I 
108TH CONGRESS 
1ST SESSION H. R. 2377
To establish the Child Care Provider Development and Retention Grant 
Program, the Child Care Provider Scholarship Program, and a program 
of child care provider health benefits coverage, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 5, 2003
Mr. GEORGE MILLER of California (for himself, Mr. PLATTS, Mr. KENNEDY 
of Rhode Island, Mr. ANDREWS, Mr. SERRANO, Ms. DELAURO, Mr. 
DAVIS of Illinois, Ms. SOLIS, Mrs. DAVIS of California, Mr. HINOJOSA, 
Mrs. MCCARTHY of New York, Mr. KILDEE, and Mr. SANDERS) intro-
duced the following bill; which was referred to the Committee on Edu-
cation and the Workforce, and in addition to the Committee on Energy 
and Commerce, for a period to be subsequently determined by the Speak-
er, in each case for consideration of such provisions as fall within the ju-
risdiction of the committee concerned 
A BILL 
To establish the Child Care Provider Development and Re-
tention Grant Program, the Child Care Provider Scholar-
ship Program, and a program of child care provider 
health benefits coverage, 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 ‘‘Focus On Committed 
and Underpaid Staff for Children’s Sake Act’’ or as the 
‘‘FOCUS Act’’. 
SEC. 2. FINDINGS AND PURPOSE. 
(a) FINDINGS.—Congress makes the following find-
ings: 
(1) Research on early brain development and 
early childhood demonstrates that the experiences 
children have and the attachments children form 
early in life have a decisive, long-lasting impact on 
their later development and learning. 
(2) High-quality, developmentally appropriate 
child care beginning in early childhood and con-
tinuing through the years that children are in school 
improves the scholastic success and educational at-
tainment of children, and the success and attain-
ment persist into adulthood. 
(3) According to a growing body of research, 
the single most important determinant of child care 
quality is the presence of consistent, sensitive, well-
trained, and well-compensated child care providers. 
However, child care programs nationwide experience 
high turnover in teaching staff, fueled by poor com-
pensation and few opportunities for advancement.
(4) The Department of Labor reports that, in 
2001, the average wage for a child care provider was 
$8.16 per hour, or $16,980 annually. For full-time, 
full-year work, the average annual wage for a child 
care provider was not much above the 2001 poverty 
line of $14,630 for a family consisting of a parent 
and 2 children. Family child care providers earned 
even less. The median weekly wage of a family child 
care provider in 2001 was $264, which equals an an-
nual wage of $13,728. 
(5) Despite the important role child care pro-
viders may play in early child development and 
learning, on average, a child care provider earns less 
in a year than a bus driver ($29,430), barber 
($21,190), or janitor ($19,800). 
(6) Employer-sponsored benefits are minimal 
for most child care staff. Even for child care pro-
viders at child care centers, the availability of health 
care coverage for staff remains woefully inadequate. 
(7) To offer compensation that would be suffi-
cient to attract and retain qualified child care pro-
viders, child care programs would have to charge 
parents fees that many parents could not afford. For 
programs that serve low-income children whose fami-
lies qualify for Federal and State child care sub-
sidies, the reimbursement rates set by the State 
strongly influence the level of compensation that 
staff receive. Current reimbursement rates for cen-
ter-based child care services and family child care 
services are insufficient to recruit and retain quali-
fied child care providers and to ensure high-quality 
services for children. 
(8) Teachers leaving the profession are being 
replaced by staff with less education and formal 
training in early child development. 
(9) As a result of low wages and limited bene-
fits, many child care providers do not work for long 
periods in the child care field. Approximately 30 per-
cent of all teaching staff employed at child care cen-
ters leaves employment with a child care center each 
year. 
(10) Child care providers, as well as the chil-
dren, families, and businesses that depend upon the 
providers, suffer the consequences of inadequate 
compensation. This is true, with few exceptions, for 
providers in all types of programs, including sub-
sidized and nonsubsidized programs, programs of-
fered by for-profit and nonprofit entities, and pro-
grams in large and small child care settings.
(11) Because of the severe nationwide shortage 
of qualified staff available for employment by child 
care programs, several States have recently initiated 
programs to improve the quality of child care by in-
creasing the training and compensation of child care 
providers. Such programs encourage the training, 
education, and increased retention of qualified child 
care providers by offering financial incentives, in-
cluding scholarships and increases in compensation, 
that range from $350 to $6,500 annually. 
