134 
tion for activities described in sections 216 and 217 and 
distributed 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 216; 
(2) not less than 22.5 percent shall be available 
to the State for grants under section 217; 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 216 and 
217. 
(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. 215. APPLICATION AND PLAN. 
(a) APPLICATION.—To be eligible to receive a dis-
tribution of funds allotted under section 214, 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 
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(2) assurances of compliance satisfactory to the 
Secretary with respect to the requirements of section 
218. 
(b) REQUIREMENTS OF PLAN.— 
(1) LEAD AGENCY.—The State plan shall iden-
tify the lead agency to make grants under this sub-
title 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 sub-
title. 
(4) DISTRIBUTION
OF
GRANTS.—The State 
plan shall describe how the lead agency will make 
grants under sections 216 and 217 to eligible child 
care providers in selected geographical areas in the 
State in compliance with the following requirements: 
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136 
(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 216, 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; 
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(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 216 to child care providers will 
not be used to offset reductions in the com-
pensation 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 216— 
(i) include in the report required by 
section 219, 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 
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138 
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 216 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 
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(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 216. 
(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 216 in 
accordance with the following requirements: 
(A) SUFFICIENT
AMOUNTS.—The State 
shall demonstrate that the amounts of indi-
vidual grants to be made under section 216 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-
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140 
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 216 in an 
amount that is not less than twice the 
amount of the grant that is made under 
section 216 to an eligible child care pro-
vider who has an associate of the arts de-
gree in the area of child development or 
early child education. 
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143 
eligible child care providers to reflect the num-
ber 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 217 and shall specify the 
types of educational and training programs for 
which the scholarship grants made under such sec-
tion 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 
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144 
to the attainment of education goals by eligible child 
care providers who receive grants under section 217. 
(8) SUPPLEMENTATION.—The State plan shall 
provide assurances that amounts received by the 
State to carry out sections 216, 217, and 218 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. 216. CHILD CARE PROVIDER DEVELOPMENT AND RE-
TENTION GRANT PROGRAM. 
(a) IN GENERAL.—A State that receives funds allot-
ted under section 214 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. 
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145 
(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 subtitle 
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146 
for purposes of selecting eligible child care providers to 
receive grants under this section. 
SEC. 217. CHILD CARE PROVIDER SCHOLARSHIP PROGRAM. 
(a) IN GENERAL.—A State that receives funds allot-
ted under section 214 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 
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147 
to receive any funds or benefits under any other pro-
vision of this subtitle, 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 subtitle, 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. 218. 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 
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148 
to a State, have the meanings given the terms by the 
State. 
(c) GENERAL AUTHORITY.—A State that receives 
funds allotted under section 214 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 afford-
able 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 
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149 
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 
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150 
National Association for Family Child Care; 
and 
(B) at the State’s discretion, the spouses, 
domestic partners, and dependents of such pro-
viders. 
SEC. 219. ANNUAL REPORT. 
A State that receives funds appropriated to carry out 
this subtitle 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; and 
(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 subtitle; 
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151 
(D) the particular geographical areas se-
lected under section 215 for the purpose of 
making such grants; 
(E) with respect to grants made under sec-
tion 216— 
(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 
212(1) in which grant recipients are em-
ployed; and 
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(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 217— 
(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 
212(1) in which grant recipients are em-
ployed; 
(v) the ages of the children who re-
ceived child care services provided by grant 
recipients; 
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(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. 220. 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 218, 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. 
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(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 subtitle, 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 218. 
SEC. 221. 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 216 and 217 $500,000,000 for fiscal year 2012 and 
such sums as may be necessary for each of fiscal years 
2012 through 2016. 
(b) CHILD CARE PROVIDER HEALTH BENEFITS COV-
ERAGE.—There is authorized to be appropriated to carry 
out the activities described in section 218 $200,000,000 
for fiscal year 2011 and such sums as may be necessary 
for each of fiscal years 2012 through 2016. 
