Act: Provided, That funds made available under 

24 this heading in this Act may be used for grants for the 

25 construction, alteration, or renovation of non-federally 


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1 owned facilities to improve child care safety: Provided fur2 ther, That all construction, alteration, or renovation work, 

3 carried out in whole or in part with funds appropriated 

4 under this heading in this Act, shall be subject to the re5 quirements of subchapter IV of chapter 31 of title 40, 

6 United States Code (commonly referred to as the ‘‘Davis7 Bacon Act’’): Provided further, That such amount is des8 ignated by the Congress as being for an emergency re9 quirement pursuant to section 251(b)(2)(A)(i) of the Bal10 anced Budget and Emergency Deficit Control Act of 1985. 

11 TITLE III—GENERAL PROVISIONS—THIS 

12 DIVISION 

13 SEC. 301. Each amount appropriated or made avail14 able by this Act is in addition to any amounts otherwise 

15 appropriated for the fiscal year involved. 

16 SEC. 302. No part of any appropriation contained in 

17 this Act shall remain available for obligation beyond the 

18 current fiscal year unless expressly so provided herein. 

19 SEC. 303. Unless otherwise provided for by this Act, 

20 the additional amounts appropriated by this Act to appro21 priations accounts shall be available under the authorities 

22 and conditions applicable to such appropriations accounts 

23 for fiscal year 2020. 

24 SEC. 304. Each amount designated in this Act by the 

25 Congress as being for an emergency requirement pursuant 


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1 to section 251(b)(2)(A)(i) of the Balanced Budget and 

2 Emergency Deficit Control Act of 1985 shall be available 

3 (or rescinded or transferred, if applicable) only if the 

4 President subsequently so designates all such amounts 

5 and transmits such designations to the Congress. 

6 SEC. 305. Any amount appropriated by this Act, des7 ignated by the Congress as an emergency requirement 

8 pursuant to section 251(b)(2)(A)(i) of the Balanced Budg9 et and Emergency Deficit Control Act of 1985 and subse10 quently so designated by the President, and transferred 

11 pursuant to transfer authorities provided by this Act shall 

12 retain such designation. 

13 BUDGETARY EFFECTS

14 SEC. 306. (a) STATUTORY PAYGO SCORECARDS.— 

15 The budgetary effects of division B shall not be entered 

16 on either PAYGO scorecard maintained pursuant to sec17 tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 

18 (b) SENATE PAYGO SCORECARDS.—The budgetary 

19 effects of division B shall not be entered on any PAYGO 

20 scorecard maintained for purposes of section 4106 of H. 

21 Con. Res. 71 (115th Congress). 

22 (c) CLASSIFICATION OF BUDGETARY EFFECTS.— 

23 Notwithstanding Rule 3 of the Budget Scorekeeping 

24 Guidelines set forth in the joint explanatory statement of 

25 the committee of conference accompanying Conference Re26 port 105–217 and section 250(c)(8) of the Balanced 


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1 Budget and Emergency Deficit Control Act of 1985, the 

2 budgetary effects of division B shall not be estimated— 

3 (1) for purposes of section 251 of such Act; and 

4 (2) for purposes of paragraph (4)(C) of section 

5 3 of the Statutory Pay-As-You-Go Act of 2010 as 

6 being included in an appropriation Act. 

7 This division may be cited as the ‘‘Emergency Child 

8 Care Support Appropriations Act, 2020’’. 

9 DIVISION B—WORKER ACCESS 

10 TO CHILD AND FAMILY CARE 

11 SEC. 401. SHORT TITLE. 

12 This division may be cited as the ‘‘Worker Access to 

13 Child and Family Care Act’’. 

14 SEC. 402. REFUNDABILITY AND ENHANCEMENT OF CHILD 

15 AND DEPENDENT CARE TAX CREDIT. 

16 (a) TREATMENT OF CREDIT AS REFUNDABLE.—Sec17 tion 21 of the Internal Revenue Code of 1986 is amended 

18 by adding at the end the following new subsection: 

19 ‘‘(g) TREATMENT OF CREDIT AS REFUNDABLE.—In 

20 the case of an individual other than a nonresident alien, 

21 the credit allowed under subsection (a) shall be treated 

22 as a credit allowed under subpart C (and not allowed 

23 under this subpart).’’. 

24 (b) INCREASE IN APPLICABLE PERCENTAGE.—Sec25 tion 21(a)(2) of such Code is amended— 


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1 (1) by striking ‘‘35 percent’’ and inserting ‘‘50 

2 percent’’, and 

3 (2) by striking ‘‘$15,000’’ and inserting 

4 ‘‘$120,000’’. 

5 (c) INCREASE IN DOLLAR LIMIT ON AMOUNT CRED6 ITABLE.—Section 21(c) of such Code is amended— 

7 (1) by striking ‘‘$3,000’’ in paragraph (1) and 

8 inserting ‘‘$6,000’’, and 

9 (2) by striking ‘‘$6,000’’ in paragraph (2) and 

10 inserting ‘‘twice the amount in effect under para11 graph (1)’’. 

12 (d) INFLATION ADJUSTMENT.—Section 21(e) of such 

13 Code is amended by adding at the end the following new 

14 paragraph: 

15 ‘‘(11) INFLATION ADJUSTMENT.—In the case of 

16 any taxable year beginning after December 31, 

17 2020, the $120,000 amount in subsection (a)(2) and 

18 the $6,000 amount in subsection (c)(1) shall each be 

19 increased by an amount equal to— 

20 ‘‘(A) such dollar amount, multiplied by 

21 ‘‘(B) the cost-of-living adjustment deter22 mined under section 1(f)(3) for the calendar 

23 year in which the taxable year begins, deter24 mined by substituting ‘2019’ for ‘2016’ in sub25 paragraph (A)(ii) thereof. 


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1 If any increase determined under this paragraph is 

2 not a multiple of $100, such increase shall be round3 ed to the next highest multiple of $100.’’. 

4 (e) CONFORMING AMENDMENT.—Section 1324(b)(2) 

5 of title 31, United States Code, is amended by inserting 

6 ‘‘21 (by reason of subsection (g) thereof),’’ before ‘‘25A’’. 

7 (f) COORDINATION WITH POSSESSION TAX SYS8 TEMS.—Section 21(g)(1) of the Internal Revenue Code of 

9 1986 (as added by this section) shall not apply to any per10 son— 

11 (1) to whom a credit is allowed against taxes 

12 imposed by a possession with a mirror code tax sys13 tem by reason of the application of section 21 of 

14 such Code in such possession for such taxable year, 

15 or 

16 (2) to whom a credit would be allowed against 

17 taxes imposed by a possession which does not have 

18 a mirror code tax system if the provisions of section 

19 21 of such Code had been in effect in such posses20 sion for such taxable year. 

21 (g) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2019. 