(12) Family child care providers are almost 
twice as likely to lack health insurance as the gen-
eral population. One in four child care centers does 
not offer health insurance benefits to employees. 
Even child care providers with health insurance cov-
erage state that it is difficult to afford out-of-pocket 
health care expenses. 
(13) In a study of lower income family child 
care providers without health insurance, more than 
half had used emergency room services for their own 
health care in the past year. 
(b) PURPOSES.—The purposes of this Act are—
(1) to establish the Child Care Provider Devel-
opment and Retention Grant Program, the Child
Care Provider Scholarship Program, and a program 
of child care provider health benefits coverage; and 
(2) to help children receive the high quality 
child care and early education the children need for 
positive cognitive and social development, by reward-
ing and promoting the retention of committed, quali-
fied child care providers and by providing financial 
assistance to improve the educational qualifications 
of child care providers. 
SEC. 3. DEFINITIONS. 
In this Act: 
(1) CHILD CARE PROVIDER.—The term ‘‘child 
care provider’’ means an individual who provides a 
service directly to a child on a person-to-person basis 
for compensation for—
(A) a center-based child care provider that 
is licensed or regulated under State or local law 
and that satisfies the State and local require-
ments applicable to the child care services pro-
vided; 
(B) a licensed or regulated family child 
care provider that satisfies the State and local 
requirements applicable to the child care serv-
ices provided; or
(C) an out-of-school time program that is 
licensed or regulated under State or local law 
and that satisfies the State and local require-
ments applicable to the child care services pro-
vided. 
(2) FAMILY CHILD CARE PROVIDER.—The term 
‘‘family child care provider’’ 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). 
(3) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
has the meaning given such term in section 4 of the 
Indian Self-Determination and Education Assistance 
Act (25 U.S.C. 450b). 
(4) LEAD AGENCY.—The term ‘‘lead agency’’ 
means the agency designated under section 658D of 
the Child Care and Development Block Grant Act of 
1990 (42 U.S.C. 9858b). 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Health and Human Services. 
(6) STATE.—The term ‘‘State’’ means any of 
the several States, the District of Columbia, the 
Commonwealth of Puerto Rico, the Virgin Islands of 
the United States, Guam, American Samoa, or the 
Commonwealth of the Northern Mariana Islands.
(7) TRIBAL ORGANIZATION.—The term ‘‘tribal 
organization’’ has the meaning given the term in 
section 4 of the Indian Self-Determination and Edu-
cation Assistance Act (25 U.S.C. 450b). 
SEC. 4. FUNDS FOR CHILD CARE PROVIDER DEVELOPMENT 
AND RETENTION GRANTS, SCHOLARSHIPS, 
AND HEALTH BENEFITS COVERAGE. 
(a) IN GENERAL.—From amounts appropriated to 
carry out this Act, the Secretary may allot and distribute 
funds to eligible States, and make payments to Indian 
tribes and tribal organizations, to pay for the Federal 
share of the cost of carrying out activities under sections 
7, 8, and 9 for eligible child care providers. 
(b) ALLOTMENTS.—The funds shall be allotted and 
distributed, and the payments shall be made, by the Sec-
retary in accordance with section 5, and expended by the 
States (directly, or at the option of the States, through 
units of general purpose local government), and by Indian 
tribes and tribal organizations, in accordance with this 
Act. 
SEC. 5. ALLOTMENTS TO STATES. 
(a) AMOUNTS RESERVED.—
(1) TERRITORIES AND POSSESSIONS.—The Sec-
retary shall reserve not more than 1⁄2 of 1 percent 
of the funds appropriated under section 12(a), and
not more than 1⁄2 of 1 percent of the funds appro-
priated under section 12(b), for any fiscal year for 
payments to the Virgin Islands of the United States, 
Guam, American Samoa, and the Commonwealth of 
the Northern Mariana Islands, to be allotted in ac-
cordance with their respective needs. 
(2) INDIAN
TRIBES
AND
TRIBAL
ORGANIZA-
TIONS.—The Secretary shall reserve not more than 
3 percent of the funds appropriated under section 
12(a), and not more than 3 percent of the funds ap-
propriated under section 12(b), for any fiscal year 
for payments to Indian tribes and tribal organiza-
tions with applications approved under subsection 
(c). 
