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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 1354 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                S. 1354

 To increase the quality and supply of child care and lower child care 
                          costs for families.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 27, 2023

    Mrs. Murray (for herself, Mr. Casey, Mr. Kaine, Ms. Hirono, Mr. 
  Schumer, Mr. Sanders, Ms. Baldwin, Mr. Bennet, Mr. Blumenthal, Mr. 
   Booker, Mr. Brown, Ms. Cantwell, Mr. Coons, Ms. Cortez Masto, Ms. 
Duckworth, Mr. Durbin, Mrs. Feinstein, Mr. Fetterman, Mrs. Gillibrand, 
   Ms. Hassan, Mr. Heinrich, Ms. Klobuchar, Mr. King, Mr. Lujan, Mr. 
 Markey, Mr. Menendez, Mr. Merkley, Mr. Murphy, Mr. Padilla, Mr. Reed, 
  Ms. Rosen, Mr. Schatz, Mrs. Shaheen, Ms. Smith, Mr. Van Hollen, Mr. 
  Welch, Mr. Whitehouse, Mr. Wyden, and Ms. Stabenow) introduced the 
 following bill; which was read twice and referred to the Committee on 
                 Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
 To increase the quality and supply of child care and lower child care 
                          costs for families.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Care for Working Families 
Act''.

             TITLE I--CHILD CARE AND EARLY LEARNING PROGRAM

SEC. 101. BIRTH THROUGH FIVE CHILD CARE AND EARLY LEARNING PROGRAM.

    (a) Child Care Definitions.--The definitions in section 658P of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n) 
shall apply to this section, except as provided in subsection (b) and 
as otherwise specified.
    (b) Additional Definitions.--In this section:
            (1) Child care certificate.--
                    (A) In general.--The term ``child care 
                certificate'' means a certificate (that may be a check 
                or other disbursement) that is issued by a State, 
                Tribal, territorial, or local government under this 
                section directly to a parent who shall use such 
                certificate only as payment for child care services or 
                as a deposit for child care services if such a deposit 
                is required of other children being cared for by the 
                provider.
                    (B) Rule.--Nothing in this section shall preclude 
                the use of such certificates for sectarian child care 
                services if freely chosen by the parent. For the 
                purposes of this section, child care certificates shall 
                be considered indirect Federal financial assistance to 
                the provider.
            (2) Child experiencing homelessness.--The term ``child 
        experiencing homelessness'' means an individual who is a 
        homeless child or youth under section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a).
            (3) Eligible activity.--The term ``eligible activity'', 
        with respect to a parent, shall include, at minimum, activities 
        consisting of--
                    (A) full-time or part-time employment;
                    (B) self-employment;
                    (C) job search activities;
                    (D) job training;
                    (E) secondary, postsecondary, or adult education, 
                including education through a program of high school 
                classes, a course of study at an institution of higher 
                education, classes towards an equivalent of a high 
                school diploma recognized by State law, or English as a 
                second language classes;
                    (F) health treatment (including mental health and 
                substance use treatment) for a condition that prevents 
                the parent from participating in other eligible 
                activities;
                    (G) activities to prevent child abuse and neglect, 
                or family violence prevention or intervention 
                activities;
                    (H) employment and training activities under the 
                Workforce Innovation and Opportunity Act (29 U.S.C. 
                3101 et seq.); and
                    (I) taking leave under the Family and Medical Leave 
                Act of 1993 (29 U.S.C. 2601 et seq.) (or equivalent 
                provisions for Federal employees), a State or local 
                paid or unpaid leave law, or a program of employer-
                provided leave.
            (4) Eligible child.--
                    (A) In general.--The term ``eligible child'' means 
                an individual--
                            (i) who is less than 6 years of age;
                            (ii) who is not yet in kindergarten; and
                            (iii) who--
                                    (I) resides with a parent or 
                                parents who are participating in an 
                                eligible activity;
                                    (II) is included in a population of 
                                vulnerable children identified by the 
                                lead agency involved, which at a 
                                minimum shall include children with 
                                disabilities, infants and toddlers with 
                                disabilities, children experiencing 
                                homelessness, children in foster care, 
                                children in kinship care, children in a 
                                family that is eligible for assistance 
                                through the special supplemental 
                                nutrition program for women, infants, 
                                and children established by section 17 
                                of the Child Nutrition Act of 1966 (42 
                                U.S.C. 1786), a household that is 
                                eligible to receive assistance through 
                                the supplemental nutrition assistance 
                                program established under the Food and 
                                Nutrition Act of 2008 (7 U.S.C. 2011 et 
                                seq.), or a family that is eligible to 
                                receive assistance through the program 
                                of block grants to States for temporary 
                                assistance for needy families 
                                established under part A of title IV of 
                                the Social Security Act (42 U.S.C. 601 
                                et seq.), and children who are 
                                receiving, or need to receive, child 
                                protective services; or
                                    (III) resides with--
                                            (aa) a parent who is more 
                                        than 65 years of age;
                                            (bb) a parent who is 
                                        employed by an eligible child 
                                        care provider; or
                                            (cc) a parent who is 
                                        enrolled in high school and has 
                                        not exceeded the maximum age of 
                                        enrollment in high school.
                    (B) Longer-term period eligibility.--An individual 
                who is determined to be an eligible child, and is a 
                child in foster care or a child experiencing 
                homelessness, shall not be required to reverify 
                eligibility for purposes of this title during the 
                period after the determination and before the 
                individual becomes 6 years of age or enters 
                kindergarten, whichever occurs earlier.
            (5) Eligible child care provider.--
                    (A) In general.--The term ``eligible child care 
                provider'' means a center-based child care provider, a 
                family child care provider, or other provider of child 
                care services for compensation that--
                            (i) is licensed to provide child care 
                        services under State law applicable to the 
                        child care services it provides or, in the case 
                        of an Indian Tribe or Tribal organization, 
                        meets the rules set by the Secretary;
                            (ii) participates in the State's tiered 
                        system for recognizing and supporting the 
                        quality of child care services described in 
                        subsection (f)(3)(B), or, in the case of an 
                        Indian Tribe or Tribal organization, meets the 
                        rules set by the Secretary--
                                    (I) not later than 4 years after 
                                the State first receives funds under 
                                this section; and
                                    (II) for the remainder of the 
                                period for which the provider receives 
                                funds under this section; and
                            (iii) satisfies the State and local 
                        requirements, including those requirements 
                        described in section 658E(c)(2)(I) of the Child 
                        Care and Development Block Grant Act of 1990 
                        (42 U.S.C. 9858c(c)(2)(I)), applicable to the 
                        child care services it provides.
                    (B) Special rule.--A child care provider who is 
                eligible to provide child care services in a State for 
                children receiving assistance under the Child Care and 
                Development Block Grant Act of 1990 (42 U.S.C. 9857 et 
                seq.) on the date the State submits an application for 
                funds under this section, and remains in compliance 
                with any licensing or registration standards, or 
                regulations, of the State, shall be deemed to be an 
                eligible child care provider under this section for 3.5 
                years after the State first receives funding under this 
                section.
            (6) FMAP.--The term ``FMAP'' has the meaning given the term 
        ``Federal medical assistance percentage'' in the first sentence 
        of section 1905(b) of the Social Security Act (42 U.S.C. 
        1396d(b)).
            (7) Family child care provider.--The term ``family child 
        care provider'' means one or more individuals who provide child 
        care services, in a private residence other than the residences 
        of the children involved, for less than 24 hours per day per 
        child, or for 24 hours per day per child due to the nature of 
        the work of the parent involved.
            (8) Inclusive care.--The term ``inclusive'', with respect 
        to care (including child care), means care provided by an 
        eligible child care provider--
                    (A) for whom the percentage of children served by 
                the provider who are children with disabilities or 
                infants or toddlers with disabilities reflects the 
                prevalence of children with disabilities and infants 
                and toddlers with disabilities (whichever the provider 
                serves) among children within the State involved; and
                    (B) that provides care and full participation for 
                children with disabilities and infants and toddlers 
                with disabilities (whichever the provider serves) 
                alongside children who are--
                            (i) not children with disabilities; and
                            (ii) not infants and toddlers with 
                        disabilities.
            (9) Infant or toddler.--The term ``infant or toddler'' 
        means an individual who is less than 3 years of age.
            (10) Infant or toddler with a disability.--The term 
        ``infant or toddler with a disability'' has the meaning given 
        the term in section 632 of the Individuals with Disabilities 
        Education Act (20 U.S.C. 1432).
            (11) Lead agency.--The term ``lead agency'' means the 
        agency designated under subsection (e).
            (12) Provider type.--The term ``provider type'' means a 
        type that is--
                    (A) a center-based child care provider;
                    (B) a family child care provider; or
                    (C) another non-center-based child care provider.
            (13) Staffed family child care network.--The term ``staffed 
        family child care network'' means a nonprofit organization--
                    (A) that may be a component of a child care 
                resource and referral organization;
                    (B) that has at least one paid staff member; and
                    (C) that offers evidence-based professional 
                development, quality improvement support, business 
                support, and technical assistance, including on 
                achieving licensure as a child care provider, to family 
                child care providers.
            (14) State.--The term ``State'' means any of the 50 States 
        and the District of Columbia.
            (15) Territory.--The term ``territory'' means the 
        Commonwealth of Puerto Rico, the Virgin Islands of the United 
        States, Guam, American Samoa, and the Commonwealth of the 
        Northern Mariana Islands.
    (c) Appropriations.--
            (1) Entitlement.--In addition to amounts otherwise 
        available, there is appropriated to the Department of Health 
        and Human Services, out of any money in the Treasury not 
        otherwise appropriated, such sums as may be necessary for each 
        of fiscal years 2024 through 2029, for payments to States, 
        territories, and Indian Tribes and Tribal organizations, and 
        for carrying out this section (other than carrying out 
        activities described in paragraph (2) or (3)).
            (2) Grants to localities; awards to head start agencies.--
        In addition to amounts otherwise available, there is 
        appropriated to the Department of Health and Human Services for 
        fiscal year 2024, out of any money in the Treasury not 
        otherwise appropriated, $20,000,000,000, to remain available 
        until September 30, 2029, to carry out the programs of grants 
        to localities and awards to Head Start agencies described in 
        subsection (i).
            (3) Federal administration.--In addition to amounts 
        otherwise available, there is appropriated to the Department of 
        Health and Human Services for fiscal year 2024, out of any 
        money in the Treasury not otherwise appropriated, 
        $1,300,000,000, to remain available until September 30, 2029, 
        to carry out subsections (k) and (l).
    (d) Establishment of Birth Through Five Child Care and Early 
Learning Entitlement Program.--
            (1) In general.--The Secretary is authorized to administer 
        a child care and early learning entitlement program under which 
        an eligible child, in a State, territory, or Indian Tribe, or 
        served by a Tribal organization with an approved application 
        under subsection (f) or (g), shall be provided an opportunity 
        to obtain high-quality child care services, subject to the 
        requirements of this section.
            (2) Assistance for every eligible child.--Beginning on 
        October 1, 2024, every child who applies for assistance under 
        this section, who is in a State with an approved application 
        under subsection (f), or in a territory or Indian Tribe or 
        served by a Tribal organization with an approved application 
        under subsection (g), and who is determined, by a lead agency 
        (or other entity designated by a lead agency) for the State, 
        territory, Indian Tribe, or Tribal organization involved, 
        following standards and procedures established by the Secretary 
        by rule, to be an eligible child, shall be offered and shall be 
        entitled to receive assistance for direct child care services 
        in accordance with and subject to the requirements and 
        limitations of this section.
    (e) Lead Agency.--The Governor of a State or the head of a 
territory or Indian Tribe, desiring for the State, territory, or Indian 
tribe or a related tribal organization to receive a payment under this 
section, shall designate a lead agency (such as a State agency or joint 
interagency office) to administer the child care program carried out 
under this section.
    (f) Applications and State Plans.--
            (1) Application.--To be eligible to receive assistance 
        under this section, a State shall prepare and submit to the 
        Secretary for approval an application containing a State plan 
        that meets the requirements under paragraph (3) and contains 
        that information.
            (2) Period covered by plan.--A State plan contained in the 
        application shall be designed to be implemented during a period 
        of not more than 3 years.
            (3) Requirements for state plans.--The Secretary shall 
        award funds under this section to States with an approved 
        application that contains a State plan, submitted under 
        paragraph (1), at such time, in such manner, and containing 
        such information as the Secretary shall by rule require, 
        including, at a minimum, the following:
                    (A) Payment rates and cost estimation.--
                            (i) Payment rates.--The State plan shall 
                        certify that payment rates for the provision of 
                        direct child care services for which assistance 
                        is provided in accordance with this section for 
                        the period covered by the plan, within 3 years 
                        after the State first receives funds under this 
                        section--
                                    (I) will be sufficient to meet the 
                                cost of child care (including fixed 
                                costs such as rent or mortgage and 
                                salaries), and set (with pay being 
                                paid) in accordance with a cost 
                                estimation model or cost study 
                                described in clause (ii) that is 
                                approved by the Secretary; and
                                    (II) will correspond to differences 
                                in quality (including improved quality) 
                                based on the State's tiered system for 
                                recognizing and supporting the quality 
                                of child care services described in 
                                subparagraph (B).
                            (ii) Cost estimation.--Such State plan 
                        shall--
                                    (I) demonstrate that the State has, 
                                after consulting with the entities and 
                                administrators described in subclause 
                                (II), developed and uses a 
                                statistically valid and reliable cost 
                                estimation model or cost study for the 
                                payment rates for direct child care 
                                services in the State (that are 
                                sufficient to cover providers' fixed 
                                costs and take into account payments 
                                made through BASE grants under title 
                                II), for the cost of child care at each 
                                of the tiers of the State's tiered 
                                system for recognizing and supporting 
                                the quality of child care services 
                                described in subparagraph (B), and for 
                                variations in the cost of direct child 
                                care services by geographic area, 
                                provider type, and age of child, and 
                                the additional costs associated with 
                                providing inclusive care;
                                    (II) certify that the entities and 
                                administrators consulted included the 
                                State Advisory Council on Early 
                                Childhood Education and Care designated 
                                or established in section 
                                642B(b)(1)(A)(i) of the Head Start Act 
                                (42 U.S.C. 9837b(b)(1)(A)(i)) 
                                (including State Head Start 
                                collaboration office directors), 
                                administrators of local child care 
                                programs and Head Start agencies, 
                                organizations representing child care 
                                directors, teachers, and other staff, 
                                local child care resource and referral 
                                organizations, organizations 
                                representing parents of children with 
                                disabilities and parents of infants and 
                                toddlers with disabilities, the State 
                                interagency coordinating council 
                                established under section 641 of the 
                                Individuals with Disabilities Education 
                                Act (20 U.S.C. 1441), the State 
                                advisory panel established under 
                                section 612(a)(21) of the Individuals 
                                with Disabilities Education Act (20 
                                U.S.C. 1412(a)(21)), and other 
                                appropriate entities;
                                    (III) certify that the State--
                                            (aa) not later than 30 days 
                                        after finalizing the cost 
                                        estimation model or cost study, 
                                        published a detailed report 
                                        containing the child care costs 
                                        estimated with the cost 
                                        estimation model or cost study, 
                                        and including an explanation 
                                        detailing how the wage 
                                        requirements described in 
                                        subclause (IV)(cc) were applied 
                                        in the estimation of such 
                                        costs; and
                                            (bb) not later than 60 days 
                                        after publishing the report, 
                                        established a system to receive 
                                        public comment on the report 
                                        about making changes to the 
                                        cost estimation model or cost 
                                        study, provided an opportunity 
                                        for the public to comment on 
                                        the report through that system, 
                                        and submitted the report to the 
                                        Secretary; and
                                    (IV) certify that the State's 
                                payment rates for direct child care 
                                services for which assistance is 
                                provided in accordance with this 
                                section--
                                            (aa) are set (with pay 
                                        being paid) in accordance with 
                                        the most recent estimates from 
                                        the most recent cost estimation 
                                        model or cost study under 
                                        subclause (I), so that 
                                        providers at each tier of the 
                                        tiered system for recognizing 
                                        and supporting the quality of 
                                        child care services described 
                                        in subparagraph (B) receive a 
                                        payment that is sufficient to 
                                        fully meet the requirements of 
                                        such tier;
                                            (bb) are set so as to 
                                        provide payments to providers 
                                        not at the top tier of the 
                                        tiered system that are 
                                        sufficient to enable the 
                                        providers to increase quality 
                                        to meet the requirements for 
                                        the next tier;
                                            (cc) ensure adequate wages 
                                        for staff of child care 
                                        providers providing such direct 
                                        child care services that--