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Subtitle C—Child Care Facilities 
Financing 
SEC. 231. SHORT TITLE. 
This subtitle may be cited as the ‘‘Child Care Facili-
ties Financing Act’’. 
SEC. 
232. 
TECHNICAL 
AND 
FINANCIAL 
ASSISTANCE 
GRANTS. 
(a) GRANT AUTHORITY.—The Secretary may make 
grants on a competitive basis to eligible entities in accord-
ance with this section. 
(b) APPLICATION.— 
(1) IN GENERAL.—To be eligible to receive a 
grant under subsection (a), an eligible entity shall 
submit to the Secretary an application at such time, 
in such form, and containing such information as 
the Secretary may require by rule. 
(2) REQUIREMENTS.—The Secretary shall issue 
rules that take into account the experience and suc-
cess of eligible entities in attracting private financ-
ing and carrying out the types of activities for which 
grants under subsection (a) are made. 
(c) PRIORITY.—In making grants under subsection 
(a), the Secretary shall give priority to an applicant— 
(1) that has demonstrated experience— 
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(A) providing technical or financial assist-
ance for the acquisition, construction, or ren-
ovation of child care facilities; 
(B) providing technical, financial, or mana-
gerial assistance to eligible child care providers; 
and 
(C) securing private sources of capital fi-
nancing for child care or other low-income com-
munity development; and 
(2) whose application proposes to assist eligible 
recipients that serve— 
(A) low-income areas, including— 
(i) a community that— 
(I) is in a metropolitan area; and 
(II) has a median household in-
come that is not more than 80 percent 
of the median household income of the 
metropolitan area; or 
(ii) a community that— 
(I) is not in a metropolitan area; 
and 
(II) has a median income that is 
not more than 80 percent of the me-
dian household income of the State in 
which the community is located; or 
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(B) low-income individuals, including eligi-
ble children. 
(d) USE OF FUNDS.— 
(1) CAPITAL FUND.—Each eligible entity that 
receives a grant under subsection (a) shall deposit 
the grant amount into a child care capital fund es-
tablished by the eligible entity. 
(2) PAYMENTS FROM FUNDS.—Each eligible en-
tity shall provide technical or financial assistance (in 
the form of loans, grants, investments, guarantees, 
interest subsidies, and other appropriate forms of 
assistance) to eligible recipients from the child care 
capital fund it establishes to pay for— 
(A) the acquisition, construction, or im-
provement of child care facilities; 
(B) equipment for child care facilities; or 
(C) technical assistance to eligible child 
care providers to help them undertake facilities 
improvement and expansion projects. 
(3) LOAN REPAYMENTS AND INVESTMENT PRO-
CEEDS.—An eligible entity that receives a loan re-
payment or investment proceeds from an eligible re-
cipient shall deposit such repayment or proceeds into 
the child care capital fund of the eligible entity for 
use in accordance with this section. 
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(4) APPLICATION.—To obtain assistance from 
an eligible entity, an eligible recipient shall prepare 
and submit an application to an eligible entity at 
such time, in such form, and containing such infor-
mation as the eligible entity may require. 
SEC. 233. DEFINITIONS. 
As used in this subtitle: 
(1) CHILD CARE FACILITY.—The term ‘‘child 
care facility’’ means a structure used for the care 
and development of eligible children. 
(2) CHILD CARE SERVICES.—The term ‘‘child 
care services’’ means child care and early childhood 
education. 
(3) COMMUNITY DEVELOPMENT FINANCIAL IN-
STITUTION.—The term ‘‘community development fi-
nancial institution’’ has the meaning given such 
term in section 103(5) of the Community Develop-
ment Banking and Financial Institutions Act of 
1994 (12 U.S.C. 4702(5)). 
(4) ELIGIBLE
CHILD
CARE
PROVIDER.—The 
term ‘‘eligible 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). 
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(5) ELIGIBLE
CHILD.—The term ‘‘eligible 
child’’ 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). 