(b) ALLOTMENTS TO REMAINING STATES.—
(1) GENERAL
AUTHORITY.—From the funds 
appropriated under section 12(a) for any fiscal year 
and remaining after the reservations made under 
subsection (a), and from the funds appropriated 
under section 12(b) for any fiscal year and remain-
ing after the reservations made under subsection (a), 
the Secretary shall allot to each State an amount 
equal to the sum of—
(A) an amount that bears the same ratio 
to 50 percent of the appropriate remainder as
the product of the young child factor of the 
State and the allotment percentage of the State 
bears to the sum of the corresponding products 
for all States; and 
(B) an amount that bears the same ratio 
to 50 percent of such remainder as the product 
of the school lunch factor of the State and the 
allotment percentage of the State bears to the 
sum of the corresponding products for all 
States. 
(2) YOUNG CHILD FACTOR.—In this subsection, 
the term ‘‘young child factor’’ means the ratio of the 
number of children under 5 years of age in the State 
to the number of such children in all the States, as 
determined according to the most recent annual esti-
mates of population in the States, as provided by the 
Bureau of the Census. 
(3) SCHOOL
LUNCH
FACTOR.—In this sub-
section, the term ‘‘school lunch factor’’ means the 
ratio of the number of children who are receiving 
free or reduced price lunches under the school lunch 
program established under the Richard B. Russell 
National School Lunch Act (42 U.S.C. 1751 et seq.) 
in the State to the number of such children in all
the States, as determined annually by the Depart-
ment of Agriculture. 
(4) ALLOTMENT PERCENTAGE.—
(A) IN GENERAL.—Except as provided in 
subparagraph (B), for purposes of this sub-
section, the allotment percentage for a State 
shall be determined by dividing the per capita 
income of all individuals in the United States, 
by the per capita income of all individuals in 
the State. 
(B) LIMITATIONS.—For purposes of this 
subsection, if an allotment percentage deter-
mined under subparagraph (A)—
(i) is more than 1.2 percent, the allot-
ment percentage of that State shall be con-
sidered to be 1.2 percent; and 
(ii) is less than 0.8 percent, the allot-
ment percentage of the State shall be con-
sidered to be 0.8 percent. 
(C) PER CAPITA INCOME.—For purposes 
of subparagraph (A), per capita income shall 
be—
(i) determined at 2-year intervals; 
(ii) applied for the 2-year period be-
ginning on October 1 of the first fiscal
year beginning after the date such deter-
mination is made; and 
(iii) equal to the average of the an-
nual per capita incomes for the most re-
cent period of 3 consecutive years for 
which satisfactory data are available from 
the Department of Commerce at the time 
such determination is made. 
(c) PAYMENTS TO INDIAN TRIBES AND TRIBAL OR-
GANIZATIONS.—
(1) RESERVATION OF FUNDS.—From amounts 
reserved under subsection (a)(2), the Secretary may 
make grants to or enter into contracts with Indian 
tribes and tribal organizations that submit applica-
tions under this subsection, to plan and carry out 
programs and activities—
(A) to encourage child care providers to 
improve their qualifications; 
(B) to retain qualified child care providers 
in the child care field; and 
(C) to provide health benefits coverage for 
child care providers. 
(2) APPLICATIONS
AND
REQUIREMENTS.—To 
be eligible to receive a grant or contract under this 
subsection, an Indian tribe or tribal organization
shall submit an application to the Secretary at such 
time, in such manner, and containing such informa-
tion as the Secretary may require. The application 
shall provide that the applicant—
(A) will coordinate the programs and ac-
tivities involved, to the maximum extent prac-
ticable, with the lead agency in each State in 
which the applicant will carry out such pro-
grams and activities; and 
(B) will make such reports on, and conduct 
such audits of the funds made available through 
the grant or contract for, programs and activi-
ties under this Act as the Secretary may re-
quire. 
(d) DATA AND INFORMATION.—The Secretary shall 
obtain from each appropriate Federal agency, the most re-
cent data and information necessary to determine the al-
lotments provided for in subsection (b). 
(e) REALLOTMENTS.—
(1) IN GENERAL.—Any portion of an allotment 
under subsection (b) to a State for a fiscal year that 
the Secretary determines will not be distributed to 
the State for such fiscal year shall be reallotted by 
the Secretary to other States in proportion to the
original corresponding allotments made under such 
subsection to such States for such fiscal year. 
(2) LIMITATIONS.—
(A) REDUCTION.—The amount of any re-
allotment to which a State is entitled under this 
subsection shall be reduced to the extent that 
such amount exceeds the amount that the Sec-
retary estimates will be distributed to the State 
to carry out corresponding activities under this 
Act. 