                                                    (AA) at a minimum, 
                                                provide a living wage 
                                                for all staff of such 
                                                child care providers; 
                                                and

                                                    (BB) are equivalent 
                                                to wages for elementary 
                                                educators with similar 
                                                credentials and 
                                                experience in the 
                                                State; and

                                            (dd) are adjusted on an 
                                        annual basis for cost-of-living 
                                        increases to ensure those 
                                        payment rates remain sufficient 
                                        to meet the requirements of 
                                        this section;
                                    (V) certify that the State will 
                                update, not less often than once every 
                                3 years, the cost estimation model or 
                                cost study, following the process and 
                                in accordance with the requirements of 
                                this subparagraph; and
                                    (VI) certify that the State has 
                                established a system for appeals of the 
                                child care costs estimated with the 
                                cost estimation model or cost study.
                            (iii) Payment practices.--Such State plan 
                        shall include an assurance that the State will 
                        implement payment practices that support the 
                        fixed costs of providing direct child care 
                        services.
                    (B) Tiered system for recognizing and supporting 
                the quality of child care services.--Such State plan 
                shall certify that the State has implemented, or assure 
                that the State will develop or revise within 3 years 
                after first receiving funds under this section, with 
                input (from early childhood education and development 
                experts, from a diverse group of child care providers 
                of a variety of provider types, from families, and from 
                organizations representing child care directors, 
                teachers, and other staff), a tiered system for 
                recognizing and supporting the quality of child care 
                services for which assistance is made available under 
                this section, and that are inclusive and appropriate 
                for such child care providers. Such tiered system 
                shall--
                            (i) include a set of standards, for 
                        determining the tier of quality of a child care 
                        provider, that--
                                    (I) uses standards for a highest 
                                tier that at a minimum are equivalent 
                                to Head Start program performance 
                                standards described in section 
                                641A(a)(1)(B) of the Head Start Act (42 
                                U.S.C. 9836a(a)(1)(B)) or other 
                                equivalent evidence-based standards 
                                approved by the Secretary;
                                    (II) includes quality indicators 
                                and thresholds that are appropriate for 
                                child development for different types 
                                of provider types, including center-
                                based child care providers and family 
                                child care providers, and are 
                                appropriate for providers serving 
                                different age groups (including mixed 
                                age groups) of children; and
                                    (III) aligns standards for the 
                                lowest tier with State licensing 
                                requirements for child care providers 
                                described in subparagraph (K);
                            (ii) include a different set of standards 
                        that includes indicators, when appropriate, for 
                        care during nontraditional hours of operation; 
                        and
                            (iii) provide for sufficient resources and 
                        supports for child care providers at tiers 
                        lower than the highest tier to facilitate 
                        progression toward meeting higher quality 
                        standards.
                    (C) Achieving high quality for all children.--Such 
                State plan shall certify the State has implemented, or 
                will implement within 3 years after first receiving 
                funds under this section, policies and financing 
                practices that will ensure all eligible children can 
                choose to attend child care with services at the 
                highest quality tier within 10 years after the date of 
                enactment of this Act.
                    (D) Number and percentage of providers at each 
                tier.--Such plan shall provide information on the 
                number and percentage of eligible child care providers 
                with services at each tier of the State's tiered system 
                for recognizing and supporting the quality of child 
                care services described in subparagraph (B), in total 
                and disaggregated by geographic area, by provider race 
                and ethnicity, and by race and ethnicity and age of the 
                children served, unless the disaggregation involved 
                would reveal personally identifiable information about 
                an individual provider or child.
                    (E) Compensation.--Such plan shall provide a 
                certification that the State has or will have within 3 
                years after first receiving funds under this section, a 
                wage ladder for staff of eligible child care providers 
                receiving assistance under this section, including a 
                certification that wages for such staff, at a minimum, 
                will meet the requirements of subparagraph 
                (A)(ii)(IV)(cc).
                    (F) Sliding fee scale for copayments.--
                            (i) In general.--Except as provided in 
                        clause (ii)(I), the State plan shall provide an 
                        assurance that the State will for the period 
                        covered by the plan use a sliding fee scale, 
                        which shall gradually increase copayments as a 
                        percentage of family income for families with 
                        greater family incomes as described in clause 
                        (ii), to determine a copayment for a family 
                        receiving assistance under this section (or, 
                        for a family receiving part-time care, a 
                        reduced copayment that is the proportionate 
                        amount of the full copayment).
                            (ii) Sliding fee scale.--A full copayment 
                        described in clause (i) shall be determined 
                        using a sliding fee scale that provides that, 
                        for a family with a family income--
                                    (I) of not more than 85 percent of 
                                State median income for a family of the 
                                same size, the family shall not pay a 
                                copayment, toward the cost of the child 
                                care involved for all eligible children 
                                in the family;
                                    (II) of more than 85 percent but 
                                not more than 100 percent of State 
                                median income for a family of the same 
                                size, the copayment shall be more than 
                                0 but not more than 2 percent of that 
                                family income, toward such cost for all 
                                such children;
                                    (III) of more than 100 percent but 
                                not more than 125 percent of State 
                                median income for a family of the same 
                                size, the copayment shall be more than 
                                2 but not more than 4 percent of that 
                                family income, toward such cost for all 
                                such children;
                                    (IV) of more than 125 percent but 
                                not more than 150 percent of State 
                                median income for a family of the same 
                                size, the copayment shall be more than 
                                4 but not more than 7 percent of that 
                                family income, toward such cost for all 
                                such children; and
                                    (V) of more than 150 percent of the 
                                State median income for a family of the 
                                same size, the copayment shall be 7 
                                percent of that family income, toward 
                                such cost for all such children.
                    (G) Prohibition on charging more than copayment.--
                The State plan shall certify that, after the State 
                develops and uses the cost estimation model or cost 
                study described in subparagraph (A)(ii), the State will 
                not permit a child care provider receiving financial 
                assistance under this section to charge, for direct 
                child care services for an eligible child, more than 
                the total of--
                            (i) the financial assistance provided for 
                        the child under this section; and
                            (ii) any applicable copayment pursuant to 
                        subparagraph (F).
                    (H) Reduction of barriers.--The State plan shall 
                assure that each child who receives assistance under 
                this section will be considered to meet all eligibility 
                requirements for such assistance, and will receive such 
                assistance, for not less than 12 months unless the 
                child has aged out of the program, and the child's 
                eligibility determination and redetermination, 
                including any determination based on the State's 
                definition of eligible activities, shall be implemented 
                in a manner that supports child well-being and reduces 
                barriers to enrollment, including continuity of 
                services.
                    (I) Policies to support access to child care for 
                underserved populations.--The State plan shall 
                demonstrate that the State will prioritize increasing 
                access to, and the quality and the supply of, child 
                care in the State for underserved populations, 
                including at a minimum, children from low-income 
                families, children in underserved areas, infants and 
                toddlers, children with disabilities and infants and 
                toddlers with disabilities, children who are dual 
                language learners, children experiencing homelessness, 
                children in foster or kinship care, children who 
                receive care during nontraditional hours, and 
                vulnerable children as defined by the lead agency 
                pursuant to subsection (b)(4)(A)(iii)(II).
                    (J) Policies.--The State plan shall include a 
                certification that the State will apply, under this 
                section, the policies and procedures described in 
                subparagraphs (A), (B), (I), (J), (K)(i), (R), and (U) 
                of section 658E(c)(2) of the Child Care and Development 
                Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)), and 
                the policies and procedures described in section 658H 
                of such Act (42 U.S.C. 9858f), to child care services 
                provided under this section.
                    (K) Licensing.--
                            (i) Consultation.--The State plan shall 
                        demonstrate that the State has consulted or 
                        will consult with organizations (including 
                        labor organizations and child care and early 
                        learning organizations) representing eligible 
                        child care providers (including family child 
                        care providers), child care associations, child 
                        care directors, teachers, or other staff 
                        (including directors, teachers, or staff from 
                        child care providers serving higher proportions 
                        of underserved populations as identified under 
                        subparagraph (I)), early childhood education 
                        and development experts, maternal and child 
                        health experts, and families in the development 
                        of licensing standards described in this 
                        subparagraph, including identifying barriers to 
                        such licensing for child care providers who are 
                        exempt from such licensing under the Child Care 
                        and Development Block Grant of 1990 (42 U.S.C. 
                        9857 et seq.).
                            (ii) Licensing standards.--
                                    (I) In general.--The State plan 
                                shall certify that the State will 
                                develop or revise, within 2.5 years 
                                after first receiving funds under this 
                                section, licensing standards 
                                appropriate for child care providers of 
                                a variety of provider types and 
                                provider sizes (which may, when 
                                appropriate, include a different set of 
                                licensing standards with respect to 
                                care during nontraditional hours of 
                                operation) and a pathway to licensure 
                                described in this clause that is 
                                available to and appropriate for such 
                                child care providers, that will offer 
                                providers eligible under the Child Care 
                                and Development Block Grant Act of 1990 
                                (42 U.S.C. 9857 et seq.) a reasonable 
                                pathway to become eligible providers 
                                under this section, and that will 
                                assure an adequate supply of child 
                                care.
                                    (II) Determination.--For purposes 
                                of subclause (I), provider size shall 
                                be determined by measuring the number 
                                of children served by the provider.
                            (iii) Timeline.--Such plan shall describe 
                        the timeline the State will use to ensure 
                        sufficient time for providers described in 
                        subsection (b)(5)(B) to comply with such 
                        licensing standards in order to remain eligible 
                        providers after 3.5 years after the State first 
                        receives funding under this section.
                            (iv) Financial support for providers.--Such 
                        plan shall describe how the State will use 
                        funds reserved under subsection (h)(3)(A) to 
                        enable a variety of provider types to achieve 
                        licensure, including paying for the costs of 
                        required background checks, health screening, 
                        and initial and ongoing training, and other 
                        costs associated with achieving licensure.
                    (L) Prohibition on suspensions, expulsions, and 
                aversive behavioral interventions.--The State plan 
                shall provide an assurance that the State will--
                            (i) provide assistance to carry out this 
                        section only to eligible child care providers 
                        that prohibit--
                                    (I) the use of suspension and 
                                expulsion of children; and
                                    (II) the use of aversive behavioral 
                                interventions; and
                            (ii) provide training resources to eligible 
                        child care providers and information to 
                        families to support the prohibition of 
                        practices described in subclauses (I) and (II) 
                        of clause (i).
                    (M) Multitiered systems of support.--The State plan 
                shall provide an assurance that the State will provide 
                assistance to eligible child care providers to 
                implement multitiered systems of support such as 
                systems with positive behavioral interventions and 
                supports, infant and early childhood mental health 
                consultation and trauma-informed care that promote 
                positive social and emotional development and reduce 
                challenging behaviors.
                    (N) Enrollment practices.--
                            (i) In general.--The State plan shall 
                        describe how the lead agency will ensure that 
                        families have access to a low-barrier 
                        enrollment (including re-enrollment) process 
                        that is accessible to and minimizes burdens for 
                        families with diverse characteristics, by 
                        implementing activities such as allowing for 
                        simplified enrollment for siblings, 
                        coordinating with other State agencies to 
                        streamline enrollment processes across public 
                        assistance programs, requiring minimal 
                        paperwork, allowing for enrollment through a 
                        State or local website, and providing flexible 
                        submission deadlines.
                            (ii) Definition.--In this subparagraph, the 
                        term ``family with diverse characteristics'' 
                        includes families with adults with 
                        disabilities, with children with disabilities, 
                        or with infants and toddlers with disabilities, 
                        families experiencing homelessness, families 
                        with limited access to internet connectivity, 
                        families living in rural areas, families of 
                        dual language learners, and families with 
                        children in underserved populations identified 
                        under subparagraph (I).
                    (O) Implementation for low-income families.--The 
                State plan shall include a certification that the 
                applicant, not later than October 1, 2024, will provide 
                assistance described in subsection (d)(2) to every 
                child in the State who is described in that subsection, 
                and is from a family with a family income of not more 
                than 85 percent of the State median income for a family 
                of the same size, before the applicant expands the 
                program involved to provide such assistance to children 
                from additional families.
    (g) Payments.--
            (1) In general.--For each of fiscal years 2024 through 
        2029:
                    (A) Child care assistance for eligible children.--
                            (i) In general.--The Secretary shall pay to 
                        each State with an approved application under 
                        subsection (f), and that State shall be 
                        entitled to, an amount for each quarter equal 
                        to 90 percent of expenditures (which shall be 
                        the Federal share of such expenditures) in the 
                        quarter for direct child care services 
                        described under subsection (h)(2) for eligible 
                        children.
                            (ii) Exception.--Funds reserved from the 
                        total under subsection (h)(3) shall be subject 
                        to subparagraph (B).
                            (iii) Prohibition.--Activities described in 
                        subparagraph (B) or (C) may not be included in 
                        the cost of direct child care services 
                        described in this subparagraph.
                    (B) Activities to improve the quality and supply of 
                child care services.--The Secretary shall pay to each 
                State with such an approved application, and that State 
                shall be entitled to, the FMAP of expenditures (which 
                shall be the Federal share of such expenditures) to 
                carry out activities to improve the quality and supply 
                of child care services under subsection (h)(3) subject 
                to the limit specified in subparagraph (A) of such 
                subsection.
                    (C) Administration.--The Secretary shall pay to 
                each State with such an approved application, and that 
                State shall be entitled to, an amount equal to 50 
                percent of expenditures (which shall be the Federal 
                share of such expenditures) for the costs of 
                administration incurred by the State--
                            (i) which shall include costs incurred by 
                        the State in carrying out the child care 
                        program established in this section; and
                            (ii) which may include, at the option of 
                        the State, costs associated with carrying out 
                        requirements, policies, and procedures 
                        described in section 658H of the Child Care and 
                        Development Block Grant Act of 1990 (42 U.S.C. 
                        9858f).