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1 SEC. 403. INCREASE IN EXCLUSION FOR EMPLOYER-PRO2 VIDED DEPENDENT CARE ASSISTANCE. 

3 (a) IN GENERAL.—Section 129(a)(2)(A) of the Inter4 nal Revenue Code of 1986 is amended by striking ‘‘$5,000 

5 ($2,500’’ and inserting ‘‘$10,500 (half such dollar 

6 amount’’. 

7 (b) INFLATION ADJUSTMENT.—Section 129(a)(2) is 

8 amended by adding at the end the following new subpara9 graph: 

10 ‘‘(D) INFLATION ADJUSTMENT.—In the 

11 case of any taxable year beginning after Decem12 ber 31, 2020, the $10,500 amount in subpara13 graph (A) shall be increased by an amount 

14 equal to— 

15 ‘‘(i) such dollar amount, multiplied by 

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year in which the taxable year be19 gins, determined by substituting ‘2019’ for 

20 ‘2016’ in subparagraph (A)(ii) thereof. 

21 Any increase determined under the preceding 

22 sentence which is not a multiple of $50, shall 

23 be rounded to the next highest multiple of 

24 $50.’’. 


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1 (c) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2019. 

4 (d) PLAN AMENDMENTS.—A plan or other arrange5 ment that otherwise satisfies all applicable requirements 

6 of sections 106, 125, and 129 of the Internal Revenue 

7 Code of 1986 (including any rules or regulations there8 under) shall not fail to be treated as a cafeteria plan or 

9 dependent care flexible spending arrangement merely be10 cause such plan or arrangement is amended pursuant to 

11 the amendments made by this section and such amend12 ment is retroactive, if— 

13 (1) such amendment is adopted no later than 

14 the last day of the first plan year beginning after 

15 December 31, 2019, and 

16 (2) the plan or arrangement is operated con17 sistent with the terms of such amendment during 

18 the period beginning on the effective date of the 

19 amendment and ending on the date the amendment 

20 is adopted. 

21 SEC. 404. PAYROLL CREDIT FOR CERTAIN FIXED EXPENSES 

22 OF CHILD CARE FACILITIES SUBJECT TO 

23 CLOSURE BY REASON OF COVID–19. 

24 (a) IN GENERAL.—In the case of an eligible em25 ployer, there shall be allowed as a credit against applicable 


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1 employment taxes for each calendar quarter an amount 

2 equal to 50 percent of the qualified fixed expenses paid 

3 or incurred by such employer during such calendar quar4 ter. 

5 (b) LIMITATIONS AND REFUNDABILITY.— 

6 (1) OVERALL QUARTERLY DOLLAR LIMITA7 TION.—The qualified fixed expenses which may be 

8 taken into account under subsection (a) (determined 

9 after the application of paragraph (2)) by any eligi10 ble employer for any calendar quarter shall not ex11 ceed the least of— 

12 (A) the qualified fixed expenses paid by the 

13 eligible employer in the same calendar quarter 

14 of calendar year 2019, 

15 (B) $25,000,000, or 

16 (C) the greater of— 

17 (i) 25 percent of the wages paid with 

18 respect to the employment of all the em19 ployees of the eligible employer for such 

20 calendar quarter, or 

21 (ii) 6.25 percent of the gross receipts 

22 of the eligible employer for calendar year 

23 2019. 

24 (2) PER FACILITY QUARTERLY DOLLAR LIMITA25 TION.—The qualified fixed expenses which may be 


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1 taken into account under subsection (a) by any eligi2 ble employer for any calendar quarter with respect 

3 to any facility of such employer shall not exceed 

4 $50,000. 

5 (3) CREDIT LIMITED TO CERTAIN EMPLOYMENT

6 TAXES.—The credit allowed by subsection (a) with 

7 respect to any calendar quarter shall not exceed the 

8 applicable employment taxes for such calendar quar9 ter (reduced by any credits allowed under sub10 sections (e) and (f) of section 3111 of such Code, 

11 sections 7001 and 7003 of the Families First 

12 Coronavirus Response Act, and section 2301 of the 

13 CARES Act, for such quarter) on the wages paid 

14 with respect to the employment of all the employees 

15 of the eligible employer for such calendar quarter. 

16 (4) REFUNDABILITY OF EXCESS CREDIT.— 

17 (A) IN GENERAL.—If the amount of the 

18 credit under subsection (a) exceeds the limita19 tion of paragraph (3) for any calendar quarter, 

20 such excess shall be treated as an overpayment 

21 that shall be refunded under sections 6402(a) 

22 and 6413(b) of the Internal Revenue Code of 

23 1986. 

24 (B) TREATMENT OF PAYMENTS.—For pur25 poses of section 1324 of title 31, United States 


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1 Code, any amounts due to an employer under 

2 this paragraph shall be treated in the same 

3 manner as a refund due from a credit provision 

4 referred to in subsection (b)(2) of such section. 

5 (c) DEFINITIONS.—For purposes of this section— 

6 (1) APPLICABLE EMPLOYMENT TAXES.—The 

7 term ‘‘applicable employment taxes’’ means the fol8 lowing: 

9 (A) The taxes imposed under section 

10 3111(a) of the Internal Revenue Code of 1986. 

11 (B) So much of the taxes imposed under 

12 section 3221(a) of such Code as are attrib13 utable to the rate in effect under section 

14 3111(a) of such Code. 

15 (2) ELIGIBLE EMPLOYER.— 

16 (A) IN GENERAL.—The term ‘‘eligible em17 ployer’’ means any employer— 

18 (i) which was carrying on a trade or 

19 business engaged in the provision of child 

20 care assistance at a qualified child care fa21 cility (within the meaning of section 

22 45F(c)(2)(A) of such Code without regard 

23 to the last sentence thereof) at any time 

24 during calendar year 2020, and 


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1 (ii) with respect to any calendar quar2 ter, for which— 

3 (I) the operation of the trade or 

4 business described in clause (i) is fully 

5 or partially suspended during the cal6 endar quarter due to orders from an 

7 appropriate governmental authority 

8 limiting commerce, travel, or group 

9 meetings (for commercial, social, reli10 gious, or other purposes) due to the 

11 coronavirus disease 2019 (COVID– 

12 19), or 

13 (II) such calendar quarter is 

14 within the period described in sub15 paragraph (B). 

16 (B) SIGNIFICANT DECLINE IN GROSS RE17 CEIPTS.—The period described in this subpara18 graph is the period— 

19 (i) beginning with the first calendar 

20 quarter beginning after December 31, 

21 2019, for which gross receipts (within the 

22 meaning of section 448(c) of the Internal 

23 Revenue Code of 1986) for the calendar 

24 quarter are less than 90 percent of gross 


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1 receipts for the same calendar quarter in 

2 the prior year, and 

3 (ii) ending with the calendar quarter 

4 following the first calendar quarter begin5 ning after a calendar quarter described in 

6 clause (i) for which gross receipts of such 

7 employer are greater than 90 percent of 

8 gross receipts for the same calendar quar9 ter in the prior year. 

