I 
118TH CONGRESS 
2D SESSION 
H. R. 9901 
To enhance the supply of child care, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 1, 2024 
Mr. KHANNA introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce, and in addition to the Commit-
tees on Ways and Means, Agriculture, Energy and Commerce, and Fi-
nancial Services, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To enhance the supply of child care, 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; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Child Care for America Act of 2024’’. 
(b) TABLE OF CONTENTS.—The table of contents of 
this Act is the following: 
Sec. 1. Short title; table of contents. 
TITLE I—CHILD CARE FOR AMERICA 
Sec. 101. Definitions. 
Sec. 102. Funding. 
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Sec. 103. Child care for America grant program. 
TITLE II—STAY-AT-HOME PARENT CHILD CARE SUPPORT 
PROGRAM 
Sec. 201. Definitions. 
Sec. 202. Establishment of stay-at-home parent support benefit program. 
Sec. 203. Funding authorization and allocation. 
Sec. 204. Application process. 
Sec. 205. Responsibilities of the Secretary of the Treasury. 
Sec. 206. Responsibilities of the Secretary. 
Sec. 207. Coordination. 
Sec. 208. Waste, fraud, and abuse. 
Sec. 209. Outreach and education. 
Sec. 210. Evaluation metrics. 
Sec. 211. Sunset provision/reauthorization requirement. 
Sec. 212. Interaction with other benefits. 
Sec. 213. Benefit structure and payment mechanism. 
TITLE III—KIN CARE: FAMILY, FRIEND, AND NEIGHBOR (FFN) 
CARE PROGRAM 
Sec. 301. Definitions. 
Sec. 302. Authorization of appropriations. 
Sec. 303. Parent roles and responsibilities in the FFN Care Program. 
Sec. 304. FFN provider responsibilities in the Kin Care Program. 
Sec. 305. Child care practices for family, friend, and neighbor providers. 
Sec. 306. FFN provider verification procedures and ongoing monitoring. 
Sec. 307. FFN Provider Payment Process. 
Sec. 308. Data privacy and security measures. 
Sec. 309. Transition to licensed family child care. 
Sec. 310. Supports for serving children with special needs. 
Sec. 311. Collaboration with other early childhood programs. 
Sec. 312. Evaluation and research. 
Sec. 313. Community engagement for the Kin Care Program. 
TITLE I—CHILD CARE FOR 
AMERICA 
SEC. 101. DEFINITIONS. 
For purposes of this Act: 
(1) ELIGIBLE CHILD.—The term‘‘eligible child’’ 
means a child who is below the age of 6 and not yet 
in kindergarten, with no other eligibility conditions 
unless the context specifies otherwise. 
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(2) ELIGIBLE CHILD CARE PROVIDER.—Unless 
the context specifies otherwise, the term ‘‘eligible 
child care provider’’ is any program that provides 
child care which— 
(A) is not an individual who is related to 
all children from whom child care services are 
provided; 
(B) is licensed, regulated or registered 
under State law; and 
(C) agrees to requirements as laid out in 
this Act. 
(3) ELIGIBLE
FAMILY.—The term ‘‘eligible 
family’’ means— 
(A) a married couple with a combined an-
nual income not exceeding $250,000; 
(B) an individual with an annual income 
not exceeding $125,000; or 
(C) a family under 85 percent State me-
dian income. 
(4) LOW-INCOME.—The term ‘‘low-income’’ 
means an eligible child with a family income that is 
not more than 85 percent of State median income. 
(5) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Health and Human Services. 
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(6) TRIBAL ORGANIZATION.—The term ‘‘Tribal 
organization’’ means the recognized governing body 
of any Native tribe, or any legally established orga-
nization of Natives, which is controlled, sanctioned 
or chartered by such governing body or which is 
democratically elected by the adult members of the 
Native community to be served by such organization 
and which includes the maximum participation of 
Natives in all phases of its activities. 
SEC. 102. FUNDING. 
(a) AUTHORIZATION OF APPROPRIATIONS.—To carry 
out this title, there are authorized to be appropriated— 
(1) $78,000,000,000 for fiscal years 2024 
through 2028, and 
(2) $78,000,000,000 for fiscal years 2029 
through 2034. 
(b) USES OF FUNDS.— 
(1) FISCAL YEARS 2024 THROUGH 2028.—Funds 
appropriated for fiscal years 2024 through 2028 
shall be distributed to States under section 658O(b) 
of the Child care and Development Block Grant Act 
of 1990 (42 19 U.S.C. 9858m(b)). 
(2) REQUIREMENTS.— 
(A) MATCHING FUNDS.—To be eligible to 
received funds under this title— 
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(B) to carry out a Parent Fee Reduction 
Program with $20,000,000,000 annually every 
fiscal year from fiscal year 2024 through fiscal 
year 2034; and 
(C) to establish a Worker Wage Ladder; 
(2) to implement a Child care Facilities Fund 
with $250,000,000 annually every fiscal year from 
fiscal year 2024 through fiscal year 2034; 
(3) to implement a Homecare Fund with 
$250,000,000 annually every fiscal year from fiscal 
year 2024 through fiscal year 2034; and 
(4) to implement a Child Care Innovation Fund 
with $250,000,000 annually every fiscal year from 
fiscal year 2024 through fiscal year 2034. 
SEC. 103. CHILD CARE FOR AMERICA GRANT PROGRAM. 
(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
shall establish and carry out a grant program entitled the 
‘‘Child care for America Grant Program’’ to make grants 
to States and Tribal organizations to provide child care 
services in accordance with this section. 
(b) ALLOCATION OF FUNDS.—Of the funds appro-
priated for a fiscal year, the Secretary shall— 
(1) reserve for Tribal organizations a portion of 
such funds based on the number of eligible children 
served by the Tribal organization and the dem-
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onstrated need for child care services in the Tribal 
community, and 
(2) allocate the remainder of such funds for 
grants to eligible States to provide child care serv-
ices. 