(6) ELIGIBLE ENTITY.—The term ‘‘eligible enti-
ty’’ means— 
(A) a community development financial in-
stitution certified by the Department of Treas-
ury; or 
(B) an organization that— 
(i) is described in section 501(c)(3) of 
the Internal Revenue Code of 1986; 
(ii) is exempt from taxation under 
section 501(a) of such Code; and 
(iii) has demonstrated experience in— 
(I) providing technical or finan-
cial assistance for the acquisition, con-
struction, or renovation of child care 
facilities; 
(II) providing technical, financial, 
or managerial assistance to eligible 
child care providers; and 
(III) securing private sources of 
capital financing for child care or 
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other low-income community develop-
ment. 
(7) ELIGIBLE RECIPIENT.—The term ‘‘eligible 
recipient’’ means— 
(A) an eligible child care provider that pro-
vides child care services to an eligible child; 
(B) an organization seeking to provide 
child care services to an eligible child; or 
(C) an organization providing or seeking to 
provide child care services to low-income chil-
dren as determined by the Secretary. 
(8) EQUIPMENT.—The term ‘‘equipment’’ in-
cludes— 
(A) machinery, utilities, and built-in equip-
ment, and any necessary structure to house 
them; and 
(B) any other items necessary for the func-
tioning of a child care facility, including fur-
niture, books, and program materials. 
(9) METROPOLITAN AREA.—The term ‘‘metro-
politan area’’ has the meaning given such term in 
section 102 of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5302). 
(10) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of Health and Human Services. 
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SEC. 234. AUTHORIZATION OF APPROPRIATIONS. 
There is authorized to be appropriated to carry out 
this subtitle $50,000,000 for each of the fiscal years 2012 
through 2016. 
Subtitle D—Business Child Care 
Incentive Grant Program 
SEC. 241. BUSINESS CHILD CARE INCENTIVE GRANT PRO-
GRAM. 
(a) ESTABLISHMENT.—The Secretary of Health and 
Human Services (referred to in this section as the ‘‘Sec-
retary’’) shall establish a program to award grants to 
States, on a competitive basis, to assist States in providing 
funds to encourage the establishment and operation of em-
ployer operated child care programs. 
(b) APPLICATION.—To be eligible to receive a grant 
under this section, a State shall prepare and submit to 
the Secretary an application at such time, in such manner, 
and containing such information as the Secretary may re-
quire, including an assurance that the funds required 
under subsection (e) will be provided. 
(c) AMOUNT OF GRANT.—The Secretary shall deter-
mine the amount of a grant to a State under this section 
based on the population of children less than 5 years of 
age in the State as compared to the population of all 
States receiving grants under this section. 
(d) USE OF FUNDS.— 
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(1) IN GENERAL.—A State shall use amounts 
provided under a grant awarded under this section 
to provide assistance to businesses located in the 
State to enable the businesses to establish and oper-
ate child care programs. Such assistance may in-
clude— 
(A) technical assistance in the establish-
ment of a child care program; 
(B) assistance for the startup costs related 
to a child care program; 
(C) assistance for the training of child care 
providers; 
(D) scholarships for low-income wage earn-
ers; 
(E) the provision of services to care for 
sick children or to provide care to school aged 
children; 
(F) the entering into of contracts with 
local resource and referral or local health de-
partments; 
(G) assistance for care for children with 
disabilities; or 
(H) assistance for any other activity deter-
mined appropriate by the State. 
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(2) APPLICATION.—To be eligible to receive as-
sistance from a State under this section, a business 
shall prepare and submit to the State an application 
at such time, in such manner, and containing such 
information as the State may require. 
(3) PREFERENCE.— 
(A) IN GENERAL.—In providing assistance 
under this section, a State shall give priority to 
applicants that desire to form a consortium to 
provide child care in a geographic area within 
the State where such care is not generally avail-
able or accessible. 