(B) REALLOTMENTS.—The amount of 
such reduction shall be reallotted to States for 
which no reduction in a corresponding allot-
ment, or in a corresponding reallotment, is re-
quired by this subsection, in proportion to the 
original corresponding allotments made under 
subsection (b) to such States for such fiscal 
year. 
(3) AMOUNTS REALLOTTED.—For purposes of 
this Act (other than this subsection and subsection 
(b)), any amount reallotted to a State under this 
subsection shall be considered to be part of the cor-
responding allotment made under subsection (b) to 
the State.
(4) INDIAN
TRIBES
OR
TRIBAL
ORGANIZA-
TIONS.—Any portion of a grant or contract made to 
an Indian tribe or tribal organization under sub-
section (c) that the Secretary determines is not 
being used in a manner consistent with the provision 
of this subchapter in the period for which the grant 
or contract is made available, shall be used by the 
Secretary to make payments to other tribes or orga-
nizations that have submitted applications under 
subsection (c) in accordance with their respective 
needs. 
(f) COST-SHARING.—
(1) CHILD CARE PROVIDER DEVELOPMENT AND 
RETENTION GRANTS AND SCHOLARSHIPS.—
(A) FEDERAL SHARE.—The Federal share 
of the cost of carrying out activities under sec-
tions 7 and 8, with funds allotted under this 
section and distributed by the Secretary to a 
State, shall be—
(i) not more than 90 percent of the 
cost of each grant made under such sec-
tions, in the first fiscal year for which the 
State receives such funds; 
(ii) not more than 85 percent of the 
cost of each grant made under such sec-
tions, in the second fiscal year for which 
the State receives such funds; 
(iii) not more than 80 percent of the 
cost of each grant made under such sec-
tions, in the third fiscal year for which the 
State receives such funds; and 
(iv) not more than 75 percent of the 
cost of each grant made under such sec-
tions, in any subsequent fiscal year for 
which the State receives such funds. 
(B) NON-FEDERAL SHARE.—
(i) IN GENERAL.—The State may pro-
vide the non-Federal share of the cost in 
cash or in the form of an in-kind contribu-
tion, fairly evaluated by the Secretary. 
(ii) IN-KIND CONTRIBUTION.—In this 
subparagraph, the term ‘‘in-kind contribu-
tion’’ means payment of the costs of par-
ticipation of eligible child care providers in 
health insurance programs or retirement 
programs. 
(2) CHILD CARE PROVIDER HEALTH BENEFITS 
COVERAGE.—
(A) FEDERAL SHARE.—The Federal share 
of the cost of carrying out activities under sec-
tion 9, with funds allotted under this section 
and distributed by the Secretary to a State, 
shall be not more than 50 percent of such cost. 
(B) NON-FEDERAL
SHARE.—The State 
may provide the non-Federal share of the cost 
in cash or in kind, fairly evaluated by the Sec-
retary, including plant, equipment, or services. 
The State shall provide the non-Federal share 
directly or through donations from public or 
private entities. Amounts provided by the Fed-
eral Government, or services assisted or sub-
sidized to any significant extent by the Federal 
Government, may not be included in deter-
mining the amount of such share. 
(g) AVAILABILITY OF ALLOTTED FUNDS DISTRIB-
UTED TO STATES.—Of the funds allotted under this sec-
tion for activities described in sections 7 and 8 and distrib-
uted by the Secretary to a State for a fiscal year—
(1) not less than 67.5 percent shall be available 
to the State for grants under section 7; 
(2) not less than 22.5 percent shall be available 
to the State for grants under section 8; and 
(3) not more than 10 percent shall be available 
to pay administrative costs incurred by the State to 
carry out activities described in sections 7 and 8.
(h) DEFINITION.—For the purposes of subsections 
(a) through (e), the term ‘‘State’’ includes only the 50 
States, the District of Columbia, and the Commonwealth 
of Puerto Rico. 
SEC. 6. APPLICATION AND PLAN. 
(a) APPLICATION.—To be eligible to receive a dis-
tribution of funds allotted under section 5, a State shall 
submit to the Secretary an application at such time, in 
such manner, and containing such information as the Sec-
retary may require by rule and shall include in such appli-
cation—
(1) a State plan that satisfies the requirements 
of subsection (b); and 
(2) assurances of compliance satisfactory to the 
Secretary with respect to the requirements of section 
9. 
(b) REQUIREMENTS OF PLAN.—
(1) LEAD AGENCY.—The State plan shall iden-
tify the lead agency to make grants under this Act 
for the State. 