(c) ELIGIBILITY OF STATES.—To be eligible to re-
ceive a grant under this section, a State shall submit to 
the Secretary an application that includes— 
(1) identification of the lead agency and key 
contact information; 
(2) a description of the lead agency’s roles, re-
sponsibilities, and organizational structure for ad-
ministering the grant program; 
(3) a certification that the State will comply 
with all requirements of this section and applicable 
Federal laws and regulations; 
(4) an assurance that the State will administer 
the program in a manner that supports equal access 
and parental flexibility in child care services pursu-
ant to assurances States are making to receive such 
funds; 
(5) a detailed plan for conducting meaningful 
consultation with stakeholders, including parents, 
child care providers, employers, child care workers, 
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and local government representatives, in the develop-
ment and implementation of the program; and 
(6) a proposed time line for implementing key 
components of the program, including— 
(A) providing advance disbursement of 
parent fees and wage supplements, subgranting 
with eligible providers, and establishing a wage 
and benefits ladder; 
(B) a description of the State’s process for 
determining eligibility and prioritizing eligible 
child care providers for subgrants and funding; 
(C) the State’s proposed formula for allo-
cating subgrant amounts to eligible providers 
pursuant to section 103(m); 
(D) an outline of the State’s plan for es-
tablishing and implementing a wage and bene-
fits ladder for staff of eligible providers receiv-
ing assistance; 
(E) a plan for providing wage supplements 
to staff of eligible providers within 12 months 
of the program’s implementation; 
(F) a description of the State’s strategies 
for increasing access to high-quality child care 
services for underserved populations, including 
low-income families, children with disabilities, 
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and families in need of non-traditional hour 
care; 
(G) a plan for conducting data collection 
and reporting on the use of funds and the effec-
tiveness of the program; 
(H) any reasonable and relevant informa-
tion or assurances required by the Secretary of 
Health and Human Services; 
(I) the Secretary will review the applica-
tions and provide feedback or requests for addi-
tional information as needed; 
(J) funds allocated to States and Tribal 
organizations under this section shall be used in 
accordance with the requirements and priorities 
outlined in subsection (f); and 
(K) applications shall be approved by the 
Secretary of Health and Human Services before 
the State can receive grant funding. 
(d) ELIGIBILITY
OF LEAD AGENCY.—To receive 
grant funding the lead agency shall agree to the following 
certifications and assurances— 
(1) all communities in their State or respective 
territory will be served; 
(2) establish and administer a system for sub-
granting with eligible child care providers to cover 
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annual operational expenses pursuant to subsection 
(i) of this section and subsection (m) of this section; 
(3) establish a wage and benefits ladder for 
staff of eligible child care providers receiving assist-
ance under this grant, including assurances that 
wage and benefits for such staff, at minimum will 
meet subsection (p) of this section; 
(4) within the first 12 months after the date of 
the enactment of this Act, the State will establish a 
system for providing wage supplements to all full 
time and part-time staff members of eligible child 
care providers pursuant to subsection (p) of this sec-
tion; 
(5) within the first 12 months after the date of 
the enactment of this Act, the State shall provide 
every eligible child care provider, who is accepted 
with— 
(A) 50 percent of their total parent fees 
charged in the previous fiscal year, 
(B) advance wage supplement disburse-
ments; and 
(C) an assurance that programs already 
offering free services shall continue doing so, 
pursuant to subsection (h) of this section; 
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(6) will provide necessary accommodations to 
ensure family child care, faith-based care, care dur-
ing non-traditional hours, and care for children with 
disabilities are available, equitable and viable options 
for families, including but not limited to offering an 
incentive for providers to expand care offerings dur-
ing non-traditional hours; 
(7) reserve no more than 5 percent of grants to 
administer subgrants, provide technical assistance 
and support for applicants to apply for and access 
the grant opportunity and to carry out the activities 
in this Act; 
(8) existing health and safety measures will be 
continued; 
(9) provide explanations to the Secretary as 
necessary; and 
(10) States may reserve up to 5 percent of their 
total grant allocation each fiscal year for administra-
tive costs associated with implementing this section, 
including activities such as developing and imple-
menting the State plan, providing technical assist-
ance to child care providers, conducting monitoring 
and oversight, and compensating parents for pro-
viding input to the lead agency. This compensation 
shall be used to ensure consumers are included in 
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the development of the State plan prior to submis-
sion and as an advisory body thereafter. 
(e) ELIGIBILITY OF TRIBAL ORGANIZATIONS.— 
(1) Tribal organizations are eligible to apply for 
and receive funding under this section. 
(2) The Secretary shall reserve a portion of the 
total appropriation for the program each fiscal year 
to be allocated to Tribal organizations based on the 
number of eligible children served by the Tribal or-
ganization and the demonstrated need for child care 
services in the Tribal community. 
(3) Tribal organizations that receive funding 
under this section shall comply with all the require-
ments outlined in the ‘‘Requirements for States Ad-
ministering Subgrants to Eligible Child care Pro-
viders’’ section except that they may use their own 
Tribal licensing, regulatory, or monitoring systems 
in lieu of State systems, provided that such Tribal 
systems meet minimum Federal standards as estab-
lished by the Secretary. 
(4) Tribal organizations that receive funding 
under the program established in this section are eli-
gible to apply for and receive additional funding 
under the Low-Moderate Income Fee Reduction Pro-
gram. Tribal organizations shall comply with all the 
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requirements outlined in subsection (n)(7) of this 
section, except that they may use their own median 
income data and eligibility criteria, provided that 
such criteria align with the overall goals and require-
ments of the program. 
(5) Tribal organizations that receive funding 
under this section may reserve up to 15 percent of 
their total grant allocation each fiscal year for ad-
ministrative costs, in recognition of the unique chal-
lenges and costs associated with administering child 
care programs in Tribal communities. 
(f) USE OF FUNDS.—Funds appropriated to carry 
out the program under this section shall be used to sup-
port the provision of high-quality, affordable child care 
services for eligible, children and families, in accordance 
with the requirements and priorities established in this 
section. 
(1) PARTICULAR USES.—State and Tribal orga-
nizations shall use the funds to— 
(A) expand access to child care services, 
especially for low-income families and under-
served populations; 
(B) improve the quality of child care serv-
ices through investments in workforce develop-
ment, facilities and other key areas; 
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(C) provide financial assistance to eligible 
families to help them access child care services; 
and 
(D) support the implementation and ad-
ministration of the grant received under this 
section and related initiatives. 