            (2) Advance payment; retrospective adjustment.--For each of 
        fiscal years 2024 through 2029, the Secretary shall make 
        payments under this subsection for a period on the basis of 
        advance estimates of expenditures submitted by the State and 
        such other investigation as the Secretary may find necessary, 
        and shall reduce or increase the payments as necessary to 
        adjust for any overpayment or underpayment for previous 
        periods. No interest shall be charged or paid on any amount due 
        because of an overpayment or underpayment for previous periods.
            (3) Territories and tribes.--
                    (A) In general.--For each of fiscal years 2024 
                through 2029, from amounts appropriated under 
                subsection (c)(1) the Secretary shall make payments to 
                territories, and Indian Tribes and Tribal 
                organizations, as the case may be, with applications 
                submitted as described in subparagraph (B), and 
                approved by the Secretary for the purpose of carrying 
                out the child care program described in this section, 
                consistent, to the extent practicable as determined by 
                the Secretary (subject to subsection (d)(2)), with the 
                requirements applicable to States.
                    (B) Applications.--
                            (i) Tribal applications.--An Indian Tribe 
                        or Tribal organization seeking a payment under 
                        this paragraph shall submit an application to 
                        the Secretary at such time, in such manner, and 
                        containing such information as the Secretary 
                        may specify, including--
                                    (I) a certification described in 
                                subsection (f)(3)(O), except that each 
                                reference in the subsection to ``child 
                                in the State'' shall be considered to 
                                be a reference to ``child served by the 
                                Indian Tribe or Tribal organization, as 
                                the case may be,''; and
                                    (II) an agreement to collect data 
                                and provide reports under subsection 
                                (n).
                            (ii) Territorial applications.--A territory 
                        seeking a payment under this paragraph shall 
                        submit an application to the Secretary at such 
                        time, in such manner, and containing such 
                        information as the Secretary may specify, 
                        including--
                                    (I) a certification described in 
                                subsection (f)(3)(O), except that each 
                                reference in the subsection to ``child 
                                in the State'' shall be considered to 
                                be a reference to ``child in the 
                                territory''; and
                                    (II) an agreement to collect data 
                                and provide reports under subsection 
                                (n).
                    (C) Amount.--The Secretary shall make the payments 
                to the territories, Indian Tribes, and Tribal 
                organizations described in subparagraph (A) on the 
                basis of their relative need. Each entity that is such 
                a territory, Indian Tribe, or Tribal organization shall 
                be entitled to such a payment as may be necessary to 
                carry out the activities described in subsection (h), 
                and to pay for the costs of administration incurred by 
                the entity, which shall include costs incurred by the 
                entity in carrying out the child care program, and 
                which may include, at the option of the entity, costs 
                associated with carrying out requirements, policies, 
                and procedures described in section 658H of the Child 
                Care and Development Block Grant Act of 1990.
    (h) Use of Funds.--
            (1) In general.--Starting on October 1, 2024, a State shall 
        use amounts provided to the State under subsection (g) for 
        direct child care services (provided on a sliding fee scale 
        basis), activities to improve the quality and supply of child 
        care services consistent with paragraph (3), and State 
        administration consistent with subsection (g)(1)(C).
            (2) Child care assistance for eligible children.--
                    (A) In general.--For each of fiscal years 2024 
                through 2029, from payments made to the State under 
                subsection (g) for that particular fiscal year, the 
                State shall ensure that parents of eligible children 
                can access direct child care services provided by an 
                eligible child care provider under this section through 
                a grant or contract as described in subparagraph (B) or 
                a certificate as described in subparagraph (C).
                    (B) Grants and contracts.--The State shall award 
                grants or contracts to eligible child care providers, 
                consistent with the requirements under this section, 
                for the provision of child care services for eligible 
                children under this section that, at a minimum, support 
                providers' operating expenses to meet and sustain 
                health, safety, quality, and wage standards required 
                under this section.
                    (C) Certificates.--The State shall issue a child 
                care certificate directly to a parent who shall use 
                such certificate only as payment for direct child care 
                services or as a deposit for direct child care services 
                if such a deposit is required of other children being 
                cared for by the provider, consistent with the 
                requirements under this section.
            (3) Activities to improve the quality and supply of child 
        care services.--
                    (A) Quality child care activities.--
                            (i) Amount.--For each of fiscal years 2024 
                        through 2029, from the total of the payments 
                        made to the State for a particular fiscal year, 
                        the State shall reserve and use a quality child 
                        care amount equal to not less than 5 percent 
                        and not more than 10 percent of the amount made 
                        available to the State through such payments 
                        for the previous fiscal year.
                            (ii) Use of quality child care amount.--
                        Each State shall use the quality child care 
                        amount described in clause (i) to implement 
                        activities described in this paragraph to 
                        improve the quality and supply of child care 
                        services by eligible child care providers, and 
                        increase the number of available slots in the 
                        State for child care services funded under this 
                        section, prioritizing assistance for child care 
                        providers who are in underserved communities 
                        and who are providing, or are seeking to 
                        provide, child care services for underserved 
                        populations identified under subsection 
                        (f)(3)(I).
                            (iii) Administration.--Activities funded 
                        under this paragraph may be administered--
                                    (I) directly by the lead agency; or
                                    (II) through other State government 
                                agencies, local or regional child care 
                                resource and referral organizations, 
                                community development financial 
                                institutions, other intermediaries with 
                                experience supporting child care 
                                providers, or other appropriate 
                                entities that enter into a contract 
                                with the State to provide such 
                                assistance.
                    (B) Quality and supply activities.--Activities 
                funded under the quality child care amount described in 
                subparagraph (A) shall include each of the following:
                            (i) Startup grants and supply expansion 
                        grants.--
                                    (I) In general.--From a portion of 
                                the quality child care amount, a State 
                                shall make startup and supply expansion 
                                grants to support child care providers 
                                who are providing, or seeking to 
                                provide, child care services to 
                                children receiving assistance under 
                                this section, with priority for 
                                providers providing or seeking to 
                                provide child care in underserved 
                                communities and for underserved 
                                populations identified under subsection 
                                (f)(3)(I), to--
                                            (aa) support startup and 
                                        expansion costs; and
                                            (bb) assist such providers 
                                        in meeting health and safety 
                                        requirements, achieving 
                                        licensure, conducting 
                                        background checks, and meeting 
                                        requirements in the State's 
                                        tiered system for recognizing 
                                        and supporting the quality of 
                                        child care services described 
                                        in subsection (f)(3)(B).
                                    (II) Requirement.--As a condition 
                                of receiving a startup or supply 
                                expansion grant under this clause, a 
                                child care provider shall commit to 
                                meeting the requirements of an eligible 
                                provider under this section, and 
                                providing child care services to 
                                children receiving assistance under 
                                this section on an ongoing basis.
                            (ii) Quality grants.--From a portion of the 
                        quality child care amount, a State shall 
                        provide quality grants to support eligible 
                        child care providers in providing child care 
                        services to children receiving assistance under 
                        this section to improve the quality of such 
                        providers, including--
                                    (I) supporting such providers in 
                                meeting or making progress toward the 
                                requirements for the highest tier of 
                                the State's tiered system for 
                                recognizing and supporting the quality 
                                of child care services described in 
                                subsection (f)(3)(B); and
                                    (II) supporting such providers in 
                                sustaining child care quality, 
                                including supporting increased wages 
                                for staff and supporting payment of 
                                fixed costs.
                            (iii) Facilities grants.--From a portion of 
                        the quality child care amount, a State shall 
                        provide support, including through awarding 
                        facilities grants, for an activity (referred to 
                        in this subparagraph as a ``covered activity'') 
                        consisting of remodeling, renovation, or repair 
                        of a building or facility, or for construction, 
                        permanent improvement, or major renovation of a 
                        building or facility primarily used for 
                        providing direct child care services, in 
                        accordance with the following:
                                    (I) Recipients.--The facilities 
                                grants shall be awarded to eligible 
                                child care providers with submitted or 
                                approved applications under subsection 
                                (f) or (g) or to intermediaries with 
                                experience supporting child care 
                                providers in order to enable the 
                                intermediaries to assist such eligible 
                                child care providers with covered 
                                activities.
                                    (II) Eligibility.--To be eligible 
                                to receive funds through a facilities 
                                grant under this clause, a child care 
                                provider shall enter into an agreement 
                                with the State in which the provider 
                                commits to use the funds only after 
                                obtaining approval of an application 
                                under subsection (f) or (g) and commits 
                                to provide child care services to 
                                children receiving assistance under 
                                this section on an ongoing basis.
                                    (III) Federal interest 
                                application.--Provisions of Federal law 
                                relating to a Federal interest in a 
                                building or facility shall not apply to 
                                a covered activity for privately owned 
                                family child care homes under this 
                                clause.
                                    (IV) Federal interest duration.--
                                The Secretary shall not retain a 
                                Federal interest after a period of 10 
                                years in any building, or facility, at 
                                which a covered activity was carried 
                                out with funds awarded under this 
                                clause.
                                    (V) Religious buildings and 
                                facilities.--Eligible child care 
                                providers may not use funds for 
                                buildings or facilities that are used 
                                primarily for sectarian instruction or 
                                religious worship.
                                    (VI) Family child care homes.--The 
                                Secretary shall develop parameters on 
                                the use of funds under this clause for 
                                family child care homes.
                            (iv) State activities to improve the 
                        quality of child care services.--A State shall 
                        use a portion of the quality child care amount 
                        to improve the quality of child care services 
                        available under this section, which shall 
                        include--
                                    (I) supporting the training and 
                                professional development of the early 
                                childhood workforce, including 
                                supporting degree attainment and 
                                credentialing for early childhood 
                                educators;
                                    (II) developing, implementing, or 
                                revising the State's tiered system for 
                                recognizing and supporting the quality 
                                of child care services described in 
                                subsection (f)(3)(B);
                                    (III) improving the supply and 
                                quality of developmentally appropriate 
                                and inclusive child care programs and 
                                services for underserved populations 
                                identified under subsection (f)(3)(I);
                                    (IV) improving access to child care 
                                services for vulnerable children as 
                                defined by the lead agency pursuant to 
                                subsection (b)(4)(A)(iii)(II);
                                    (V) providing outreach and 
                                enrollment support for families of 
                                eligible children;
                                    (VI) supporting eligible child care 
                                providers to eliminate use of 
                                suspensions, expulsions, and aversive 
                                behavioral interventions, including 
                                through adaptations and interventions 
                                by special educators, mental health 
                                consultants, and other community 
                                resource personnel, such as behavior 
                                coaches, psychologists, and other 
                                appropriate specialists, and through 
                                the provision of mental health services 
                                for the providers;
                                    (VII) promoting multitiered systems 
                                of support such as systems with 
                                positive behavioral interventions and 
                                supports and trauma-informed care that 
                                promote positive social and emotional 
                                development and reduce challenging 
                                behaviors;
                                    (VIII) offering training, coaching, 
                                or professional development 
                                opportunities for eligible child care 
                                providers that relate to the use of 
                                evidence-based, developmentally 
                                appropriate and age-appropriate 
                                strategies to promote the social, 
                                emotional, physical, adaptive, 
                                communication, and cognitive 
                                development of children;
                                    (IX) improving coordination between 
                                States and local governments with 
                                respect to licensing and other 
                                regulatory requirements for eligible 
                                child care providers;
                                    (X) increasing interrater 
                                reliability concerning licensing 
                                inspections or other evaluations of 
                                eligible child care providers by 
                                training licensing inspectors of the 
                                providers and providing such inspectors 
                                with additional professional 
                                development;
                                    (XI) identifying and eliminating 
                                barriers to licensure of eligible child 
                                care providers, such as through 
                                reducing fees for background checks, 
                                translating licensing regulations into 
                                languages other than English, and 
                                collaborating with housing agencies or 
                                local governments; and
                                    (XII) establishing or supporting a 
                                system of local or regional child care 
                                resource and referral organizations 
                                that is coordinated, to the extent 
                                determined appropriate by the State, by 
                                a statewide public or private 
                                nonprofit, community-based or 
                                regionally based, lead child care 
                                resource and referral organization, as 
                                described in section 658E(c)(3)(B)(iii) 
                                of the Child Care and Development Block 
                                Grant Act of 1990 (42 U.S.C. 
                                9858c(c)(3)(B)(iii)).
                            (v) Technical assistance.--From a portion 
                        of the quality child care amount described in 
                        subparagraph (A), the State, in coordination 
                        with local governments and staffed family child 
                        care networks as appropriate, shall provide 
                        technical assistance to increase the supply of 
                        eligible child care providers in the State, 
                        such as--
                                    (I) providing business startup 
                                support;
                                    (II) conducting outreach to recruit 
                                new child care providers and inform 
                                such providers about the opportunities 
                                provided under this title, including 
                                support for participation in the tiered 
                                system for recognizing and supporting 
                                the quality of child care services 
                                described in subsection (f)(3)(B);
                                    (III) providing support to enable 
                                providers to achieve licensure 
                                (including providing support for child 
                                care providers operating legally 
                                without a child care license to obtain 
                                such license, such as providing, for 
                                individuals seeking a child care 
                                license, pre-licensing orientation and 
                                technical assistance throughout the 