(2) RECRUITMENT AND RETENTION OF CHILD 
CARE
PROVIDERS.—The State plan shall describe 
how the lead agency will encourage both the recruit-
ment of qualified child care providers who are new 
to the child care field and the retention of qualified
child care providers who have a demonstrated com-
mitment to the child care field. 
(3) NOTIFICATION OF AVAILABILITY OF GRANTS 
AND BENEFITS.—The State plan shall describe how 
the lead agency will identify all eligible child care 
providers in the State and notify the providers of the 
availability of grants and benefits under this Act. 
(4) DISTRIBUTION
OF
GRANTS.—The State 
plan shall describe how the lead agency will make 
grants under sections 7 and 8 to eligible child care 
providers in selected geographical areas in the State 
in compliance with the following requirements: 
(A) 
SELECTION
OF
GEOGRAPHICAL 
AREAS.—For the purpose of making such 
grants for a fiscal year, the State shall—
(i) select a variety of geographical 
areas, determined by the State, that, col-
lectively—
(I) include urban areas, suburban 
areas, and rural areas; and 
(II) are areas whose residents 
have diverse income levels; and 
(ii) give special consideration to geo-
graphical areas selected under this sub-
paragraph for the preceding fiscal year.
(B) SELECTION
OF
CHILD
CARE
PRO-
VIDERS
TO
RECEIVE
GRANTS.—In making 
grants under section 7, the State may make 
grants only to eligible child care providers in 
geographical areas selected under subparagraph 
(A), but may give special consideration in such 
areas to eligible child care providers—
(i) who have attained a higher rel-
evant educational credential; 
(ii) who provide a specific kind of 
child care services; 
(iii) who provide child care services to 
populations who meet specific economic 
characteristics; or 
(iv) who meet such other criteria as 
the State may establish. 
(C) LIMITATION.—The State shall describe 
how the State will ensure that grants made 
under section 7 to child care providers will not 
be used to offset reductions in the compensation 
of such providers. 
(D) REPORTING REQUIREMENT.—With re-
spect to each particular geographical area se-
lected under subparagraph (A), the State shall 
provide an assurance that the State will, for
each fiscal year for which such State receives a 
grant under section 7—
(i) include in the report required by 
section 10, detailed information regard-
ing—
(I) the continuity of employment 
of the grant recipients as child care 
providers with the same employer; 
(II) with respect to each em-
ployer that employed such a grant re-
cipient, whether such employer was 
accredited by a recognized national or 
State accrediting body during the pe-
riod of employment; and 
(III) to the extent practicable 
and available to the State, the rate 
and frequency of employment turnover 
of 
qualified 
child 
care 
providers 
throughout such area, 
during the 2-year period ending on the 
deadline for submission of applications for 
grants under section 7 for that fiscal year; 
and 
(ii) provide a follow-up report, not 
later than 90 days after the end of the suc-
ceeding fiscal year that includes informa-
tion regarding—
(I) the continuity of employment 
of the grant recipients as child care 
providers with the same employer; 
(II) with respect to each em-
ployer that employed such a grant re-
cipient, whether such employer was 
accredited by a recognized national or 
State accrediting body during the pe-
riod of employment; and 
(III) to the extent practicable 
and available to the State, detailed in-
formation regarding the rate and fre-
quency of employment turnover of 
qualified child care providers through-
out such area, 
during the 1-year period beginning on the 
date on which the grant to the State was 
made under section 7. 
(5) CHILD CARE PROVIDER DEVELOPMENT AND 
RETENTION GRANT PROGRAM.—The State plan shall 
describe how the lead agency will determine the 
amounts of grants to be made under section 7 in ac-
cordance with the following requirements:
(A) SUFFICIENT
AMOUNTS.—The State 
shall demonstrate that the amounts of indi-
vidual grants to be made under section 7 will 
be sufficient—
(i) to encourage child care providers 
to improve their qualifications; and 
(ii) to retain qualified child care pro-
viders in the child care field. 
(B) AMOUNTS
TO
CREDENTIALED
PRO-
VIDERS.—Such grants made to eligible child 
care providers who have a child development as-
sociate credential (or equivalent) and who are 
employed full-time to provide child care services 
shall be in an amount that is not less than 
$1,000 per year. 