(B) CONSORTIUM.—For purposes of sub-
paragraph (A), a consortium shall be made up 
of 2 or more entities that may include busi-
nesses, nonprofit agencies or organizations, 
local governments, or other appropriate entities. 
(4) LIMITATION.—With respect to grant funds 
received under this section, a State may not provide 
in excess of $100,000 in assistance from such funds 
to any single applicant. 
(e) MATCHING REQUIREMENT.—To be eligible to re-
ceive a grant under this section a State shall provide as-
surances to the Secretary that, with respect to the costs 
to be incurred by an entity receiving assistance in carrying 
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out activities under this section, the entity will make avail-
able (directly or through donations from public or private 
entities) non-Federal contributions to such costs in an 
amount equal to— 
(1) for the first fiscal year in which the entity 
receives such assistance, not less than 50 percent of 
such costs ($1 for each $1 of assistance provided to 
the entity under the grant); 
(2) for the second fiscal year in which the enti-
ty receives such assistance, not less than 662⁄3 per-
cent of such costs ($2 for each $1 of assistance pro-
vided to the entity under the grant); and 
(3) for the third fiscal year in which the entity 
receives such assistance, not less than 75 percent of 
such costs ($3 for each $1 of assistance provided to 
the entity under the grant). 
(f) REQUIREMENTS OF PROVIDERS.—To be eligible 
to receive assistance under a grant awarded under this 
section a child care provider shall comply with all applica-
ble State and local licensing and regulatory requirements 
and all applicable health and safety standards in effect 
in the State. 
(g) ADMINISTRATION.— 
(1) STATE
RESPONSIBILITY.—A State shall 
have responsibility for administering a grant award-
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ed for the State under this section and for moni-
toring entities that receive assistance under such 
grant. 
(2) AUDITS.—A State shall require each entity 
receiving assistance under the grant awarded under 
this section to conduct an annual audit with respect 
to the activities of the entity. Such audits shall be 
submitted to the State. 
(3) MISUSE OF FUNDS.— 
(A) REPAYMENT.—If the State determines, 
through an audit or otherwise, that an entity 
receiving assistance under a grant awarded 
under this section has misused the assistance, 
the State shall notify the Secretary of the mis-
use. The Secretary, upon such a notification, 
may seek from such an entity the repayment of 
an amount equal to the amount of any such 
misused assistance plus interest. 
(B) APPEALS
PROCESS.—The Secretary 
shall by regulation provide for an appeals proc-
ess with respect to repayments under this para-
graph. 
(h) REPORTING REQUIREMENTS.— 
(1) 2-YEAR STUDY.— 
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(A) IN GENERAL.—Not later than 2 years 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall conduct a study to determine— 
(i) the capacity of entities to meet the 
child care needs of communities within 
States; 
(ii) the kinds of partnerships that are 
being formed with respect to child care at 
the local level to carry out programs fund-
ed under this section; and 
(iii) who is using the programs funded 
under this section and the income levels of 
such individuals. 
(B) REPORT.—Not later than 28 months 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall prepare and submit to the appropriate 
committees of Congress a report on the results 
of the study conducted in accordance with sub-
paragraph (A). 
(2) 4-YEAR STUDY.— 
(A) IN GENERAL.—Not later than 4 years 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
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shall conduct a study to determine the number 
of child care facilities funded through entities 
that received assistance through a grant award-
ed under this section that remain in operation 
and the extent to which such facilities are meet-
ing the child care needs of the individuals 
served by such facilities. 
(B) REPORT.—Not later than 52 months 
after the date on which the Secretary first 
awards grants under this section, the Secretary 
shall prepare and submit to the appropriate 
committees of Congress a report on the results 
of the study conducted in accordance with sub-
paragraph (A). 
(i) DEFINITION.—In this section, the term ‘‘busi-
ness’’ means an employer who employed an average of at 
least 2 employees on business days during the preceding 
calendar year. 
