I
104TH CONGRESS
2D SESSION
H. R. 3860
To consolidate and expand Federal child care services to promote self-
sufficiency and support working families; and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 18, 1996
Ms. WOOLSEY introduced the following bill; which was referred to the Commit-
tee on Economic and Educational Opportunities, and in addition to the
Committee on Ways and Means, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To consolidate and expand Federal child care services to
promote self-sufficiency and support working families;
and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Child Care Consolida-
tion and Investment Act of 1996’’.
SEC. 2. FINDINGS.
Congress finds that—
(1) fragmentation of the Federal Government’s
major child care assistance programs has left gaps
for many parents moving from welfare to work;
(2) child care problems have prevented 34 per-
cent of poor mothers between the ages 21 and 29
from working;
(3) 2⁄3 of all families receiving assistance under
the Aid to Families with Dependent Children pro-
gram have at least one preschool age child and need
child care in order to work;
(4) there already exists an unmet need for child
care assistance—37 States now have waiting lists
that can run as high as 35,000 individuals;
(5) child care directly affects an individual’s
ability to stay in the work force;
(6) welfare reform that places work at its cen-
ter will increase the demand for child care and re-
quire an additional investment of resources;
(7) child care consumes $260 per month or
about 27 percent of income for average working poor
families, leaving them with less income than families
eligible for assistance under the Aid to Families with
Dependent Children program;
(8) quality must be a central feature of the
child care policy of the United States;
(9) only 1 in 7 day care centers offer good qual-
ity care;
(10) 40 percent of day care centers serving in-
fants and toddlers do not meet basic sanitary condi-
tions, have safety problems, and do not encourage
learning; and
(11) only 9 percent of family and relative day
care is considered good quality care.
SEC. 3. PURPOSE.
It is the purpose of this Act to—
(1) eliminate program fragmentation and create
a seamless system of high quality child care that al-
lows for continuity of care for children as parents
move from welfare to job training to work;
(2) provide for parental choice among high
quality child care programs; and
(3) increase the availability of high quality af-
fordable child care in order to promote self-suffi-
ciency and support working families.
SEC. 4. AMENDMENTS TO CHILD CARE AND DEVELOPMENT
BLOCK GRANT ACT OF 1990.
(a) APPROPRIATIONS.—Section 658B of the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858) is amended to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subchapter, $2,790,000,000 for fiscal year 1997,
$3,040,000,000 for fiscal year 1998, $3,460,000,000 for
fiscal year 1999, $4,030,000,000 for fiscal year 2000, and
$4,680,000,000 for fiscal year 2001.’’.
(b) AWARDING OF GRANTS.—Section 658C of the
Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858a) is amended by striking ‘‘is authorized to’’
and inserting ‘‘shall’’.
(c) SUPPLEMENTATION.—Section 658E(c)(2)(J) of
the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858c(c)(2)(J)) is amended by inserting ‘‘in
fiscal year 1995’’ before the period.
(d) SET-ASIDES FOR QUALITY AND WORKING FAMI-
LIES, 
AND
CHILD
CARE
GUARANTEE.—Section
658E(c)(3) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858c(c)(3))—
(1) in subparagraph (C), by striking ‘‘25 per-
cent’’ and inserting ‘‘20 percent’’; and
(2) by adding at the end thereof the following:
‘‘(D) 
ASSISTANCE
FOR
LOW-INCOME
WORKING FAMILIES.—The State shall reserve
not less than 50 percent of the amount provided
to the State and available for providing services
under this subchapter, to carry out child care
activities to support low-income working fami-
lies residing in the State.
‘‘(E) 
CHILD
CARE
GUARANTEE.—The
State plan shall provide assurances that the
availability of child care under the grant will be
coordinated in an appropriate manner (as de-
termined by the Secretary) with the require-
ments of part A of title IV of the Social Secu-
rity Act. Such coordination shall ensure that
the single custodial parent of a dependent child
who is less than 11 years of age, or who is a
child with a disability (as defined in section
602(1)(A) of the Individuals with Disabilities
Act (20 U.S.C. 1401(1)(A)), is not required to
undertake an education, job training, job
search, or employment requirement unless child
care assistance in an appropriate child care pro-
gram is made available.’’.
(e) MATCHING REQUIREMENT.—Section 658E(c) of
the Child Care and Development Block Grant Act of 1990
(42 U.S.C. 9858c(c)) is amended by adding at the end
thereof the following:
‘‘(6) MATCHING REQUIREMENT.—With respect
to amounts made available to a State in each fiscal
year beginning on or after the effective date of this
paragraph, that exceed the aggregate amounts re-
ceived by the State for child care services in fiscal
year 1995, the State plan shall provide that, with re-
spect to the costs to be incurred by the State in car-
rying out the activities for which a grant under this
subchapter is awarded, the State will make available
(directly or through in-kind donations from public or
private entities) non-Federal contributions in an
amount equal to not less than $1 for every $4 of
Federal funds provided under the grant.’’.
(f) IMPROVING QUALITY.—
(1) INCREASE IN REQUIRED FUNDING.—Section
658G of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858e) is amended by
striking ‘‘not less than 20 percent’’ and inserting
‘‘50 percent’’.