10 (C) TAX-EXEMPT ORGANIZATIONS.—In the 

11 case of an organization which is described in 

12 section 501(c) of the Internal Revenue Code of 

13 1986 and exempt from tax under section 501(a) 

14 of such Code— 

15 (i) any reference in this section to a 

16 trade or business shall be treated as a ref17 erence to the operations of such organiza18 tion which are related to the provision of 

19 child care assistance (within the meaning 

20 of subparagraph (A)(i)), and 

21 (ii) any reference in this section to 

22 gross receipts shall be treated as a ref23 erence to gross receipts within the meaning 

24 of section 6033 of the Internal Revenue 

25 Code of 1986. 


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1 (D) PHASE-IN OF CREDIT WHERE BUSI2 NESS NOT SUSPENDED AND REDUCTION IN

3 GROSS RECEIPTS LESS THAN 50 PERCENT.— 

4 (i) IN GENERAL.—In the case of any 

5 calendar quarter with respect to which an 

6 eligible employer would not be an eligible 

7 employer if subparagraph (B)(i) were ap8 plied by substituting ‘‘50 percent’’ for ‘‘90 

9 percent’’, the amount of the credit allowed 

10 under subsection (a) shall be reduced by 

11 the amount which bears the same ratio to 

12 the amount of such credit (determined 

13 without regard to this subparagraph) as— 

14 (I) the excess gross receipts per15 centage point amount, bears to 

16 (II) 40 percentage points. 

17 (ii) EXCESS GROSS RECEIPTS PER18 CENTAGE POINT AMOUNT.—For purposes 

19 of this subparagraph, the term ‘‘excess 

20 gross receipts percentage point amount’’ 

21 means, with respect to any calendar quar22 ter, the excess of— 

23 (I) the lowest of the gross re24 ceipts percentage point amounts de25 termined with respect to any calendar 


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1 quarter during the period ending with 

2 such calendar quarter and beginning 

3 with the first calendar quarter during 

4 the period described in subparagraph 

5 (B), over 

6 (II) 50 percentage points. 

7 (iii) GROSS RECEIPTS PERCENTAGE

8 POINT AMOUNTS.—For purposes of this 

9 subparagraph, the term ‘‘gross receipts 

10 percentage point amount’’ means, with re11 spect to any calendar quarter, the percent12 age (expressed as a number of percentage 

13 points) obtained by dividing— 

14 (I) the gross receipts (within the 

15 meaning of subparagraph (B)) for 

16 such calendar quarter, by 

17 (II) the gross receipts for the 

18 same calendar quarter in calendar 

19 year 2019. 

20 (3) QUALIFIED FIXED EXPENSES.— 

21 (A) IN GENERAL.—The term ‘‘qualified 

22 fixed expenses’’ means the payment or accrual, 

23 in the ordinary course of the eligible employer’s 

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1 ity payment. Such term shall not include the 

2 prepayment of any obligation for a period in ex3 cess of a month unless the payment for such 

4 period is customarily due in advance. Such term 

5 shall not include any payment or accrual of any 

6 obligation or payment which is with respect to 

7 property which is not located in the United 

8 States or any possession of the United States. 

9 (B) APPLICATION OF DEFINITIONS.—The 

10 terms ‘‘covered mortgage obligation’’, ‘‘covered 

11 rent obligation’’, and ‘‘covered utility payment’’ 

12 shall each have the same meaning as when used 

13 in section 1106 of the CARES Act. 

14 (4) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of the Treasury or the Secretary’s del16 egate. 

17 (5) WAGES.— 

18 (A) IN GENERAL.—The term ‘‘wages’’ 

19 means wages (as defined in section 3121(a) of 

20 the Internal Revenue Code of 1986) and com21 pensation (as defined in section 3231(e) of such 

22 Code). For purposes of the preceding sentence 

23 (other than for purposes of subsection (b)(2)), 

24 wages as defined in section 3121(a) of such 

25 Code shall be determined without regard to 


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1 paragraphs (1), (8), (10), (13), (18), (19), and 

2 (22) of section 3121(b) of such Code. 

3 (B) ALLOWANCE FOR CERTAIN HEALTH

4 PLAN EXPENSES.— 

5 (i) IN GENERAL.—Such term shall in6 clude amounts paid or incurred by the eli7 gible employer to provide and maintain a 

8 group health plan (as defined in section 

9 5000(b)(1) of the Internal Revenue Code 

10 of 1986), but only to the extent that such 

11 amounts are excluded from the gross in12 come of employees by reason of section 

13 106(a) of such Code. 

14 (ii) ALLOCATION RULES.—For pur15 poses of this section, amounts treated as 

16 wages under clause (i) shall be treated as 

17 paid with respect to any employee (and 

18 with respect to any period) to the extent 

19 that such amounts are properly allocable to 

20 such employee (and to such period) in such 

21 manner as the Secretary may prescribe. 

22 Except as otherwise provided by the Sec23 retary, such allocation shall be treated as 

24 properly made if made on the basis of 

25 being pro rata among periods of coverage. 


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1 (6) EMPLOYER.—The term ‘‘employer’’ means 

2 any employer (as defined in section 3401(d) of such 

3 Code) of at least one employee on any day in cal4 endar year 2020. 

5 (7) OTHER TERMS.—Except as otherwise pro6 vided in this section, any term used in this section 

7 which is also used in chapter 21 or 22 of the Inter8 nal Revenue Code of 1986 shall have the same 

9 meaning as when used in such chapter. 

10 (d) AGGREGATION RULE.—All persons treated as a 

11 single employer under subsection (a) or (b) of section 52 

12 of the Internal Revenue Code of 1986, or subsection (m) 

13 or (o) of section 414 of such Code, shall be treated as 

14 one employer for purposes of this section. 

15 (e) DENIAL OF DOUBLE BENEFIT.—For purposes of 

16 chapter 1 of such Code, the gross income of any eligible 

17 employer, for the taxable year which includes the last day 

18 of any calendar quarter with respect to which a credit is 

19 allowed under this section, shall be increased by the 

20 amount of such credit. 

21 (f) CERTAIN GOVERNMENTAL EMPLOYERS.— 

22 (1) IN GENERAL.—The credit under this section 

23 shall not be allowed to the Federal Government, the 

24 government of any State, of the District of Colum25 bia, or of any possession of the United States, any 


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1 tribal government, or any political subdivision, agen2 cy, or instrumentality of any of the foregoing. 

3 (2) EXCEPTION.—Paragraph (1) shall not 

4 apply to any organization described in section 

5 501(c)(1) of the Internal Revenue Code of 1986 and 

6 exempt from tax under section 501(a) of such Code. 

