‘‘(VIII) attracting and maintain-
ing an effective and diverse early care 
workforce by increasing total com-
pensation, providing wage supple-
ments or bonuses, or offering wage 
and retention rewards and ensuring 
adequate wages for staff of child care 
providers, including sole proprietors 
and independent contractors, that, at 
a minimum— 
‘‘(aa) provide a living wage 
for all staff of such child care 
providers; and 
‘‘(bb) are adjusted on an an-
nual basis for cost of living in-
creases to ensure payment rates 
remain sufficient to meet the re-
quirements of this subsection; 
‘‘(IX) subject to subparagraph 
(C), providing financial support (with-
out regard to limitations on expendi-
tures imposed under section 658F(b) 
of the Child Care and Development 
Block Grant Act of 1990) for projects 
involving the purchase or improve-
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ment of land, a major renovation, 
repurposing facilities, the purchase, 
acquisition, construction, or perma-
nent improvement of any building or 
facility, including major renovation 
and minor remodeling, indoor or out-
door modifications, including such 
modifications to support accessibility 
for 
children 
with 
disabilities, 
predevelopment or soft costs, and for 
projects to upgrade child care facili-
ties to assure that providers meet 
State and local child care standards, 
including applicable health, safety, 
and quality requirements; or 
‘‘(X) subject to subparagraph 
(C), contracting with an intermediary 
with 
experience 
securing 
private 
sources of capital financing for child 
care facilities or other low-income 
community development projects to 
provide financial or managerial assist-
ance, technical support through the 
real estate process, including success-
ful execution of Federal interest docu-
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mentation, or furnishing an evaluation 
of sustainability or operational capac-
ity of providers; 
‘‘(v) in the case of a State or terri-
tory, contains an assurance that the State 
or territory shall collaborate with respect 
to the use of grant funds to improve child 
care workforce, supply, quality, and access 
in areas of particular need identified with-
in the State or territory with each Indian 
Tribe and Tribal organization in such area; 
and 
‘‘(vi) contains such other information 
as the Secretary may require. 
‘‘(B) APPROVAL.—The Secretary shall ap-
prove a planned use of funds submission that 
contains the information required under sub-
paragraph (A), and, with respect to the pro-
posed criteria required under subparagraph 
(A)(i), shall accept any reasonable criteria that 
are based on internal analyses by a lead agency 
of a State, territory, Indian Tribe, or Tribal or-
ganization or analyses by organizations with ex-
perience in evaluating research on various ap-
proaches to identifying areas where there is a 
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low supply of child care that is affordable and 
that is in particular need of child care. 
‘‘(C) SPECIAL RULES.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall develop parameters on the use of 
funds from an allotment paid under this 
subsection for projects described in sub-
clause (IX) or (X) of subparagraph 
(A)(iv). 
‘‘(ii) 
REQUIREMENT.—The 
param-
eters developed under clause (i) shall pro-
vide that, in the case of funds from an al-
lotment paid under this subsection that are 
used for projects described in subclause 
(IX) or (X) of subparagraph (A)(iv)— 
‘‘(I) for such projects involving a 
privately owned family child care 
home, the Secretary shall not retain 
any Federal interest; and 
‘‘(II) for all other such projects, 
the Secretary shall not retain a Fed-
eral interest after a period of 10 
years. 
‘‘(5) OTHER FUNDING AND PAYMENT RULES.— 
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‘‘(A) APPROVAL
AND
PAYMENT
DEAD-
LINE.—The Secretary shall make quarterly pay-
ments to the lead agency of each State, terri-
tory, Indian Tribe, and Tribal organization with 
a planned use of funds submission approved 
under paragraph (4) from the grant determined 
for the State, territory, Indian Tribe, or Tribal 
organization under paragraph (3) for a fiscal 
year. 
‘‘(B) NO MATCHING REQUIREMENT.—Nei-
ther subparagraph (C) of subsection (a)(2) nor 
any other cash or in-kind matching requirement 
shall apply to the grants paid under this sub-
section. 
‘‘(C) MAINTENANCE OF EFFORT.— 
‘‘(i) CERTIFICATION
FUNDS
WILL 
SUPPLEMENT, NOT
SUPPLANT, GENERAL 
REVENUE
EXPENDITURES.—Each 
State 
paid a grant under this subsection for a 
fiscal year shall certify that the grant 
funds will be used to supplement and not 
supplant the level of general revenue ex-
penditures from State, local, and other 
non-Federal sources that are used to pro-
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vide child care assistance for low-income 
families. 
‘‘(ii) STATE MINIMUM EXPENDITURES 
REQUIREMENT.— 
‘‘(I) IN
GENERAL.—Each State 
paid a grant under this subsection for 
a fiscal year shall certify that the 
State shall satisfy the required min-
imum general revenue expenditures 
for child care assistance for low-in-
come families dollar amount applica-
ble to the State for the fiscal year. 
