IIB 

116TH CONGRESS 

2D SESSION H. R. 7327 

IN THE SENATE OF THE UNITED STATES 

JULY 30, 2020 

Received; read twice and referred to the Committee on Appropriations 

AN ACT 

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, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Child Care for Eco3 nomic Recovery Act’’. 

4 SEC. 2. REFERENCES. 

5 Except as expressly provided otherwise, any reference 

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

7 be treated as referring only to the provisions of that divi8 sion. 

9 DIVISION A—EMERGENCY CHILD CARE 

10 SUPPORT APPROPRIATIONS 

11 The following sums in this Act are appropriated, out 

12 of any money in the Treasury not otherwise appropriated, 

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

14 other purposes, namely: 

15 TITLE I—DEPARTMENT OF THE TREASURY 

16 INTERNAL REVENUE SERVICES

17 TAXPAYER SERVICES

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

19 $5,000,000, to remain available until expended, for mak20 ing grants under the Community Volunteer Income Tax 

21 Assistance Matching Grants Program established under 

22 section 7526A of the Internal Revenue Code of 1986: Pro23 vided, That the matching funds requirement in section 

24 7526A(b)(2) shall not apply to funds made available under 

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

26 amount is designated by the Congress as being for an 


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1 emergency requirement pursuant to section 

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

3 Deficit Control Act of 1985. 

4 TITLE II—DEPARTMENT OF HEALTH AND 

5 HUMAN SERVICES 

6 ADMINISTRATION FOR CHILDREN AND FAMILIES

7 SOCIAL SERVICES BLOCK GRANT

8 For an additional amount for ‘‘Social Services Block 

9 Grant’’, $850,000,000, to remain available until Sep10 tember 30, 2021, for making grants to States pursuant 

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

12 the amount made available under this heading in this Act 

13 shall be used for necessary expenses for family care for 

14 essential workers, pursuant to section 409 of division B 

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

16 by the Congress as being for an emergency requirement 

17 pursuant to section 251(b)(2)(A)(i) of the Balanced Budg18 et and Emergency Deficit Control Act of 1985. 

19 CHILD CARE AND DEVELOPMENT FUND

20 For an additional amount for ‘‘Child Care and Devel21 opment Fund’’, $10,000,000,000, to remain available 

22 until September 30, 2024, for necessary expenses for in23 frastructure grants to improve child care safety, including 

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

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


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

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

3 construction, alteration, or renovation of non-federally 

4 owned facilities to improve child care safety: Provided fur5 ther, That all construction, alteration, or renovation work, 

6 carried out in whole or in part with funds appropriated 

7 under this heading in this Act, shall be subject to the re8 quirements of subchapter IV of chapter 31 of title 40, 

9 United States Code (commonly referred to as the ‘‘Davis10 Bacon Act’’): Provided further, That such amount is des11 ignated by the Congress as being for an emergency re12 quirement pursuant to section 251(b)(2)(A)(i) of the Bal13 anced Budget and Emergency Deficit Control Act of 1985. 

14 TITLE III—GENERAL PROVISIONS—THIS 

15 DIVISION 

16 SEC. 301. Each amount appropriated or made avail17 able by this Act is in addition to any amounts otherwise 

18 appropriated for the fiscal year involved. 

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

20 this Act shall remain available for obligation beyond the 

21 current fiscal year unless expressly so provided herein. 

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

23 the additional amounts appropriated by this Act to appro24 priations accounts shall be available under the authorities 


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1 and conditions applicable to such appropriations accounts 

2 for fiscal year 2020. 

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

4 Congress as being for an emergency requirement pursuant 

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

6 Emergency Deficit Control Act of 1985 shall be available 

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

8 President subsequently so designates all such amounts 

9 and transmits such designations to the Congress. 

10 SEC. 305. Any amount appropriated by this Act, des11 ignated by the Congress as an emergency requirement 

12 pursuant to section 251(b)(2)(A)(i) of the Balanced Budg13 et and Emergency Deficit Control Act of 1985 and subse14 quently so designated by the President, and transferred 

15 pursuant to transfer authorities provided by this Act shall 

16 retain such designation. 

17 BUDGETARY EFFECTS

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

19 The budgetary effects of division B shall not be entered 

20 on either PAYGO scorecard maintained pursuant to sec21 tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 

22 (b) SENATE PAYGO SCORECARDS.—The budgetary 

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

24 scorecard maintained for purposes of section 4106 of H. 

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


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1 (c) CLASSIFICATION OF BUDGETARY EFFECTS.— 

2 Notwithstanding Rule 3 of the Budget Scorekeeping 

3 Guidelines set forth in the joint explanatory statement of 

4 the committee of conference accompanying Conference Re5 port 105–217 and section 250(c)(8) of the Balanced 

6 Budget and Emergency Deficit Control Act of 1985, the 

7 budgetary effects of division B shall not be estimated— 

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

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

10 3 of the Statutory Pay-As-You-Go Act of 2010 as 

11 being included in an appropriation Act. 

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

13 Care Support Appropriations Act, 2020’’. 

14 DIVISION B—WORKER ACCESS 

15 TO CHILD AND FAMILY CARE 

16 SEC. 401. SHORT TITLE. 

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

18 Child and Family Care Act’’. 

19 SEC. 402. REFUNDABILITY AND ENHANCEMENT OF CHILD 

20 AND DEPENDENT CARE TAX CREDIT. 

21 (a) TREATMENT OF CREDIT AS REFUNDABLE.—Sec22 tion 21 of the Internal Revenue Code of 1986 is amended 

23 by adding at the end the following new subsection: 

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

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


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

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

3 under this subpart).’’. 

4 (b) INCREASE IN APPLICABLE PERCENTAGE.—Sec5 tion 21(a)(2) of such Code is amended— 

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

7 percent’’, and 

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

9 ‘‘$120,000’’. 