(j) AUTHORIZATION OF APPROPRIATIONS.— 
(1) IN GENERAL.—There is authorized to be 
appropriated to carry out this section, $60,000,000 
for the period of fiscal years 2012 through 2016. 
(2) EVALUATIONS
AND
ADMINISTRATION.— 
With respect to the total amount appropriated for 
such period in accordance with this subsection, not 
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more than $5,000,000 of that amount may be used 
for expenditures related to conducting evaluations 
required under, and the administration of, this sec-
tion. 
(k) TERMINATION OF PROGRAM.—The program es-
tablished under subsection (a) shall terminate on Sep-
tember 30, 2017. 
TITLE 
III—PRE-SCHOOL, 
IN- 
SCHOOL, AND AFTER SCHOOL 
ASSISTANCE 
Subtitle A—Universal 
Prekindergarten Act 
SEC. 301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Universal Pre-
kindergarten Act’’. 
SEC. 302. PURPOSE. 
The purpose of this subtitle is to ensure that all chil-
dren 3, 4, and 5 years old have access to a high-quality 
full-day, full-calendar-year prekindergarten program by 
providing grants to States to assist in developing a uni-
versal prekindergarten program that is voluntary and free- 
of-charge. 
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SEC. 303. PREKINDERGARTEN GRANT PROGRAM AUTHOR-
IZATION. 
The Secretary of Health and Human Services, in con-
sultation with the Secretary of Education, shall provide 
grants to an agency designated by each State (hereafter 
in this subtitle referred to as the ‘‘designated State agen-
cy’’) for the development of high-quality full-day, full-cal-
endar-year universal prekindergarten programs for all 
children 3, 4, and 5 years old in the State. 
SEC. 304. STATE REQUIREMENTS. 
(a) STATE MATCHING FUNDS.—Federal funds made 
available to a designated State agency under this subtitle 
shall be matched at least 20 percent by State funds. 
(b) STATE APPLICATION.—To be eligible to receive 
funds under this subtitle, a designated State agency shall 
submit an application at such time, in such manner, and 
containing such information as the Secretary of Health 
and Human Services may require. The application shall 
include the following: 
(1) How the designated State agency, in over-
seeing the State’s universal prekindergarten pro-
gram, will coordinate with other State agencies re-
sponsible for early childhood education and health 
programs. 
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(2) A State plan to establish and implement a 
statewide universal prekindergarten program, in ac-
cordance with subsection (c). 
(c) STATE PLAN.—The State plan required under 
subsection (b)(2) shall include each of the following: 
(1) A description of the universal prekinder-
garten program that will be established and how it 
will support children’s cognitive, social, emotional, 
and physical development. 
(2) A statement of the goals for universal pre-
kindergarten programs and how program outcomes 
will be measured. 
(3) A description of— 
(A) how funding will be distributed to eli-
gible prekindergarten program providers based 
on the need for early childhood education in 
each geographical area served by such pro-
viders; and 
(B) how the designated State agency will 
involve representatives of early childhood pro-
gram providers (including child care providers, 
Head Start programs, and State and local 
agencies) that sponsor programs addressing 
children 3, 4, and 5 years old. 
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(4) A description of how the designated State 
agency will coordinate with existing State-funded 
prekindergarten programs, federally funded pro-
grams (such as Head Start programs), public school 
programs, and child care providers. 
(5) A description of how an eligible prekinder-
garten program provider may apply to the des-
ignated State agency for funding under this Act. 
(6) A plan to address the shortages of qualified 
early childhood education teachers, including how to 
increase such teachers’ compensation to be com-
parable to that of public school teachers. 
(7) How the designated State agency will pro-
vide ongoing professional development opportunities 
to help increase the number of teachers in early 
childhood programs who meet the State’s education 
or credential requirements for prekindergarten 
teachers. 
(8) A plan to address how the universal pre-
kindergarten program will meet the needs of chil-
dren with disabilities, limited English proficiency, 
and other special needs. 