(C) AMOUNTS TO PROVIDERS WITH HIGH-
ER LEVELS OF EDUCATION.—The State shall 
make such grants in amounts greater than 
$1,000 per year to eligible child care providers 
who have higher levels of education than the 
education required for a credential such as a 
child development associate credential (or equiv-
alent), according to the following requirements: 
(i) PROVIDERS WITH BACCALAUREATE 
DEGREES IN RELEVANT FIELDS.—An eligi-
ble child care provider who has a bacca-
laureate degree in the area of child devel-
opment or early child education shall re-
ceive a grant under section 7 in an amount 
that is not less than twice the amount of 
the grant that is made under section 7 to 
an eligible child care provider who has an 
associate of the arts degree in the area of 
child development or early child education. 
(ii) PROVIDERS WITH ASSOCIATE DE-
GREES.—An eligible child care provider 
who has an associate of the arts degree in 
the area of child development or early child 
education shall receive a grant under sec-
tion 7 in an amount that is not less than 
150 percent of the amount of the grant 
that is made under section 7 to an eligible 
child care provider who has a child devel-
opment associate credential (or equivalent) 
and is employed full-time to provide child 
care services. 
(iii) OTHER PROVIDERS WITH BACCA-
LAUREATE DEGREES.—
(I) IN GENERAL.—Except as pro-
vided in subclause (II), an eligible
child care provider who has a bacca-
laureate degree in a field other than 
child development or early child edu-
cation shall receive a grant under sec-
tion 7 in an amount equal to the 
amount of the grant that is made 
under section 7 to an eligible child 
care provider who has an associate of 
the arts degree in the area of child de-
velopment or early child education. 
(II) EXCEPTION.—If an eligible 
child care provider who has such a 
baccalaureate degree obtains addi-
tional educational training in the area 
of child development or early child 
education, as specified by the State, 
such provider shall receive a grant 
under section 7 in an amount equal to 
the amount of the grant that is made 
under section 7 to an eligible child 
care provider who has a baccalaureate 
degree specified in clause (i). 
(D) 
AMOUNTS
TO
FULL-TIME
PRO-
VIDERS.—The State shall make a grant under 
section 7 to an eligible child care provider who
works full-time in a greater amount than the 
amount of the grant that is made under section 
7 to an eligible child care provider who works 
part-time, based on the State definitions of full-
time and part-time work. 
(E) AMOUNTS
TO
EXPERIENCED
PRO-
VIDERS.—The State shall make grants under 
section 7 in progressively larger amounts to eli-
gible child care providers to reflect the number 
of years worked as child care providers. 
(6) DISTRIBUTION OF CHILD CARE PROVIDER 
SCHOLARSHIPS.—The State plan shall describe how 
the lead agency will make grants for scholarships in 
compliance with section 8 and shall specify the types 
of educational and training programs for which the 
scholarship grants made under such section may be 
used, including only programs that—
(A) are administered by institutions of 
higher education that are eligible to participate 
in student financial assistance programs under 
title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070 et seq.); and 
(B) lead to a State or nationally recog-
nized credential in the area of child develop-
ment or early child education, an associate of
the arts degree in the area of child development 
or early child education, or a baccalaureate de-
gree in the area of child development or early 
child education. 
(7) EMPLOYER
CONTRIBUTION.—The State 
plan shall describe how the lead agency will encour-
age employers of child care providers to contribute 
to the attainment of education goals by eligible child 
care providers who receive grants under section 8. 
(8) SUPPLEMENTATION.—The State plan shall 
provide assurances that amounts received by the 
State to carry out sections 7, 8, and 9 will be used 
only to supplement, and not to supplant, Federal, 
State, and local funds otherwise available to support 
existing services and activities (as of the date the 
amounts are used) that—
(A) encourage child care providers to im-
prove their qualifications and that promote the 
retention of qualified child care providers in the 
child care field; or 
(B) provide health benefits coverage for 
child care providers.
SEC. 7. CHILD CARE PROVIDER DEVELOPMENT AND RE-
TENTION GRANT PROGRAM. 
(a) IN GENERAL.—A State that receives funds allot-
ted under section 5 and made available to carry out this 
section shall expend such funds to pay for the Federal 
share of the cost of making grants to eligible child care 
providers in accordance with this section, to improve the 
qualifications and promote the retention of qualified child 
care providers. 
(b) ELIGIBILITY TO RECEIVE GRANTS.—To be eligi-
ble to receive a grant under this section, a child care pro-
vider shall—
(1) have a child development associate creden-
tial (or equivalent), an associate of the arts degree 
in the area of child development or early child edu-
cation, a baccalaureate degree in the area of child 
development or early child education, or a bacca-
laureate degree in an unrelated field; and 
(2) be employed as a child care provider for not 
less than 1 calendar year, or (if the provider is em-
ployed on the date of the eligibility determination in 
a child care program that operates for less than a 
full calendar year) the program equivalent of 1 cal-
endar year, ending on the date of the application for 
such grant, except that not more than 3 months of 
education related to child development or to early
child education obtained during the corresponding 
calendar year may be treated as employment that 
satisfies the requirements of this paragraph. 