                                child care licensing process);
                                    (IV) offering orientations for new 
                                child care providers including 
                                orientations explaining support under 
                                programs such as the child and adult 
                                care food program established under 
                                section 17 of the Richard B. Russell 
                                National School Lunch Act (42 U.S.C. 
                                1766); and
                                    (V) supporting the development of 
                                shared service models for child care 
                                programs.
    (i) Grants to Localities and Awards to Head Start Programs.--
            (1) Eligible locality defined.--In this subsection, the 
        term ``eligible locality'' means a city, county, or other unit 
        of general local government.
            (2) Grants to localities.--
                    (A) In general.--The Secretary shall use funds 
                appropriated under subsection (c)(2) to award local 
                Birth Through Five Child Care and Early Learning 
                Grants, as determined by the Secretary, to eligible 
                localities located in States that have not received 
                payments under subsection (g). The Secretary shall 
                award the grants to eligible localities in such a State 
                from the allotment made for that State under 
                subparagraph (B).
                    (B) Allotments.--
                            (i) Poverty line defined.--In this 
                        subparagraph, the term ``poverty line'' means 
                        the poverty line defined and revised as 
                        described in section 673 of the Community 
                        Services Block Grant Act (42 U.S.C. 9902).
                            (ii) General authority.--For each State 
                        described in subparagraph (A), the Secretary 
                        shall allot for the State for a fiscal year an 
                        amount that bears the same relationship to the 
                        funds appropriated under subsection (c)(2) and 
                        available to carry out this paragraph for the 
                        fiscal year as the number of children from 
                        families with family incomes that are at or 
                        below 200 percent of the poverty line, and who 
                        are under the age of 6, in the State bears to 
                        the total number of all such children in all 
                        States described in subparagraph (A).
                    (C) Application.--To receive a grant from the 
                corresponding State allotment under subparagraph (B), 
                an eligible locality shall submit an application to the 
                Secretary at such time, in such manner, and containing 
                such information as the Secretary may require. The 
                requirements for the application shall, to the greatest 
                extent practicable, be consistent with the State plan 
                requirements applicable to States under subsection (f).
                    (D) Requirements.--The Secretary shall specify the 
                requirements for an eligible locality to provide access 
                to child care, which child care requirements shall, to 
                the greatest extent practicable, be consistent with the 
                requirements applicable to States under this section.
                    (E) Recoupment of unused funds.--Notwithstanding 
                any other provision of this section, for each of fiscal 
                years 2025 through 2029, the Secretary shall have the 
                authority to recoup any unused funds allotted under 
                subparagraph (B) for awards under paragraph (3)(A) to 
                Head Start agencies in accordance with paragraph (3).
            (3) Head start expansion in nonparticipating states.--
                    (A) In general.--The Secretary shall use funds 
                appropriated under subsection (c)(2) or recouped under 
                paragraph (2) to make awards to Head Start agencies in 
                a State described in paragraph (2)(A) to carry out the 
                purposes of the Head Start Act (42 U.S.C. 9831 et seq.) 
                in such State.
                    (B) Rule.--For purposes of carrying out the Head 
                Start Act in circumstances not involving awards under 
                this paragraph, funds awarded under subparagraph (A) 
                shall not be included in the calculation of a ``base 
                grant'' as such term is defined in section 640(a)(7)(A) 
                of the Head Start Act (42 U.S.C. 9835(a)(7)(A)).
                    (C) Definition.--In this paragraph, the term ``Head 
                Start agency'' means an entity designated or eligible 
                to be designated as a Head Start agency under section 
                641(a)(1) of the Head Start Act (42 U.S.C. 9836(a)(1)) 
                or as an Early Head Start agency (by receiving a grant) 
                under section 645A(a) of such Act (42 U.S.C. 9840a).
            (4) Priority for serving underserved populations.--In 
        making determinations to award a grant or make an award under 
        this subsection, the Secretary shall give priority to entities 
        serving a high percentage of individuals from underserved 
        populations identified under subsection (f)(3)(I).
    (j) Program Requirements.--
            (1) Nondiscrimination.--The following provisions of law 
        shall apply to any program or activity that receives funds 
        provided under this section:
                    (A) Title IX of the Education Amendments of 1972 
                (20 U.S.C. 1681 et seq.).
                    (B) Title VI of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d et seq.).
                    (C) Section 504 of the Rehabilitation Act of 1973 
                (29 U.S.C. 794).
                    (D) The Americans with Disabilities Act of 1990 (42 
                U.S.C. 12101 et seq.).
            (2) Prohibition on additional eligibility requirements.--No 
        individual shall be determined, by the Secretary, a State, or 
        another recipient of funds under this section, to be ineligible 
        for child care services provided under this section, except on 
        the basis of eligibility requirements specified in or under 
        this section.
            (3) Maintenance of effort.--
                    (A) In general.--A State that receives payments 
                under this section for a fiscal year, in using the 
                funds made available through the payments, shall 
                maintain the expenditures of the State for child care 
                services at the average level of such expenditures by 
                the State for the 3 preceding fiscal years.
                    (B) Counting rule.--State expenditures counted for 
                purposes of meeting the requirement in subparagraph (A) 
                may also be counted for purposes of meeting the 
                requirement to provide a non-Federal share under 
                subparagraph (A), (B), or (C), as appropriate, of 
                subsection (g)(1).
            (4) Supplement not supplant.--Funds received under this 
        section shall be used to supplement and not supplant other 
        Federal, State, and local public funds expended to provide 
        child care services in the State on the date of enactment of 
        this Act, calculated as the average amount of such Federal, 
        State, and local public funds expended for fiscal years 2021, 
        2022, and 2023.
            (5) Allowable sources of non-federal share.--For purposes 
        of providing the non-Federal share required under subsection 
        (g)(1), a State's non-Federal share--
                    (A) for direct child care services described in 
                subsection (g)(1)(A)--
                            (i) shall not include contributions being 
                        used as a non-Federal share or match for 
                        another Federal award; and
                            (ii) shall be provided from State or local 
                        sources, contributions from philanthropy or 
                        other private organizations, or a combination 
                        of such sources and contributions; and
                    (B) for activities to improve the quality and 
                supply of child care services described in subsection 
                (g)(1)(B), and administration described in subsection 
                (g)(1)(C)--
                            (i) shall not include contributions being 
                        used as a non-Federal share or match for 
                        another Federal award;
                            (ii) shall be provided from State or local 
                        sources, contributions from philanthropy or 
                        other private organizations, or a combination 
                        of such sources and contributions; and
                            (iii) may be in cash or in kind, fairly 
                        evaluated, including facilities or property, 
                        equipment, or services.
    (k) Monitoring and Enforcement.--
            (1) Review of compliance with requirements and state 
        plan.--The Secretary shall review and monitor compliance of 
        States, territories, Tribal entities, and local entities with 
        this section and State compliance with the State plan described 
        in subsection (f)(3).
            (2) Issuance of rule.--The Secretary shall establish by 
        rule procedures for--
                    (A) receiving, processing, and determining the 
                validity of complaints or findings concerning any 
                failure of a State to comply with the State plan or any 
                other requirement of this section;
                    (B) notifying a State when the Secretary has 
                determined there has been a failure by the State to 
                comply with a requirement of this section; and
                    (C) imposing sanctions under this subsection for 
                such a failure.
    (l) Federal Administration.--Using funds appropriated under 
subsection (c)(3), the Secretary shall carry out administration of this 
section, shall provide (including through the use of grants or 
cooperative agreements) technical assistance to States, territories, 
Indian Tribes, and Tribal organizations, and shall carry out research 
and evaluations related to this section.
    (m) Nonpostsecondary Education Program.--For purposes of section 
401 of the Act entitled ``An Act to provide for reconciliation pursuant 
to section 201(a)(1) of the concurrent resolution on the budget for 
fiscal year 1997'', approved August 22, 1996, the program carried out 
under this section shall be considered to be a program of 
nonpostsecondary education.
    (n) Reports.--
            (1) Collection of information by states.--
                    (A) In general.--A State that receives funds to 
                carry out this section shall collect the information 
                described in subparagraph (B) on a monthly basis.
                    (B) Required information.--The information required 
                to be collected under this subparagraph shall consist 
                of, with respect to a family receiving assistance under 
                this section, information concerning--
                            (i) family income;
                            (ii) county (or comparable local 
                        jurisdiction) of residence;
                            (iii) the gender, race and ethnicity, and 
                        age of each child receiving such assistance;
                            (iv) whether the head of the family is a 
                        single parent;
                            (v) the number of months the family has 
                        received such assistance;
                            (vi) the provider type with which the child 
                        was enrolled;
                            (vii) the amount of the copayment paid for 
                        child care provided under this section;
                            (viii) the average hours per month of such 
                        care, during the period for which such 
                        information is required to be submitted; and
                            (ix) whether the children receiving 
                        assistance under this section are either 
                        children with disabilities or infants and 
                        toddlers with disabilities.
                    (C) Submission to the secretary.--A State described 
                in subparagraph (A) shall, on a quarterly basis, submit 
                the information required to be collected under 
                subparagraph (B) to the Secretary.
                    (D) Use of samples.--
                            (i) Authority.--A State may comply with the 
                        requirement to collect the information 
                        described in subparagraph (B) through the use 
                        of disaggregated case record information for a 
                        sample of families selected through the use of 
                        scientifically acceptable sampling methods 
                        approved by the Secretary.
                            (ii) Sampling and other methods.--The 
                        Secretary shall provide the States with such 
                        case record sampling plans and data collection 
                        procedures as the Secretary determines to be 
                        necessary to produce statistically valid 
                        samples of the information described in 
                        subparagraph (B). The Secretary may develop and 
                        implement procedures for verifying the quality 
                        of the data submitted by the States.
                    (E) Prohibition.--Reports submitted to the 
                Secretary under subparagraph (C) shall not contain 
                personally identifiable information.
            (2) Annual reports.--Not later than 1 year after the date 
        of enactment of the Child Care for Working Families Act, and 
        annually thereafter, a State shall prepare and submit to the 
        Secretary a report containing such information as the Secretary 
        may require, that includes at a minimum, the description and 
        analysis described in paragraph (3) and aggregate data 
        concerning--
                    (A) the number of child care providers that 
                received funding under this section and licensed 
                capacity of such providers, and such data disaggregated 
                by provider type, by the quality rating on the State's 
                tiered system for recognizing and supporting the 
                quality of child care services described in subsection 
                (f)(3)(B) (referred to in this subsection as the 
                ``quality rating'') of such providers, and by the 
                geographic area of such providers;
                    (B)(i) the total number of children, and families 
                with children, receiving child care services funded 
                under this section;
                    (ii) the percentage of children, and families with 
                children, receiving child care services funded under 
                this section, among all children less than 6 years of 
                age, and all families with such children, respectively, 
                in all States; and
                    (iii) the data described in clause (i), and the 
                data described in clause (ii), disaggregated for 
                children, and families with children, by--
                            (I) race and ethnicity of the child 
                        involved;
                            (II) family income of the child's family;
                            (III) age of the child;
                            (IV) the child's status as an infant or 
                        toddler with a disability or child with a 
                        disability;
                            (V) the child's status as a child 
                        experiencing homelessness;
                            (VI) the child's status as a child in 
                        foster care; and
                            (VII) the child's status (to the extent the 
                        status is known) as a dual language learner;
                    (C) the monthly child care subsidy payment rate 
                paid to eligible child care providers for child care 
                services funded under this section, as determined by 
                the State's cost estimation model or cost study 
                described in subsection (f)(3)(A)(i), including any 
                variation in the rate by geographic area, provider 
                type, age of child, and costs associated with providing 
                inclusive care;
                    (D) the amount of the copayment paid by families 
                for such child care services, and such data 
                disaggregated by family income;
                    (E) the number and percentage of payments made by 
                the State for such services to eligible child care 
                providers through certificates, grants, and contracts, 
                and such data disaggregated by provider type;
                    (F) the manner in which consumer education 
                information was provided to parents and the number of 
                parents to whom such information was provided under 
                this section;
                    (G) the number of child fatalities occurring among 
                children while in the care or facility of child care 
                providers funded under this section, and such data 
                disaggregated by provider type;
                    (H) the geographic area of child care providers 
                funded under this section;
                    (I) the quality features of child care services 
                provided by providers funded under this section, 
                compared to the quality features of child care services 
                provided by other child care providers, to the extent 
                possible, including data on quality features such as--
                            (i) amount of staff wages and other 
                        compensation (including benefits);
                            (ii) length of staff retention;
                            (iii) presence of coaching and professional 
                        development activities;
                            (iv) number of providers remaining open 
                        through the year covered;
                            (v) measured parent satisfaction; and
                            (vi) presence of provision of information 
                        in languages other than English;
                    (J) the quality features of child care services 
                received by children and funded under this section, and 
                such data disaggregated by the children's--
                            (i) race and ethnicity;
                            (ii) family income;
                            (iii) age;
                            (iv) status as an infant or toddler with a 
                        disability or child with a disability;
                            (v) status as a child experiencing 
                        homelessness;
                            (vi) status as a child in foster care; and
                            (vii) status (to the extent the status is 
                        known) as a dual language learner;
                    (K) the number of child care providers, listed by 
                provider type, geographic area, and provider quality 
                rating, that received--
                            (i) a startup or supply expansion grant 
                        under subsection (h)(3)(B)(i);
                            (ii) a quality grant under subsection 
                        (h)(3)(B)(ii); or
                            (iii) a facilities grant under subsection 
                        (h)(3)(B)(iii); and
                    (L) the average wages (including salaries), or 
                other compensation for staff of eligible child care 
                providers funded under this section, and such data 
                disaggregated by provider type, job position type, and 
                to the extent possible, staff race and ethnicity.
            (3) Description and analysis.--The State shall include in 
        each report described in paragraph (2)--
                    (A) a description of whether there are inequities 
                in how child care providers with quality features 
                described in paragraph (2)(I) are distributed among 
                children served under this section; and
                    (B) an analysis of the State's child care supply, 
                including an analysis of the number of child care slots 
                with licensed child care providers that were added or 
                lost by the State in the covered year, and trends in 
                such addition or loss by provider type and quality 
                rating of child care provider.
            (4) Rule on disaggregation.--Nothing in this paragraph 
        shall require disaggregation of data if the disaggregation 
        involved would reveal personally identifiable information about 
        an individual provider or child.
    (o) Reports to Congress.--The Secretary shall--
            (1) submit an annual report to the Committee on Health, 
        Education, Labor, and Pensions and the Committee on 
        Appropriations of the Senate and the Committee on Education and 
        the Workforce and the Committee on Appropriations of the House 
        of Representatives, summarizing the findings from the reports 
        received under subsection (n)(2); and
            (2) make such report publicly available on the website of 
        the Department of Health and Human Services.
    (p) Transition Provisions.--
            (1) Treatment of child care and development block grant 
        funds.--For each of fiscal years 2024 through 2029, a State 
        receiving assistance under this section shall not use more than 
        15 percent of any funds received under the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) to 
        provide assistance for direct child care services to children 
        who are under the age of 6, are not yet in kindergarten, and 
        are eligible under that Act.
            (2) Special rules regarding eligibility.--Any child who is 
        less than 6 years of age, is not yet in kindergarten, and is 
        receiving assistance under the Child Care and Development Block 
        Grant Act of 1990 on the date funding is first allocated to the 
        lead agency for the State, territory, Indian Tribe, or Tribal 
        organization involved under this section--
                    (A) shall be deemed immediately eligible to receive 
                assistance under this section; and
                    (B) may continue to use the child care provider of 
                the family's choice.
            (3) Transition procedures.--The Secretary is authorized to 
        institute procedures for implementing this section, including 
        issuing guidance for States receiving funds under subsection 
        (g).