(9) A plan to provide transportation to children 
to and from the universal prekindergarten program. 
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(10) A description of how the State will provide 
the 20 percent match of Federal funds. 
(d) ADMINISTRATION.—A designated State agency 
may not use more than 5 percent of a grant under this 
subtitle for costs associated with State administration of 
the program under this subtitle. 
SEC. 305. LOCAL REQUIREMENTS. 
(a) IN GENERAL.—An eligible prekindergarten pro-
gram provider receiving funding under this subtitle 
shall— 
(1) maintain a maximum class size of 20 chil-
dren; 
(2) maintain a ratio of not more than 10 chil-
dren for each member of the teaching staff; 
(3)(A) ensure that all prekindergarten teachers 
meet the requirements for teachers at a State-fund-
ed prekindergarten program under an applicable 
State law; and 
(B) document that the State is demonstrating 
significant progress in assisting prekindergarten 
teachers on working toward a bachelor of arts de-
gree with training in early childhood development or 
early childhood education; 
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(4)(A) be accredited by a national organization 
with demonstrated experience in accrediting pre-
kindergarten programs; or 
(B) provide assurances that it shall obtain such 
accreditation not later than 3 years after first re-
ceiving funding under this subtitle; and 
(5) meet applicable State and local child care li-
censing health and safety standards. 
(b) LOCAL APPLICATION.—Eligible prekindergarten 
program providers desiring to receive funding under this 
subtitle shall submit an application to the designated 
State agency overseeing funds under this subtitle con-
taining the following: 
(1) A description of the prekindergarten pro-
gram. 
(2) A statement of the demonstrated need for 
a program, or an enhanced or expanded program, in 
the area served by the eligible prekindergarten pro-
gram provider. 
(3) A description of the age-appropriate and de-
velopmentally appropriate educational curriculum to 
be provided that will help children be ready for 
school and assist them in the transition to kinder-
garten. 
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(4) A description of how the eligible prekinder-
garten program provider will collaborate with exist-
ing community-based child care providers and Head 
Start programs. 
(5) A description of how students and families 
will be assisted in obtaining supportive services 
available in their communities. 
(6) A plan to promote parental involvement in 
the prekindergarten program. 
(7) A description of how teachers will receive 
ongoing professional development in early childhood 
development and education. 
(8) An assurance that prekindergarten pro-
grams receiving funds under this subtitle provide the 
data required in section 7(c). 
SEC. 306. PROFESSIONAL DEVELOPMENT SET-ASIDE. 
(a) IN GENERAL.—A designated State agency may 
set aside up to 5 percent of a grant under this subtitle 
for ongoing professional development activities for teach-
ers and staff at prekindergarten programs that wish to 
participate in the universal prekindergarten grant pro-
gram under this subtitle. A designated State agency using 
the set-aside for professional development must include in 
its application the following: 
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(1) A description of how the designated State 
agency will ensure that eligible prekindergarten pro-
gram providers in a range of settings (including 
child care providers, Head Start programs, and 
schools) will participate in the professional develop-
ment programs. 
(2) An assurance that, in developing its applica-
tion and in carrying out its program, the profes-
sional development provider has consulted, and will 
consult, with relevant agencies, early childhood orga-
nizations, early childhood education experts, and 
early childhood program providers. 
(3) A description of how the designated State 
agency will ensure that the professional development 
is ongoing and accessible to educators in all geo-
graphic areas of the State, including by the use of 
advanced educational technologies. 
(4) A description of how the designated State 
agency will ensure that such set-aside funds will be 
used to pay the cost of additional education and 
training. 
(5) A description of how the designated State 
agency will work with other agencies and institutions 
of higher education to provide scholarships and 
other financial assistance to prekindergarten staff. 
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(6) A description of how the State educational 
agency will provide a financial incentive, such as a 
financial stipend or a bonus, to educators who par-
ticipate in and complete such professional develop-
ment. 