(2) SPECIFIC ALLOCATIONS.—States and Tribal 
organizations will allocate funds received under this 
section in accordance with the following require-
ments: 
(A) At least 70 percent of the funds shall 
be used to provide direct services to eligible 
children and families, including through grants 
and subgrants with eligible child care providers 
and other initiatives designed to expand access 
and affordability. 
(B) At least 10 percent of the funds shall 
be used for quality improvement activities that 
are defined and co-created with families and the 
child care workforce. 
(C) No more than 5 percent of the funds 
may be used for State or Tribal administrative 
costs, as outlined in subsections (i) and (e) of 
this section. 
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(D) Remaining funds may be used for 
other activities that support the goals and re-
quirements of this section, as approved by the 
Secretary. 
(3) PROHIBITED
USES.—Funds appropriated 
under this section shall not be used for the fol-
lowing: 
(A) The purchase or improvement of land, 
or the purchase, construction, or permanent im-
provement of any building or facility, except as 
authorized under the Quality Child Care Facili-
ties Grant Program established in subsection 
(p)(9) of this section. 
(B) Any sectarian purpose or activity, in-
cluding religious worship or instruction. 
(C) Any lobbying or political activity, as 
defined by the Secretary. 
(D) Any other purpose or activity that is 
not consistent with the goals and requirements 
of this section, as determined by the Secretary. 
(4) REPORTING AND ACCOUNTABILITY.— 
(A) States and tribal organizations receiv-
ing funds under the child care for America 
Grant Program shall maintain detailed records 
on the use of funds and shall submit annual re-
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ports to the Secretary on the allocation and im-
pact of these funds. 
(B) The Secretary shall establish reporting 
requirements and performance measures to en-
sure that funds are being used effectively and 
in accordance with the requirements of this Act. 
(C) The Secretary shall have the authority 
to withhold or recapture funds from States or 
tribal organizations that fail to comply with the 
requirements of this Act or that do not dem-
onstrate adequate progress toward meeting the 
goals and priorities established in their State or 
tribal plans. 
(g) PREVENTING WASTE, FRAUD AND ABUSE.— 
(1) POLICY AND PRACTICES.— 
(A) States and tribal organizations receiv-
ing funds under this section will have in place 
policies and practices that reduce the risk of 
waste, fraud and abuse including: 
(i) Establish procedures for verifying 
the accuracy of the reported parent fees. 
Such procedures should be as streamlined 
as reasonably possible in order to minimize 
administrative burden on providers. 
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(ii) Monitoring child care providers to 
ensure compliance with program require-
ments, with a focus on supporting pro-
viders to meet these requirements rather 
than punitive measures. This monitoring 
shall be conducted in a manner that is cul-
turally responsive, minimizes administra-
tive burden, and prioritizes program qual-
ity and child well-being over strict proce-
dural compliance. 
(iii) Maintaining records sufficient to 
document compliance with program re-
quirements through appropriate measures, 
including 
investigating 
and 
recovering 
fraudulent payments and imposing sanc-
tions on clients or providers in response to 
fraud. 
(B) INTERNAL CONTROLS AND ACCOUNT-
ABILITY MEASURES.— 
(i) INTERNAL CONTROLS.—States and 
Tribal organizations receiving funds under 
this section shall have in place effective in-
ternal control procedures to ensure integ-
rity and accountability in the program, in-
cluding— 
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(I) fiscal controls and accounting 
procedures sufficient to permit the 
tracing of funds to a level of expendi-
ture adequate to establish that these 
funds have not been used in violation 
of the provisions of this Act or any 
other applicable Federal or State law; 
(II) record keeping requirements 
sufficient to ensure that all expendi-
tures and receipts are accounted for 
and available for audit and examina-
tion; and 
(III) regular monitoring and in-
spection of child care providers to en-
sure compliance with health, safety, 
and quality standards, as well as 
proper use of grant funds. 
(ii) GUIDANCE.—The Secretary will 
issue guidance and provide technical assist-
ance to States and Tribal organizations on 
implementing effective internal control pro-
cedures 
and 
will 
monitor 
compliance 
through regular reporting and oversight. 
(2) 
ELIGIBILITY
DETERMINATION
AND 
VERIFICATION.— 
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(A) VERIFICATION.—States and Tribal or-
ganizations will have in place procedures for 
documenting and verifying the eligibility of chil-
dren and families for assistance under this sec-
tion, including— 
(i) verifying family income through 
automatic enrollment if already enrolled in 
another public assistance program or by 
pay stubs, tax returns or other reliable 
sources which can be submitted electroni-
cally (the State agency should make 
verification as simple and efficient to re-
duce the burden on families to prove their 
eligibility) or other reliable resources; 
(ii) establishing eligibility redeter-
mination periods of a minimum of 12 
months, with provisions for interim report-
ing of changes in income or employment 
status; and 
(iii) safeguarding the confidentiality 
and security of eligibility information and 
records, in accordance with applicable Fed-
eral and State privacy laws. 
(B) GUIDANCE.—The Secretary shall pro-
vide guidance and technical assistance to States 
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and Tribal organizations on implementing effec-
tive eligibility determination and verification 
procedures, and shall monitor compliance 
through regular reporting and oversight. 
(3) IDENTIFICATION
OF
RISK.—States and 
Tribal organizations will identify areas of risk for 
waste, fraud and abuse in their program under this 
sections, including conducting criminal background 
checks on child care providers, including prospective 
providers, in accordance with Federal requirements. 
(4) TRAINING AND TECHNICAL ASSISTANCE.— 
The Secretary will provide training and technical as-
sistance to States and Tribal organizations on effec-
tive policies and practices for preventing waste, 
fraud, and abuse, including— 
(A) conducting periodic training for State 
and Tribal staff on identifying and preventing 
fraud, 
(B) providing guidance on implementing 
risk assessment tools and procedures, and 
(C) developing and disseminating best 
practices for monitoring child care providers 
and enforcing program requirements. 