7 (g) ELECTION NOT TO HAVE SECTION APPLY.— 

8 This section shall not apply with respect to any eligible 

9 employer for any calendar quarter if such employer elects 

10 (at such time and in such manner as the Secretary may 

11 prescribe) not to have this section apply. 

12 (h) TRANSFERS TO CERTAIN TRUST FUNDS.—There 

13 are hereby appropriated to the Federal Old-Age and Sur14 vivors Insurance Trust Fund and the Federal Disability 

15 Insurance Trust Fund established under section 201 of 

16 the Social Security Act (42 U.S.C. 401) and the Social 

17 Security Equivalent Benefit Account established under 

18 section 15A(a) of the Railroad Retirement Act of 1974 

19 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in 

20 revenues to the Treasury by reason of this section (without 

21 regard to this subsection). Amounts appropriated by the 

22 preceding sentence shall be transferred from the general 

23 fund at such times and in such manner as to replicate 

24 to the extent possible the transfers which would have ocVerDate Sep 11 2014 06:45 Jun 26, 2020 Jkt 099200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.IH H7327

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1 curred to such Trust Fund or Account had this section 

2 not been enacted. 

3 (i) TREATMENT OF DEPOSITS.—The Secretary shall 

4 waive any penalty under section 6656 of such Code for 

5 any failure to make a deposit of applicable employment 

6 taxes if the Secretary determines that such failure was due 

7 to the anticipation of the credit allowed under this section. 

8 (j) THIRD-PARTY PAYORS.—Any credit allowed 

9 under this section shall be treated as a credit described 

10 in section 3511(d)(2) of such Code. 

11 (k) REGULATIONS AND GUIDANCE.—The Secretary 

12 shall issue such forms, instructions, regulations, and guid13 ance as are necessary— 

14 (1) to allow the advance payment of the credit 

15 under subsection (a), subject to the limitations pro16 vided in this section, based on such information as 

17 the Secretary shall require, 

18 (2) regulations or other guidance to provide for 

19 the reconciliation of such advance payment with the 

20 amount of the credit at the time of filing the return 

21 of tax for the applicable quarter or taxable year, 

22 (3) with respect to the application of the credit 

23 under subsection (a) to third-party payors (including 

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1 tion 3504 of the Internal Revenue Code of 1986), 

2 including regulations or guidance allowing such 

3 payors to submit documentation necessary to sub4 stantiate the eligible employer status of employers 

5 that use such payors, 

6 (4) for application of subsection (b)(1)(A) and 

7 subparagraphs (A)(ii)(II) and (B) of subsection 

8 (c)(2) in the case of any employer which was not 

9 carrying on a trade or business for all or part of the 

10 same calendar quarter in the prior year, and 

11 (5) for recapturing the benefit of credits deter12 mined under this section in cases where there is a 

13 subsequent adjustment to the credit determined 

14 under subsection (a). 

15 (l) APPLICATION OF SECTION.—This section shall 

16 apply only to qualified fixed expenses paid or accrued in 

17 calendar quarters beginning on or after the date of the 

18 enactment of this Act and before January 1, 2021. 

19 SEC. 405. PAYROLL CREDIT FOR CERTAIN EMPLOYEE DE20 PENDENT CARE EXPENSES PAID BY EMPLOY21 ERS. 

22 (a) IN GENERAL.—In the case of an employer, there 

23 shall be allowed as a credit against applicable employment 

24 taxes for each calendar quarter an amount equal to 30 

25 percent of the qualified employee dependent care expenses 


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1 paid by such employer with respect to such calendar quar2 ter. 

3 (b) LIMITATIONS AND REFUNDABILITY.— 

4 (1) DOLLAR LIMITATION PER EMPLOYEE.—The 

5 qualified employee dependent care expenses which 

6 may be taken into account under subsection (a) with 

7 respect to any employee for any calendar quarter 

8 shall not exceed $2,500. 

9 (2) CREDIT LIMITED TO CERTAIN EMPLOYMENT

10 TAXES.—The credit allowed by subsection (a) with 

11 respect to any calendar quarter shall not exceed the 

12 applicable employment taxes for such calendar quar13 ter (reduced by any credits allowed under sub14 sections (e) and (f) of section 3111 of such Code, 

15 sections 7001 and 7003 of the Families First 

16 Coronavirus Response Act, section 2301 of the 

17 CARES Act, and section 4 of this Act, for such 

18 quarter) on the wages paid with respect to the em19 ployment of all the employees of the employer for 

20 such calendar quarter. 

21 (3) REFUNDABILITY OF EXCESS CREDIT.— 

22 (A) IN GENERAL.—If the amount of the 

23 credit under subsection (a) exceeds the limita24 tion of paragraph (2) for any calendar quarter, 

25 such excess shall be treated as an overpayment 


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1 that shall be refunded under sections 6402(a) 

2 and 6413(b) of the Internal Revenue Code of 

3 1986. 

4 (B) TREATMENT OF PAYMENTS.—For pur5 poses of section 1324 of title 31, United States 

6 Code, any amounts due to an employer under 

7 this paragraph shall be treated in the same 

8 manner as a refund due from a credit provision 

9 referred to in subsection (b)(2) of such section. 

10 (4) COORDINATION WITH GOVERNMENT

11 GRANTS.—The qualified employee dependent care 

12 expenses taken into account under this section by 

13 any employer shall be reduced by any amounts pro14 vided by any Federal, State, or local government for 

15 purposes of making or reimbursing such expenses. 

16 (c) QUALIFIED EMPLOYEE DEPENDENT CARE EX17 PENSES.—For purposes of this section, the term ‘‘quali18 fied employee dependent care expenses’’ means any 

19 amount paid to or for the benefit of an employee in the 

20 employment of the employer if— 

21 (1) such amount is dependent care assistance 

22 (as defined in section 129(e)(1) of the Internal Rev23 enue Code of 1986), and 

24 (2) the employer elects (at such time and in 

25 such manner as the Secretary may provide) to treat 


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1 such amount as a qualified employee dependent care 

2 expense. 

3 (d) SPECIAL RULES; OTHER DEFINITIONS.— 

4 (1) APPLICATION OF CERTAIN NON-DISCRIMINA5 TION RULES.—No credit shall be allowed under this 

6 section to any employer for any calendar quarter if 

7 qualified employee dependent care expenses are pro8 vided by such employer to employees for such cal9 endar quarter in a manner which discriminates in 

10 favor of highly compensated individuals (within the 

11 meaning of section 125) as to eligibility for, or the 

12 amount of, such benefit expenses. 

13 (2) DENIAL OF DOUBLE BENEFIT.—For pur14 poses of chapter 1 of such Code, no deduction or 

15 credit (other than the credit allowed under this sec16 tion) shall be allowed for so much of qualified em17 ployee dependent care expenses as is equal to the 

18 credit allowed under this section. 