(7) A description of how the professional devel-
opment activities will be carried out, including the 
following: 
(A) How programs and educators will be 
selected to participate. 
(B) How professional development pro-
viders will be selected, based on demonstrated 
experience in providing research-based profes-
sional development to early childhood educators. 
(C) The types of research-based profes-
sional development activities that will be carried 
out in all domains of children’s physical, cog-
nitive, social, and emotional development and 
on early childhood pedagogy. 
(D) How the program will train early 
childhood educators to meet the diverse edu-
cational needs of children in the community, es-
pecially children who have limited English pro-
ficiency, disabilities, and other special needs. 
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(E) How the program will coordinate with 
and build upon, but not supplant or duplicate, 
early childhood education professional develop-
ment activities that exist in the community. 
(b) USES OF FUNDS.—Funds set aside under this 
section may be used for ongoing professional develop-
ment— 
(1) to provide prekindergarten teachers and 
staff with the knowledge and skills for the applica-
tion of recent research on child cognitive, social, 
emotional, and physical development, including lan-
guage and literacy development, and on early child-
hood pedagogy; 
(2) to provide the cost of education needed to 
obtain a credential or degree with specific training 
in early childhood development or education; 
(3) to work with children who have limited 
English proficiency, disabilities, and other special 
needs; and 
(4) to select and use developmentally appro-
priate screening and diagnostic assessments to im-
prove teaching and learning and make appropriate 
referrals for services to support prekindergarten 
children’s development and learning. 
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SEC. 307. REPORTING. 
(a) REPORT BY SECRETARY.—For each year in which 
funding is provided under this subtitle, the Secretary of 
Health and Human Services shall submit an annual report 
to the Congress on the implementation and effectiveness 
of the universal prekindergarten program under this sub-
title. 
(b) REPORT BY DESIGNATED STATE AGENCY.—Each 
designated State agency that provides grants to eligible 
prekindergarten program providers under this subtitle 
shall submit to the Secretary an annual report on the im-
plementation and effectiveness of the programs in the 
State supported under this subtitle. Such report shall con-
tain such additional information as the Secretary may rea-
sonably require. 
(c) REPORT BY GRANT RECIPIENT.—Each eligible 
prekindergarten program provider that receives a grant 
under this subtitle shall submit to the designated State 
agency an annual report that includes, with respect to the 
program supported by such grant, the following: 
(1) A description of the type of program and a 
statement of the number and ages of children served 
by the program, as well as the number and ages of 
children with a disability or a native language other 
than English. 
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(2) A description of the qualifications of the 
program staff and the type of ongoing professional 
development provided to such staff. 
(3) A statement of all sources of Federal, State, 
local, and private funds received by the program. 
(4) A description of the curricula, materials, 
and activities used by the program to support early 
childhood development and learning. 
(5) Such other information as the designated 
State agency may reasonably require. 
SEC. 308. FEDERAL FUNDS SUPPLEMENTARY. 
Funds made available under this subtitle may not be 
used to supplant other Federal, State, local, or private 
funds that would, in the absence of such Federal funds, 
be made available for the program assisted under this sub-
title. 
SEC. 309. DEFINITIONS. 
In this subtitle: 
(1) The term ‘‘eligible prekindergarten program 
provider’’ means a prekindergarten program pro-
vider that is— 
(A) a school; 
(B) supported, sponsored, supervised, or 
carried out by a local educational agency; 
(C) a Head Start program; or 
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(D) a child care provider. 
(2) The term ‘‘prekindergarten program’’ 
means a program serving children 3, 4, and 5 years 
old that supports children’s cognitive, social, emo-
tional, and physical development and helps prepare 
those children for the transition to kindergarten. 
(3) The term ‘‘local educational agency’’ has 
the meaning given that term in the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6301 
et seq.). 
(4) The term ‘‘prekindergarten teacher’’ means 
an individual who has received, or is working to-
ward, a bachelor of arts degree in early childhood 
education. 
