248 
SEC. 4002. PAYMENTS TO POSSESSIONS. 
(a) MIRROR CODE POSSESSION.—The Secretary of 
the Treasury shall pay to each possession of the United 
States with a mirror code tax system amounts equal to 
the loss to that possession by reason of the application 
of section 36C of the Internal Revenue Code of 1986 (as 
added by section 4001) with respect to taxable years be-
ginning after 2020. Such amounts shall be determined by 
the Secretary of the Treasury based on information pro-
vided by the government of the respective possession. 
(b) OTHER POSSESSIONS.—The Secretary of the 
Treasury shall pay to each possession of the United States 
which does not have a mirror code tax system amounts 
estimated by the Secretary of the Treasury as being equal 
to the aggregate benefits that would have been provided 
to residents of such possession by reason of the application 
of section 36C of such Code (as so added) for taxable 
years beginning after 2021 if a mirror code tax system 
had been in effect in such possession. The preceding sen-
tence shall not apply with respect to any possession of the 
United States unless such possession has a plan, which 
has been approved by the Secretary of the Treasury, under 
which such possession will promptly distribute such pay-
ments to the residents of such possession. 
(c) 
COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No credit 
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shall be allowed against United States income taxes for 
any taxable year under section 36C of the Internal Rev-
enue Code of 1986 (as so added) to any person— 
(1) to whom a credit is allowed against taxes 
imposed by the possession by reason of the amend-
ments made by this section for such taxable year; or 
(2) who is eligible for a payment under a plan 
described in subsection (b) with respect to such tax-
able year. 
(d) DEFINITIONS AND SPECIAL RULES.— 
(1) POSSESSION OF THE UNITED STATES.—For 
purposes of this section, the term ‘‘possession of the 
United States’’ includes the Commonwealth of Puer-
to Rico and the Commonwealth of the Northern 
Mariana Islands. 
(2) MIRROR CODE TAX SYSTEM.—For purposes 
of this section, the term ‘‘mirror code tax system’’ 
means, with respect to any possession of the United 
States, the income tax system of such possession if 
the income tax liability of the residents of such pos-
session under such system is determined by ref-
erence to the income tax laws of the United States 
as if such possession were the United States. 
(3) TREATMENT OF PAYMENTS.—For purposes 
of section 1324(b)(2) of title 31, United States 
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Code, the payments under this section shall be treat-
ed in the same manner as a refund due from the 
credit allowed under section 36C of the Internal 
Revenue Code of 1986. 
TITLE V—CHILD CARE IS 
INFRASTRUCTURE 
SEC. 5001. INFRASTRUCTURE GRANTS TO IMPROVE CHILD 
CARE SAFETY. 
(a) IN GENERAL.—Part A of title IV of the Social 
Security Act (42 U.S.C. 601 et seq.) is amended by insert-
ing after section 418 the following: 
‘‘SEC. 418A. INFRASTRUCTURE GRANTS TO IMPROVE CHILD 
CARE SAFETY. 
‘‘(a) SHORT TITLE.—This section may be cited as the 
‘Infrastructure Grants To Improve Child Care Safety Act’. 
‘‘(b) NEEDS ASSESSMENTS.— 
‘‘(1) IMMEDIATE NEEDS ASSESSMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
conduct an immediate needs assessment of the 
condition of child care facilities throughout the 
United States (with priority given to child care 
facilities that receive Federal funds), that— 
‘‘(i) determines the extent to which 
the COVID–19 pandemic has created im-
mediate infrastructure needs, including in-
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frastructure-related 
health 
and 
safety 
needs, which must be addressed for child 
care facilities to operate in compliance with 
public health guidelines; 
‘‘(ii) considers the effects of the pan-
demic on a variety of child care centers, in-
cluding home-based centers; and 
‘‘(iii) considers how the pandemic has 
impacted specific metrics, such as— 
‘‘(I) capacity; 
‘‘(II) investments in infrastruc-
ture changes; 
‘‘(III) the types of infrastructure 
changes centers need to implement 
and their associated costs; 
‘‘(IV) the price of tuition; and 
‘‘(V) any changes or anticipated 
changes in the number and demo-
graphic of children attending. 
‘‘(B) TIMING.—The immediate needs as-
sessment should occur simultaneously with the 
first grant-making cycle under subsection (c). 
‘‘(C) REPORT.—Not later than 1 year 
after the date of the enactment of this section, 
the Secretary shall submit to the Congress a re-
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port containing the result of the needs assess-
ment conducted under subparagraph (A), and 
make the assessment publicly available. 
‘‘(2) LONG-TERM NEEDS ASSESSMENT.— 
‘‘(A) IN
GENERAL.—The Secretary shall 
conduct a long-term assessment of the condition 
of child care facilities throughout the United 
States (with priority given to child care facili-
ties that receive Federal funds). The assess-
ment may be conducted through representative 
random sampling. 
‘‘(B) REPORT.—Not later than 4 years 
after the date of the enactment of this section, 
the Secretary shall submit to the Congress a re-
port containing the results of the needs assess-
ment conducted under subparagraph (A), and 
make the assessment publicly available. 
‘‘(c) CHILD CARE FACILITIES GRANTS.— 
‘‘(1) GRANTS TO STATES.— 
‘‘(A) IN
GENERAL.—The Secretary may 
award grants to States for the purpose of ac-
quiring, constructing, renovating, or improving 
child care facilities, including adapting, re-
configuring, or expanding facilities to respond 
to the COVID–19 pandemic. 
