Expanding Employer-Sponsored Child Care Grants Act of 2021
Bill: H.R.3878 | Sponsor: Rep. Steel, Michelle (R-CA)
Policy area: Families

Summary:
Expanding Employer-Sponsored Child Care Grants Act of 2021
This bill expands the temporary child care stabilization grant program to permit states to award subgrants to a business for the provision or expansion of child care services for its employees.

To amend section 2202 of the American Rescue Plan Act of 2021 to 
  authorize States to expand the uses of the child care stabilization 
 funds to include support for grants to increase access to child care 
   through the establishment and expansion of child care programs by 
                              businesses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; PURPOSE.

    (a) Short Title.--This Act may be cited as the ``Expanding 
Employer-Sponsored Child Care Grants Act of 2021''.
    (b) Purpose.--The purpose of this Act is to support the recovery 
and stability of the United States economy by providing grants to 
businesses to aid in opening child care programs, establishing 
partnerships with existing providers, or expanding existing child care 
services to meet the demand for child care for working parents.

SEC. 2. AMENDMENTS.

    Section 2202 of the American Rescue Plan Act of 2021 (Public Law 
117-2; March 11, 2021) is amended--
            (1) in subsection (e)(1), by striking ``such a subgrant'' 
        and inserting ``a subgrant under subsection (d)'';
            (2) by redesignating subsection (f) as subsection (h); and
            (3) by inserting after subsection (e) the following:
    ``(f) Subgrants for Businesses to Provide Child Care Services.--
            ``(1) In general.--Notwithstanding paragraphs (1) and 
        (2)(A) of subsection (d), and with the authorization of the 
        State under paragraph (5), the lead agency may use any 
        unobligated grant funds awarded pursuant to subsection (c) 
        (including any such funds otherwise reserved under subsection 
        (d)(1)) to make subgrants to eligible businesses to assist in 
        paying for the establishment and operation or expansion of 
        child care services for a transition period of not more than 9 
        months, so that working parents have a safe place for their 
        children to receive child care. Any fund used for subgrants 
        under this subsection shall be obligated before October 1, 
        2024, and expended before October 1, 2025. Subgrants made under 
        this subsection shall be known as `Expanding Employer-Sponsored 
        Child Care subgrants'.
            ``(2) Definitions.--In this subsection:
                    ``(A) Eligible business.--The term `eligible 
                business' means a business that seeks to provide or 
                expand child care services for the children of such 
                business' employees or to partner with an eligible 
                child care provider for such services.
                    ``(B) Eligible child care provider.--
                Notwithstanding subsection (a)(2), the term `eligible 
                child care provider' means--
                            ``(i) an eligible child care provider, as 
                        defined in section 658P(6)(A) of the Child Care 
                        and Development Block Grant Act of 1990 (42 
                        U.S.C. 9858n(6)(A));
                            ``(ii) a child care provider that--
                                    ``(I) is license-exempt and 
                                operating legally in the State;
                                    ``(II) is not providing child care 
                                services to relatives; and
                                    ``(III) satisfies State and local 
                                requirements, including those 
                                referenced in section 658E(c)(2)(I) of 
                                the Child Care and Development Block 
                                Grant Act of 1990 ((42 U.S.C. 
                                9858c)(c)(2)(I)); or
                            ``(iii) a new child care provider that, on 
                        or before the date such provider begins to 
                        provide child care services, will--
                                    ``(I) be licensed, regulated, or 
                                registered in the State, territory, or 
                                Indian Tribe; and
                                    ``(II) meet applicable State and 
                                local health and safety requirements.
            ``(3) Requirements of lead agency.--In carrying out this 
        subsection, a lead agency shall--
                    ``(A) require as a condition of receiving a 
                subgrant under this subsection that each eligible 
                business applying for such a subgrant--
                            ``(i)(I) will use subgrant funds for the 
                        sole purpose of establishing or expanding a 
                        child care program and providing child care 
                        services for the children of such business' 
                        employees; or
                            ``(II) will operate in partnership with an 
                        eligible child care provider to provide child 
                        care services for the children of such 
                        business' employees;
                            ``(ii) agree to follow all applicable 
                        State, local, and Tribal health and safety 
                        requirements and, if applicable, enhanced 
                        protocols for child care services related to 
                        COVID-19 or another health or safety condition;
                            ``(iii) agree to comply with any reporting 
                        requirements the lead agency determines are 
                        necessary for the agency to comply with 
                        paragraph (6); and
                            ``(iv) certify in good faith that the child 
                        care program of the business will remain open 
                        for not less than 1 year after receiving such a 
                        subgrant unless such program is closed due to 
                        extraordinary circumstances, including a state 
                        of emergency declared by the Governor or a 
                        major disaster or emergency declared by the 
                        President under section 401 or 501, 
                        respectively, of the Robert T. Stafford 
                        Disaster Relief and Emergency Assistance Act 
                        (42 U.S.C. 5170, 5191);
                    ``(B) ensure eligible businesses in urban, 
                suburban, and rural areas can readily apply for and 
                access funding under this section, which shall include 
                the provision of technical assistance either directly 
                or through resource and referral agencies;
                    ``(C) give priority for subgrant awards according 
                to geographically based child care service needs across 
                the State or Tribal community, with special 
                consideration given to rural areas; and
                    ``(D) make available to the public, which shall 
                include, at a minimum, posting to an internet website 
                of the lead agency--
                            ``(i) notice of funding availability 
                        through subgrants for eligible businesses under 
                        this section; and
                            ``(ii) the criteria for awarding subgrants 