10 (c) INCREASE IN DOLLAR LIMIT ON AMOUNT CRED11 ITABLE.—Section 21(c) of such Code is amended— 

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

13 inserting ‘‘$6,000’’, and 

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

15 inserting ‘‘twice the amount in effect under para16 graph (1)’’. 

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

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

19 paragraph: 

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

21 any taxable year beginning after December 31, 

22 2020, the $120,000 amount in subsection (a)(2) and 

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

24 increased by an amount equal to— 

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


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1 ‘‘(B) the cost-of-living adjustment deter2 mined under section 1(f)(3) for the calendar 

3 year in which the taxable year begins, deter4 mined by substituting ‘2019’ for ‘2016’ in sub5 paragraph (A)(ii) thereof. 

6 If any increase determined under this paragraph is 

7 not a multiple of $100, such increase shall be round8 ed to the next highest multiple of $100.’’. 

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

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

11 ‘‘21 (by reason of subsection (g) thereof),’’ before ‘‘25A’’. 

12 (f) COORDINATION WITH POSSESSION TAX SYS13 TEMS.—Section 21(g)(1) of the Internal Revenue Code of 

14 1986 (as added by this section) shall not apply to any per15 son— 

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

17 imposed by a possession with a mirror code tax sys18 tem by reason of the application of section 21 of 

19 such Code in such possession for such taxable year, 

20 or 

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

22 taxes imposed by a possession which does not have 

23 a mirror code tax system if the provisions of section 

24 21 of such Code had been in effect in such posses25 sion for such taxable year. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2019. 

4 SEC. 403. INCREASE IN EXCLUSION FOR EMPLOYER-PRO5 VIDED DEPENDENT CARE ASSISTANCE. 

6 (a) IN GENERAL.—Section 129(a)(2)(A) of the Inter7 nal Revenue Code of 1986 is amended by striking ‘‘$5,000 

8 ($2,500’’ and inserting ‘‘$10,500 (half such dollar 

9 amount’’. 

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

11 amended by adding at the end the following new subpara12 graph: 

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

14 case of any taxable year beginning after Decem15 ber 31, 2020, the $10,500 amount in subpara16 graph (A) shall be increased by an amount 

17 equal to— 

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

19 ‘‘(ii) the cost-of-living adjustment de20 termined under section 1(f)(3) for the cal21 endar year in which the taxable year be22 gins, determined by substituting ‘2019’ for 

23 ‘2016’ in subparagraph (A)(ii) thereof. 

24 Any increase determined under the preceding 

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


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1 be rounded to the next highest multiple of 

2 $50.’’. 

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2019. 

6 (d) PLAN AMENDMENTS.—A plan or other arrange7 ment that otherwise satisfies all applicable requirements 

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

9 Code of 1986 (including any rules or regulations there10 under) shall not fail to be treated as a cafeteria plan or 

11 dependent care flexible spending arrangement merely be12 cause such plan or arrangement is amended pursuant to 

13 the amendments made by this section and such amend14 ment is retroactive, if— 

15 (1) such amendment is adopted no later than 

16 the last day of the first plan year beginning after 

17 December 31, 2019, and 

18 (2) the plan or arrangement is operated con19 sistent with the terms of such amendment during 

20 the period beginning on the effective date of the 

21 amendment and ending on the date the amendment 

22 is adopted. 


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1 SEC. 404. PAYROLL CREDIT FOR CERTAIN FIXED EXPENSES 

2 OF CHILD CARE FACILITIES SUBJECT TO 

3 CLOSURE BY REASON OF COVID–19. 

4 (a) IN GENERAL.—In the case of an eligible em5 ployer, there shall be allowed as a credit against applicable 

6 employment taxes for each calendar quarter an amount 

7 equal to 50 percent of the qualified fixed expenses paid 

8 or incurred by such employer during such calendar quar9 ter. 

10 (b) LIMITATIONS AND REFUNDABILITY.— 

11 (1) OVERALL QUARTERLY DOLLAR LIMITA12 TION.—The qualified fixed expenses which may be 

13 taken into account under subsection (a) (determined 

14 after the application of paragraph (2)) by any eligi15 ble employer for any calendar quarter shall not ex16 ceed the least of— 

17 (A) the qualified fixed expenses paid by the 

18 eligible employer in the same calendar quarter 

19 of calendar year 2019, 

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

21 (C) the greater of— 

22 (i) 25 percent of the wages paid with 

23 respect to the employment of all the em24 ployees of the eligible employer for such 

25 calendar quarter, or 


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1 (ii) 6.25 percent of the gross receipts 

2 of the eligible employer for calendar year 

3 2019. 

4 (2) PER FACILITY QUARTERLY DOLLAR LIMITA5 TION.—The qualified fixed expenses which may be 

6 taken into account under subsection (a) by any eligi7 ble employer for any calendar quarter with respect 

8 to any facility of such employer shall not exceed 

9 $50,000. 

10 (3) CREDIT LIMITED TO CERTAIN EMPLOYMENT

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

12 respect to any calendar quarter shall not exceed the 

13 applicable employment taxes for such calendar quar14 ter (reduced by any credits allowed under sub15 sections (e) and (f) of section 3111 of such Code, 

16 sections 7001 and 7003 of the Families First 

17 Coronavirus Response Act, and section 2301 of the 

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

19 with respect to the employment of all the employees 

20 of the eligible employer for such calendar quarter. 

21 (4) REFUNDABILITY OF EXCESS CREDIT.— 

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

23 credit under subsection (a) exceeds the limita24 tion of paragraph (3) 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 (c) DEFINITIONS.—For purposes of this section— 

11 (1) APPLICABLE EMPLOYMENT TAXES.—The 

12 term ‘‘applicable employment taxes’’ means the fol13 lowing: 

14 (A) The taxes imposed under section 

15 3111(a) of the Internal Revenue Code of 1986. 

