ganization that represents not fewer than 5
businesses); and
(B) has not received a grant under this
title.
(2) ADDITIONAL REQUIREMENT.—To the maxi-
mum extent practicable, each business or organiza-
tion that forms an eligible entity under paragraph
(1) shall be located in the same geographic region of
the United States.
(c) PRIORITY FOR SMALL BUSINESSES.—In provid-
ing grants under subsection (a), a State shall give priority
to eligible entities that consist of a majority of representa-
tives from small businesses.
(d) MAXIMUM AMOUNT OF GRANT.—The amount of
a grant provided to an eligible entity under subsection (a)
may not exceed $50,000 for any fiscal year.
SEC. 152. APPLICATION.
The Secretary may not provide a grant under section
151 to an eligible entity unless such entity submits to the
Secretary an application that contains—
(1) a proposal to use such grant for the pur-
poses specified in section 101 (including the pur-
poses specified by the Secretary by rule) to provide
quality child care services; and
(2) such information as the Secretary may rea-
sonably require by rule.
SEC. 153. USE OF AMOUNTS.
(a) IN GENERAL.—The Secretary may not provide a
grant under section 151 to an eligible entity unless such
entity agrees to use such grant to initiate a quality, afford-
able, local child care program that carries out the proposal
included in the application submitted under section 152
by such entity.
(b) CONDUCT OF PROGRAM.—In carrying out the
program described in subsection (a), the eligible entity
may—
(1) establish a board of directors to oversee the
program; and
(2) provide child care services on a sliding fee
scale that provides for cost sharing by the families
of the children who receive such services.
(c) ADMINISTRATIVE COSTS.—The eligible entity
may use not more than 15 percent of the amount of a
grant to pay for administrative costs associated with the
program described in subsection (a).
SEC. 154. REQUIREMENT OF MATCHING FUNDS.
The Secretary may not provide a grant under section
151 to an eligible entity unless such entity agrees that—
(1) it will make available non-Federal contribu-
tions toward the costs of carrying out a program
under section 153 in an amount that is not less than
$1 for each $1 of Federal funds provided under a
grant under section 151; and
(2) of such non-Federal contributions, not less
than $1 of each such $2 shall be from businesses
participating in the eligible entity.
Subtitle C—General Provisions
SEC. 191. DEFINITIONS.
For purposes of this title:
(1) CAREGIVER.—The term ‘‘caregiver’’ has the
meaning given such term in section 658P of the
Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858n).
(2) ELIGIBLE
CHILD
CARE
PROVIDER.—The
term ‘‘eligible child care provider’’ has the meaning
given such term in section 658P of the of the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858n).
(3) LEAD AGENCY.—The term ‘‘lead agency’’
has the meaning given such term in section 658P of
the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858n).
(4) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
(5) STATE.—The Term ‘‘State’’ has the mean-
ing given such term in section 658P of the of the
Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858n).
SEC. 192. AUTHORIZATION OF APPROPRIATIONS.
(a) AUTHORIZATION OF APPROPRIATIONS FOR SUB-
TITLE A.—There is authorized to be appropriated for fis-
cal years 1999, 2000, 2001, 2002, and 2003 to carry out
subtitle A $5,000,000,000 in the aggregate.
(b) AUTHORIZATION OF APPROPRIATIONS FOR SUB-
TITLE B.—There is authorized to be appropriated for each
of the fiscal years 1999, 2000, 2001, 2002, and 2003 to
carry out subtitle B an amount equal to $100,000,000 or
10 percent of the amount appropriated under subsection
(a) for the respective fiscal year, whichever is less.
TITLE II—CHILD CARE
STANDARDS ENFORCEMENT
SEC. 201. AUTHORITY TO MAKE GRANTS FOR CHILD CARE
STANDARDS ENFORCEMENT PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Section 658G
of the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858e) is amended—
(1) by inserting ‘‘(a) CONSUMER EDUCATION.—
’’ before ‘‘A State’’; and
(2) by adding at the end the following:
‘‘(b) CHILD CARE STANDARDS ENFORCEMENT.—
‘‘(1) STATE PLAN REQUIREMENT.—To be eligi-
ble to receive payments under section 658J(b)(3), a
State shall include in the State plan under section
658E—
‘‘(A) a child care standards enforcement
plan that describes the activities the State will
carry out, directly or indirectly, with funds al-
lotted to the State from amounts appropriated
under section 658C, which may include—
‘‘(i) initiatives to increase the number
of qualified staff engaged in licensing child
care providers and in enforcing licensing,
health, safety, and other applicable stand-
ards;
‘‘(ii) increasing monitoring and en-
forcement 
activities, 
including 
unan-
nounced inspections; and
‘‘(iii) other activities designed to en-
sure that child care providers comply with
applicable standards;
‘‘(B) an assurance that the State will not
reduce or remove any of such standards appli-
cable to child care providers under this sub-
chapter; and
‘‘(C) assurances that payments received by
the State under section 658J(b)(3) will not be
used to supplant Federal or non-Federal funds
for existing services and activities which pro-
mote the purposes of this subsection.’’.