(5) REPORTING AND INVESTIGATION.— 
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(A) PROCEDURES.—States and Tribal or-
ganizations will have procedures in place for re-
porting and investigating suspected cases of 
waste, fraud and abuse including— 
(i) establishing mechanisms for the 
public to report suspected fraud, such as 
hotlines or online reporting systems; 
(ii) conducting prompt and thorough 
investigations of suspected fraud, in co-
ordination with law enforcement agencies 
and as appropriate; 
(iii) referring substantiated cases of 
fraud for criminal prosecution and taking 
steps to recover fraudulent payments; and 
(iv) reporting instances of waste, 
fraud and abuse to the Secretary, along 
with any actions taken in response. 
(B) TRANSPARENCY AND PUBLIC REPORT-
ING.—States and Tribal organization will make 
available to the public, in a consumer friendly 
and easily accessible format— 
(i) the results of monitoring and in-
spection reports for child care providers, 
including any violation of health, safety or 
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quality standards and any corrective ac-
tions taken; 
(ii) aggregate data on the number of 
serious injuries, deaths, and substantiated 
cases of child abuse or neglect occurring in 
child care settings, by provider type and li-
censing status; and 
(iii) information on the availability 
and quality of child care services in dif-
ferent geographic areas and for different 
age groups and populations. At minimum, 
such information should include gathering 
data from parents and practitioners in a 
way that is reasonably representative of 
the State. 
(C) ANNUAL
REPORTS.—The Secretary 
will compile and publish annual reports on the 
implementation and outcomes of the program 
established in this section, including data on 
program enrollment, expenditures and service 
delivery, as well as any instance of waste, fraud 
or abuse identified and corrective actions taken. 
(6) PENALTIES AND SANCTIONS.— 
(A) PROCEDURES.—States and Tribal or-
ganizations shall have in place procedures for 
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imposing penalties and sanctions on child care 
providers or clients who engage in waste, fraud 
or abuse, including— 
(i) terminating the eligibility of clients 
who engage in fraud and disqualifying 
them from future participation in the pro-
gram; 
(ii) suspending or terminating the eli-
gibility of providers who engage in fraud 
and prohibiting them from receiving future 
payments under the program; and 
(iii) recovering fraudulent payments 
from providers or clients through repay-
ment plans or other means. 
(B) FRAUD
DETECTION
AND
REPAY-
MENT.—States and Tribal organizations shall 
have in place for identifying and investigating 
possible instances of fraud by child care pro-
viders or recipients of assistance under the this 
section, including— 
(i) conducting regular audits and re-
views of provider records and claims for re-
imbursement, using risk-based sampling, 
and targeting methods; 
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(ii) establishing mechanism for report-
ing suspected fraud by the public, includ-
ing anomalously and for protecting whistle-
blowers from retaliation; and 
(iii) promptly referring substantiated 
cases of fraud to law enforcement for 
criminal investigation and prosecution. 
(C) PENALTY.—Any child care provider or 
recipient of assistance found to have engaged in 
fraud shall be subject to repayment of all mis-
used funds, plus interest and penalties, and 
shall be disqualified from future participation in 
the program for a period of not less than five 
years. 
(D) GUIDANCE
AND
TECHNICAL
ASSIST-
ANCE.—The Secretary shall provide guidance 
and technical assistance to States and Tribal 
organizations on implementing effective fraud 
detection and repayment procedures and shall 
monitor compliance through regular reporting 
and oversight. 
(7) FEDERAL OVERSIGHT.—The Secretary will 
monitor State and Tribal compliance with the re-
quirements of this section through— 
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(A) reviewing and approving State and 
Tribal plans for preventing waste, fraud or 
abuse; 
(B) conducting periodic reviews and audits 
of State and Tribal programs to identify poten-
tial instances of waste, fraud, or abuse; and 
(C) investigating and taking enforcement 
action in response to substantiated cases of 
waste, fraud or abuse, including imposing pen-
alties on States or Tribal organizations that fail 
to comply with the program requirements. 
(h) INCOME ELIGIBILITY.— 
(1) Only eligible families, as defined in section 
101, may access the $10 per day child care program 
under this grant. 
(2) Families with incomes exceeding the thresh-
olds specified in section 101 are not eligible for the 
$10 per day program but may still access child care 
services at rates determined by the State, subject to 
the other provisions of this Act. 
(3) States shall establish procedures to verify 
family income annually and to adjust eligibility ac-
cordingly. 
(4) The Secretary shall adjust the income 
thresholds specified in section 101 annually for infla-
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tion, using the Consumer Price Index for All Urban 
Consumers (CPI–U) as published by the Bureau of 
Labor Statistics. 
(i) INITIAL FUNDING FOR ELIGIBLE CHILD CARE 
PROVIDERS.— 
(1) AMOUNT
OF
FUNDS.—Within 12 months 
after the date of enactment of this Act, each State 
shall provide all eligible child care providers whose 
applications have been accepted with the sum of the 
following: 
(A) An amount equal to 50 percent of the 
total parent fees charged by the provider in the 
previous fiscal year. 
(B) Disbursements of wage supplements 
for the provider’s staff, as determined by the 
State’s wage and benefits ladder established 
under this Act. 
(2) BASE
LEVEL
OF
FUNDS.—The amounts 
provided in this section will serve as the base level 
of funding for each eligible child care provider on an 
annual basis until the provider enters a permanent 
subgrant with the State under this Act. 
(3) DISBURSEMENT
OF
FUNDS.—States will 
disburse the funds described in subsection (a) to eli-
gible child care providers within 12 months of the 
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date of enactment of this Act, regardless of whether 
the provider’s application for a permanent subgrant 
is still pending review or approval amount. 
(4) AMOUNT.—In determining the amount of— 
(A) parent fees charged in the previous fis-
cal year, the State will— 
(i) require eligible child care providers 
to submit documentation or attestation of 
their total parent fees charged during the 
applicable fiscal year; 
(ii) establish procedures for verifying 
the accuracy of the reported parent fees; 
and 
(iii) provide guidance to providers on 
the calculation and reporting of parent 
fees, including any allowable deductions or 
adjustments; 
(B) in determining the advance disburse-
ments of wage supplements, the State will— 
(i) apply the wage and benefits ladder 
established in accordance with the require-
ments of this section; 
(ii) require eligible child care pro-
viders to submit information on their cur-
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rent staffing levels and compensation 
rates; and 
(iii) provide guidance to providers on 
the calculation and disbursement of wage 
supplements, including the frequency of 
payments and any necessary adjustments 
based on staffing changes or other factors; 
and 
(C) at minimum, States are required to es-
tablish procedures for eligible child care pro-
viders to appeal or seek reconsideration of the 
initial funding amounts determined under this 
section, in cases where the provider believes an 
error or miscalculation has occurred. 