16 (B) So much of the taxes imposed under 

17 section 3221(a) of such Code as are attrib18 utable to the rate in effect under section 

19 3111(a) of such Code. 

20 (2) ELIGIBLE EMPLOYER.— 

21 (A) IN GENERAL.—The term ‘‘eligible em22 ployer’’ means any employer— 

23 (i) which was carrying on a trade or 

24 business engaged in the provision of child 

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1 cility (within the meaning of section 

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

3 to the last sentence thereof) at any time 

4 during calendar year 2020, and 

5 (ii) with respect to any calendar quar6 ter, for which— 

7 (I) the operation of the trade or 

8 business described in clause (i) is fully 

9 or partially suspended during the cal10 endar quarter due to orders from an 

11 appropriate governmental authority 

12 limiting commerce, travel, or group 

13 meetings (for commercial, social, reli14 gious, or other purposes) due to the 

15 coronavirus disease 2019 (COVID– 

16 19), or 

17 (II) such calendar quarter is 

18 within the period described in sub19 paragraph (B). 

20 (B) SIGNIFICANT DECLINE IN GROSS RE21 CEIPTS.—The period described in this subpara22 graph is the period— 

23 (i) beginning with the first calendar 

24 quarter beginning after December 31, 

25 2019, for which gross receipts (within the 


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1 meaning of section 448(c) of the Internal 

2 Revenue Code of 1986) for the calendar 

3 quarter are less than 90 percent of gross 

4 receipts for the same calendar quarter in 

5 the prior year, and 

6 (ii) ending with the calendar quarter 

7 following the first calendar quarter begin8 ning after a calendar quarter described in 

9 clause (i) for which gross receipts of such 

10 employer are greater than 90 percent of 

11 gross receipts for the same calendar quar12 ter in the prior year. 

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

14 case of an organization which is described in 

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

16 1986 and exempt from tax under section 501(a) 

17 of such Code— 

18 (i) any reference in this section to a 

19 trade or business shall be treated as a ref20 erence to the operations of such organiza21 tion which are related to the provision of 

22 child care assistance (within the meaning 

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

24 (ii) any reference in this section to 

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1 erence to gross receipts within the meaning 

2 of section 6033 of the Internal Revenue 

3 Code of 1986. 

4 (D) PHASE-IN OF CREDIT WHERE BUSI5 NESS NOT SUSPENDED AND REDUCTION IN

6 GROSS RECEIPTS LESS THAN 50 PERCENT.— 

7 (i) IN GENERAL.—In the case of any 

8 calendar quarter with respect to which an 

9 eligible employer would not be an eligible 

10 employer if subparagraph (B)(i) were ap11 plied by substituting ‘‘50 percent’’ for ‘‘90 

12 percent’’, the amount of the credit allowed 

13 under subsection (a) shall be reduced by 

14 the amount which bears the same ratio to 

15 the amount of such credit (determined 

16 without regard to this subparagraph) as— 

17 (I) the excess gross receipts per18 centage point amount, bears to 

19 (II) 40 percentage points. 

20 (ii) EXCESS GROSS RECEIPTS PER21 CENTAGE POINT AMOUNT.—For purposes 

22 of this subparagraph, the term ‘‘excess 

23 gross receipts percentage point amount’’ 

24 means, with respect to any calendar quar25 ter, the excess of— 


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1 (I) the lowest of the gross re2 ceipts percentage point amounts de3 termined with respect to any calendar 

4 quarter during the period ending with 

5 such calendar quarter and beginning 

6 with the first calendar quarter during 

7 the period described in subparagraph 

8 (B), over 

9 (II) 50 percentage points. 

10 (iii) GROSS RECEIPTS PERCENTAGE

11 POINT AMOUNTS.—For purposes of this 

12 subparagraph, the term ‘‘gross receipts 

13 percentage point amount’’ means, with re14 spect to any calendar quarter, the percent15 age (expressed as a number of percentage 

16 points) obtained by dividing— 

17 (I) the gross receipts (within the 

18 meaning of subparagraph (B)) for 

19 such calendar quarter, by 

20 (II) the gross receipts for the 

21 same calendar quarter in calendar 

22 year 2019. 

23 (3) QUALIFIED FIXED EXPENSES.— 

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

25 fixed expenses’’ means the payment or accrual, 


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1 in the ordinary course of the eligible employer’s 

2 trade or business, of any covered mortgage obli3 gation, covered rent obligation, or covered util4 ity payment. Such term shall not include the 

5 prepayment of any obligation for a period in ex6 cess of a month unless the payment for such 

7 period is customarily due in advance. Such term 

8 shall not include any payment or accrual of any 

9 obligation or payment which is with respect to 

10 property which is not located in the United 

11 States or any possession of the United States. 

12 (B) APPLICATION OF DEFINITIONS.—The 

13 terms ‘‘covered mortgage obligation’’, ‘‘covered 

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

15 shall each have the same meaning as when used 

16 in section 1106 of the CARES Act. 

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

18 the Secretary of the Treasury or the Secretary’s del19 egate. 

20 (5) WAGES.— 

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

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

23 the Internal Revenue Code of 1986) and com24 pensation (as defined in section 3231(e) of such 

25 Code). For purposes of the preceding sentence 


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

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

3 Code shall be determined without regard to 

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

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

6 (B) ALLOWANCE FOR CERTAIN HEALTH

7 PLAN EXPENSES.— 

8 (i) IN GENERAL.—Such term shall in9 clude amounts paid or incurred by the eli10 gible employer to provide and maintain a 

11 group health plan (as defined in section 

12 5000(b)(1) of the Internal Revenue Code 

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

14 amounts are excluded from the gross in15 come of employees by reason of section 

16 106(a) of such Code. 