   TITLE II--BUILDING AN AFFORDABLE SYSTEM FOR EARLY EDUCATION GRANTS

SEC. 201. PURPOSES.

    The purposes of this title are to make child care services more 
accessible for families and to support the stability and quality of 
eligible child care providers by--
            (1) promoting the stability of the child care sector by 
        providing a source of stable funding to eligible child care 
        providers to help offset their operating expenses;
            (2) supporting sustained and increased wages for early 
        childhood educators or other staff of eligible child care 
        providers, in order to stabilize and grow the child care 
        workforce;
            (3) expanding the supply and capacity of eligible child 
        care providers to ensure working families have a range of high-
        quality, affordable child care options, in a variety of 
        settings, that meet their unique needs; and
            (4) supporting access to child care services for 
        communities facing a particular shortage of child care options, 
        including child care services for infants and toddlers, child 
        care services during nontraditional or extended hours, and 
        inclusive child care services for children with disabilities.

SEC. 202. DEFINITIONS.

    In this title:
            (1) CCDBG terms.--The terms ``child care certificate'', 
        ``child with a disability'', ``family child care provider'', 
        ``lead agency'', ``Secretary'', and ``State'' have the meanings 
        given the terms in section 658P of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858n). The 
        terms ``Indian Tribe'' and ``Tribal organization'' have the 
        meanings given the terms ``Indian tribe'' and ``tribal 
        organization'' in section 658P of that Act.
            (2) Eligible child care provider.--The term ``eligible 
        child care provider'' means--
                    (A) an eligible child care provider as defined in 
                section 658P of the Child Care and Development Block 
                Grant Act of 1990; and
                    (B) an eligible child care provider as defined in 
                title I.
            (3) Infant or toddler.--The term ``infant or toddler'' 
        means an individual who is less than 3 years of age.
            (4) Infant or toddler with a disability.--The term ``infant 
        or toddler with a disability'' has the meaning given the term 
        in section 101(b).
            (5) Provider type.--The term ``provider type'' means a type 
        that is--
                    (A) a center-based child care provider;
                    (B) a family child care provider; or
                    (C) another non-center-based child care provider.

SEC. 203. SECRETARIAL RESERVATION.

    From the funds appropriated to carry out this title, the Secretary 
shall reserve not more than 3 percent for the Federal administration of 
grants described in section 204, which may include providing technical 
assistance to the lead agencies.

SEC. 204. GRANTS.

    (a) In General.--From the amounts appropriated to carry out this 
title that remain after the Secretary makes the reservation required 
under section 203, and under the authority of section 658O of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m) and this 
section, the Secretary shall award to each lead agency a BASE Grant, 
without regard to the requirements in subparagraphs (C) and (E) of 
section 658E(c)(3), and in section 658G, of that Act (42 U.S.C. 
9858c(c)(3), 9858e). Such grant shall be made from an amount allotted 
in accordance with section 658O of that Act (42 U.S.C. 9858m), 
excluding paragraphs (3) through (5) of subsection (a) of that section.
    (b) Payments for Indian Children.--In accordance with section 658O 
of that Act, the Secretary may make BASE Grants to Indian Tribes or 
Tribal organizations for the planning and carrying out of programs or 
activities consistent with the objectives of this title.

SEC. 205. STATE APPLICATION.

    To be eligible to receive a grant under section 204, a lead agency 
shall submit an application to the Secretary at such time, in such 
manner, and including such information as the Secretary may reasonably 
require, including--
            (1) a description of the process the lead agency will 
        establish to award subgrant funds to eligible child care 
        providers under this title;
            (2) a description of how the lead agency will, in 
        determining the subgrant amount for an eligible child care 
        provider under this title--
                    (A) ensure such subgrant is sufficient to support 
                the ongoing operations and long-term sustainability of 
                the eligible child care provider;
                    (B) account for the cost of providing high-quality 
                child care services, including--
                            (i) variations in the cost of child care 
                        services related to geographic area, provider 
                        type, size of provider, and age of child 
                        served;
                            (ii) costs associated with providing care 
                        during nontraditional or extended hours;
                            (iii) costs associated with serving 
                        children with disabilities, including infants 
                        and toddlers with disabilities; and
                            (iv) costs associated with meeting group 
                        sizes and ratios necessary to support high-
                        quality and inclusive child care services, 
                        including for infants and toddlers;
                    (C) account for the cost of attracting, training, 
                and retaining a qualified and skilled workforce, which 
                shall include at a minimum, supporting increased wages 
                for all staff of the provider, as described in section 
                209(5); and
                    (D) if the lead agency uses a formula for awarding 
                such a subgrant that is based on general cost 
                estimates, base such estimates on the provider's 
                enrollment capacity rather than attendance;
            (3) a description of how the lead agency will work with the 
        eligible child care providers to improve the quality of child 
        care services, which may include improving the State's tiered 
        system for recognizing and supporting the quality of child care 
        services described in section 101(f)(3)(B); and
            (4) a description of how the lead agency will use funds 
        reserved under section 207(a)(1) to conduct widespread outreach 
        and provide technical assistance to eligible child care 
        providers (including family child care providers, providers 
        with limited administrative capacity, and providers whose 
        primary language is not English), either directly or through 
        child care resource and referral organizations, staffed family 
        child care networks, or local governments, to ensure such 
        providers are aware of the subgrants available under this title 
        and are able to apply for and manage the resources provided 
        through such subgrants.

SEC. 206. ADMINISTRATION.

    Activities funded under a grant made for a State under section 204 
may be administered--
            (1) directly by the State's lead agency; or
            (2) under a grant or contract to provide such 
        administration, through another State government agency, a 
        local or regional child care resource and referral 
        organization, a community development financial institution, 
        another nonprofit intermediary with experience supporting child 
        care providers, or another appropriate entity.

SEC. 207. STATE ACTIVITIES AND SUBGRANTS.

    (a) In General.--A lead agency for a State that receives a BASE 
Grant pursuant to section 204 shall--
            (1) reserve not more than 10 percent of the grant funds to 
        administer subgrants, provide technical assistance and support 
        to enable all provider types to apply for, access, and manage 
        the resources provided through such subgrants and other sources 
        of public financial assistance available for the objectives of 
        this title, publicize the availability of the subgrants, and 
        carry out activities to increase the supply of child care 
        services, under this title; and
            (2) with the remaining grant funds, make subgrants to 
        eligible child care providers to carry out the activities 
        described in section 210.
    (b) Subgrant Period.--The lead agency shall make the subgrants for 
a period of 5 years.
    (c) Payment Practices.--The lead agency shall make the subgrant 
payments in advance, with necessary adjustments on account of 
overpayments or underpayments.

SEC. 208. PRIORITY FOR SUBGRANTS.

    (a) In General.--In making subgrants under this title, the lead 
agency shall give priority to eligible child care providers that--
            (1) provide child care services during nontraditional or 
        extended hours;
            (2) provide child care services to infants and toddlers;
            (3) provide child care services to dual language learners, 
        children with disabilities, children experiencing homelessness, 
        children in foster care, or children from low-income families;
            (4) provide child care services to children whose families 
        received subsidies under the Child Care and Development Block 
        Grant Act of 1990 (42 U.S.C. 9857 et seq.) or under title I, as 
        applicable, for the child care services;
            (5) operate in communities, including communities with a 
        high proportion of children in households with incomes below 
        the poverty line and rural communities, with a low supply of 
        child care services; or
            (6) are small business concerns, as defined in section 3 of 
        the Small Business Act (15 U.S.C. 632), or nonprofit 
        organizations that are described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 and exempt from taxation under 
        section 501(a) of such Code.
    (b) Definition.--In this section, the term ``poverty line'' means 
the poverty line defined and revised as described in section 673 of the 
Community Services Block Grant Act (42 U.S.C. 9902).

SEC. 209. ELIGIBLE CHILD CARE PROVIDER APPLICATION.

    To be qualified to receive a subgrant under this title, an eligible 
child care provider shall submit to the corresponding lead agency, at 
such time and in such manner as the lead agency may reasonably require, 
an application containing each of the following:
            (1) A description of how the eligible child care provider 
        meets the priority requirements in section 208, if applicable.
            (2) An assurance that the eligible child care provider 
        accepts child care subsidies in the form of certificates, 
        grants, or contracts as authorized under the Child Care 
        Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.), 
        or child care subsidies in the form of certificates, grants, or 
        contracts under title I, as an acceptable form of payment, 
        regardless of whether children who are the beneficiaries of the 
        child care subsidies are actually enrolled.
            (3) An assurance that the eligible child care provider, for 
        the duration of the period of the grant under section 204, will 
        be open and available to serve children unless temporarily 
        closed due to or for a building safety issue or maintenance as 
        a result of a building safety issue, widespread illness or a 
        staff shortage, a routine closure or break due to a holiday or 
        scheduled staff professional development session, or a state of 
        emergency, major disaster, or emergency within the meaning of 
        section 658E(c)(2)(U) of the Child Care Development Block Grant 
        Act of 1990 (42 U.S.C. 9858c(c)(2)(U)).
            (4) A description of how the eligible child care provider 
        will use funds provided under the subgrant to improve the 
        quality of child care services and operations, such as through 
        participation in a State's tiered system for recognizing and 
        supporting the quality of child care services.
            (5) A description of how the eligible child care provider 
        will pay staff increased wages over the course of the grant 
        period including, at a minimum, providing--
                    (A) annual cost-of-living adjustments; and
                    (B) graduated pay increases based on a staff 
                member's credentials, experience, and job 
                responsibilities, including, for a provider with 15 or 
                more staff, a wage ladder based on the credentials, 
                experience, and responsibilities.

SEC. 210. USE OF FUNDS.

    (a) In General.--An eligible child care provider that receives a 
subgrant under this title--
            (1) shall use at least 70 percent of subgrant funds for 
        child care personnel costs, including--
                    (A) wages (including salaries) or similar 
                compensation for a person who is a staff member or any 
                sole proprietor or independent contractor, aligned with 
                wage standards; and
                    (B)(i) annual cost-of-living adjustments for staff; 
                and
                    (ii) graduated pay increases based on a staff 
                member's credentials, experience, and job 
                responsibilities, including, for a provider with 15 or 
                more staff, a wage ladder based on the credentials, 
                experience, and responsibilities; and
            (2) may use the subgrant funds for costs of activities 
        related to the provider's program, consisting of--
                    (A) professional development and instructional 
                coaching for staff involved in the direct education and 
                care of children, and providing support for planning 
                and instruction;
                    (B) providing recruitment and retention bonuses for 
                staff;
                    (C) providing staff benefits, such as health 
                insurance, paid leave (including parental, family, 
                medical, sick, and bereavement leave, and including 
                personal leave or vacation), and funds for retirement 
                accounts;
                    (D) hiring staff, including conducting background 
                checks, and including hiring staff to reduce staff-to-
                child ratios or substitute staff to support use of paid 
                leave;
                    (E) paying for occupancy, including making payments 
                for--
                            (i) rent (including rent under a lease), or 
                        on any mortgage obligation; and
                            (ii) insurance, utilities, and maintenance;
                    (F) obtaining equipment, repairs, supplies, 
                services, and training necessary to ensure compliance 
                with applicable health, safety, educational, and 
                quality requirements and to support high-quality, 
                developmentally appropriate child care services, and 
                achieving licensure as a child care provider;
                    (G) providing comprehensive services to support the 
                health, including mental health, and well-being, of 
                children and families from underserved populations, as 
                described in section 101(f)(3)(I);
                    (H) improving the quality of child care services in 
                a way that is appropriate for child development by 
                provider type involved, and for the age group of the 
                children served; and
                    (I) providing inclusive and developmentally 
                appropriate care for children with disabilities, 
                including implementing reasonable accommodations, 
                making space more accessible, and providing additional 
                staffing and coordinating early intervention services 
                provided through the provider's program with early 
                intervention services provided through other early 
                childhood programs.
    (b) Special Rule for States Participating in Title I Program.--
Notwithstanding subsection (a) and subject to the approval of the 
Secretary, a lead agency of a State participating in the program 
established in title I may make alternative uses of the funds received 
through a grant made under section 204, if such funds support--
            (1) the provision of high-quality, affordable child care 
        services, in accordance with title I;
            (2) compensation for early childhood educators and staff of 
        child care programs, of eligible child care providers, that 
        meet the requirements of title I; or
            (3) initiatives to expand the supply of eligible child care 
        providers or improve the quality of child care services 
        provided by eligible child care providers.
    (c) Rule.--For purposes of subsection (a), the terms ``staff'' and 
``staff member'' include a person described in subsection (a)(1)(A).