19 (3) THIRD-PARTY PAYORS.—Any credit allowed 

20 under this section shall be treated as a credit de21 scribed in section 3511(d)(2) of such Code. 

22 (4) APPLICABLE EMPLOYMENT TAXES.—For 

23 purposes of this section, the term ‘‘applicable em24 ployment taxes’’ means the following: 


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1 (A) The taxes imposed under section 

2 3111(a) of the Internal Revenue Code of 1986. 

3 (B) So much of the taxes imposed under 

4 section 3221(a) of such Code as are attrib5 utable to the rate in effect under section 

6 3111(a) of such Code. 

7 (5) SECRETARY.—For purposes of this section, 

8 the term ‘‘Secretary’’ means the Secretary of the 

9 Treasury or the Secretary’s delegate. 

10 (6) CERTAIN TERMS.— 

11 (A) IN GENERAL.—Any term used in this 

12 section which is also used in chapter 21 or 22 

13 of such Code shall have the same meaning as 

14 when used in such chapter (as the case may 

15 be). 

16 (B) CERTAIN PROVISIONS NOT TAKEN

17 INTO ACCOUNT EXCEPT FOR PURPOSES OF LIM18 ITING CREDIT TO EMPLOYMENT TAXES.—For 

19 purposes of subparagraph (A) (other than with 

20 respect to subsection (b)(2)), section 3121(b) of 

21 such Code shall be applied without regard to 

22 paragraphs (1), (5), (6), (7), (8), (10), (13), 

23 (18), (19), and (22) thereof (except with re24 spect to services performed in a penal institu25 tion by an inmate thereof) and section 


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1 3231(e)(1) shall be applied without regard to 

2 the sentence that begins ‘‘Such term does not 

3 include remuneration’’. 

4 (e) CERTAIN GOVERNMENTAL EMPLOYERS.— 

5 (1) IN GENERAL.—The credit under this section 

6 shall not be allowed to the Federal Government or 

7 any agency or instrumentality thereof. 

8 (2) EXCEPTION.—Paragraph (1) shall not 

9 apply to any organization described in section 

10 501(c)(1) of the Internal Revenue Code of 1986 and 

11 exempt from tax under section 501(a) of such Code. 

12 (f) TREATMENT OF DEPOSITS.—The Secretary shall 

13 waive any penalty under section 6656 of such Code for 

14 any failure to make a deposit of applicable employment 

15 taxes if the Secretary determines that such failure was due 

16 to the anticipation of the credit allowed under this section. 

17 (g) REGULATIONS.—The Secretary shall prescribe 

18 such regulations or other guidance as may be necessary 

19 to carry out the purposes of this section, including regula20 tions or other guidance— 

21 (1) to allow the advance payment of the credit 

22 determined under subsection (a), subject to the limi23 tations provided in this section, based on such infor24 mation as the Secretary shall require, 


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1 (2) to provide for the reconciliation of such ad2 vance payment with the amount of the credit at the 

3 time of filing the return of tax for the applicable 

4 quarter or taxable year, 

5 (3) for recapturing the benefit of credits deter6 mined under this section in cases where there is a 

7 subsequent adjustment to the credit determined 

8 under subsection (a), and 

9 (4) with respect to the application of the credit 

10 to third party payors (including professional em11 ployer organizations, certified professional employer 

12 organizations, or agents under section 3504 of such 

13 Code), including to allow such payors to submit doc14 umentation necessary to substantiate eligibility for, 

15 and the amount of, the credit allowed under this sec16 tion. 

17 (h) APPLICATION OF SECTION.—This section shall 

18 apply only to qualified employee dependent care expenses 

19 paid in calendar quarters beginning on or after the date 

20 of the enactment of this Act and before January 1, 2021. 

21 (i) TRANSFERS TO CERTAIN TRUST FUNDS.—There 

22 are hereby appropriated to the Federal Old-Age and Sur23 vivors Insurance Trust Fund and the Federal Disability 

24 Insurance Trust Fund established under section 201 of 

25 the Social Security Act (42 U.S.C. 401) and the Social 


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1 Security Equivalent Benefit Account established under 

2 section 15A(a) of the Railroad Retirement Act of 1974 

3 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in 

4 revenues to the Treasury by reason of this section (without 

5 regard to this subsection). Amounts appropriated by the 

6 preceding sentence shall be transferred from the general 

7 fund at such times and in such manner as to replicate 

8 to the extent possible the transfers which would have oc9 curred to such Trust Fund or Account had this section 

10 not been enacted. 

11 SEC. 406. FLEXIBILITY FOR DEPENDENT CARE FLEXIBLE 

12 SPENDING ARRANGEMENTS. 

13 (a) CARRYOVER OF UNUSED BENEFITS.—A plan or 

14 other arrangement that otherwise satisfies all applicable 

15 requirements of sections 106, 125, and 129 of the Internal 

16 Revenue Code of 1986 (including any rules or regulations 

17 thereunder) shall not fail to be treated as a cafeteria plan 

18 or dependent care flexible spending arrangement merely 

19 because such plan or arrangement permits participants to 

20 carry over (under rules similar to the rules applicable to 

21 health flexible spending arrangements) an amount, not in 

22 excess of the amount in effect under section 129(a)(2)(A) 

23 of such Code, of unused benefits or contributions remain24 ing in a dependent care flexible spending arrangement 


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1 from the plan year ending in 2020 to the plan year ending 

2 in 2021. 

3 (b) EXTENSION OF GRACE PERIODS.—A plan or 

4 other arrangement that otherwise satisfies all applicable 

5 requirements of sections 106, 125, or 129 of the Internal 

6 Revenue Code (including any rules or regulations there7 under) shall not fail to be treated as a cafeteria plan or 

8 dependent care flexible spending arrangement merely be9 cause such plan or arrangement extends the grace period 

10 for the plan year ending in 2020 to 12 months after the 

11 end of such plan year, with respect to unused benefits or 

12 contributions remaining in a dependent care flexible 

13 spending arrangement. 

14 (c) DEFINITIONS.—Any term used in this section 

15 which is also used in section 106, 125, or 129 of the Inter16 nal Revenue Code of 1986 or the rules or regulations 

17 thereunder shall have the same meaning as when used in 

18 such section or rules or regulations. 

19 (d) PLAN AMENDMENTS.—A plan or other arrange20 ment that otherwise satisfies all applicable requirements 

21 of sections 106, 125, and 129 of the Internal Revenue 

22 Code of 1986 (including any rules or regulations there23 under) shall not fail to be treated as a cafeteria plan or 

24 dependent care flexible spending arrangement merely be25 cause such plan or arrangement is amended pursuant to 


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1 a provision under this section and such amendment is ret2 roactive, if— 

3 (1) such amendment is adopted no later than 

4 the last day of the plan year in which the amend5 ment is effective, and 

6 (2) the plan or arrangement is operated con7 sistent with the terms of such amendment during 

8 the period beginning on the effective date of the 

9 amendment and ending on the date the amendment 

10 is adopted. 