17 (ii) ALLOCATION RULES.—For pur18 poses of this section, amounts treated as 

19 wages under clause (i) shall be treated as 

20 paid with respect to any employee (and 

21 with respect to any period) to the extent 

22 that such amounts are properly allocable to 

23 such employee (and to such period) in such 

24 manner as the Secretary may prescribe. 

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1 retary, such allocation shall be treated as 

2 properly made if made on the basis of 

3 being pro rata among periods of coverage. 

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

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

6 Code) of at least one employee on any day in cal7 endar year 2020. 

8 (7) OTHER TERMS.—Except as otherwise pro9 vided in this section, any term used in this section 

10 which is also used in chapter 21 or 22 of the Inter11 nal Revenue Code of 1986 shall have the same 

12 meaning as when used in such chapter. 

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

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

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

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

17 one employer for purposes of this section. 

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

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

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

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

22 allowed under this section, shall be increased by the 

23 amount of such credit. 

24 (f) CERTAIN GOVERNMENTAL EMPLOYERS.— 


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

2 shall not be allowed to the Federal Government, the 

3 government of any State, of the District of Colum4 bia, or of any possession of the United States, any 

5 tribal government, or any political subdivision, agen6 cy, or instrumentality of any of the foregoing. 

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

8 apply to any organization described in section 

9 501(c)(1) of the Internal Revenue Code of 1986 and 

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

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

12 This section shall not apply with respect to any eligible 

13 employer for any calendar quarter if such employer elects 

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

15 prescribe) not to have this section apply. 

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

17 are hereby appropriated to the Federal Old-Age and Sur18 vivors Insurance Trust Fund and the Federal Disability 

19 Insurance Trust Fund established under section 201 of 

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

21 Security Equivalent Benefit Account established under 

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

23 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in 

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

25 regard to this subsection). Amounts appropriated by the 


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1 preceding sentence shall be transferred from the general 

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

3 to the extent possible the transfers which would have oc4 curred to such Trust Fund or Account had this section 

5 not been enacted. 

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

7 waive any penalty under section 6656 of such Code for 

8 any failure to make a deposit of applicable employment 

9 taxes if the Secretary determines that such failure was due 

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

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

12 under this section shall be treated as a credit described 

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

14 (k) REGULATIONS AND GUIDANCE.—The Secretary 

15 shall issue such forms, instructions, regulations, and guid16 ance as are necessary— 

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

18 under subsection (a), subject to the limitations pro19 vided in this section, based on such information as 

20 the Secretary shall require, 

21 (2) regulations or other guidance to provide for 

22 the reconciliation of such advance payment with the 

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

24 of tax for the applicable quarter or taxable year, 


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

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

3 professional employer organizations, certified profes4 sional employer organizations, or agents under sec5 tion 3504 of the Internal Revenue Code of 1986), 

6 including regulations or guidance allowing such 

7 payors to submit documentation necessary to sub8 stantiate the eligible employer status of employers 

9 that use such payors, 

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

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

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

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

14 same calendar quarter in the prior year, and 

15 (5) for recapturing the benefit of credits deter16 mined under this section in cases where there is a 

17 subsequent adjustment to the credit determined 

18 under subsection (a). 

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

20 apply only to qualified fixed expenses paid or accrued in 

21 calendar quarters beginning on or after the date of the 

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


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1 SEC. 405. PAYROLL CREDIT FOR CERTAIN EMPLOYEE DE2 PENDENT CARE EXPENSES PAID BY EMPLOY3 ERS. 

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

5 shall be allowed as a credit against applicable employment 

6 taxes for each calendar quarter an amount equal to 30 

7 percent of the qualified employee dependent care expenses 

8 paid by such employer with respect to such calendar quar9 ter. 

10 (b) LIMITATIONS AND REFUNDABILITY.— 

11 (1) DOLLAR LIMITATION PER EMPLOYEE.—The 

12 qualified employee dependent care expenses which 

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

14 respect to any employee for any calendar quarter 

15 shall not exceed $2,500. 

16 (2) CREDIT LIMITED TO CERTAIN EMPLOYMENT

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

18 respect to any calendar quarter shall not exceed the 

19 applicable employment taxes for such calendar quar20 ter (reduced by any credits allowed under sub21 sections (e) and (f) of section 3111 of such Code, 

22 sections 7001 and 7003 of the Families First 

23 Coronavirus Response Act, section 2301 of the 

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

25 quarter) on the wages paid with respect to the emVerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327

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1 ployment of all the employees of the employer for 

2 such calendar quarter. 

3 (3) REFUNDABILITY OF EXCESS CREDIT.— 

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

5 credit under subsection (a) exceeds the limita6 tion of paragraph (2) for any calendar quarter, 

7 such excess shall be treated as an overpayment 

8 that shall be refunded under sections 6402(a) 

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

10 1986. 

11 (B) TREATMENT OF PAYMENTS.—For pur12 poses of section 1324 of title 31, United States 

13 Code, any amounts due to an employer under 

14 this paragraph shall be treated in the same 

15 manner as a refund due from a credit provision 

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

17 (4) COORDINATION WITH GOVERNMENT

18 GRANTS.—The qualified employee dependent care 

19 expenses taken into account under this section by 

20 any employer shall be reduced by any amounts pro21 vided by any Federal, State, or local government for 

22 purposes of making or reimbursing such expenses. 