SEC. 211. REPORTING.

    (a) Lead Agency Reports.--Not later than 1 year after a lead agency 
has received a grant under section 204 and annually thereafter, the 
lead agency shall submit to the Secretary, in such manner and 
containing such information as the Secretary may require, a report that 
includes, at a minimum--
            (1) the total number of eligible child care providers who 
        applied for a subgrant under this title relative to the total 
        number of eligible child care providers in the State, 
        disaggregated by provider type, race and ethnicity of provider, 
        and geographic area;
            (2) the total number of eligible child care providers that 
        received such a subgrant relative to the total number of 
        eligible child care providers in the State, disaggregated by 
        provider type, race and ethnicity of provider, and geographic 
        area;
            (3) information stating the lead agency's methodology for 
        determining the amounts of subgrants under section 207(a)(2);
            (4) the average and range of the subgrant amounts made 
        available by the lead agency, disaggregated by provider type, 
        race and ethnicity of provider, and geographic area;
            (5) the percentages, of the eligible child care providers 
        that received such a subgrant, that--
                    (A) provided child care services during 
                nontraditional or extended hours;
                    (B) served dual language learners, children with 
                disabilities, children experiencing homelessness, 
                children in foster care, children from low-income 
                families, or infants and toddlers;
                    (C) served children whose families received 
                subsidies under the Child Care and Development Block 
                Grant Act of 1990 (42 U.S.C. 9857 et seq.) or under 
                title I, as applicable, for the child care services;
                    (D) operated in communities described in section 
                208(a)(5); and
                    (E) are concerns or organizations described in 
                section 208(a)(6);
            (6) the enrollment capacity of and average monthly 
        attendance of children (by age) served by the eligible child 
        care providers that received a subgrant;
            (7) the average family tuition for an eligible child care 
        provider that received such a subgrant, disaggregated by--
                    (A) age of the child served; and
                    (B) provider type;
            (8) the average wages (including salaries), or similar 
        compensation specified in section 210(a)(1)(A) of staff of 
        eligible child care providers that received such a subgrant, 
        disaggregated by provider type;
            (9) the percentages, of the eligible child care providers 
        that received such a subgrant, for each of the provider types;
            (10) information about how the eligible child care 
        providers used the funds received under such a subgrant, 
        including how funds were used for child care personnel costs;
            (11) information about how the lead agency used funds 
        reserved under section 207(a)(1); and
            (12) a description of how the lead agency publicized the 
        availability of the subgrants, including through making 
        applications and materials available in multiple languages, and 
        provided technical assistance and support to ensure all 
        provider types were able to apply for and access the subgrants.
    (b) Reports to Congress.--The Secretary shall--
            (1) submit an annual report to the Committee on Health, 
        Education, Labor, and Pensions and the Committee on 
        Appropriations of the Senate and the Committee on Education and 
        the Workforce and the Committee on Appropriations of the House 
        of Representatives, summarizing the findings from the reports 
        received under subsection (a); and
            (2) make such report publicly available on the website of 
        the Department of Health and Human Services.

SEC. 212. SUPPLEMENT NOT SUPPLANT.

    Amounts made available to carry out this title shall be used to 
supplement and not supplant other Federal, State, and local public 
funds expended to provide child care services for eligible individuals.

SEC. 213. APPROPRIATIONS.

    In addition to amounts otherwise available, there is appropriated 
to the Department of Health and Human Services, out of any money in the 
Treasury not otherwise appropriated to carry out this title, 
$9,000,000,000 for each of fiscal years 2024 through 2029.

                     TITLE III--UNIVERSAL PRESCHOOL

SEC. 301. DEFINITIONS.

    In this section:
            (1) Child experiencing homelessness.--The term ``child 
        experiencing homelessness'' means an individual who is a 
        homeless child or youth under section 725 of the McKinney-Vento 
        Homeless Assistance Act (42 U.S.C. 11434a).
            (2) Child with a disability.--The term ``child with a 
        disability'' has the meaning given the term in section 602 of 
        the Individuals with Disabilities Education Act (20 U.S.C. 
        1401).
            (3) Comprehensive services.--The term ``comprehensive 
        services'' means services that are provided to children and 
        their families, and that are health, educational, nutritional, 
        social, and other services that are determined, based on family 
        needs assessments, to be necessary, within the meaning of 
        section 636 of the Head Start Act (42 U.S.C. 9831).
            (4) Dual language learner.--The term ``dual language 
        learner'' means a child who is learning 2 or more languages at 
        the same time, or a child who is learning a second language 
        while continuing to develop the child's first language.
            (5) Eligible child.--The term ``eligible child'' means a 
        child who is age 3 or 4, on the date established by the 
        applicable local educational agency for kindergarten entry.
            (6) Eligible provider.--The term ``eligible provider'' 
        means--
                    (A) a local educational agency, acting alone or in 
                a consortium or in collaboration with an educational 
                service agency (as defined in section 8101 of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 7801)), that is licensed by the State or meets 
                comparable health and safety standards;
                    (B) a Head Start agency or delegate agency funded 
                under the Head Start Act (42 U.S.C. 9831 et seq.);
                    (C) a licensed center-based child care provider, 
                licensed family child care provider, or network of 
                licensed family child care providers; or
                    (D) a consortium of entities described in any of 
                subparagraphs (A), (B), and (C).
            (7) Head start agency.--The term ``Head Start agency'', as 
        used in paragraph (6)(B), or section 303(e)(4) or 306(a), means 
        an entity designated as a Head Start agency under section 
        641(a)(1) of the Head Start Act (42 U.S.C. 9836(a)(1)) or as an 
        Early Head Start agency (by receiving a grant) under section 
        645A(a) of such Act (42 U.S.C. 9840a(a)).
            (8) Indian tribe.--The term ``Indian Tribe'' has the 
        meaning given the term in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 5304).
            (9) Local educational agency.--The term ``local educational 
        agency'' has the meaning given the term in section 8101 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801).
            (10) Poverty line.--The term ``poverty line'' means the 
        poverty line defined and revised as described in section 673 of 
        the Community Services Block Grant Act (42 U.S.C. 9902).
            (11) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (12) State.--The term ``State'' means each of the several 
        States and the District of Columbia.
            (13) Territory.--The term ``territory'' means each of the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
            (14) Tribal organization.--The term ``Tribal organization'' 
        has the meaning given the term ``tribal organization'' in 
        section 658P of the Child Care and Development Block Grant Act 
        of 1990 (42 U.S.C. 9858n).

SEC. 302. UNIVERSAL PRESCHOOL.

    (a) Appropriations for States.--In addition to amounts otherwise 
available, there is appropriated to the Department of Health and Human 
Services, out of any money in the Treasury not otherwise appropriated, 
such sums as may be necessary for each of fiscal years 2024 through 
2029, for payments to States, for carrying out this title (except 
provisions and activities covered by subsection (b)).
    (b) Additional Appropriations.--In addition to amounts otherwise 
available, there is appropriated to the Department of Health and Human 
Services for fiscal year 2024, out of any money in the Treasury not 
otherwise appropriated--
            (1) $2,500,000,000, to remain available until September 30, 
        2029, for carrying out payments to Indian Tribes and Tribal 
        organizations for activities described in this title;
            (2) $1,250,000,000, to remain available until September 30, 
        2029, for carrying out payments to the territories, to be 
        distributed among the territories on the basis of their 
        relative need, as determined by the Secretary in accordance 
        with the objectives of this title, for activities described in 
        this title;
            (3) $300,000,000, to remain available until September 30, 
        2029, for carrying out payments to eligible local entities that 
        serve children in families who are engaged in migrant or 
        seasonal agricultural labor, for activities described in this 
        title;
            (4) $995,000,000, to remain available until September 30, 
        2029, for carrying out Federal activities to support the 
        activities funded under this title, including administration, 
        monitoring, technical assistance, and research, in fiscal years 
        2024 through 2029; and
            (5) $20,000,000,000, to remain available until September 
        30, 2029, to carry out the program of grants to localities 
        described in subsections (b) and (c) of section 306.

SEC. 303. PAYMENTS FOR STATE UNIVERSAL PRESCHOOL SERVICES.