11 SEC. 407. EMPLOYEE RETENTION CREDIT ALLOWED WITH 

12 RESPECT TO EMPLOYMENT OF DOMESTIC 

13 WORKERS. 

14 (a) IN GENERAL.—Section 2301(c)(2) of the CARES 

15 Act is amended by adding at the end the following new 

16 subparagraph: 

17 ‘‘(D) EMPLOYERS OF DOMESTIC WORK18 ERS.—In the case of an employer with one or 

19 more employees who perform domestic service 

20 (within the meaning of section 3121(a)(7) of 

21 such Code) in the private home of such em22 ployer, with respect to such employees— 

23 ‘‘(i) subparagraph (A) shall be ap24 plied— 


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1 ‘‘(I) by substituting ‘employing 

2 an employee who performs domestic 

3 service in the private home of such 

4 employer’ for ‘carrying on a trade or 

5 business’ in clause (i) thereof, and 

6 ‘‘(II) by substituting ‘such em7 ployment’ for ‘the operation of the 

8 trade or business’ in clause (ii)(I) 

9 thereof, 

10 ‘‘(ii) subclause (II) of subparagraph 

11 (A)(ii) shall not apply, and 

12 ‘‘(iii) such employer shall be treated 

13 as a large employer.’’. 

14 (b) DENIAL OF DOUBLE BENEFIT.—Section 

15 2301(h)(2) of the CARES Act is amended— 

16 (1) by striking ‘‘shall not be taken into account 

17 for purposes of’’ and inserting ‘‘shall not be taken 

18 into account— 

19 ‘‘(A) for purposes of’’, 

20 (2) by striking the period at the end and insert21 ing ‘‘, and’’, and 

22 (3) by adding at the end the following: 

23 ‘‘(B) if such wages are paid for domestic 

24 service described in subsection (c)(2)(E), as emVerDate Sep 11 2014 06:45 Jun 26, 2020 Jkt 099200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.IH H7327

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1 ployment-related expenses for purposes of sec2 tion 21 of such Code. 

3 In the case of any individual who pays wages for do4 mestic service described in subsection (c)(2)(E) and 

5 receives a reimbursement for such wages which is 

6 excludible from gross income under section 129 of 

7 such Code, such wages shall not be treated as quali8 fied wages for purposes of this section.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall take effect as if included in section 2301 

11 of the CARES Act. 

12 SEC. 408. CHILD CARE STABILIZATION FUNDS. 

13 (a) IN GENERAL.—Section 418(a)(3) of the Social 

14 Security Act (42 U.S.C. 618(a)(3)) is amended by striking 

15 ‘‘$2,917,000,000 for each of fiscal years 2017 and 2018’’ 

16 and inserting ‘‘$10,000,000,000 for each of fiscal years 

17 2020 through 2024’’. 

18 (b) ADDITIONAL FUNDS NOT SUBJECT TO STATE

19 MATCH REQUIREMENT.—With respect to the amounts ap20 propriated in section 418(a)(3) of the Social Security Act 

21 in excess of $2,917,000,000 for each of fiscal years 2020 

22 and 2021, section 418(a)(2)(C) of such Act shall be ap23 plied and administered with respect to any State that is 

24 entitled to receive the entire amount that would be allotted 

25 to the State under section 418(a)(2)(B) of such Act for 


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1 the fiscal year in the absence of this section, as if the Fed2 eral medical assistance percentage for the State for the 

3 fiscal year were 100 percent. 

4 SEC. 409. FAMILY CARE FOR ESSENTIAL WORKERS. 

5 (a) INCREASE IN FUNDING.—The amount specified 

6 in subsection (c) of section 2003 of the Social Security 

7 Act for purposes of subsections (a) and (b) of such section 

8 is deemed to be $2,550,000,000 for fiscal year 2020, of 

9 which $850,000,000 shall be obligated by States during 

10 calendar year 2020 in accordance with subsection (b) of 

11 this section. 

12 (b) RULES GOVERNING USE OF ADDITIONAL

13 FUNDS.— 

14 (1) IN GENERAL.—Funds are used in accord15 ance with this subsection if— 

16 (A) the funds are used for— 

17 (i) child care services for a child of an 

18 essential worker; or 

19 (ii) daytime care services or other 

20 adult protective services for an individual 

21 who— 

22 (I) is a dependent, or a member 

23 of the household of, an essential work24 er; and 

25 (II) requires the services; 


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1 (B) the funds are provided to reimburse an 

2 essential worker for the cost of obtaining the 

3 services (including child and adult care services 

4 obtained on or after the date the Secretary of 

5 Health and Human Services declared a public 

6 health emergency pursuant to section 319 of 

7 the Public Health Service Act on January 31, 

8 2020, entitled ‘‘Determination that a Public 

9 Health Emergency Exists Nationwide as the 

10 Result of the 2019 Novel Coronavirus’’), to a 

11 provider of child or adult care services, or to es12 tablish a temporary child care facility operated 

13 by a State or local government; 

14 (C) eligibility for the funds or services, and 

15 the amount of funds or services provided, is not 

16 conditioned on a means test; 

17 (D) the funds are used in consultation with 

18 the lead agency designated pursuant to section 

19 658D(a) of the Child Care and Development 

20 Block Grant Act of 1990 by the State involved 

21 and subject to the limitations in section 2005 of 

22 the Social Security Act, except that, for pur23 poses of this subparagraph— 


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1 (i) paragraphs (3), (5), and (8) of sec2 tion 2005(a) of such Act shall not apply; 

3 and 

4 (ii)(I) the limitation in section 

5 2005(a)(7) of such Act shall not apply 

6 with respect to any standard which the 

7 State involved determines would impede 

8 the ability of the State to provide emer9 gency temporary care to a child, depend10 ent, or household member referred to in 

11 subparagraph (A) of this paragraph if the 

12 emergency temporary care would not en13 danger the health, safety, or development 

14 of children who received the care and care 

15 would otherwise not be available to support 

16 the immediate, short-term family care 

17 needs of essential workers; and 

18 (II) if the State determines that such 

19 a standard would be so impeding, the 

20 State shall report the determination to the 

21 Secretary, including a description of how 

22 exempting standards that may impede the 

23 ability of the State to provide emergency 

24 temporary care did not endanger the 

25 health, safety, or development of children 


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1 who received emergency temporary care, 

2 separately from the annual report to the 

3 Secretary by the State; 

4 (E) the funds are used to supplement, not 

5 supplant, State general revenue funds for child 

6 care assistance; and 

7 (F) the funds are not used for child care 

8 costs that are— 

9 (i) covered by funds provided under 

10 the Head Start Act, a preschool develop11 ment grant under section 9121 of the 

12 Every Student Succeeds Act (42 U.S.C. 

13 9831 note), the Child Care and Develop14 ment Block Grant Act of 1990, section 

15 418 of the Social Security Act, or another 

16 federally funded dependent care program; 

17 or 

18 (ii) reimbursable by the Federal 

19 Emergency Management Agency. 

20 (2) ESSENTIAL WORKER DEFINED.—In para21 graph (1), the term ‘‘essential worker’’ means— 

22 (A) a health sector employee; 

23 (B) an emergency response worker; 

24 (C) a child care worker; 

25 (D) a sanitation worker; 


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1 (E) a worker at a business which a State 

2 or local government official has determined 

3 must remain open to serve the public during the 

4 emergency referred to in paragraph (1)(B); and 

5 (F) any other worker who cannot telework, 

6 and whom the State deems to be essential dur7 ing the emergency referred to in paragraph 

8 (1)(B). 