23 (c) QUALIFIED EMPLOYEE DEPENDENT CARE EX24 PENSES.—For purposes of this section, the term ‘‘quali25 fied employee dependent care expenses’’ means any 


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

2 employment of the employer if— 

3 (1) such amount is dependent care assistance 

4 (as defined in section 129(e)(1) of the Internal Rev5 enue Code of 1986), and 

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

7 such manner as the Secretary may provide) to treat 

8 such amount as a qualified employee dependent care 

9 expense. 

10 (d) SPECIAL RULES; OTHER DEFINITIONS.— 

11 (1) APPLICATION OF CERTAIN NON-DISCRIMINA12 TION RULES.—No credit shall be allowed under this 

13 section to any employer for any calendar quarter if 

14 qualified employee dependent care expenses are pro15 vided by such employer to employees for such cal16 endar quarter in a manner which discriminates in 

17 favor of highly compensated individuals (within the 

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

19 amount of, such benefit expenses. 

20 (2) DENIAL OF DOUBLE BENEFIT.—For pur21 poses of chapter 1 of such Code, no deduction or 

22 credit (other than the credit allowed under this sec23 tion) shall be allowed for so much of qualified em24 ployee dependent care expenses as is equal to the 

25 credit allowed under this section. 


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

2 under this section shall be treated as a credit de3 scribed in section 3511(d)(2) of such Code. 

4 (4) APPLICABLE EMPLOYMENT TAXES.—For 

5 purposes of this section, the term ‘‘applicable em6 ployment taxes’’ means the following: 

7 (A) The taxes imposed under section 

8 3111(a) of the Internal Revenue Code of 1986. 

9 (B) So much of the taxes imposed under 

10 section 3221(a) of such Code as are attrib11 utable to the rate in effect under section 

12 3111(a) of such Code. 

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

14 the term ‘‘Secretary’’ means the Secretary of the 

15 Treasury or the Secretary’s delegate. 

16 (6) CERTAIN TERMS.— 

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

18 section which is also used in chapter 21 or 22 

19 of such Code shall have the same meaning as 

20 when used in such chapter (as the case may 

21 be). 

22 (B) CERTAIN PROVISIONS NOT TAKEN

23 INTO ACCOUNT EXCEPT FOR PURPOSES OF LIM24 ITING CREDIT TO EMPLOYMENT TAXES.—For 

25 purposes of subparagraph (A) (other than with 


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

2 such Code shall be applied without regard to 

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

4 (18), (19), and (22) thereof (except with re5 spect to services performed in a penal institu6 tion by an inmate thereof) and section 

7 3231(e)(1) shall be applied without regard to 

8 the sentence that begins ‘‘Such term does not 

9 include remuneration’’. 

10 (e) CERTAIN GOVERNMENTAL EMPLOYERS.— 

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

12 shall not be allowed to the Federal Government or 

13 any agency or instrumentality thereof. 

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

15 apply to any organization described in section 

16 501(c)(1) of the Internal Revenue Code of 1986 and 

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

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

19 waive any penalty under section 6656 of such Code for 

20 any failure to make a deposit of applicable employment 

21 taxes if the Secretary determines that such failure was due 

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

23 (g) REGULATIONS.—The Secretary shall prescribe 

24 such regulations or other guidance as may be necessary 


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1 to carry out the purposes of this section, including regula2 tions or other guidance— 

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

4 determined under subsection (a), subject to the limi5 tations provided in this section, based on such infor6 mation as the Secretary shall require, 

7 (2) to provide for the reconciliation of such ad8 vance payment with the amount of the credit at the 

9 time of filing the return of tax for the applicable 

10 quarter or taxable year, 

11 (3) 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), and 

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

16 to third party payors (including professional em17 ployer organizations, certified professional employer 

18 organizations, or agents under section 3504 of such 

19 Code), including to allow such payors to submit doc20 umentation necessary to substantiate eligibility for, 

21 and the amount of, the credit allowed under this sec22 tion. 

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

24 apply only to qualified employee dependent care expenses 


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1 paid in calendar quarters beginning on or after the date 

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

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

4 are hereby appropriated to the Federal Old-Age and Sur5 vivors Insurance Trust Fund and the Federal Disability 

6 Insurance Trust Fund established under section 201 of 

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

8 Security Equivalent Benefit Account established under 

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

10 (45 U.S.C. 231n–1(a)) amounts equal to the reduction in 

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

12 regard to this subsection). Amounts appropriated by the 

13 preceding sentence shall be transferred from the general 

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

15 to the extent possible the transfers which would have oc16 curred to such Trust Fund or Account had this section 

17 not been enacted. 

18 SEC. 406. FLEXIBILITY FOR DEPENDENT CARE FLEXIBLE 

19 SPENDING ARRANGEMENTS. 

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

21 other arrangement that otherwise satisfies all applicable 

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

23 Revenue Code of 1986 (including any rules or regulations 

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

25 or dependent care flexible spending arrangement merely 


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1 because such plan or arrangement permits participants to 

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

3 health flexible spending arrangements) an amount, not in 

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

5 of such Code, of unused benefits or contributions remain6 ing in a dependent care flexible spending arrangement 

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

8 in 2021. 

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

10 other arrangement that otherwise satisfies all applicable 

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

12 Revenue Code (including any rules or regulations there13 under) shall not fail to be treated as a cafeteria plan or 

14 dependent care flexible spending arrangement merely be15 cause such plan or arrangement extends the grace period 

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

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

18 contributions remaining in a dependent care flexible 

19 spending arrangement. 

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

21 which is also used in section 106, 125, or 129 of the Inter22 nal Revenue Code of 1986 or the rules or regulations 

23 thereunder shall have the same meaning as when used in 

24 such section or rules or regulations. 