(5) GUIDANCE.—The Secretary will issue regu-
lations and guidance as necessary to ensure con-
sistent and equitable implementation of this section 
by States, including standards for documentation, 
verification, and calculation of initial funding 
amounts. 
(j) REQUIREMENTS
FOR STATES ADMINISTERING 
SUBGRANTS TO ELIGIBLE CHILD CARE PROVIDERS.— 
(1) SUBGRANTS.—To receive funds under this 
subsection, each State will establish a program for 
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subgranting with eligible child care providers within 
3 years of enactment of this section. 
(2) PURPOSE.—The purpose of this program is 
to ensure affordable, accessible, and high-quality 
child care options for families. 
(3) DEFINITION OF STATE.—For the purpose 
of this subsection the term ‘‘State’’ includes Tribal 
organizations. Tribal organizations that receive 
funding under this subsection shall comply with all 
requirements outlined in this subsection, except that 
they may use Tribal licensing, regulatory, or moni-
toring systems in lieu of State systems, provided 
that such Tribal systems meet minimum Federal 
standards as established by the Secretary. 
(4) FORMULA.—Within the first 12 months 
after the enactment of this Act, each State will de-
velop and publish a formula for allocating subgrant 
amounts to eligible child care providers. 
(5) SUBGRANTS PROGRAM.—To receive funds 
under this subsection, each State will establish a 
program for subgrants to eligible child care pro-
viders within 3 years of enactment of this Act. The 
purpose of this program is to ensure affordable, ac-
cessible, and high-quality child care options for fami-
lies. 
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(6) ALLOCATION OF SUBGRANTS.—Within the 
first 12 months after the enactment of this Act, 
each State will develop and publish a formula for al-
locating subgrant amounts to eligible child care pro-
viders. The formula will be used to calculate the 
operational costs necessary for providers to operate 
sustainably while maintaining high-quality stand-
ards. 
(7) GUIDANCE.—The Secretary will provide 
guidance and minimum standards for States to fol-
low in developing their subgrant allocation formulas. 
At a minimum these formulas will consider the fol-
lowing cost components: 
(A) Personnel costs, including wages, bene-
fits, and professional development. 
(B) Facility maintenance and improvement 
costs, including outdoor environments. 
(C) Curricular materials, educational re-
sources and other supplies. 
(D) Costs associate with meeting the needs 
of enrolled children with disabilities or special 
needs. 
(E) Food costs, if applicable. 
(F) Administrative and operational costs. 
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(8) SUBMISSION
OF
SUBGRANT
FORMULA.— 
Each State will submit its proposed subgrant alloca-
tion formula to the Secretary of Health and Human 
Services for review and approval. The Secretary will 
ensure that formulas comply with the minimum 
standards and guidance provided. 
(k) PUBLICATION OF APPLICATION PROCESS FOR 
SUBGRANTS.—The lead agency in each State will develop 
and make available on its website an application process 
for child care providers to apply for and receive subgrants 
under this program. States will accept, process, and dis-
burse funds for subgrants from eligible child care pro-
viders on a rolling and continuous basis pursuant to State 
Subgrants to Eligible Providers section of this Act. The 
application shall include at minimum the following: 
(1) The assurances outline in the State Sub-
grants to Eligible Providers section of this Act. 
(2) Process advance disbursement of funds pur-
suant to the Initial Funding for Child care Providers 
section of this Act. 
(l) PRIORITY.—States will establish a process to 
prioritize the disbursement of funds and the awarding of 
subgrants to eligible child care providers pursuant to the 
Low-Moderate Income section of this Act. 
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(m) MONITORING AND COMPLIANCE.—States will es-
tablish a monitoring and oversight system to ensure that 
subgranted child care providers maintain compliance with 
the terms of their subgrants, quality standards, and all 
applicable requirements under this section. 
(n) STATE SUBGRANTS TO ELIGIBLE CHILD CARE 
PROVIDERS.— 
(1) To be eligible to receive a subgrant funded 
under this section, a child care provider shall— 
(A) be licensed, regulated or registered 
under State law to provide child care services; 
(B) submit an application to the State lead 
agency and agree to the provider requirements 
in section c; and 
(C) meet the quality standards established 
by the State. 
(2) CHILD CARE PROVIDER APPLICATION AND 
SELECTION.—To receive funds from the State, the 
child care provider shall do the following: 
(A) make the following certifications, as-
surances: 
(i) When open and available, to pro-
vide child care services, implement policies 
in line with guidance from their State. 
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(ii) Implement all State health, safety 
and quality standards and policies. 
(iii) Use subgrant funds solely for al-
lowable expenses outlined in Allowable Use 
of Subgrant Funds. 
(iv) Limit annual increases in parent 
tuition fees to no more than 3 percent 
above the prior year. 
(v) Not charge mandatory parents an-
cillary fees expect as approved by the lead 
agency and after written approval from the 
Secretary. 
(vi) Cap total executive compensation 
at no more than 10 times the median em-
ployee wage. 
(vii) Not use funds for undue profit or 
to pay interest or dividends to investors. 
(viii) Maintain or increase wage and 
benefits in accordance with Wage Supple-
ment section of this Act. 
(ix) Meet lead teacher qualifications 
standards pursuant to Lead Teacher 
Qualifications subsection. 
(x) Prioritize serving low-income pop-
ulations pursuant to Low-Mod Income. 
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The eligible child care provider will pro-
vider relief from co-payments and tuition 
payments for the families enrolled in the 
providers program, to the extent possible, 
with the goal of fees not exceeding $10 a 
day for full-time care. If available funds do 
not allow for this goal to be met, providers 
shall prioritize relief for families struggling 
to make either type of payment pursuant 
to Low- to Moderate-Income section. 