9 SEC. 410. INFRASTRUCTURE GRANTS TO IMPROVE CHILD 

10 CARE SAFETY. 

11 (a) IN GENERAL.—Part A of title IV of the Social 

12 Security Act (42 U.S.C. 601 et seq.) is amended by insert13 ing after section 418 the following: 

14 ‘‘SEC. 418A. INFRASTRUCTURE GRANTS TO IMPROVE CHILD 

15 CARE SAFETY. 

16 ‘‘(a) SHORT TITLE.—This section may be cited as the 

17 ‘Infrastructure Grants To Improve Child Care Safety Act 

18 of 2020’. 

19 ‘‘(b) NEEDS ASSESSMENTS.— 

20 ‘‘(1) IMMEDIATE NEEDS ASSESSMENT.— 

21 ‘‘(A) IN GENERAL.—The Secretary shall 

22 conduct an immediate needs assessment of the 

23 condition of child care facilities throughout the 

24 United States (with priority given to child care 

25 facilities that receive Federal funds), that— 


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1 ‘‘(i) determines the extent to which 

2 the COVID–19 pandemic has created im3 mediate infrastructure needs, including in4 frastructure-related health and safety 

5 needs, which must be addressed for child 

6 care facilities to operate in compliance with 

7 public health guidelines; 

8 ‘‘(ii) considers the effects of the pan9 demic on a variety of child care centers, in10 cluding home-based centers; and 

11 ‘‘(iii) considers how the pandemic has 

12 impacted specific metrics, such as— 

13 ‘‘(I) capacity; 

14 ‘‘(II) investments in infrastruc15 ture changes; 

16 ‘‘(III) the types of infrastructure 

17 changes centers need to implement 

18 and their associated costs; 

19 ‘‘(IV) the price of tuition; and 

20 ‘‘(V) any changes or anticipated 

21 changes in the number and demo22 graphic of children attending. 

23 ‘‘(B) TIMING.—The immediate needs as24 sessment should occur simultaneously with the 

25 first grant-making cycle under subsection (c). 


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1 ‘‘(C) REPORT.—Not later than 1 year 

2 after the date of the enactment of this section, 

3 the Secretary shall submit to the Congress a re4 port containing the result of the needs assess5 ment conducted under subparagraph (A), and 

6 make the assessment publicly available. 

7 ‘‘(2) LONG-TERM NEEDS ASSESSMENT.— 

8 ‘‘(A) IN GENERAL.—The Secretary shall 

9 conduct a long-term assessment of the condition 

10 of child care facilities throughout the United 

11 States (with priority given to child care facili12 ties that receive Federal funds). The assess13 ment may be conducted through representative 

14 random sampling. 

15 ‘‘(B) REPORT.—Not later than 4 years 

16 after the date of the enactment of this section, 

17 the Secretary shall submit to the Congress a re18 port containing the results of the needs assess19 ment conducted under subparagraph (A), and 

20 make the assessment publicly available. 

21 ‘‘(c) CHILD CARE FACILITIES GRANTS.— 

22 ‘‘(1) GRANTS TO STATES.— 

23 ‘‘(A) IN GENERAL.—The Secretary may 

24 award grants to States for the purpose of ac25 quiring, constructing, renovating, or improving 


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1 child care facilities, including adapting, re2 configuring, or expanding facilities to respond 

3 to the COVID–19 pandemic. 

4 ‘‘(B) PRIORITIZED FACILITIES.—The Sec5 retary may not award a grant to a State under 

6 subparagraph (A) unless the State involved 

7 agrees, with respect to the use of grant funds, 

8 to prioritize— 

9 ‘‘(i) child care facilities primarily serv10 ing low-income populations; 

11 ‘‘(ii) child care facilities primarily 

12 serving children who have not attained the 

13 age of 5 years; 

14 ‘‘(iii) child care facilities that closed 

15 during the COVID–19 pandemic and are 

16 unable to open without making modifica17 tions to the facility that would otherwise be 

18 required to ensure the health and safety of 

19 children and staff; and 

20 ‘‘(iv) child care facilities that serve the 

21 children of parents classified as essential 

22 workers during the COVID–19 pandemic. 

23 ‘‘(C) DURATION OF GRANTS.—A grant 

24 under this subsection shall be awarded for a pe25 riod of not more than 5 years. 


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1 ‘‘(D) APPLICATION.—To seek a grant 

2 under this subsection, a State shall submit to 

3 the Secretary an application at such time, in 

4 such manner, and containing such information 

5 as the Secretary may require, which informa6 tion shall— 

7 ‘‘(i) be disaggregated as the Secretary 

8 may require; and 

9 ‘‘(ii) include a plan to use a portion of 

10 the grant funds to report back to the Sec11 retary on the impact of using the grant 

12 funds to improve child care facilities. 

13 ‘‘(E) PRIORITY.—In selecting States for 

14 grants under this subsection, the Secretary 

15 shall prioritize States that— 

16 ‘‘(i) plan to improve center-based and 

17 home-based child care programs, which 

18 may include a combination of child care 

19 and early Head Start or Head Start pro20 grams; 

21 ‘‘(ii) aim to meet specific needs across 

22 urban, suburban, or rural areas as deter23 mined by the State; and 

24 ‘‘(iii) show evidence of collaboration 

25 with— 


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1 ‘‘(I) local government officials; 

2 ‘‘(II) other State agencies; 

3 ‘‘(III) nongovernmental organiza4 tions, such as— 

5 ‘‘(aa) organizations within 

6 the philanthropic community; 

7 ‘‘(bb) certified community 

8 development financial institutions 

9 as defined in section 103 of the 

10 Community Development Bank11 ing and Financial Institutions 

12 Act of 1994 (12 U.S.C. 4702) 

13 that have been certified by the 

14 Community Development Finan15 cial Institutions Fund (12 U.S.C. 

16 4703); and 

17 ‘‘(cc) organizations that 

18 have demonstrated experience 

19 in— 

20 ‘‘(AA) providing tech21 nical or financial assistance 

22 for the acquisition, construc23 tion, renovation, or improve24 ment of child care facilities; 


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1 ‘‘(BB) providing tech2 nical, financial, or manage3 rial assistance to child care 

4 providers; and 

5 ‘‘(CC) securing private 

6 sources of capital financing 

7 for child care facilities or 

8 other low-income community 

9 development projects; and 

10 ‘‘(IV) local community organiza11 tions, such as— 

12 ‘‘(aa) child care providers; 

13 ‘‘(bb) community care agen14 cies; 

15 ‘‘(cc) resource and referral 

16 agencies; and 

17 ‘‘(dd) unions. 