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1 (d) PLAN AMENDMENTS.—A plan or other arrange2 ment that otherwise satisfies all applicable requirements 

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

4 Code of 1986 (including any rules or regulations there5 under) shall not fail to be treated as a cafeteria plan or 

6 dependent care flexible spending arrangement merely be7 cause such plan or arrangement is amended pursuant to 

8 a provision under this section and such amendment is ret9 roactive, if— 

10 (1) such amendment is adopted no later than 

11 the last day of the plan year in which the amend12 ment is effective, and 

13 (2) the plan or arrangement is operated con14 sistent with the terms of such amendment during 

15 the period beginning on the effective date of the 

16 amendment and ending on the date the amendment 

17 is adopted. 

18 SEC. 407. EMPLOYEE RETENTION CREDIT ALLOWED WITH 

19 RESPECT TO EMPLOYMENT OF DOMESTIC 

20 WORKERS. 

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

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

23 subparagraph: 

24 ‘‘(D) EMPLOYERS OF DOMESTIC WORK25 ERS.—In the case of an employer with one or 


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1 more employees who perform domestic service 

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

3 such Code) in the private home of such em4 ployer, with respect to such employees— 

5 ‘‘(i) subparagraph (A) shall be ap6 plied— 

7 ‘‘(I) by substituting ‘employing 

8 an employee who performs domestic 

9 service in the private home of such 

10 employer’ for ‘carrying on a trade or 

11 business’ in clause (i) thereof, and 

12 ‘‘(II) by substituting ‘such em13 ployment’ for ‘the operation of the 

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

15 thereof, 

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

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

18 ‘‘(iii) such employer shall be treated 

19 as a large employer.’’. 

20 (b) DENIAL OF DOUBLE BENEFIT.—Section 

21 2301(h)(2) of the CARES Act is amended— 

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

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

24 into account— 

25 ‘‘(A) for purposes of’’, 


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1 (2) by striking the period at the end and insert2 ing ‘‘, and’’, and 

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

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

5 service described in subsection (c)(2)(E), as em6 ployment-related expenses for purposes of sec7 tion 21 of such Code. 

8 In the case of any individual who pays wages for do9 mestic service described in subsection (c)(2)(E) and 

10 receives a reimbursement for such wages which is 

11 excludible from gross income under section 129 of 

12 such Code, such wages shall not be treated as quali13 fied wages for purposes of this section.’’. 

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

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

16 of the CARES Act. 

17 SEC. 408. CHILD CARE STABILIZATION FUNDS. 

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

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

20 ‘‘$2,917,000,000 for each of fiscal years 2017 and 2018’’ 

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

22 2020 through 2024’’. 

23 (b) ADDITIONAL FUNDS NOT SUBJECT TO STATE

24 MATCH REQUIREMENT.—With respect to the amounts ap25 propriated in section 418(a)(3) of the Social Security Act 


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

2 and 2021, section 418(a)(2)(C) of such Act shall be ap3 plied and administered with respect to any State that is 

4 entitled to receive the entire amount that would be allotted 

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

6 the fiscal year in the absence of this section, as if the Fed7 eral medical assistance percentage for the State for the 

8 fiscal year were 100 percent. 

9 SEC. 409. FAMILY CARE FOR ESSENTIAL WORKERS. 

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

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

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

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

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

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

16 this section. 

17 (b) RULES GOVERNING USE OF ADDITIONAL

18 FUNDS.— 

19 (1) IN GENERAL.—Funds are used in accord20 ance with this subsection if— 

21 (A) the funds are used for— 

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

23 essential worker; or 


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1 (ii) daytime care services or other 

2 adult protective services for an individual 

3 who— 

4 (I) is a dependent, or a member 

5 of the household of, an essential work6 er; and 

7 (II) requires the services; 

8 (B) the funds are provided to reimburse an 

9 essential worker for the cost of obtaining the 

10 services (including child and adult care services 

11 obtained on or after the date the Secretary of 

12 Health and Human Services declared a public 

13 health emergency pursuant to section 319 of 

14 the Public Health Service Act on January 31, 

15 2020, entitled ‘‘Determination that a Public 

16 Health Emergency Exists Nationwide as the 

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

18 provider of child or adult care services, or to es19 tablish a temporary child care facility operated 

20 by a State or local government; 

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

22 the amount of funds or services provided, is not 

23 conditioned on a means test; 

24 (D) the funds are used in consultation with 

25 the lead agency designated pursuant to section 


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1 658D(a) of the Child Care and Development 

2 Block Grant Act of 1990 by the State involved 

3 and subject to the limitations in section 2005 of 

4 the Social Security Act, except that, for pur5 poses of this subparagraph— 

6 (i) paragraphs (3), (5), and (8) of sec7 tion 2005(a) of such Act shall not apply; 

8 and 

9 (ii)(I) the limitation in section 

10 2005(a)(7) of such Act shall not apply 

11 with respect to any standard which the 

12 State involved determines would impede 

13 the ability of the State to provide emer14 gency temporary care to a child, depend15 ent, or household member referred to in 

16 subparagraph (A) of this paragraph if the 

17 emergency temporary care would not en18 danger the health, safety, or development 

19 of children who received the care and care 

20 would otherwise not be available to support 

21 the immediate, short-term family care 

22 needs of essential workers; and 

23 (II) if the State determines that such 

24 a standard would be so impeding, the 

25 State shall report the determination to the 


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1 Secretary, including a description of how 

2 exempting standards that may impede the 

3 ability of the State to provide emergency 

4 temporary care did not endanger the 

5 health, safety, or development of children 

6 who received emergency temporary care, 

7 separately from the annual report to the 

8 Secretary by the State; 

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

10 supplant, State general revenue funds for child 

11 care assistance; and 

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

13 costs that are— 

14 (i) covered by funds provided under 

15 the Head Start Act, a preschool develop16 ment grant under section 9121 of the 

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

18 9831 note), the Child Care and Develop19 ment Block Grant Act of 1990, section 

20 418 of the Social Security Act, or another 

21 federally funded dependent care program; 

22 or 

23 (ii) reimbursable by the Federal 

24 Emergency Management Agency. 


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1 (2) ESSENTIAL WORKER DEFINED.—In para2 graph (1), the term ‘‘essential worker’’ means— 

3 (A) a health sector employee; 

4 (B) an emergency response worker; 

5 (C) a child care worker; 

6 (D) a sanitation worker; 

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

8 or local government official has determined 

9 must remain open to serve the public during the 

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

11 (F) any other worker who cannot telework, 

12 and whom the State deems to be essential dur13 ing the emergency referred to in paragraph 

14 (1)(B). 