(c) PRESERVATION OF ELIGIBILITY.—A State shall 
not take into consideration whether a child care provider 
is receiving, may receive, or may be eligible to receive any 
funds or benefits under any other provision of this Act 
for purposes of selecting eligible child care providers to 
receive grants under this section. 
SEC. 8. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM. 
(a) IN GENERAL.—A State that receives funds allot-
ted under section 5 and made available to carry out this 
section shall expend such funds to pay for the Federal 
share of the cost of making scholarship grants to eligible 
child care providers in accordance with this section, to im-
prove their educational qualifications to provide child care 
services. 
(b) ELIGIBILITY REQUIREMENT FOR SCHOLARSHIP 
GRANTS.—To be eligible to receive a scholarship grant 
under this section, a child care provider shall be employed 
as a child care provider for not less than 1 calendar year, 
or (if the provider is employed on the date of the eligibility 
determination in a child care program that operates for 
less than a full calendar year) the program equivalent of
1 calendar year, ending on the date of the application for 
such grant. 
(c) SELECTION OF GRANTEES.—For purposes of se-
lecting eligible child care providers to receive scholarship 
grants under this section and determining the amounts of 
such grants, a State shall not—
(1) take into consideration whether a child care 
provider is receiving, may receive, or may be eligible 
to receive any funds or benefits under any other pro-
vision of this Act, or under any other Federal or 
State law that provides funds for educational pur-
poses; or 
(2) consider as resources of such provider any 
funds such provider is receiving, may receive, or may 
be eligible to receive under any other provision of 
this Act, under any other Federal or State law that 
provides funds for educational purposes, or from a 
private entity. 
(d) COST-SHARING REQUIRED.—The amount of a 
scholarship grant made under this section to an eligible 
child care provider shall be less than the cost of the edu-
cational or training program for which such grant is made. 
(e) 
ANNUAL
MAXIMUM
SCHOLARSHIP
GRANT 
AMOUNT.—The maximum aggregate dollar amount of a
scholarship grant made by a State to an eligible child care 
provider under this section in a fiscal year shall be $1,500. 
SEC. 9. CHILD CARE PROVIDER HEALTH BENEFITS COV-
ERAGE. 
(a) SHORT TITLE.—This section may be cited as the 
‘‘Healthy Early Education Workforce Grant Program 
Act’’. 
(b) DEFINITION.—In this section, the terms ‘‘depend-
ent’’, ‘‘domestic partner’’, and ‘‘spouse’’, used with respect 
to a State, have the meanings given the terms by the 
State. 
(c) GENERAL AUTHORITY.—A State that receives 
funds allotted under section 5 and made available to carry 
out this section shall expend such funds to pay for the 
Federal share of the cost of providing access to affordable 
health benefits coverage for—
(1) eligible child care providers; and 
(2) at the discretion of the State involved, the 
spouses, domestic partners, and dependents of such 
providers. 
(d) PERMISSIBLE ACTIVITIES.—In carrying out sub-
section (c), the State may expend such funds for any of 
the following: 
(1) To reimburse an employer of an eligible 
child care provider, or the provider, for the employ-
er’s or provider’s share (or a portion of the share) 
of the premiums or other costs for coverage under 
group or individual health plans. 
(2) To offset the cost of enrolling eligible child 
care providers in public health benefits plans, such 
as the medicaid program under title XIX of the So-
cial Security Act (42 U.S.C. 1396 et seq.), the State 
children’s health insurance program under title XXI 
of such Act (42 U.S.C. 1397aa et seq.), or public 
employee health benefit plans. 
(3) To otherwise subsidize the cost of health 
benefits coverage for eligible child care providers. 
(e) ELIGIBILITY CRITERIA FOR HEALTH BENEFITS 
COVERAGE.—The State may establish criteria to limit the 
child care providers who may receive benefits through the 
allotment. 