(b) AUTHORIZATION
OF
APPROPRIATIONS
FOR
CHILD CARE STANDARDS ENFORCEMENT.—Section 658B
of the Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858) is amended—
(1) by inserting ‘‘(a) GENERAL AUTHORIZA-
TION OF APPROPRIATIONS.—’’ before ‘‘There’’,
(2) by inserting ‘‘(other than section 658G(b))’’
after ‘‘subchapter’’, and
(3) by adding at the end the following:
‘‘(b) AUTHORIZATION
OF
APPROPRIATIONS
FOR
CHILD CARE STANDARDS ENFORCEMENT.—There is au-
thorized to be appropriated to carry out section 658G(b)
$100,000,000 for each of the fiscal years 1999, 2000,
2001, 2002, and 2003.’’.
‘‘(H) enforcement of child care quality and
safety standards, including data, by type of pro-
vider, on—
‘‘(i) the number of facilities inspected
(and the number of facilities receiving
more than 1 inspection);
‘‘(ii) the numbers and types of defi-
ciencies identified (and the numbers of se-
rious deficiencies presenting risks to health
or safety); and
‘‘(iii) such other data as the Secretary
may require.’’.
TITLE III—LOAN DEFERRAL
SEC. 301. STUDENT LOAN DEFERRAL FOR CHILD CARE
PROVIDERS.
(a) 
FEDERALLY
INSURED
LOANS.—Section
427(a)(2)(C) of the Higher Education Act of 1965 (20
U.S.C. 1077(a)(2)(C)) is amended—
(1) by striking ‘‘or’’ at the end of clause (ii);
(2) by inserting ‘‘or’’ after the semicolon at the
end of clause (iii); and
(3) by inserting after clause (iii) the following
new clause:
‘‘(iv) not in excess of 2 years through-
out which a borrower who holds a degree
in early childhood education or a related
discipline, and is a licensed child care pro-
vider, provides child care services not less
than 30 hours per week for compensation
as a child care provider or as an employee
of a child care provider, and for purposes
of this clause a borrower shall be consid-
ered to have a degree in early childhood
education or a related discipline if the de-
gree prepares individuals to provide care
and education to groups of children young-
er than school-age, or to groups of school
age children during out-of-school periods;’’.
(b) FEDERALLY
GUARANTEED
LOANS.—Section
428(b)(1)(M) of the Higher Education Act of 1965 (20
U.S.C. 1078(b)(1)(M)) is amended—
(1) by striking ‘‘or’’ at the end of clause (ii);
(2) by inserting ‘‘or’’ after the semicolon at the
end of clause (iii); and
(3) by inserting after clause (iii) the following
new clause:
‘‘(iv) not in excess of 2 years through-
out which a borrower who holds a degree
in early childhood education or a related
discipline, and is a licensed child care pro-
vider, provides child care services not less
than 30 hours per week for compensation
as a child care provider or as an employee
of a child care provider, and for purposes
of this clause a borrower shall be consid-
ered to have a degree in early childhood
education or a related discipline if the de-
gree prepares individuals to provide care
and education to groups of children young-
er than school-age, or to groups of school
age children during out-of-school periods;’’.
(c) FEDERAL DIRECT STUDENT LOANS.—Section
455(f)(2) of the Higher Education Act of 1965 (20 U.S.C.
1087e(f)(1)) is amended—
(1) by redesignating subparagraph (C) as sub-
paragraph (D); and
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph:
‘‘(C) not in excess of 2 years throughout
which a borrower who holds a degree in early
childhood education or a related discipline, and
is a licensed child care provider, provides child
care services not less than 30 hours per week
for compensation as a child care provider or as
an employee of a child care provider, and for
purposes of this subparagraph, a borrower shall
be considered to have a degree in early child-
hood education or a related discipline if the de-
gree prepares individuals to provide care and
education to groups of children younger than
school-age, or to groups of school age children
during out-of-school periods;’’.
TITLE IV—RESEARCH AND
DEMONSTRATIONS
SEC. 401. AUTHORITY TO MAKE GRANTS FOR RESEARCH
AND DEMONSTRATIONS.