15 SEC. 410. INFRASTRUCTURE GRANTS TO IMPROVE CHILD 

16 CARE SAFETY. 

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

18 Security Act (42 U.S.C. 601 et seq.) is amended by insert19 ing after section 418 the following: 

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

21 CARE SAFETY. 

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

23 ‘Infrastructure Grants To Improve Child Care Safety Act 

24 of 2020’. 

25 ‘‘(b) NEEDS ASSESSMENTS.— 


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1 ‘‘(1) IMMEDIATE NEEDS ASSESSMENT.— 

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

3 conduct an immediate needs assessment of the 

4 condition of child care facilities throughout the 

5 United States (with priority given to child care 

6 facilities that receive Federal funds), that— 

7 ‘‘(i) determines the extent to which 

8 the COVID–19 pandemic has created im9 mediate infrastructure needs, including in10 frastructure-related health and safety 

11 needs, which must be addressed for child 

12 care facilities to operate in compliance with 

13 public health guidelines; 

14 ‘‘(ii) considers the effects of the pan15 demic on a variety of child care centers, in16 cluding home-based centers; and 

17 ‘‘(iii) considers how the pandemic has 

18 impacted specific metrics, such as— 

19 ‘‘(I) capacity; 

20 ‘‘(II) investments in infrastruc21 ture changes; 

22 ‘‘(III) the types of infrastructure 

23 changes centers need to implement 

24 and their associated costs; 

25 ‘‘(IV) the price of tuition; and 


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1 ‘‘(V) any changes or anticipated 

2 changes in the number and demo3 graphic of children attending. 

4 ‘‘(B) TIMING.—The immediate needs as5 sessment should occur simultaneously with the 

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

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

8 after the date of the enactment of this section, 

9 the Secretary shall submit to the Congress a re10 port containing the result of the needs assess11 ment conducted under subparagraph (A), and 

12 make the assessment publicly available. 

13 ‘‘(2) LONG-TERM NEEDS ASSESSMENT.— 

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

15 conduct a long-term assessment of the condition 

16 of child care facilities throughout the United 

17 States (with priority given to child care facili18 ties that receive Federal funds). The assess19 ment may be conducted through representative 

20 random sampling. 

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

22 after the date of the enactment of this section, 

23 the Secretary shall submit to the Congress a re24 port containing the results of the needs assessVerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327

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1 ment conducted under subparagraph (A), and 

2 make the assessment publicly available. 

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

4 ‘‘(1) GRANTS TO STATES.— 

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

6 award grants to States for the purpose of ac7 quiring, constructing, renovating, or improving 

8 child care facilities, including adapting, re9 configuring, or expanding facilities to respond 

10 to the COVID–19 pandemic. 

11 ‘‘(B) PRIORITIZED FACILITIES.—The Sec12 retary may not award a grant to a State under 

13 subparagraph (A) unless the State involved 

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

15 to prioritize— 

16 ‘‘(i) child care facilities primarily serv17 ing low-income populations; 

18 ‘‘(ii) child care facilities primarily 

19 serving children who have not attained the 

20 age of 5 years; 

21 ‘‘(iii) child care facilities that closed 

22 during the COVID–19 pandemic and are 

23 unable to open without making modifica24 tions to the facility that would otherwise be 


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1 required to ensure the health and safety of 

2 children and staff; and 

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

4 children of parents classified as essential 

5 workers during the COVID–19 pandemic. 

6 ‘‘(C) DURATION OF GRANTS.—A grant 

7 under this subsection shall be awarded for a pe8 riod of not more than 5 years. 

9 ‘‘(D) APPLICATION.—To seek a grant 

10 under this subsection, a State shall submit to 

11 the Secretary an application at such time, in 

12 such manner, and containing such information 

13 as the Secretary may require, which informa14 tion shall— 

15 ‘‘(i) be disaggregated as the Secretary 

16 may require; and 

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

18 the grant funds to report back to the Sec19 retary on the impact of using the grant 

20 funds to improve child care facilities. 

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

22 grants under this subsection, the Secretary 

23 shall prioritize States that— 

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

25 home-based child care programs, which 


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1 may include a combination of child care 

2 and early Head Start or Head Start pro3 grams; 

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

5 urban, suburban, or rural areas as deter6 mined by the State; and 

7 ‘‘(iii) show evidence of collaboration 

8 with— 

9 ‘‘(I) local government officials; 

10 ‘‘(II) other State agencies; 

11 ‘‘(III) nongovernmental organiza12 tions, such as— 

13 ‘‘(aa) organizations within 

14 the philanthropic community; 

15 ‘‘(bb) certified community 

16 development financial institutions 

17 as defined in section 103 of the 

18 Community Development Bank19 ing and Financial Institutions 

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

21 that have been certified by the 

22 Community Development Finan23 cial Institutions Fund (12 U.S.C. 

24 4703); and 


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1 ‘‘(cc) organizations that 

2 have demonstrated experience 

3 in— 

4 ‘‘(AA) providing tech5 nical or financial assistance 

6 for the acquisition, construc7 tion, renovation, or improve8 ment of child care facilities; 

9 ‘‘(BB) providing tech10 nical, financial, or manage11 rial assistance to child care 

12 providers; and 

13 ‘‘(CC) securing private 

14 sources of capital financing 

15 for child care facilities or 

16 other low-income community 

17 development projects; and 

18 ‘‘(IV) local community organiza19 tions, such as— 

20 ‘‘(aa) child care providers; 

21 ‘‘(bb) community care agen22 cies; 

23 ‘‘(cc) resource and referral 

24 agencies; and 

25 ‘‘(dd) unions. 