                        for eligible businesses.
            ``(4) Subgrants to businesses.--
                    ``(A) Use of funds.--An eligible business that 
                receives funds through a subgrant authorized under this 
                subsection shall use such funds to carry out activities 
                related to establishing a child care program, expanding 
                a child care program, or contracting with an eligible 
                child care provider to offer child care services for 
                the employees of such business.
                    ``(B) Subgrant application.--To be eligible to 
                receive a subgrant under this paragraph, an eligible 
                business shall submit an application to the lead agency 
                in such form and containing such information as the 
                lead agency may reasonably require, including--
                            ``(i) a plan for offering access or 
                        expanding access to child care services for the 
                        employees of such business that includes--
                                    ``(I) information describing how 
                                the eligible business will use the 
                                subgrant funds to cover slots for the 
                                children of their employees;
                                    ``(II) if applicable, the amount of 
                                tuition or copayments employees will be 
                                expected to pay;
                                    ``(III) child care enrollment and 
                                attendance projections or, if 
                                applicable, how funds used for 
                                expansion will increase the enrollment 
                                and attendance projections; and
                                    ``(IV) a demonstration of how the 
                                eligible business will sustain its 
                                operations after the cessation of 
                                funding under this section;
                            ``(ii) assurances that the eligible 
                        business will--
                                    ``(I) report to the lead agency 
                                data on current average enrollment and 
                                attendance;
                                    ``(II) provide any documentation to 
                                the lead agency that the agency 
                                determines is necessary to comply with 
                                paragraph (6), including providing 
                                documentation of expenditures of 
                                subgrant funds; and
                                    ``(III) implement all applicable 
                                State, local, and Tribal health and 
                                safety requirements and, if applicable, 
                                enhanced protocols for child care 
                                services and related to COVID-19 or 
                                another health or safety condition; and
                            ``(iii) a certification in good faith that 
                        the child care program will remain open for not 
                        less than 1 year after receiving a subgrant 
                        under this subsection unless such program is 
                        closed due to extraordinary circumstances 
                        described in paragraph (3)(A)(iv).
                    ``(C) Repayment of subgrant funds.--An eligible 
                business that receives a subgrant under this paragraph 
                shall be required to repay the subgrant funds if the 
                lead agency determines that the business fails to 
                provide the assurances described in subparagraph 
                (B)(ii), or to comply with such an assurance.
            ``(5) Amended plan and report.--If a State elects to 
        authorize the lead agency to provide subgrants to eligible 
        businesses under this subsection, the State shall amend the 
        State plan submitted under section 658E of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858c) to 
        specify--
                    ``(A) how the lead agency plans to award subgrants 
                to eligible businesses;
                    ``(B) how the lead agency will consider priorities 
                for subgrants related to geographically based child 
                care service needs across the State or Tribal community 
                and in rural areas; and
                    ``(C) any goals regarding increase in access to 
                child care, such as--
                            ``(i) the number or type of eligible 
                        businesses that will receive a subgrant under 
                        this subsection; or
                            ``(ii) the increase in the number of 
                        children served State-wide.
            ``(6) Reporting requirements.--
                    ``(A) Lead agency report.--A lead agency that makes 
                subgrants under this subsection shall, not later than 
                January 1, 2026, submit a report on such subgrants to 
                the Secretary that includes, for the State or Tribal 
                community involved--
                            ``(i) a description of how the lead agency 
                        determined--
                                    ``(I) the criteria for awarding 
                                subgrants for eligible businesses, 
                                including the methodology the lead 
                                agency used to determine and disburse 
                                funds to such businesses; and
                                    ``(II) the types of eligible 
                                businesses that received priority for 
                                the subgrants, including considerations 
                                related to geographically based child 
                                care service needs across the State or 
                                Tribal community and in rural areas;
                            ``(ii) the number of eligible businesses 
                        that received a subgrant under this subsection, 
                        disaggregated by age of children served, 
                        geography, region, the average and range of the 
                        amounts of the subgrants awarded, and whether 
                        such businesses were operating their own child 
                        care program or partnering with an eligible 
                        child care provider; and
                            ``(iii) information concerning how eligible 
                        businesses receiving subgrants under this 
                        subsection used the subgrant funding received.
                    ``(B) Report to congress.--Not later than 90 days 
                after receiving the lead agency reports required under 
                subparagraph (A), the Secretary shall make publicly 
                available and provide to the Committee on Finance and 
                the Committee on Health, Education, Labor, and Pensions 
                of the Senate and the Committee on Education and Labor 
                and the Committee on Ways and Means of the House of 
                Representatives a report summarizing the findings of 
                the lead agency reports.''.
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