Child Care Choices Act of 2021
Bill: H.R.1963 | Sponsor: Rep. Fischbach, Michelle (R-MN)
Policy area: Families

Summary:
Child Care Choices Act of 2021
This bill requires states to prioritize the availability of child care certificates over grants or contracts when providing federally supported child care assistance to families. A child care certificate is a voucher provided directly to a parent who may use the voucher only as payment for child care services.
The bill also prohibits states from setting differential payment rates based solely on the type of child care or type of provider.

To amend the Child Care and Development Block Grant Act of 1990 to 
                  modify certain State uses of funds.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Care Choices Act of 2021''.

SEC. 2. APPLICATION AND PLAN.

    Section 658E(c) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858c(c)) is amended--
            (1) in paragraph (2)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Prioritization of child care certificates.--
                Provide assurances that--
                            ``(i) in using funding made available to a 
                        State pursuant to this subchapter, the State 
                        shall prioritize the availability of child care 
                        certificates (as defined in section 658P(2)) 
                        for child care services over other payment 
                        methods, such as grants or contracts;
                            ``(ii) in cases in which a parent chooses 
                        to enroll such child with a child care provider 
                        that has a grant or contract for the provision 
                        of child care services, the child will be 
                        enrolled with the eligible provider selected by 
                        the parent to the maximum extent practicable; 
                        and
                            ``(iii) in cases in which a parent chooses 
                        to receive a child care certificate, the 
                        certificate shall be of a value commensurate 
                        with the subsidy value of child care services 
                        provided if the child were enrolled with a 
                        child care provider that has a grant or 
                        contract for the provision of child care 
                        services.'',
                    (B) in subparagraph (M) by inserting ``in 
                accordance with subparagraph (E)(c)(2)(A)(i)'' after 
                ``strategies'', and
                    (C) by adding at the end the following:
                    ``(W) Prioritization of child care certificates.--
                The plan shall provide assurances and describe how the 
                State prioritizes the use of child care certificates 
                (as defined in section 658P(2)) for child care services 
                for which financial assistance is provided under this 
                subchapter in preference to other payment methods such 
                as grants, contracts, or cash.'', and
            (2) in paragraph (4)(C), by adding at the end the 
        following:
                            ``(iii) Prohibition on certain different 
                        rates.--When setting differential rates on the 
                        basis of child care quality, States are 
                        prohibited from using type of child care (such 
                        as family child care or center-based care) or 
                        type of provider (such as nonprofit providers, 
                        for-profit providers, or faith-based providers) 
                        as the sole differential factor.''.
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