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

2 for grants under this subsection, the Secretary 

3 shall consider— 

4 ‘‘(i) whether the applicant— 

5 ‘‘(I) has or is developing a plan 

6 to address child care facility needs; 

7 and 

8 ‘‘(II) demonstrates the capacity 

9 to execute such a plan; and 

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

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

12 Congress, the needs of the applicants 

13 based on the results of the assessment. 

14 ‘‘(G) DIVERSITY OF AWARDS.—In award15 ing grants under this section, the Secretary 

16 shall give equal consideration to States with 

17 varying capacities under subparagraph (F). 

18 ‘‘(H) MATCHING REQUIREMENT.— 

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

20 the receipt of a grant under subparagraph 

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

22 shall agree to make available (directly or 

23 through donations from public or private 

24 entities) contributions with respect to the 

25 cost of the activities to be carried out purVerDate Sep 11 2014 03:38 Jul 31, 2020 Jkt 099200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H7327.RFS H7327

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1 suant to subparagraph (A), which may be 

2 provided in cash or in kind, in an amount 

3 equal to 10 percent of the funds provided 

4 through the grant. 

5 ‘‘(ii) DETERMINATION OF AMOUNT

6 CONTRIBUTED.—Contributions required by 

7 clause (i) may include— 

8 ‘‘(I) amounts provided by the 

9 Federal Government, or services as10 sisted or subsidized to any significant 

11 extent by the Federal Government; or 

12 ‘‘(II) philanthropic or private-sec13 tor funds. 

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

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

16 receiving a grant under this paragraph shall 

17 submit a report to the Secretary as described in 

18 subparagraph (D)— 

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

20 grant in constructing, renovating, or im21 proving child care facilities, including any 

22 changes in response to the COVID–19 

23 pandemic and any effects on access to and 

24 quality of child care; and 


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1 ‘‘(ii) to provide such other information 

2 as the Secretary may require. 

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

4 of a grant under this paragraph may not exceed 

5 $35,000,000. 

6 ‘‘(2) GRANTS TO INTERMEDIARY ORGANIZA7 TIONS.— 

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

9 award grants to intermediary organizations, 

10 such as certified community development finan11 cial institutions, tribal organizations, or other 

12 organizations with demonstrated experience in 

13 child care facilities financing, for the purpose of 

14 providing technical assistance, capacity build15 ing, and financial products to develop or finance 

16 child care facilities. 

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

18 paragraph may be made only to intermediary 

19 organizations that submit to the Secretary an 

20 application at such time, in such manner, and 

21 containing such information as the Secretary 

22 may require. 

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

24 organizations for grants under this subsection, 


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1 the Secretary shall prioritize intermediary orga2 nizations that— 

3 ‘‘(i) demonstrate experience in child 

4 care facility financing or related commu5 nity facility financing; 

6 ‘‘(ii) demonstrate the capacity to as7 sist States and local governments in devel8 oping child care facilities and programs; 

9 ‘‘(iii) demonstrate the ability to lever10 age grant funding to support financing 

11 tools to build the capacity of child care 

12 providers, such as through credit enhance13 ments; 

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

15 needs across States and across urban, sub16 urban, and rural areas at varying types of 

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

18 care settings, including early care pro19 grams located in freestanding buildings or 

20 in mixed-use properties; and 

21 ‘‘(v) propose to focus on child care fa22 cilities primarily serving low-income popu23 lations and children who have not attained 

24 the age of 5 years. 


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HR 7327 RFS

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

2 grant under this paragraph may not exceed 

3 $10,000,000. 

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

5 year 2024, the Secretary shall submit to the Con6 gress a report on the effects of the grants provided 

7 under this subsection, and make the report pub8 lically accessible. 

9 ‘‘(d) LIMITATIONS ON AUTHORIZATION OF APPRO10 PRIATIONS.— 

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

12 there is authorized to be appropriated 

13 $10,000,000,000 for fiscal year 2020, which shall 

14 remain available through fiscal year 2024. 

15 ‘‘(2) RESERVATIONS OF FUNDS.— 

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

17 reserve 3 percent of the total amount made 

18 available to carry out this section, for payments 

19 to Indian tribes. 

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

21 reserve 3 percent of the total amount made 

22 available to carry out this section, for payments 

23 to territories. 

24 ‘‘(3) GRANTS FOR INTERMEDIARY ORGANIZA25 TIONS.—Not less than 10 percent and not more 


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HR 7327 RFS

1 than 15 percent of the total amount made available 

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

3 subsection (c)(2). 

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

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

6 of the amounts made available to carry out this sec7 tion may be used to carry out subsection (b). 

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

9 term ‘State’ has the meaning provided in section 419, ex10 cept that it includes the Commonwealth of the Northern 

11 Mariana Islands and any Indian tribe.’’. 

12 (b) EXEMPTION OF TERRITORY GRANTS FROM LIMI13 TATION ON TOTAL PAYMENTS TO THE TERRITORIES.— 

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

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

Passed the House of Representatives July 29, 2020. 

Attest: CHERYL L. JOHNSON, 

Clerk. 

By GLORIA J. LETT, 

Deputy Clerk. 


pamtmann on DSKBC07HB2PROD with BILLS