(xi) not engage in a sale-leaseback 
transaction that leaves a provider site with 
more debt than it previously held. 
(xii) if a child care company or its af-
filiate brands holds more than 20 licenses 
across all States, agree to submit detailed 
annual financial reports to the Department 
of Health and Human Services, the spe-
cifics of which will be determined by the 
Secretary. 
(B) Subgrants will be for every 2 years, 
and renewable. 
(C) Funds provided to eligible child care 
providers through State subgrants shall be used 
to support the provision of high-quality child 
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care services and to meet the requirement out-
lined in the subgrant, such as improving com-
pensation for workers, reducing fees for families 
and meeting quality standards established by 
the State. 
(3) ALLOWABLE USE OF SUBGRANT FUNDS.— 
(A) Providers can use funds received under 
the subgrant, at minimum, for the following al-
lowable operational expenses: 
(i) Personnel costs (wages, benefits, 
professional development). 
(ii) Mortgage, rent, and facility main-
tenance and improvement. 
(iii) Educational materials, supplies 
and technology. 
(iv) Food service, if applicable. 
(v) Administrative and general oper-
ating expenses. 
(B) The Secretary will establish guidance 
for State on categories of additional allowable 
expenses. 
(C) The Secretary will establish procedures 
for regularly getting feedback from States, par-
ents, and providers and adjust the guidance as 
needed in response. 
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(4) SUBGRANT AMOUNT DETERMINATION.— 
(A) Within 12 months after the date of the 
enactment of this Act, each State lead agency 
will develop a formula to determine annual 
subgrant amounts for eligible providers. 
(B) The subgrant amount formula will 
consider at minimum: 
(i) Staffing and personnel costs based 
on enrollment. 
(ii) Facility, maintenance, and im-
provement costs. 
(iii) Costs of curricula, materials, and 
other quality inputs. 
(iv) Administrative and operating ex-
penses. 
(v) Regional cost of living adjust-
ments. 
(vi) Other factors identified by the 
Secretary. 
(C) States will submit formulas to the Sec-
retary for approval. 
(D) Subgrant amounts will be adjusted an-
nually based on the State’s formula. 
(i) For each employee, the eligible 
child care provider will not pay less than 
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the full compensation, including any bene-
fits, that was provided to the employee as 
of the date of their subgrant in the last 
full year prior to the subgrant application 
or date of the subgrant application (which-
ever was higher application submission of 
the application for the subgrant and will 
not take any action that reduces the week-
ly amount of the employee’s compensation, 
or that reduces the employee’s rate of full 
compensation, or that reduces the employ-
ee’s rate of full compensation in compli-
ance with subsection (p) of this section. 
(ii) The eligible child care provider 
will provider relief from co-payments and 
tuition payments for the families enrolled 
in the providers program, to the extent 
possible, with the goal of fees not exceed-
ing $10 a day for full-time care. If avail-
able funds do not allow for this goal to be 
met, providers shall prioritize relief for 
families struggling to make either type of 
payment pursuant to subsection (n)(7) of 
this section. 
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(E) The amount awarded in a subgrant to 
the eligible child care provider will be based on 
the providers current operating expenses for fis-
cal year 2024. This includes the costs associ-
ated with providing or preparing to provide 
child care services and to the extent practicable, 
cover sufficient operating expenses to ensure 
continuous operations for the intended part of 
the subgrant so that parent fees are signifi-
cantly reduced overtime. 
(5) MONITORING, 
ENFORCEMENT
AND
AP-
PEALS.— 
(A) The Secretary will establish monitoring 
requirements for State lead agencies to ensure 
provider compliance. 
(B) States shall implement enforcement 
mechanisms, including subgrant termination 
and funds recoupment for non-compliance. 
(C) States will provide an appeals process 
for providers to dispute subgrant amounts, ter-
mination or other adverse actions. 
(o) PARENT FEE REDUCTION PROGRAM.— 
(1) ESTABLISHMENT AND APPROPRIATIONS.— 
(A) The Secretary shall establish the par-
ent fee reduction program as a mandatory com-
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ponent of the program under this section to as-
sist States in reducing parent fees for child care 
services. 
(B) The parent fee reduction program will 
be funded through the appropriations author-
ized for the program under this section, as out-
lined in section 102 of this Act. 
(C) From the total appropriations to carry 
out this section, the Secretary will allocate suf-
ficient funds each fiscal year to enable States to 
provide the initial 50 percent fee reduction to 
all eligible child care providers and to support 
ongoing fee reductions as needed. 
(D) The Secretary will work with States to 
determine the amount of funding needed for the 
parent fee reduction program based on the 
number of eligible child care providers, the total 
amount of parent fees collected by these pro-
viders, and other relevant factors. 
(E) If the appropriations authorized for 
the program under this section are insufficient 
to fully fund the parent fee reduction program, 
the Secretary will prioritize funding for this 
program, after the Low-Moderate Income Pro-
gram. 
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(2) ELIGIBILITY.— 
(A) Eligible Child care providers that meet 
the requirements for participation in the pro-
gram under this section, as outlined in the 
State Subgrants to Eligible Child care Pro-
viders section, shall be eligible to receive fund-
ing through the 50 percent fee reduction pro-
gram. 
(B) Eligible Child care Providers shall 
serve eligible children and shall agree to reduce 
fees by at least 50 percent for all families en-
rolled in their programs (since they would be 
receiving at least 50 percent of these parents 
fees through the program under this section to 
subsidize parent fees). 
(C) Eligible Child care Providers shall 
comply with all State and Federal health, safety 
and quality standards as established in these 
sections within this Act, as well as any addi-
tional requirements established by the State for 
participation in the parent fee reduction pro-
gram. 
(3) USE OF FUNDS.— 
(A) Funds provided to eligible child care 
providers through the parent fee reduction pro-
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gram established in this section will be used 
solely for the purpose of reducing parent fees. 
(B) Eligible child care providers are not al-
lowed to use these funds to supplant other 
funding sources or to cover expenses not di-
rectly related to reducing parent fees. 
(C) Eligible child care provide shall main-
tain detailed records documenting the use of 
funds received through the 50 percent fee re-
duction program and shall make these records 
available to the State and the Secretary upon 
request. 