    (a) In General.--A State that has submitted, and had approved by 
the Secretary in collaboration with the Secretary of Education, the 
State plan described in subsection (e) is entitled to a payment under 
this section.
    (b) Payments for Fiscal Years 2024 Through 2029.--
            (1) Preschool services.--For each of fiscal years 2024 
        through 2029, the Secretary shall pay to each State with an 
        approved State plan under subsection (e), an amount for that 
        year equal to--
                    (A) 90 percent of the State's expenditures in the 
                year for preschool services provided under section 304, 
                for fiscal year 2024;
                    (B) 90 percent of the State's expenditures in the 
                year for such preschool services, for fiscal year 2025;
                    (C) 80 percent of the State's expenditures in the 
                year for such preschool services, for fiscal year 2026;
                    (D) 75 percent of the State's expenditures in the 
                year for such preschool services, for fiscal year 2027;
                    (E) 65 percent of the State's expenditures in the 
                year for such preschool services, for fiscal year 2028; 
                and
                    (F) 60 percent of the State's expenditures in the 
                year for such preschool services, for fiscal year 2029.
            (2) State activities.--The Secretary shall pay to each 
        State with an approved State plan under subsection (e) an 
        amount for a fiscal year equal to 50 percent of the amount of 
        the State's expenditures for the activities described in 
        subsection (c), and system-wide activities similar to those 
        described in subsection (c) for the State's entire birth 
        through 5 year old early childhood system, except that in no 
        case shall a payment for a fiscal year under this paragraph 
        exceed the amount equal to 10 percent of the State's 
        expenditures described in paragraph (1) for such fiscal year.
            (3) Non-federal share.--The remainder of the cost paid by 
        the State for preschool services, that is not provided under 
        paragraph (1), shall be considered the non-Federal share of the 
        cost of those services. The remainder of the cost paid by the 
        State for State activities, that is not provided under 
        paragraph (2), shall be considered the non-Federal share of the 
        cost of those activities.
            (4) Advance payment; retrospective adjustment.--The 
        Secretary shall make a payment under paragraph (1) or (2) for a 
        year on the basis of advance estimates of expenditures 
        submitted by the State and such other investigation as the 
        Secretary may find necessary, and shall reduce or increase the 
        payment as necessary to adjust for any overpayment or 
        underpayment for a previous year.
    (c) State Activities.--A State that receives a payment under 
subsection (b) shall carry out all of the following activities:
            (1) State administration of the State preschool program 
        described in this section.
            (2) Supporting a continuous quality improvement system for 
        providers of preschool services participating, or seeking to 
        participate, in the State preschool program, through the use of 
        data, research, monitoring, training, technical assistance, 
        professional development, and coaching.
            (3) Providing outreach and enrollment support for families 
        of eligible children.
            (4) Supporting data systems building.
            (5) Supporting staff of eligible providers through 
        professional development and coaching, and supporting staff in 
        pursuing credentials and degrees, including baccalaureate 
        degrees.
            (6) Supporting activities that ensure access to inclusive 
        preschool programs for children with disabilities.
            (7) Providing age-appropriate transportation services for 
        children, which at a minimum shall include transportation 
        services for children experiencing homelessness and children in 
        foster care.
            (8) Conducting or updating a statewide needs assessment of 
        access to high-quality preschool services.
    (d) Lead Agency.--The Governor of a State desiring for the State to 
receive a payment under this section shall designate a lead agency 
(such as a State agency or joint interagency office) for the 
administration of the State's preschool program under this section.
    (e) State Plan.--In order to be eligible for payments under this 
section, the Governor of a State shall submit a State plan to the 
Secretary for approval by the Secretary, in collaboration with the 
Secretary of Education, at such time, in such manner, and containing 
such information as the Secretary shall by rule require, that includes 
a plan for achieving universal, high-quality, free, inclusive, and 
mixed-delivery preschool services. Such plan shall include, at a 
minimum, each of the following:
            (1) A certification that--
                    (A) the State has in place, or will have in place 
                no later than 1 year after the State first receives 
                funding under this section, developmentally 
                appropriate, evidence-based preschool education 
                standards that, at a minimum, are as rigorous as the 
                standards specified in subparagraph (B) of section 
                641A(a)(1) of the Head Start Act (42 U.S.C. 
                9836a(a)(1)) and include program standards for class 
                sizes and ratios; and
                    (B) the State will coordinate such standards with 
                other early learning standards in the State.
            (2) An assurance that the State will ensure--
                    (A) all preschool services in the State funded 
                under this section will--
                            (i) be universally available to all 
                        children in the State without any additional 
                        eligibility requirements; and
                            (ii) be high-quality, free, and inclusive; 
                        and
                    (B) that the local preschool programs in the State 
                funded under this section will--
                            (i) by not later than 18 months after the 
                        program receives such funding, meet the State's 
                        preschool education standards described in 
                        paragraph (1);
                            (ii) offer programming that meets the 
                        duration requirements of at least 1,020 annual 
                        hours;
                            (iii) adopt policies and practices to 
                        conduct outreach and provide expedited 
                        enrollment, including prioritization, to--
                                    (I) children experiencing 
                                homelessness (which, in the case of a 
                                child attending a program provided by 
                                an eligible provider described in 
                                section 301(6)(A), shall include 
                                immediate enrollment for the child);
                                    (II) children in foster care or 
                                kinship care;
                                    (III) children in families who are 
                                engaged in migrant or seasonal 
                                agricultural labor;
                                    (IV) children with disabilities, 
                                including eligible children who are 
                                served under part C of the Individuals 
                                with Disabilities Education Act (20 
                                U.S.C. 1431 et seq.); and
                                    (V) dual language learners;
                            (iv) provide for salaries, and set 
                        schedules for salaries, for staff of providers 
                        in the State preschool program, including staff 
                        serving infants and toddlers employed by the 
                        same provider, that are equivalent to salaries 
                        of elementary school staff with similar 
                        credentials and experience;
                            (v) at a minimum, provide a living wage for 
                        all staff of such providers; and
                            (vi) require educational qualifications for 
                        teachers in the preschool program including, at 
                        a minimum, requiring that lead teachers in the 
                        preschool program have a baccalaureate degree 
                        in early childhood education or a related field 
                        by not later than 6 years after the date on 
                        which the State first receives funds under this 
                        section, except that--
                                    (I) subject to subclause (II), the 
                                requirements under this clause shall 
                                not apply to individuals who were 
                                employed by an eligible provider or 
                                early education program for a 
                                cumulative 3 of the 5 years immediately 
                                preceding the date of enactment of this 
                                Act and have the necessary content 
                                knowledge and teaching skills for early 
                                childhood educators, as demonstrated 
                                through measures determined by the 
                                State; and
                                    (II) nothing in this section shall 
                                require the State to lessen State 
                                requirements for educational 
                                qualifications, in existence on the 
                                date of enactment of this Act, to serve 
                                as a teacher in a State preschool 
                                program.
            (3) For States with existing publicly funded State 
        preschool programs (as of the date of submission of the State 
        plan), a description of how the State plans to use funding 
        provided under this section to ensure that such existing 
        programs in the State meet the requirements of this title for a 
        State preschool program.
            (4) A description of how the State, in establishing and 
        operating the State preschool program supported under this 
        section, will--
                    (A) support a mixed-delivery system for any new 
                slots funded under this section, including by 
                facilitating the participation of Head Start programs 
                and programs offered by licensed child care providers;
                    (B) ensure the State preschool program does not 
                disrupt the stability of infant and toddler child care 
                throughout the State;
                    (C) ensure adequate consultation with the State 
                Advisory Council on Early Childhood Education and Care 
                designated or established in section 642B(b)(1)(A)(i) 
                of the Head Start Act (42 U.S.C. 9837b(b)(1)(A)(i)) in 
                the development of its plan, including consultation in 
                how the State intends to distribute slots under 
                subparagraph (E);
                    (D) partner with Head Start agencies to ensure the 
                full utilization of Head Start programs within the 
                State; and
                    (E) distribute new preschool slots and resources 
                equitably among child care (including family child 
                care) providers, Head Start agencies, and schools 
                within the State.
            (5) A certification that the State, in operating the 
        program described in this section for a fiscal year--
                    (A) will not reduce the total preschool slots 
                provided in State-funded preschool programs from the 
                number of such slots in the previous fiscal year; or
                    (B) if the number of eligible children identified 
                in the State declines from the previous fiscal year, 
                will maintain at least the previous year's ratio of the 
                total preschool slots described in subparagraph (A) to 
                eligible children so identified.
            (6) An assurance that the State will use funding provided 
        under this section to ensure children with disabilities have 
        access to and participate in inclusive preschool programs 
        consistent with provisions in the Individuals with Disabilities 
        Education Act (20 U.S.C. 1400 et seq.), and a description of 
        how the State will collaborate with entities carrying out 
        programs under section 619 or part C of the Individuals with 
        Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.), to 
        support inclusive preschool programs.
            (7) An assurance that the State will provide assistance 
        under this section only to eligible providers that prohibit the 
        use of suspension, expulsion, and aversive behavioral 
        interventions in the State preschool program described in this 
        section.
            (8) An assurance that the State will coordinate services 
        provided under this title with services and supports provided 
        under the Child Care and Development Block Grant Act of 1990 
        (42 U.S.C. 9857 et seq.), section 619 and part C of the 
        Individuals with Disabilities Education Act (20 U.S.C. 1419, 
        1431 et seq.), the Head Start Act (42 U.S.C. 9831 et seq.), the 
        Preschool Development Grants program under section 9212 of the 
        Every Student Succeeds Act (Public Law 114-95), the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), 
        the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et 
        seq.), and the maternal, infant, and early childhood home 
        visiting programs under section 511 of the Social Security Act 
        (42 U.S.C. 711).
            (9) A certification that the State will support the 
        continuous quality improvement of programs providing preschool 
        services under this title, including support through technical 
        assistance, monitoring, and research.
            (10) A certification that the State will ensure a highly 
        qualified early childhood workforce to support the requirements 
        of this title.
            (11) An assurance that the State will meet the requirements 
        of clauses (ii) and (iii) of section 658E(c)(2)(T) of the Child 
        Care and Development Block Grant Act of 1990 (42 U.S.C. 
        9858c(c)(2)(T)), with respect to funding and assessments under 
        this title.
            (12) A certification that subgrant and contract amounts 
        provided as described in section 304 will be sufficient to 
        enable eligible providers to meet the requirements of this 
        title, and will provide for increased payment amounts based on 
        the criteria described in clauses (iv) and (v) of paragraph 
        (2)(B).
            (13) An agreement to provide to the Secretary such periodic 
        reports, providing a detailed accounting of the uses of funding 
        received under this section, as the Secretary may require for 
        the administration of this section.
    (f) Duration of the Plan.--Each State plan shall remain in effect 
for a period of not more than 3 years. Amendments to the State plan 
shall remain in effect for the duration of the plan.

SEC. 304. SUBGRANTS AND CONTRACTS FOR LOCAL PRESCHOOL PROGRAMS.

    (a) Subgrants and Contracts.--
            (1) In general.--A State that receives a payment under 
        section 303(b) for a fiscal year shall use amounts provided 
        through the payment to pay the costs of subgrants to, or 
        contracts with, eligible providers to operate universal, high-
        quality, free, and inclusive preschool programs (which State-
        funded programs may be referred to in this section as ``local 
        preschool programs'') through the State preschool program in 
        accordance with subsection (c). A State shall reduce or 
        increase the amounts provided under such subgrants or contracts 
        if needed to adjust for any overpayment or underpayment 
        described in section 303(b)(4).
            (2) Amount.--A State shall award a subgrant or contract 
        under this section in a sufficient amount to enable the 
        eligible provider to operate a local preschool program that 
        meets the requirements of section 303(e)(2), which amount shall 
        reflect variations in the cost of preschool services by 
        geographic area, type of provider, and age of child, and the 
        additional costs associated with providing inclusive preschool 
        services for children with disabilities.
            (3) Duration.--The State shall award a subgrant or contract 
        under this section for a period of not less than 3 years, 
        unless the subgrant or contract is terminated or suspended, or 
        the subgrant period is reduced, for cause.
    (b) Enhanced Payments for Comprehensive Services.--In awarding 
subgrants or contracts under this subsection and in addition to meeting 
the requirements of subsection (a)(2), the State shall award subgrants 
or contracts with enhanced payments to eligible providers that offer 
local preschool programs funded under this section to a high percentage 
of low-income children to support comprehensive services.
    (c) Establishing and Expanding Universal Preschool Programs.--
            (1) Establishing and expanding universal preschool programs 
        in high-need communities.--In awarding subgrants or contracts 
        under this section, the State shall first prioritize 
        establishing and expanding universal local preschool programs 
        within and across high-need communities by awarding subgrants 
        or contracts to eligible providers operating within and across, 
        or with capacity to operate within and across, such high-need 
        communities. The State shall--
                    (A) use a research-based methodology approved by 
                the Secretary to identify such high-need communities, 
                as determined by--
                            (i) the rate of poverty in the community;
                            (ii) rates of access to high-quality 
                        preschool within the community; and
                            (iii) other indicators of community need as 
                        required by the Secretary; and
                    (B) distribute funding for preschool services under 
                this section within such a high-need community so that 
                a majority of children in the community are offered 
                such preschool services before the State establishes 
                and expands preschool services in communities with 
                lower levels of need.
            (2) Use of funds.--Subgrants or contracts awarded under 
        paragraph (1) shall be used to enroll and serve children in 
        such a local preschool program involved, including by paying 
        the costs--
                    (A) of personnel (including classroom and 
                administrative personnel), including compensation and 
                benefits;
                    (B) associated with implementing the State's 
                preschool standards, providing curriculum supports, and 
                meeting early learning and development standards;
                    (C) of professional development, teacher supports, 
                and training;
                    (D) of implementing and meeting developmentally 
                appropriate health and safety standards (including 
                licensure, where applicable), teacher to child ratios, 
                and group size maximums;
                    (E) of materials, equipment, and supplies; and
                    (F) of rent or a mortgage, utilities, building 
                security, indoor and outdoor maintenance, and 
                insurance.
    (d) Establishing and Expanding Universal Preschool Programs in 
Additional Communities.--Once a State that receives a payment under 
section 303(b) meets the requirements of subsection (c) with respect to 
establishing and expanding local preschool programs within and across 
high-need communities, the State shall use funds from such payment to 
enroll and serve children in local preschool programs, as described in 
such subsection, in additional communities in accordance with the 
metrics described in subsection (c)(1)(A). Such funds shall be used for 
the activities described in subparagraphs (A) through (F) of subsection 
(c)(2).

SEC. 305. PAYMENTS FOR UNIVERSAL PRESCHOOL SERVICES TO INDIAN TRIBES 
              AND TERRITORIES.

    (a) Indian Tribes and Tribal Organizations.--
            (1) In general.--For each of fiscal years 2024 through 
        2029, from the amount appropriated for Indian Tribes and Tribal 
        organizations under section 302(b)(1), the Secretary shall make 
        payments to Indian Tribes and Tribal organizations with an 
        application approved under paragraph (2), and the Tribes and 
        Tribal organizations shall be entitled to such payments for the 
        purpose of carrying out the preschool program described in this 
        title, consistent, to the extent practicable as determined by 
        the Secretary, with the requirements applicable to States.
            (2) Applications.--An Indian Tribe or Tribal organization 
        seeking a payment under this subsection shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may specify.
    (b) Territories.--
            (1) In general.--For each of fiscal years 2024 through 
        2029, from the amount appropriated for territories under 
        section 302(b)(2), the Secretary shall make payments to the 
        territories with an application approved under paragraph (2), 
        and the territories shall be entitled to such payments, for the 
        purpose of carrying out the preschool program described in this 
        title, consistent, to the extent practicable as determined by 
        the Secretary, with the requirements applicable to States.
            (2) Applications.--A territory seeking a payment under this 
        subsection shall submit an application to the Secretary at such 
        time, in such manner, and containing such information as the 
        Secretary may specify.
    (c) Lead Agency.--The head of an Indian Tribe or territory desiring 
for the Indian Tribe or a related Tribal organization, or territory, to 
receive a payment under this section shall designate a lead agency 
(such as a tribal or territorial agency or joint interagency office) 
for the administration of the preschool program of the Indian Tribe or 
territory, under this section.

SEC. 306. GRANTS TO LOCALITIES AND HEAD START EXPANSION IN 
              NONPARTICIPATING STATES.

    (a) Eligible Locality Defined.--In this section, the term 
``eligible locality'' means a city, county, or other unit of general 
local government, a local educational agency, or a Head Start agency.
    (b) Grants to Localities.--
            (1) In general.--The Secretary, in consultation with the 
        Secretary of Education, shall use funds reserved in section 
        302(b)(5) to award local universal preschool grants, as 
        determined by the Secretary of Health and Human Services, to 
        eligible localities located in States that have not received 
        payments under section 303. The Secretary shall award the 
        grants to eligible localities in a State from the allotment 
        made for that State under paragraph (2). The Secretary shall 
        specify the requirements for an eligible locality to conduct a 
        preschool program under this section which shall, to the 
        greatest extent practicable, be consistent with the 
        requirements applicable to States under this title, for a 
        universal, high-quality, free, and inclusive preschool program.
            (2) Allotments.--For each State described in paragraph (1), 
        the Secretary shall allot for the State for a fiscal year an 
        amount that bears the same relationship to the funds 
        appropriated under section 302(b)(5) for the fiscal year as the 
        number of children from families with family incomes at or 
        below 200 percent of the poverty line, and who are under the 
        age of 6, in the State bears to the total number of all such 
        children in all States described in paragraph (1).
            (3) Application.--To receive a grant from the corresponding 
        State allotment under this section, an eligible locality shall 
        submit an application to the Secretary at such time, in such 
        manner, and containing such information as the Secretary may 
        require. The requirements for the application shall, to the 
        greatest extent practicable, be consistent with the State plan 
        requirements applicable to States under this title.
    (c) Head Start Expansion in Nonparticipating States.--
            (1) In general.--The Secretary shall use funds appropriated 
        under section 302(b)(5), to make awards to Head Start agencies 
        in a State described in subsection (b)(1) to carry out the 
        purposes of the Head Start Act (42 U.S.C. 9831 et seq.) in such 
        State.
            (2) Rule.--For purposes of carrying out the Head Start Act 
        in circumstances not involving awards under this subsection, 
        funds awarded under paragraph (1) shall not be included in the 
        calculation of a ``base grant'' as such term is defined in 
        section 640(a)(7)(A) of the Head Start Act (42 U.S.C. 
        9835(a)(7)(A)).
            (3) Definition.--In this subsection, the term ``Head Start 
        agency'' means an entity designated or eligible to be 
        designated as a Head Start agency under section 641(a)(1) of 
        the Head Start Act (42 U.S.C. 9836(a)(1)) or as an Early Head 
        Start agency (by receiving a grant) under section 645A(a) of 
        such Act (42 U.S.C. 9840a(a)).
    (d) Priority for Serving Underserved Communities.--In making 
determinations to award a grant or make an award under this section, 
the Secretary shall give priority to entities serving communities with 
a high percentage of children from families with family incomes at or 
below 200 percent of the poverty line.

