providers, and are appropriate 
for providers serving different 
age groups (including mixed age 
groups) of children, while main-
taining a high level of quality 
child care by all of the different 
types of providers and for all of 
the different age groups (includ-
ing mixed age groups); 
‘‘(III) includes a different set of 
standards that includes different indi-
cators, to be applied, when appro-
priate, for care during nontraditional 
hours of operation; and 
‘‘(IV) in conjunction with the in-
creasing payment rates under para-
graph (4) (increasing due to factors 
specified in paragraph (4) such as the 
cost estimation model and quality 
basis for payment rates), provides for 
sufficient resources to enable stand-
ards at the entry tier for such system 
to increase in rigor over time; and 
‘‘(ii) a separate system of quality 
standards for providers concerning develop-
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mentally appropriate and age-appropriate 
care that— 
‘‘(I) applies to eligible child care 
providers of family, friend, or neigh-
bor care (except such providers that 
elect to be covered under clause (i)); 
and 
‘‘(II) includes standards for care 
during nontraditional hours of oper-
ation and traditional hours of oper-
ation. 
‘‘(X) PROHIBITION
ON
CHARGING
MORE 
THAN COPAYMENT.—The State plan shall pro-
vide that, after the systems described in sub-
paragraph (W) are in effect, child care pro-
viders receiving financial assistance under this 
subchapter may not charge the family of an eli-
gible child more than the total of— 
‘‘(i) the financial assistance provided 
to the family under this subchapter; and 
‘‘(ii) any applicable copayment pursu-
ant to paragraph (5). 
‘‘(Y) POLICIES
TO
SUPPORT
CHILDREN 
WITH
DISABILITIES
AND
INFANTS
AND
TOD-
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pamtmann on DSKBFK8HB2PROD with BILLS
DLERS
WITH
DISABILITIES.—The State plan 
shall provide a description of— 
‘‘(i) how the State will ensure that eli-
gible child care providers, except for pro-
viders of family, friend, or neighbor care 
that elect to be covered under subpara-
graph (W)(ii), will prioritize children with 
disabilities and infants and toddlers with 
disabilities for slots in programs carried 
out by the providers; and 
‘‘(ii) how the State will work with the 
State’s lead agency established or des-
ignated under section 635(a)(10) of the In-
dividuals with Disabilities Education Act 
(20 U.S.C. 1435(a)(10)), local educational 
agencies, and early intervention services 
providers to provide services and supports 
described in the Individuals with Disabil-
ities Education Act (20 U.S.C. 1400 et 
seq.) in inclusive child care settings to chil-
dren with disabilities, and to infants and 
toddlers with disabilities, who are eligible 
children.’’; 
(2) in paragraph (3)— 
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pamtmann on DSKBFK8HB2PROD with BILLS
(A) in the paragraph heading, by striking 
‘‘BLOCK GRANT’’; 
(B) in subparagraph (A), by striking ‘‘sub-
paragraphs (B) through (D)’’ and inserting 
‘‘subparagraph (C)’’; 
(C) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) CHILD CARE SERVICES AND RELATED 
ACTIVITIES.—The State shall use amounts pro-
vided to the State for each fiscal year under 
this subchapter for child care services, provided 
on a sliding fee scale basis, and the activities 
described in section 658G.’’; 
(D) by striking subparagraph (C); 
(E) in subparagraph (D), by striking ‘‘pro-
vide assistance’’ and inserting ‘‘provide assist-
ance (including providing access to programs 
that meet the standards for a high tier of the 
system described in paragraph (2)(W)(i))’’; 
(F) by striking subparagraph (E); and 
(G) by redesignating subparagraph (D) as 
subparagraph (C); and 
(3) by striking paragraphs (4) and (5) and in-
serting the following: 
‘‘(4) PAYMENT RATES.— 
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‘‘(A) 
IN
GENERAL.—The 
State 
plan 
shall— 
‘‘(i) certify that payment rates for the 
provision of child care services for which 
assistance is provided in accordance with 
this subchapter— 
‘‘(I) will be based on a cost esti-
mation model that is described in sub-
paragraph (B) and is approved by the 
Secretary of Health and Human Serv-
ices; and 
‘‘(II) will correspond to dif-
ferences in quality based on the 
State’s tiered and transparent system 
for measuring the quality of child care 
providers, described in paragraph 
(2)(W)(i), and based on the standards 
described in paragraph (2)(W)(ii); and 
‘‘(ii) specify whether the State is 
electing— 
‘‘(I) to include, in those payment 
rates, a bonus for serving children 
during nontraditional hours; or 
‘‘(II) to waive the copayment de-
scribed in paragraph (5) for a child 
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who has been identified as eligible for 
assistance from child protective serv-
ices. 
‘‘(B) COST
ESTIMATION
MODEL.—The 
State plan shall— 
‘‘(i) demonstrate that the State has, 
after consulting with the entities and indi-
viduals described in subparagraph (D), de-
veloped and used (not earlier than 3 years 
before the date of the submission of the 
application containing the State plan) a 
statistically valid and reliable cost esti-
mation model for the rates of such child 
care services in the State— 
‘‘(I) for providers at each of the 
tiers of the State’s tiered and trans-
parent system for measuring the qual-
ity of child care providers described in 
paragraph (2)(W)(i) (which rates re-
flect variations in the cost of child 
care services by geographic area, type 
of provider, and age of child, and the 
additional costs associated with pro-
viding high-quality and inclusive child 
care services for children with disabil-
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