(D) Any funds not used for the purpose of 
reducing parent fees will be returned. The Sec-
retary will establish guidance on how returning 
excess funds will work. 
(4) SECRETARY REQUIREMENTS.— 
(A) The Secretary will provide guidance 
and technical assistance to States implementing 
the parent fee reduction program, including es-
tablishing 
guidelines 
for 
determining 
the 
amount of initial funding on ongoing support 
needed by eligible child care providers. 
(B) The Secretary will review and approve 
State plans that include States plans to admin-
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ister the 50 percent fee reduction program, en-
suring that they comply with the requirement. 
(5) STATE REQUIREMENTS.— 
(A) States will be responsible for admin-
istering the 50 percent fee reduction program 
and disbursing funds to eligible child care pro-
viders in accordance with the requirements of 
this section. 
(B) Within their State plan, lead agencies 
will codify a process for implementing the par-
ent fee reduction program and disbursing funds 
to eligible child care providers in accordance 
with the requirements of this section. 
(C) States will require eligible child care 
providers to submit documentation verifying the 
total amount of parent fees collected in the pre-
vious fiscal year and will establish a process for 
reviewing and verifying this documentation. 
(D) States will disburse the initial funding 
for the parent fee reduction program to eligible 
child care providers within 3 months of receiv-
ing the necessary documentation and will estab-
lish a process for transferring these funds. 
(E) States will establish a process for de-
termining the amount of ongoing funding need-
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ed by each eligible child care providers to main-
tain reduced parent fees and will disburse this 
funding on a quarterly basis. 
(F) States will require eligible child care 
providers to submit quarterly reports docu-
menting the amount of parent fees collected, 
the number of families served, and the use of 
funds received for fee reductions, and will re-
view these reports and conduct periodic audits 
to ensure compliance with program require-
ments. 
(G) States will submit annual reports to 
the Secretary detailing the implementation and 
impact of the parent fee reduction program, in-
cluding the total amount of funds disbursed, 
the number of families benefitting from reduced 
fees and challenges, successes encountered. 
(H) States will prioritize fee reductions 
and waivers for families enrolled in the Low- to 
Moderate-Income Fee Reduction Program. 
(6) PROVIDER REQUIREMENTS.— 
(A) Eligible child care providers will sub-
mit documentation to the State verifying the 
total amount of parent fees collected in the pre-
vious fiscal year and shall cooperate with the 
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State in reviewing and verifying this docu-
mentation. 
(B) Eligible child care providers will work 
to use the funds received through the parent fee 
reduction program solely for the purpose of re-
ducing parent fees and shall maintain records 
documenting the use of these funds. 
(C) Eligible child care providers will co-
operate will submit quarterly reports to the 
State documenting the amount of parent fees 
collected, the number of families served and the 
use of funds received pursuant to this section. 
(D) Eligible child care providers will co-
operate with the State in any audits or reviews 
conducted to ensure compliance with the re-
quirement of the parent fee reduction program. 
(7) LOW-MODERATE INCOME FEE REDUCTION 
PROGRAM.— 
(A) ESTABLISHMENT
AND
APPROPRIA-
TIONS.— 
(i) The Secretary shall establish the 
Low-Moderate Income Fee Reduction Pro-
gram as a mandatory component of the 
program under this section to assist States 
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in reducing child care fees for families with 
low to moderate incomes. 
(ii) For purposes of section, the term 
family with low to moderate income means 
a family with an income that is not more 
than 85 percent of State median income. 
(iii) Carve out $6 Billion annually 
from FY 2024 through FY 2026, $7 Bil-
lion from FY 2027 through FY 2029 and 
$8 Billion annually from FY 2030 through 
FY 2034 from the total new appropria-
tions funding established for the entire 
grant program in Funding for Entire Bill 
section of this Act. 
(B) STATE
ELIGIBILITY
AND
REQUIRE-
MENTS.—States applying for the program 
under this section shall substantially agree to— 
(i) use the funding carve out in this 
section exclusively to cover 100 percent of 
parent fees for families making less than 
85 percent State median income; 
(ii) use the funds exclusively to cover 
all child care fees for families with— 
(I) incomes at or below 85 per-
cent of the State median income; and 
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(II) children enrolled in licensed, 
registered, or regulated child care pro-
grams; 
(iii) prioritize funding for eligible fam-
ilies with incomes at or below 50 percent 
of the State median income if funding is 
limited; 
(iv) collect and report annual data on 
the use of funds to the Secretary, as a 
mandatory condition for receiving future 
funds; 
(v) promote policy changes that maxi-
mize the availability of funds and stream-
line determination procedures to improve 
the customer experience; 
(vi) provide explanations to the Sec-
retary as needed; 
(vii) establish a process to prioritize 
disbursing funds to eligible child care pro-
viders serving underserved populations, as 
defined in this section and concurrently 
abiding by the requisites in section103(m) 
of this Act; 
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(viii) include their plan for imple-
menting this section in their grant applica-
tion; 
(ix) be responsible for determining 
family eligibility for the Low-Moderate In-
come Fee Reduction Program based on in-
come and other criteria established by the 
State in accordance with Federal guide-
lines; 
(x) develop and implement a stream-
lined application and eligibility determina-
tion process for the Low-Moderate Income 
Fee Reduction Program that minimizes the 
burden on families and providers; 
(xi) automatically deem families eligi-
ble for the Low-Moderate Income Fee Re-
duction Program if they are currently en-
rolled in other means-tested programs, 
such as WIC, SNAP, TANF, Section 8 
housing assistance, or Medicaid; No addi-
tional income verification is required for 
these families; 
(xii) for families not enrolled in 
means-tested programs, States shall use 
existing data sources, such as State income 
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records or eligibility determinations for 
other programs, to verify income whenever 
possible (when such data is not available 
States may use a simplified income 
verification process, such as self-attestation 
of income, with a random sample of appli-
cations 
selected 
for 
more 
rigorous 
verification); 
(xiii) States shall provide clear and 
timely communication to families and pro-
viders regarding eligibility determinations 
and 
any 
required 
documentation 
or 
verification; and 
(xiv) States will work with providers 
to establish a system to recertify parents 
every 12 months. 