SEC. 307. ALLOWABLE SOURCES OF NON-FEDERAL SHARE.

    For purposes of calculating the amount of the non-Federal share, as 
determined under section 303(b)(3), relating to a payment under section 
303(b), a State's non-Federal share--
            (1) may be in cash or in kind, fairly evaluated, including 
        facilities or property, equipment, or services;
            (2) shall include any increase in amounts spent by the 
        State to expand half-day kindergarten programs in the State, as 
        of the day before the date of enactment of this Act, into full 
        day kindergarten programs;
            (3) shall not include contributions being used as a non-
        Federal share or match for another Federal award;
            (4) shall be provided from State or local sources, 
        contributions from philanthropy or other private organizations, 
        or a combination of such sources and contributions; and
            (5) shall count not more than 100 percent of the State's 
        current spending on prekindergarten programs, calculated as the 
        average amount of such spending by the State for fiscal years 
        2021, 2022, and 2023, toward the State's non-Federal share.

SEC. 308. MAINTENANCE OF EFFORT.

    (a) In General.--If a State reduces its combined fiscal effort per 
child for the State preschool program (whether a publicly funded 
preschool program or a program under this title) or through State 
supplemental assistance funds for Head Start programs assisted under 
the Head Start Act, or through any State spending on early childhood 
programs or preschool services for any fiscal year that a State 
receives payments under section 303(b) (referred to in this paragraph 
as the ``reduction fiscal year'') relative to the previous fiscal year, 
the Secretary, in collaboration with the Secretary of Education, shall 
reduce support for such State under such subsection by the same amount 
as the total reduction in that State fiscal effort for such reduction 
fiscal year.
    (b) Waiver.--The Secretary, in collaboration with the Secretary of 
Education, may waive the requirements of subsection (a) if--
            (1) the Secretaries determine that a waiver would be 
        appropriate due to a precipitous decline in the financial 
        resources of a State as a result of unforeseen economic 
        hardship, or a natural disaster, that has necessitated across-
        the-board reductions in State services during the 5-year period 
        preceding the date of the determination, including for early 
        childhood education programs; or
            (2) due to the circumstance of a State requiring reductions 
        in specific programs, including early childhood education 
        programs, the State presents to the Secretaries a justification 
        and demonstration why other programs could not be reduced and 
        how early childhood education programs in the State will not be 
        disproportionately harmed by such State reductions.

SEC. 309. SUPPLEMENT NOT SUPPLANT.

    Funds received under this title shall be used to supplement and not 
supplant other Federal, State, and local public funds expended on 
prekindergarten programs in the State on the date of enactment of this 
Act, calculated as the average amount of such Federal, State, and local 
public funds expended for fiscal years 2021, 2022, and 2023.

SEC. 310. NONDISCRIMINATION PROVISIONS.

    The following provisions of law shall apply to any program or 
activity that receives funds provided under this title:
            (1) Title IX of the Education Amendments of 1972 (20 U.S.C. 
        1681 et seq.).
            (2) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
        2000d et seq.).
            (3) Section 504 of the Rehabilitation Act of 1973 (29 
        U.S.C. 794).
            (4) The Americans with Disabilities Act of 1990 (42 U.S.C. 
        12101 et seq.).

SEC. 311. MONITORING AND ENFORCEMENT.

    (a) Review of Compliance With Requirements and State Plan.--The 
Secretary shall review and monitor compliance of States, territories, 
Tribal entities, and local entities with this title and State 
compliance with the State plan described in section 303(e), including a 
process for progress updates on the requirements described in section 
303(e)(1).
    (b) Issuance of Rule.--The Secretary shall establish by rule 
procedures for--
            (1) receiving, processing, and determining the validity of 
        complaints or findings concerning any failure of a State to 
        comply with the State plan or any other requirement of this 
        title;
            (2) notifying a State when the Secretary has determined 
        there has been a failure by the State to comply with a 
        requirement of this title; and
            (3) imposing sanctions under this section for such a 
        failure.

SEC. 312. REPORTING.

    (a) In General.--Each State that receives a payment under section 
303 shall prepare an annual report, in such manner and containing such 
information as the Secretary of Health and Human Services may 
reasonably require.
    (b) Contents.--A report prepared under subparagraph (a) shall 
contain, at a minimum--
            (1) a description of the manner in which the State has used 
        the funds made available through the payment and a report of 
        the expenditures made with the funds;
            (2) a summary of the State's progress toward providing 
        access to high-quality preschool programs for eligible 
        children;
            (3) the number and percentage of children in the State 
        participating in eligible preschool programs, disaggregated by 
        race, ethnicity, family income, child age, disability, and 
        whether the children are homeless children, children in foster 
        care, or dual language learners;
            (4) data on the number and percentage of children in the 
        State participating in public kindergarten programs, 
        disaggregated by race, family income, child age, disability, 
        and whether the children are homeless children, children in 
        foster care, or dual language learners, with information on 
        whether such programs are offered--
                    (A) for a full day; and
                    (B) at no cost to families;
            (5) data on the kindergarten readiness of children across 
        the State;
            (6) data on recruitment and retention of early childhood 
        staff disaggregated by provider type, and age of children 
        served; and
            (7) data regarding coordination efforts with other child 
        care and early childhood education programs, including those 
        funded under the Head Start Act (42 U.S.C. 9831 et seq.).

                 TITLE IV--HEAD START EXTENDED DURATION

SEC. 401. EXTENDED DURATION.

    (a) In General.--The Head Start Act (42 U.S.C. 9801 et seq.) is 
amended--
            (1) by redesignating section 657C (42 U.S.C. 9852c) as 
        section 657D; and
            (2) by inserting after section 657B (42 U.S.C. 9852b) the 
        following:

``SEC. 657C. EXTENDED DURATION.

    ``(a) In General.--The Secretary shall make grants to Head Start 
agencies (including Early Head Start agencies) funded under this 
subchapter to enable such agencies--
            ``(1) to provide access to a full school year and a full 
        school day of services;
            ``(2) in the case of a migrant and seasonal Head Start 
        agency, to provide access to additional service hours to ensure 
        continuous Head Start services as determined by the Secretary; 
        or
            ``(3) in the case of a Head Start agency (including an 
        Early Head Start agency) that already meets the full-day, full-
        year services needs within its community, to enhance the 
        quality of Head Start services (including Early Head Start 
        services) provided to children served by such agency.
    ``(b) Application.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section, a Head Start agency shall submit an application 
        at such time and in such manner as the Secretary may require. 
        Such application shall include--
                    ``(A) evidence of--
                            ``(i) the number and percentage of slots--
                                    ``(I) in the agency's Head Start 
                                center-based programs (that are not 
                                Early Head Start programs)--
                                            ``(aa) that are currently 
                                        funded (as of the date of 
                                        submission of the application); 
                                        and
                                            ``(bb) in which services 
                                        are provided for at least the 
                                        equivalent of 1,020 hours per 
                                        year; and
                                    ``(II) in the agency's Early Head 
                                Start center-based programs--
                                            ``(aa) that are currently 
                                        funded (as of that date); and
                                            ``(bb) in which services 
                                        are provided for at least the 
                                        equivalent of 1,380 hours per 
                                        year; and
                            ``(ii) the number and percentage of slots, 
                        in the agency's Head Start family child care 
                        programs--
                                    ``(I) that are currently funded (as 
                                of that date); and
                                    ``(II) in which services are 
                                provided for at least the equivalent of 
                                1380 hours per year;
                    ``(B) a description of an approach, using the 
                current community-wide strategic planning and needs 
                assessment described in section 640(g)(1)(C) and 
                current program schedule (current as of the date of 
                submission of the application), that transitions all of 
                the agency's Head Start programs to a full school day, 
                full school year program schedule; and
                    ``(C) a budget justification that estimates the 
                supplemental funding necessary to provide for 
                incremental ongoing operating costs for the extended 
                hours of service under such a program schedule for the 
                current enrollment in the agency's Head Start programs.
            ``(2) Exceptions.--
                    ``(A) Migrant and seasonal head start.--
                            ``(i) In general.--A migrant and seasonal 
                        Head Start agency may apply for a grant 
                        described in subsection (a) without meeting the 
                        requirements specified in paragraph (1) to 
                        ensure continuous Head Start services are 
                        provided to children enrolled in a migrant and 
                        seasonal Head Start program. To be eligible to 
                        receive the grant, the agency shall submit an 
                        application at such time and in such manner as 
                        the Secretary may require.
                            ``(ii) Priority.--In making grants to 
                        applicants described in clause (i), the 
                        Secretary shall give priority to a migrant and 
                        seasonal Head Start agency operating for fewer 
                        than 8 months per year.
                    ``(B) Full-day, full-year head start agencies.--
                            ``(i) In general.--A Head Start agency 
                        (including an Early Head Start agency) that 
                        certifies to the Secretary that it is meeting 
                        the full-day, full-year need within its 
                        community may apply for a grant to enhance the 
                        quality of services provided to children 
                        enrolled in its Head Start program (including 
                        its Early Head Start program) in accordance 
                        with subsection (c)(2).
                            ``(ii) Application.--A Head Start agency 
                        (including Early Head Start agency) that meets 
                        the requirements of clause (i) shall submit an 
                        application, which shall include--
                                    ``(I) the proposed uses of funds in 
                                accordance with subsection (c)(2); and
                                    ``(II) how such uses of funds 
                                relate to the community-wide strategic 
                                planning and needs assessment described 
                                under section 640(g)(1)(C).
    ``(c) Use of Funds.--
            ``(1) Extended duration.--A Head Start agency that meets 
        the requirements of paragraph (1) or (2) of subsection (a) 
        receiving a grant under this section shall use the grant funds 
        to cover the costs associated with extending those hours of 
        service for the current enrollment, such as additional costs 
        for--
                    ``(A) the purchase, rental, renovation, and 
                maintenance of additional facilities;
                    ``(B) ongoing purchases of classroom supplies;
                    ``(C) staff providing services during the extended 
                hours; and
                    ``(D) professional development to staff 
                transitioning to providing services during the extended 
                hours.
            ``(2) Enhancing program quality.--A Head Start agency 
        (including an Early Head Start agency) that meets the 
        requirements of subsection (a)(3) shall use funds for the 
        activities authorized under section 640(a)(5)(B).
            ``(3) Exception.--The Head Start agency shall not use the 
        grant funds to expand the number of children served in the Head 
        Start program (including the Early Head Start program) of the 
        agency.
    ``(d) Reservations.--
            ``(1) Activities.--From the total amount appropriated to 
        carry out this section, the Secretary shall--
                    ``(A) for making grants for the activities 
                described in subsection (c)(1)(A), reserve 
                $4,000,000,000 of the funds appropriated for fiscal 
                year 2024; and
                    ``(B) for making grants for the activities 
                described in any of subparagraphs (B) through (D) of 
                subsection (c)(1), reserve--
                            ``(i) $833,000,000 of the funds 
                        appropriated for fiscal year 2024;
                            ``(ii) $852,000,000 of the funds 
                        appropriated for fiscal year 2025; and
                            ``(iii) $872,000,000 of the funds 
                        appropriated for fiscal year 2026.
            ``(2) Priority.--The Secretary shall prioritize Head Start 
        agencies (including Early Head Start agencies) that are 
        applying to use funds to carry out the activities described in 
        subsection (a)(1).
            ``(3) Migrant or seasonal head start programs.--From the 
        amount appropriated to carry out this section for a fiscal year 
        and reserved under paragraph (1)(B), the Secretary shall 
        reserve 4.5 percent for migrant or seasonal Head Start 
        programs.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            ``(1) $4,833,000,000 for fiscal year 2024;
            ``(2) $852,000,000 for fiscal year 2025; and
            ``(3) $872,000,000 for fiscal year 2026.
    ``(f) Definitions.--In this section:
            ``(1) Full school day; full school year.--The terms `full 
        school day' and `full school year' mean such a day and year, 
        respectively, within the meaning of the Head Start Program 
        Performance standards issued under section 641A(a).
            ``(2) Migrant and seasonal head start agency.--The term 
        `migrant and seasonal Head Start agency' means an agency that 
        is funded under this subchapter to provide a migrant and 
        seasonal Head Start program.''.
    (b) Conforming Amendments.--Section 640 of the Head Start Act (42 
U.S.C. 9835) is amended--
            (1) in subsection (a)(6), by striking ``appropriated under 
        this subchapter'' each place it appears and inserting 
        ``appropriated under section 639''; and
            (2) in subsection (g)(3)(A)--
                    (A) by striking ``amount appropriated'' each place 
                it appears and inserting ``amount appropriated under 
                section 639'';
                    (B) by striking ``services provided under this 
                subchapter'' and inserting ``services provided under 
                this subchapter (other than section 657C)''; and
                    (C) by striking ``agency under this subchapter'' 
                and inserting ``agency under this subchapter (other 
                than section 657C)''.

SEC. 402. APPROPRIATION FOR WAGES.

    (a) Appropriation.--There is authorized to be appropriated, and 
there is appropriated, out of any funds in the Treasury not otherwise 
appropriated, $2,700,000,000 for fiscal year 2024 and each subsequent 
fiscal year, to carry out subsection (b).
    (b) Use of Funds.--Using funds made available under subsection (a), 
the Secretary of Health and Human Services shall assist Head Start 
agencies (including Early Head Start agencies) funded under the Head 
Start Act (42 U.S.C. 9831 et seq.), to the extent needed to ensure that 
their teachers and staff--
            (1) receive wages that are comparable to wages for 
        elementary educators with similar credentials and experience in 
        the State; or
            (2) at a minimum, receive a living wage.
    (c) Application.--In carrying out subsection (b), the Secretary 
shall apply the Head Start Act, except to the extent that subsection 
(b) is inconsistent with that Act.
                                 <all>
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