‘‘(II) STATE MINIMUM GENERAL 
REVENUE EXPENDITURES FOR CHILD 
CARE
ASSISTANCE
FOR
LOW-INCOME 
FAMILIES
DOLLAR
AMOUNT.—With 
respect to a State and a fiscal year, 
the minimum general revenue expend-
itures for child care assistance for 
low-income families dollar amount for 
the State and fiscal year is— 
‘‘(aa) in the case of the first 
fiscal year for which the State is 
paid a grant under this sub-
section, 
the 
aggregate 
dollar 
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amount of general revenue ex-
penditures for child care assist-
ance for low-income families for 
the most recent State fiscal year 
for which data is available; and 
‘‘(bb) in the case of any suc-
ceeding fiscal year, the greater 
of— 
‘‘(AA) 
the 
minimum 
baseline dollar amount of 
general revenue expenditures 
for child care assistance for 
low-income families applica-
ble to the State for the pre-
ceding year; and 
‘‘(BB) 
the 
minimum 
baseline dollar amount of 
general revenue expenditures 
for child care assistance for 
low-income families for the 
most recent State fiscal year 
for which data is available. 
‘‘(III) ANNUAL GUIDANCE.—The 
Secretary shall issue annual guidance 
to States specifying— 
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‘‘(aa) the data and reporting 
that will be required for purposes 
of enforcing the State minimum 
general revenue expenditures for 
child care assistance for low-in-
come families dollar amount re-
quirement under this subpara-
graph; and 
‘‘(bb) for each fiscal year 
and State for which a grant is 
paid under this subsection, the 
minimum general revenue ex-
penditures for child care assist-
ance for low-income families dol-
lar amount that is required for 
the State and fiscal year. 
‘‘(D) PERIOD FOR AVAILABILITY; REDIS-
TRIBUTION OF UNUSED FUNDS.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the period in which the 
funds from grants paid under this sub-
section for a fiscal year are available for 
expenditure, 
the 
determination 
as 
to 
whether funds from the grant will not be 
used, and the procedure for redistributing 
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unused funds, shall be made in the same 
manner as if— 
‘‘(I) in the case of 1 of the 50 
States or the District of Columbia, 
the funds were considered amounts al-
lotted to the State or District under 
subsection (a)(2)(B) for a fiscal year; 
‘‘(II) in the case of a territory, 
the funds were considered a grant 
made to the territory under subsection 
(a)(4) for such fiscal year; and 
‘‘(III) in the case of an Indian 
Tribe or Tribal organization, the 
funds were considered a grant made 
to the Indian Tribe or Tribal organi-
zation under subsection (a) for such 
fiscal year. 
‘‘(ii) EXTENSION OF AVAILABILITY OF 
FUNDS USED FOR CERTAIN PROJECTS.—If 
funds from a grant paid under this sub-
section are used to provide financial sup-
port for a project described in subclause 
(IX) or (X) of paragraph (4)(A)(iv), the 
funds shall remain available for expendi-
ture by the lead agency of a State, terri-
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tory, Indian Tribe, or Tribal organization 
(as applicable) for a period of 5 years. 
‘‘(E) INAPPLICABILITY
OF
TERRITORIAL 
PAYMENT LIMITATION.—Section 1108(a) shall 
not apply with respect to any funds paid under 
this subsection. 
‘‘(6) USE OF FUNDS.— 
‘‘(A) IN
GENERAL.—To the extent per-
mitted under this paragraph, section 658G(b) 
of the Child Care and Development Block 
Grant Act of 1990, and the approved planned 
use of funds submission of the lead agency of 
a State, territory, Indian Tribe, or Tribal orga-
nization under paragraph (4), each such lead 
agency shall use funds from a grant paid under 
this subsection to increase child care workforce, 
supply, quality, and access in areas determined 
to be in particular need of child care (with ac-
tivities provided directly, or through grants or 
contracts with local child care resource and re-
ferral organizations or other appropriate enti-
ties). Activities carried out with such funds 
shall be— 
‘‘(i) designed to improve the quality of 
child care services, including improving the 
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quality of the child care workforce, and in-
crease parental options for, and access to, 
high-quality child care, especially in areas 
of concentrated poverty; and 
‘‘(ii) in alignment with the most re-
cent statewide or Tribal assessment of the 
State’s or Indian Tribe’s or Tribal organi-
zation’s needs to carry out such services 
and care. 
‘‘(B) PRIORITY.—If a lead agency chooses 
to make grants from the funds paid under this 
subsection, each such lead agency shall give pri-
ority to funding child care services that will use 
the grant to provide or coordinate services in 
order to— 
‘‘(i) provide child care services during 
nontraditional hours; 
‘‘(ii) serve dual language learners, 
children with disabilities, children experi-
encing homelessness, children in foster 
care, children from low-income families, or 
infants and toddlers; 
‘‘(iii) serve a high proportion of chil-
dren whose families are eligible for sub-
sidies under the Child Care and Develop-
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