18 ‘‘(F) CONSIDERATION.—In selecting States 

19 for grants under this subsection, the Secretary 

20 shall consider— 

21 ‘‘(i) whether the applicant— 

22 ‘‘(I) has or is developing a plan 

23 to address child care facility needs; 

24 and 


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1 ‘‘(II) demonstrates the capacity 

2 to execute such a plan; and 

3 ‘‘(ii) after the date the report required 

4 by subsection (b)(1)(C) is submitted to the 

5 Congress, the needs of the applicants 

6 based on the results of the assessment. 

7 ‘‘(G) DIVERSITY OF AWARDS.—In award8 ing grants under this section, the Secretary 

9 shall give equal consideration to States with 

10 varying capacities under subparagraph (F). 

11 ‘‘(H) MATCHING REQUIREMENT.— 

12 ‘‘(i) IN GENERAL.—As a condition for 

13 the receipt of a grant under subparagraph 

14 (A), a State that is not an Indian tribe 

15 shall agree to make available (directly or 

16 through donations from public or private 

17 entities) contributions with respect to the 

18 cost of the activities to be carried out pur19 suant to subparagraph (A), which may be 

20 provided in cash or in kind, in an amount 

21 equal to 10 percent of the funds provided 

22 through the grant. 

23 ‘‘(ii) DETERMINATION OF AMOUNT

24 CONTRIBUTED.—Contributions required by 

25 clause (i) may include— 


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1 ‘‘(I) amounts provided by the 

2 Federal Government, or services as3 sisted or subsidized to any significant 

4 extent by the Federal Government; or 

5 ‘‘(II) philanthropic or private-sec6 tor funds. 

7 ‘‘(I) REPORT.—Not later than 6 months 

8 after the last day of the grant period, a State 

9 receiving a grant under this paragraph shall 

10 submit a report to the Secretary as described in 

11 subparagraph (D)— 

12 ‘‘(i) to determine the effects of the 

13 grant in constructing, renovating, or im14 proving child care facilities, including any 

15 changes in response to the COVID–19 

16 pandemic and any effects on access to and 

17 quality of child care; and 

18 ‘‘(ii) to provide such other information 

19 as the Secretary may require. 

20 ‘‘(J) AMOUNT LIMIT.—The annual amount 

21 of a grant under this paragraph may not exceed 

22 $35,000,000. 

23 ‘‘(2) GRANTS TO INTERMEDIARY ORGANIZA24 TIONS.— 


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1 ‘‘(A) IN GENERAL.—The Secretary may 

2 award grants to intermediary organizations, 

3 such as certified community development finan4 cial institutions, tribal organizations, or other 

5 organizations with demonstrated experience in 

6 child care facilities financing, for the purpose of 

7 providing technical assistance, capacity build8 ing, and financial products to develop or finance 

9 child care facilities. 

10 ‘‘(B) APPLICATION.—A grant under this 

11 paragraph may be made only to intermediary 

12 organizations that submit to the Secretary an 

13 application at such time, in such manner, and 

14 containing such information as the Secretary 

15 may require. 

16 ‘‘(C) PRIORITY.—In selecting intermediary 

17 organizations for grants under this subsection, 

18 the Secretary shall prioritize intermediary orga19 nizations that— 

20 ‘‘(i) demonstrate experience in child 

21 care facility financing or related commu22 nity facility financing; 

23 ‘‘(ii) demonstrate the capacity to as24 sist States and local governments in devel25 oping child care facilities and programs; 


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1 ‘‘(iii) demonstrate the ability to lever2 age grant funding to support financing 

3 tools to build the capacity of child care 

4 providers, such as through credit enhance5 ments; 

6 ‘‘(iv) propose to meet a diversity of 

7 needs across States and across urban, sub8 urban, and rural areas at varying types of 

9 center-based, home-based, and other child 

10 care settings, including early care pro11 grams located in freestanding buildings or 

12 in mixed-use properties; and 

13 ‘‘(v) propose to focus on child care fa14 cilities primarily serving low-income popu15 lations and children who have not attained 

16 the age of 5 years. 

17 ‘‘(D) AMOUNT LIMIT.—The amount of a 

18 grant under this paragraph may not exceed 

19 $10,000,000. 

20 ‘‘(3) REPORT.—Not later than the end of fiscal 

21 year 2024, the Secretary shall submit to the Con22 gress a report on the effects of the grants provided 

23 under this subsection, and make the report pub24 lically accessible. 


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1 ‘‘(d) LIMITATIONS ON AUTHORIZATION OF APPRO2 PRIATIONS.— 

3 ‘‘(1) IN GENERAL.—To carry out this section, 

4 there is authorized to be appropriated 

5 $10,000,000,000 for fiscal year 2020, which shall 

6 remain available through fiscal year 2024. 

7 ‘‘(2) RESERVATIONS OF FUNDS.— 

8 ‘‘(A) INDIAN TRIBES.—The Secretary shall 

9 reserve 3 percent of the total amount made 

10 available to carry out this section, for payments 

11 to Indian tribes. 

12 ‘‘(B) TERRITORIES.—The Secretary shall 

13 reserve 3 percent of the total amount made 

14 available to carry out this section, for payments 

15 to territories. 

16 ‘‘(3) GRANTS FOR INTERMEDIARY ORGANIZA17 TIONS.—Not less than 10 percent and not more 

18 than 15 percent of the total amount made available 

19 to carry out this section may be used to carry out 

20 subsection (c)(2). 

21 ‘‘(4) LIMITATION ON USE OF FUNDS FOR

22 NEEDS ASSESSMENTS.—Not more than $5,000,000 

23 of the amounts made available to carry out this sec24 tion may be used to carry out subsection (b). 


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1 ‘‘(e) DEFINITION OF STATE.—In this section, the 

2 term ‘State’ has the meaning provided in section 419, ex3 cept that it includes the Commonwealth of the Northern 

4 Mariana Islands and any Indian tribe.’’. 

5 (b) EXEMPTION OF TERRITORY GRANTS FROM LIMI6 TATION ON TOTAL PAYMENTS TO THE TERRITORIES.— 

7 Section 1108(a)(2) of such Act (42 U.S.C. 1308(a)(2)) 

8 is amended by inserting ‘‘418A(c),’’ after ‘‘413(f),’’. 

Æ 


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