SEC. 310. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated to carry out 
this subtitle— 
(1) $10,000,000,000 for fiscal year 2012; 
(2) $20,000,000,000 for fiscal year 2013; 
(3) $30,000,000,000 for fiscal year 2014; 
(4) $40,000,000,000 for fiscal year 2015; and 
(5) $50,000,000,000 for fiscal year 2016. 
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Subtitle B—Universal Free School 
Breakfast Program 
SEC. 311. UNIVERSAL FREE SCHOOL BREAKFAST PRO-
GRAM. 
(a) FREE
BREAKFAST
AND
UNIVERSAL
ELIGI-
BILITY.—Section 4 of the Child Nutrition Act of 1966 (42 
U.S.C. 1773) is amended to read as follows: 
‘‘SEC. 4. SCHOOL BREAKFAST PROGRAM AUTHORIZATION. 
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to enable the Secretary to carry out a program to 
assist States and the Department of Defense to initiate, 
maintain, or expand nonprofit breakfast programs to pro-
vide free breakfasts to school children without regard to 
family income in all schools which make application for 
participation and agree to carry out a nonprofit free 
breakfast program in accordance with this Act. Appropria-
tions and expenditures for this Act shall be considered 
Health and Human Services functions for budget purposes 
rather than functions of Agriculture. 
‘‘(b) APPORTIONMENT TO STATES.— 
‘‘(1)(A) IN
GENERAL.—The Secretary shall 
make breakfast payments to each State educational 
agency each fiscal year, at such times as the Sec-
retary may determine, from the sums appropriated 
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for such purpose, in an amount equal to the product 
obtained by multiplying— 
‘‘(i) the number of breakfasts served free 
during such fiscal year to children in schools in 
such States which participate in the school 
breakfast program under agreements with such 
State educational agency; by 
‘‘(ii) the national breakfast payment as 
prescribed in paragraph (2) of this subsection. 
‘‘(B) AGREEMENTS.—The agreements described 
in subparagraph (A)(i) shall be permanent agree-
ments that may be amended as necessary. Nothing 
in the preceding sentence shall be construed to limit 
the ability of the State educational agency to sus-
pend or terminate any such agreement in accordance 
with regulations prescribed by the Secretary. 
‘‘(2) NATIONAL
BREAKFAST
PAYMENT.—The 
national payment for each breakfast shall be $1.40 
(as adjusted each July 1 pursuant to section 
11(a)(3)(B) of the Richard B. Russell National 
School Lunch Act (42 U.S.C. 1759a(a)(3)(B))). 
‘‘(3) LIMITATION.—No breakfast payment may 
be made under this subsection for any breakfast 
served by a school unless such breakfast consists of 
a combination of foods which meet the minimum nu-
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tritional requirements prescribed by the Secretary 
under subsection (e) of this section. 
‘‘(4) NUTRITION QUALITY ADJUSTMENT.—The 
Secretary shall increase by 6 cents the annually ad-
justed payment for each breakfast served under this 
Act and section 17 of the Richard B. Russell Na-
tional School Lunch Act. These funds shall be used 
to assist States, to the extent feasible, in improving 
the nutritional quality of the breakfasts. 
‘‘(5) AGRICULTURAL COMMODITIES.—Notwith-
standing any other provision of law, whenever stocks 
of agricultural commodities are acquired by the Sec-
retary or the Commodity Credit Corporation and are 
not likely to be sold by the Secretary or the Com-
modity Credit Corporation or otherwise used in pro-
grams of commodity sale or distribution, the Sec-
retary shall make such commodities available to 
school food authorities and eligible institutions serv-
ing breakfasts under this Act in a quantity equal in 
value to not less than 3 cents for each breakfast 
served under this Act. 
‘‘(6) EFFECT
ON
EXPENDITURES.—Expendi-
tures of funds from State and local sources for the 
maintenance of the breakfast program shall not be 
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