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‘‘(B) PRIORITIZED FACILITIES.—The Sec-
retary may not award a grant to a State under 
subparagraph (A) unless the State involved 
agrees, with respect to the use of grant funds, 
to prioritize— 
‘‘(i) child care facilities primarily serv-
ing low-income populations; 
‘‘(ii) child care facilities primarily 
serving children who have not attained the 
age of 5 years; 
‘‘(iii) child care facilities that made 
maximum health and safety modifications 
to account for the impact of the COVID– 
19 pandemic; 
‘‘(iv) child care facilities that operate 
under nontraditional hours; and 
‘‘(v) child care facilities located in 
rural or underserved communities. 
‘‘(C) DURATION
OF
GRANTS.—A grant 
under this subsection shall be awarded for a pe-
riod of not more than 5 years. 
‘‘(D) APPLICATION.—To seek a grant 
under this subsection, a State shall submit to 
the Secretary an application at such time, in 
such manner, and containing such information 
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as the Secretary may require, which informa-
tion shall— 
‘‘(i) be disaggregated as the Secretary 
may require; and 
‘‘(ii) include a plan to use a portion of 
the grant funds to report back to the Sec-
retary on the impact of using the grant 
funds to improve child care facilities. 
‘‘(E) PRIORITY.—In selecting States for 
grants under this subsection, the Secretary 
shall prioritize States that— 
‘‘(i) plan to improve center-based and 
home-based child care programs, which 
may include a combination of child care 
and early Head Start or Head Start pro-
grams; 
‘‘(ii) aim to meet specific needs across 
urban, suburban, or rural areas as deter-
mined by the State; and 
‘‘(iii) show evidence of collaboration 
with— 
‘‘(I) local government officials; 
‘‘(II) other State agencies; 
‘‘(III) nongovernmental organiza-
tions, such as— 
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‘‘(aa) organizations within 
the philanthropic community; 
‘‘(bb) certified community 
development 
financial 
institu-
tions, as defined in section 103 
of the Community Development 
Banking and Financial Institu-
tions Act of 1994 (12 U.S.C. 
4702); and 
‘‘(cc) 
organizations 
that 
have 
demonstrated 
experience 
in— 
‘‘(AA) providing tech-
nical or financial assistance 
for the acquisition, construc-
tion, renovation, or improve-
ment of child care facilities; 
‘‘(BB) providing tech-
nical, financial, or manage-
rial assistance to child care 
providers; and 
‘‘(CC) securing private 
sources of capital financing 
for child care facilities or 
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other low-income community 
development projects; and 
‘‘(IV) local community organiza-
tions, such as— 
‘‘(aa) child care providers; 
‘‘(bb) community care agen-
cies; 
‘‘(cc) resource and referral 
agencies; and 
‘‘(dd) unions. 
‘‘(F) CONSIDERATION.—In selecting States 
for grants under this subsection, the Secretary 
shall consider— 
‘‘(i) whether the applicant— 
‘‘(I) has or is developing a plan 
to address child care facility needs; 
and 
‘‘(II) demonstrates the capacity 
to execute such a plan; and 
‘‘(ii) after the date the report required 
by subsection (b)(1)(C) is submitted to the 
Congress, the needs of the applicants 
based on the results of the assessment. 
‘‘(G) DIVERSITY OF AWARDS.—In award-
ing grants under this section, the Secretary 
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shall give equal consideration to States with 
varying capacities under subparagraph (F). 
‘‘(H) MATCHING REQUIREMENT.— 
‘‘(i) IN GENERAL.—As a condition for 
the receipt of a grant under subparagraph 
(A), a State that is not an Indian tribe 
shall agree to make available (directly or 
through donations from public or private 
entities) contributions with respect to the 
cost of the activities to be carried out pur-
suant to subparagraph (A), which may be 
provided in cash or in kind, in an amount 
equal to 10 percent of the funds provided 
through the grant. 
‘‘(ii) DETERMINATION
OF
AMOUNT 
CONTRIBUTED.—Contributions required by 
clause (i) may include— 
‘‘(I) amounts provided by the 
Federal Government, or services as-
sisted or subsidized to any significant 
extent by the Federal Government; or 
‘‘(II) philanthropic or private-sec-
tor funds. 
‘‘(I) REPORT.—Not later than 6 months 
after the last day of the grant period, a State 
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receiving a grant under this paragraph shall 
submit a report to the Secretary as described in 
subparagraph (D)— 
‘‘(i) to determine the effects of the 
grant in constructing, renovating, or im-
proving child care facilities, including any 
changes in response to the COVID–19 
pandemic and any effects on access to and 
quality of child care; and 
‘‘(ii) to provide such other information 
as the Secretary may require. 
‘‘(J) AMOUNT LIMIT.—The annual amount 
of a grant under this paragraph may not exceed 
$35,000,000. 
‘‘(2) GRANTS
TO
INTERMEDIARY
ORGANIZA-
TIONS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
award grants to intermediary organizations, 
such as certified community development finan-
cial institutions, tribal organizations, or other 
organizations with demonstrated experience in 
child care facilities financing, for the purpose of 
providing technical assistance, capacity build-
ing, and financial products to develop or finance 
child care facilities. 
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‘‘(B) APPLICATION.—A grant under this 
paragraph may be made only to intermediary 
organizations that submit to the Secretary an 
application at such time, in such manner, and 
containing such information as the Secretary 
may require. 
‘‘(C) PRIORITY.—In selecting intermediary 
organizations for grants under this subsection, 
the Secretary shall prioritize intermediary orga-
nizations that— 
‘‘(i) demonstrate experience in child 
care facility financing or related commu-
nity facility financing; 
‘‘(ii) demonstrate the capacity to as-
sist States and local governments in devel-
oping child care facilities and programs; 
‘‘(iii) demonstrate the ability to lever-
age grant funding to support financing 
tools to build the capacity of child care 
providers, such as through credit enhance-
ments; 
‘‘(iv) propose to focus on child care 
facilities that operate under nontraditional 
hours; 
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