(a) AUTHORITY.—The Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858b et seq.) is
amended by adding at the end the following:
‘‘SEC. 658T. RESEARCH AND DEMONSTRATIONS.
‘‘(a) IN GENERAL.—The Secretary may, either di-
rectly or through grants, contracts, or other arrange-
ments, carry out research, demonstration projects, and
other activities relating to child care services, including ac-
tivities designed to improve the quality and increase the
availability of child care services.
‘‘(b) ALLOWABLE ACTIVITIES.—Activities referred to
in subsection (a) may include the following:
‘‘(1) RESEARCH
ON
CHILD
CARE
NEEDS
OF
LOW-INCOME FAMILIES.—Research designed to iden-
tify and overcome barriers restricting availability, af-
fordability, and quality of child care for low-income
families.
‘‘(2) 
DEMONSTRATIONS
OF
TECHNOLOGY-
BASED EDUCATION AND TRAINING.—Demonstration
projects testing use of remote site and interactive
computer technology to provide education and train-
ing to child care providers and parents.
‘‘(3) DEMONSTRATION
PROJECTS
FOR
NEW
METHODS.—Demonstration projects addressing the
particular child care needs of certain parents, such
as stay-at-home parents of newborns or newly adopt-
ed children, low-income families, single parents, and
parents of children with special needs.
‘‘(4) NATIONAL CENTER ON CHILD CARE STA-
TISTICS.—Establishment and operation of a Na-
tional Center on Child Care Statistics for the collec-
tion and dissemination of data and information on
child care.
‘‘(5) HOTLINE AND CONSUMER EDUCATION.—
Establishment and operation of a hotline to assist
parents to locate their local child care resource and
referral agency and public education activities to as-
sist parents in becoming informed consumers of
quality child care.’’.
(b) AUTHORIZATION OF APPROPRIATIONS FOR RE-
SEARCH AND DEMONSTRATIONS.—
(1) AUTHORIZATION.—Section 658B of the
Child Care and Development Block Grant Act of
1990 (42 U.S.C. 9858), as amended by section 201,
is amended by adding at the end the following:
‘‘(c) AUTHORIZATION OF APPROPRIATIONS FOR RE-
SEARCH AND DEMONSTRATIONS.—There is authorized to
be appropriated to carry out section 658T $30,000,000
for each of the fiscal years 1999, 2000, 2001, 2002, and
2003.’’.
(2) TECHNICAL AMENDMENTS.—Section 658O
of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858m) is amended—
(A) in subsection (a)—
(i) in paragraph (1) by inserting
‘‘(other than funds appropriated under sec-
tion 658B(c))’’ after ‘‘subchapter’’, and
(ii) in paragraph (2) by inserting
‘‘(other than subsection (c) of such sec-
tion)’’ after ‘‘section 658(B)’’, and
(B) in subsection (b) by inserting ‘‘(other
than subsection (c) of such section)’’ after ‘‘sec-
tion 658(B)’’.
$2,000,000,000 for each of the fiscal years 1999, 2000,
2001, 2002, and 2003’’.
TITLE VI—CHILD AND ADULT
FOOD PROGRAM
SEC. 601. REVISION OF REIMBURSEMENT RATES FOR FAM-
ILY OR GROUP DAY CARE HOMES UNDER THE
CHILD AND ADULT CARE FOOD PROGRAM
UNDER THE NATIONAL SCHOOL LUNCH ACT.
(a) IN GENERAL.—Section 17(f)(3) of the National
School Lunch Act (42 U.S.C. 1766(f)(3)) is amended—
(1) in subparagraph (A)(iii)(I)—
(A) in division (aa), by striking ‘‘95 cents
for lunches and suppers, 27 cents for break-
fasts, and 13 cents for supplements’’ and in-
serting ‘‘$1.03 for lunches and suppers, 38
cents for breakfasts, and 18 cents for supple-
ments’’; and
(B) in division (bb), by striking ‘‘1997’’
and inserting ‘‘1998’’; and
(2) in the second sentence of subparagraph (B),
by inserting after ‘‘Such levels’’ the following: ‘‘shall
be those levels in effect on June 30, 1998, increased
by $2.00 per home and’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on June 30, 1998, or the
date of the enactment of this Act, whichever is later.
TITLE VII—SENSE OF THE
CONGRESS
SEC. 701. SENSE OF THE CONGRESS.
It is the sense of the Congress that funds should be
appropriated under the amendments made by this Act to
the maximum extent authorized and consistently with
achieving a balanced Federal budget.
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