(f) SELECTION OF GRANTEES.—For purposes of se-
lecting eligible child care providers to receive benefits 
under this section for a fiscal year, a State shall give—
(1) highest priority to—
(A) providers that meet any applicable cri-
teria established in accordance with subsection 
(e) and received such assistance during the pre-
vious fiscal year; and
(B) at the State’s discretion, the spouses, 
domestic partners, and dependents of such pro-
viders; and 
(2) second highest priority to—
(A) providers that meet any applicable cri-
teria established in accordance with subsection 
(e) and are accredited by the National Associa-
tion for the Education of Young Children or the 
National Association for Family Child Care; 
and 
(B) at the State’s discretion, the spouses, 
domestic partners, and dependents of such pro-
viders. 
SEC. 10. ANNUAL REPORT. 
A State that receives funds appropriated to carry out 
this Act for a fiscal year shall submit to the Secretary, 
not later than 90 days after the end of such fiscal year, 
a report—
(1) specifying the uses for which the State ex-
pended such funds, and the aggregate amount of 
funds (including State funds) expended for each of 
such uses; 
(2) containing available data relating to grants 
made and benefits provided with such funds, includ-
ing—
(A) the number of eligible child care pro-
viders who received such grants and benefits; 
(B) the amounts of such grants and bene-
fits; 
(C) any other information that describes or 
evaluates the effectiveness of this Act; 
(D) the particular geographical areas se-
lected under section 6 for the purpose of mak-
ing such grants; 
(E) with respect to grants made under sec-
tion 7—
(i) the number of years grant recipi-
ents have been employed as child care pro-
viders; 
(ii) the level of training and education 
of grant recipients; 
(iii) to the extent practicable and 
available to the State, detailed information 
regarding the salaries and other compensa-
tion received by grant recipients to provide 
child care services before, during, and after 
receiving such grants; 
(iv) the number of children who re-
ceived child care services provided by grant 
recipients;
(v) information on family demo-
graphics of such children; 
(vi) the types of settings described in 
subparagraphs (A), (B), and (C) of section 
3(1) in which grant recipients are em-
ployed; and 
(vii) the ages of the children who re-
ceived child care services provided by grant 
recipients; 
(F) with respect to grants made under sec-
tion 8—
(i) the number of years grant recipi-
ents have been employed as child care pro-
viders; 
(ii) the level of training and education 
of grant recipients; 
(iii) to the extent practicable and 
available to the State, detailed information 
regarding the salaries and other compensa-
tion received by grant recipients to provide 
child care services before, during, and after 
receiving such grants; 
(iv) the types of settings described in 
subparagraphs (A), (B), and (C) of section
3(1) in which grant recipients are em-
ployed; 
(v) the ages of the children who re-
ceived child care services provided by grant 
recipients; 
(vi) the number of course credits or 
credentials obtained by grant recipients; 
and 
(vii) the amount of time taken for 
completion of the educational and training 
programs for which such grants were 
made; and 
(G) such other information as the Sec-
retary may require by rule. 
SEC. 11. EVALUATION OF HEALTH BENEFITS PROGRAMS BY 
SECRETARY. 
(a) EVALUATION.—The Secretary shall conduct an 
evaluation of several State programs carried out with 
grants made under section 9, representing various ap-
proaches to raising the rate of child care providers with 
health benefits coverage. 
(b) ASSESSMENT OF IMPACTS.—In evaluating State 
programs under subsection (a), the Secretary may con-
sider any information appropriate to measure the success
of the programs, and shall assess the impact of the pro-
grams on the following: 
(1) The rate of child care providers with health 
benefits coverage. 
(2) The take-up rate by eligible child care pro-
viders. 
(3) The turnover rate in the child care field. 
(4) The average wages paid to a child care pro-
vider. 
(c) REPORT.—Not later than 3 years after the date 
of enactment of this Act, the Secretary shall prepare and 
submit a report to Congress containing the results of the 
evaluation conducted under subsection (a), together with 
recommendations for strengthening programs carried out 
with grants made under section 9. 
SEC. 12. AUTHORIZATION OF APPROPRIATIONS. 
(a) CHILD CARE PROVIDER DEVELOPMENT, RETEN-
TION, AND SCHOLARSHIPS.—There are authorized to be 
appropriated to carry out the activities described in sec-
tions 7 and 8 $500,000,000 for fiscal year 2004 and such 
sums as may be necessary for each of fiscal years 2005 
through 2008. 
(b) CHILD CARE PROVIDER HEALTH BENEFITS COV-
ERAGE.—There is authorized to be appropriated to carry 
out the activities described in section 9 $200,000,000 for
fiscal year 2004 and such sums as may be necessary for 
each of fiscal years 2005 through 2008.
Æ