(C) PROVIDER
REQUIREMENTS.—Eligible 
child care providers receiving funds through the 
program under this section shall— 
(i) provide relief from co-payments 
and tuition for enrolled families pursuant 
to the parent fee reduction section; 
(ii) prioritize fee relief for low-mod-
erate income families; 
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(iii) assist families ‘‘or work with rel-
evant partner agencies and organizations 
to assist families,’’ in completing the appli-
cation for the Low-Moderate Income Fee 
Reduction Program and will provide any 
necessary documentation to the State to 
support eligibility determinations, as ap-
propriate; 
(iv) providers will not be responsible 
for determining family eligibility for the 
Low-Moderate Income Fee Reduction Pro-
gram but shall relay on eligibility deter-
minations made by the State; 
(v) comply with State reporting re-
quirements and provide necessary docu-
mentation to verify the use of funds; 
(vi) can provide parents with contin-
uous eligibility for 12 months following the 
determination, and at the conclusion of the 
12 months, be responsible for working with 
lead agencies to re-certify parents to en-
sure the provider is meeting their responsi-
bility 
to 
uphold 
the 
mandatory 
prioritization of low-moderate income pro-
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viders subsection and to be eligible for con-
tinued grant funding; 
(vii) collect and report annual data on 
the use of funds to the State, as a manda-
tory condition for receiving future funds; 
and 
(viii) provide explanations to the State 
as needed. 
(D) SECRETARIAL REQUIREMENTS.— 
(i) The Secretary will review State 
plans for implementing, and approve or 
deny funding based on compliance with the 
requirements I outlined in this section. 
(ii) The Secretary will provide guid-
ance and technical assistance to States in 
developing and implementing their Low- 
Moderate Income Fee Reduction Pro-
grams. 
(iii) The Secretary will compile and 
report to Congress annually on the out-
comes and effectiveness of this section, in-
cluding State-level data on the use of 
funds and the impact on families’ access to 
affordable child care. 
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(E) MANDATORY PRIORITIZATION OF LOW- 
MODERATE INCOME PROVIDERS.— 
(i) States will prioritize awarding sub-
grants funded by program under this sec-
tion to providers serving families based on 
clause (ii). 
(ii) In each fiscal year, States will al-
locate all funds appropriate for the pro-
gram under this section to eligible child 
care providers based on the following pri-
ority order: 
(I) Providers serving high pro-
portions of families with incomes at or 
below 50 percent of the State median 
income then. 
(II) Providers serving families 
with incomes between 51 percent and 
85 percent of the State median in-
come then. 
(III) Providers serving families 
with incomes above 85 percent of the 
State median income, up to a max-
imum of 250 percent of the State me-
dian income (approximately $125,000 
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for single parents and $250,000 for 
married parents). 
(IV) All the funds carved out in 
this section, specifically, shall be given 
to families with low to moderate in-
comes to cover their parent fees and 
child care costs to ensure they pay $0 
for child care. 
(V) States will develop a mecha-
nism to ensure that providers serving 
the neediest populations receive pri-
ority funding and that funding pro-
gressively expands to serve higher-in-
come families over time. 
(iii) PRIORITY FOR LOW-INCOME FAM-
ILIES.—States will prioritize the use of 
funds allocated through the Low-Moderate 
Income Fee Reduction Program to reduce 
and waive fees for families at the lowest 
income levels first, before expanding. 
(8) MINIMUM REQUIREMENT FOR LEAD TEACH-
ERS.— 
(A) States retain the authority to set high-
er qualification standards for lead child care 
teachers if deemed necessary. 
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(B) Lead child care teachers employed by 
a eligible child care provider, at minimum, hold 
at least a certificate from an accredited institu-
tion related to child development within 3 years 
of the provider receiving funds. Employees with 
six years or more of full-time experience with a 
licensed child care provider this work experience 
is enough, an alternative to fulfill this require-
ment. 
(9) CHILD
CARE
FACILITIES
GRANT
PRO-
GRAM.— 
(A) ESTABLISHMENT AND PURPOSE.— 
(i) The Secretary will establish the 
Child care Facilities Grant Program to 
support the improvement, renovation, and 
construction of child care facilities. 
(ii) The purpose of the fund is to ad-
dress the need for facilities improvements 
in the child care sector and to expand ac-
cess to safe, healthy and high-quality 
learning environments for children. 
(B) FUNDING
ALLOCATION
AND
GRANT 
TYPES.— 
(i) $3,000,000,000 will be allocated 
annually for the Child Care Facilities 
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Grant Program from fiscal year 2024 
through fiscal year 2034. 
(ii) Funding will be awarded for no 
longer than 3 years. 
(iii) The funding will be allocated as 
follows: 
(I) 50 percent for renovation 
grants to support the repair, innova-
tion and modernization of existing 
child care facilities. 
(II) 40 percent for construction 
grants to support the construction of 
new child care facilities in under-
served areas. 
(III) 10 percent for planning 
grants to support the planning and 
re-development activities for child care 
facility projects. 
(iv) The Secretary may adjust these 
allocations based on the quality and quan-
tity of applications received, as well as the 
needs and priorities of the child care sec-
tor. 
(C) ELIGIBILITY AND APPLICATION PROC-
ESS.— 
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(ii) plan to address child care needs in 
different types of areas (urban, suburban, 
rural) together with local governments, 
other State agencies, non-profits, and com-
munity organizations. 
(p) HOME-BASED CHILD CARE TRAINING AND SUP-
PORT FUND.— 
(1) ESTABLISHMENT OF PROGRAM.— 
(A) The Secretary will establish the Home- 
Based Child Care Training and Support Fund 
to address the unique challenges faced by fam-
ily child care providers and to promote their 
success and sustainability. 
(B) Appropriate $750 million annually 
from FY 2024 through FY 2034. 
(2) ELIGIBILITY AND APPLICATION PROCESS.— 
(A) The following entities are eligible to 
apply for subgrants: 
(i) Institutions of higher education, 
with priority given to community colleges. 
(ii) Nonprofit organizations with ex-
pertise in supporting and advocating for 
FCC providers. 
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