(2) QUALITY IMPROVEMENT INCENTIVE INITIA-
TIVE.—Section 658G of the Child Care and Develop-
ment Block Grant Act of 1990 (42 U.S.C. 9858e)
is amended—
(A) by striking ‘‘A State’’ and inserting
‘‘(a) IN GENERAL.—A State’’; and
(B) by adding at the end thereof the fol-
lowing:
‘‘(b) QUALITY IMPROVEMENT INCENTIVE INITIA-
TIVE.—
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a child care quality improvement incentive ini-
tiative to make funds available to States that dem-
onstrate progress in the implementation of—
‘‘(A) innovative teacher training programs
such as the Department of Defense staff devel-
opment and compensation program for child
care personnel; or
‘‘(B) enhanced child care quality standards
and licensing and monitoring procedures.
‘‘(2) FUNDING.—From the amounts made
available for each fiscal year under subsection (a),
the 
Secretary 
shall 
reserve 
not 
to 
exceed
$50,000,000 in each such fiscal year to carry out
this subsection.’’.
(g) BEFORE- AND AFTER-SCHOOL SERVICES.—Sec-
tion 658H(a) of the Child Care and Development Block
Grant Act of 1990 (42 U.S.C. 9858f(a)) is amended by
striking ‘‘not less than 75 percent’’ and inserting ‘‘50 per-
cent’’.
(h) PAYMENTS.—Section 658J(a) of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858h) is amended by striking ‘‘Subject to the availability
of appropriation, a’’ and inserting ‘‘A’’.
(i) ALLOTMENTS.—Section 658O(b) of the Child
Care and Development Block Grant Act of 1990 (42
U.S.C. 9858m(b)) is amended by adding at the end there-
of the following:
‘‘(5) ALLOTMENT.—
‘‘(A) BASE ALLOTMENT.—The amount al-
lotted to a State under this section shall include
the base amount that the State received under
this Act, and under the provisions repealed
under section 5 of the Child Care Consolidation
and Investment Act of 1996, in fiscal year
1995.
‘‘(B) 
ADDITIONAL
AMOUNTS.—Any
amounts appropriated under section 658B for a
fiscal year and remaining after the requirement
of subparagraph (A) is complied with, shall be
allotted to States pursuant to the formula de-
scribed in paragraph (1).’’.
SEC. 5. PROGRAM REPEALS.
(a) AFDC JOBS 
AND
TRANSITIONAL
CHILD
CARE.—
(1) REPEAL.—Paragraphs (1), (3), (4), (5),
(6), and (7) of section 402(g) of the Social Security
Act (42 U.S.C. 602(g)) are repealed.
(2) CONFORMING
AMENDMENTS.—Part A of
title IV of the Social Security Act (42 U.S.C. 601
et seq.) is amended—
(A) in section 402(a)(19) (42 U.S.C.
602(a)(19))—
(i) in subparagraph (B)(i)(I), by strik-
ing ‘‘section 402(g)’’ and inserting ‘‘the
Child Care Development Block Grant Act
of 1990 (42 U.S.C. 9858 et seq.)’’;
(ii) in subparagraph (C)(iii)(II), by
striking ‘‘section 402(g)’’ and inserting
‘‘the Child Care Development Block Grant
Act of 1990 (42 U.S.C. 9858 et seq.)’’;
(iii) in subparagraph (D), by striking
‘‘section 402(g)’’ and inserting ‘‘the Child
Care Development Block Grant Act of
1990 (42 U.S.C. 9858 et seq.)’’; and
(iv) in subparagraph (F)(iv), by strik-
ing ‘‘section 402(g)’’ and inserting ‘‘section
402(g)(2) and the Child Care Development
Block Grant Act of 1990 (42 U.S.C. 9858
et seq.)’’;
(B) in section 402(g)(2) (42 U.S.C.
602(g)(2)), by striking ‘‘(in addition to guaran-
teeing child care under paragraph (1))’’; and
(C) in section 403(l)(1)(A) (42 U.S.C.
603(l)(1)(A)), by striking ‘‘(including expendi-
tures 
for 
child 
care 
under 
section
402(g)(1)(A)(i), but only in the case of a State
with respect to which section 1108 applies)’’.
(b) AT-RISK CHILD CARE.—Sections 402(i) and
403(n) of the Social Security Act (42 U.S.C. 602(i),
603(n)) are repealed.
(c) STATE DEPENDENT CARE GRANTS.—Subchapter
E of chapter 8 of subtitle A of title VI of the Omnibus
Budget Reconciliation Act of 1981 (42 U.S.C. 9871 et
seq.) is repealed.
(d) CHILD DEVELOPMENT ASSOCIATE SCHOLARSHIP
ASSISTANCE ACT.—The Child Development Associate
Scholarship Assistance Act of 1985 (42 U.S.C. 10901 et
seq.) is repealed.
(e) SECRETARIAL SUBMISSION OF LEGISLATIVE PRO-
POSAL
FOR
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—The Secretary of Health and Human Services
shall, within 90 days after the date of the enactment of
this Act, submit to the appropriate committees of the Con-
gress, a legislative proposal providing for such technical
and conforming amendments in the law as are required
by the provisions of subsections (a) and (c).
SEC. 6. EFFECTIVE DATE.
This Act shall take effect on the first day of the first
fiscal year beginning after the date of the enactment of
this Act.
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