Title: Back to Work Child Care Grants Act of 2020
Policy area: Families

Summary:
Back to Work Child Care Grants Act of 2020  This bill establishes a grants program for licensed child care providers that were in continuous operation immediately prior to March 1, 2020, to pay for specified fixed costs and operating expenses for a period of not more than nine months.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7804 Introduced in House (IH)]

<DOC>






116th CONGRESS
  2d Session
                                H. R. 7804

    To provide for grants to support the provision of child care by 
    reopening and maintaining the operation of child care programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2020

 Mr. Reed (for himself, Mr. Hagedorn, Mr. Stivers, Mr. Van Drew, Mrs. 
  Walorski, Ms. Stefanik, Mrs. Wagner, Mrs. Miller, Mr. McKinley, Mr. 
 Gottheimer, and Mr. Keller) introduced the following bill; which was 
            referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
    To provide for grants to support the provision of child care by 
    reopening and maintaining the operation of child care programs.

    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 ``Back to Work Child Care Grants Act 
of 2020''.

SEC. 2. BACK TO WORK CHILD CARE GRANTS.

    (a) Purpose.--The purpose of this section is to support the 
recovery of the United States economy by providing assistance to aid in 
reopening child care programs, and maintaining the availability of 
child care in the United States, so that parents can access safe care 
and return to work.
    (b) Definitions.--In this section:
            (1) COVID-19 public health emergency.--The term ``COVID-19 
        public health emergency'' means the public health emergency 
        declared by the Secretary of Health and Human Services under 
        section 319 of the Public Health Service Act (42 U.S.C. 247d) 
        on January 31, 2020, with respect to COVID-19, including any 
        renewal of such declaration.
            (2) Eligible child care provider.--The term ``eligible 
        child care provider'' means--
                    (A) 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)); and
                    (B) 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)).
            (3) Indian tribe; tribal organization.--The terms ``Indian 
        tribe'' and ``tribal organization'' have the meanings given the 
        terms in section 658P of the Child Care and Development Block 
        Grant Act of 1990 (42 U.S.C. 9858n).
            (4) Lead agency.--The term ``lead agency'' has the meaning 
        given the term in section 658P of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858n).
            (5) Qualified child care provider.--The term ``qualified 
        child care provider'' means an eligible child care provider 
        with an application approved under subsection (g) for the 
        program involved.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Health and Human Services.
            (7) State.--The term ``State'' has the meaning given the 
        term in section 658P of the Child Care and Development Block 
        Grant Act of 1990 (42 U.S.C. 9858n).
    (c) Grants for Child Care Programs.--From the funds appropriated to 
carry out this section, the Secretary shall make Back to Work Child 
Care grants to States, Indian tribes, and tribal organizations, that 
submit notices of intent to provide assurances under subsection (d)(2). 
The grants shall provide for subgrants to qualified child care 
providers, for a transition period of not more than 9 months to assist 
in paying for fixed costs and increased operating expenses due to 
COVID-19, and to reenroll children in an environment that supports the 
health and safety of children and staff.
    (d) Process for Allocation of Funds.--
            (1) Allocation.--Any funds that are appropriated to carry 
        out this section shall be distributed by the Secretary to the 
        Administration for Children and Families for distribution under 
        the Child Care and Development Block Grant Act of 1990 (42 
        U.S.C. 9857 et seq.) in accordance with subsection (e)(2) of 
        this Act.
            (2) Notice.--Not later than 7 days after funds are 
        appropriated to carry out this section, the Secretary shall 
        provide to States, Indian tribes, and tribal organizations a 
        notice of funding availability, for Back to Work Child Care 
        grants under subsection (c) from allotments and payments under 
        subsection (e)(2). The Secretary shall issue a notice of the 
        funding allocations for each State, Indian tribe, and tribal 
        organization not later than 14 days after funds are 
        appropriated to carry out this section.
            (3) Notice of intent.--Not later than 14 days after 
        issuance of a notice of funding allocations under paragraph 
        (1), a State, Indian tribe, or tribal organization that seeks 
        such a grant shall submit to the Secretary a notice of intent 
        to provide assurances for such grant. The notice of intent 
        shall include a certification that the State, Indian tribe, or 
        tribal organization will repay the grant funds if such State, 
        Indian tribe, or tribal organization fails to provide 
        assurances that meet the requirements of subsection (f) or to 
        comply with such an assurance.
            (4) Grants to lead agencies.--The Secretary may make grants 
        under subsection (c) to the lead agency of each State, Indian 
        tribe, or tribal organization, upon receipt of the notice of 
        intent to provide assurances for such grant.
            (5) Provision of assurances.--Not later than 15 days after 
        receiving the grant, the State, Indian tribe, or tribal 
        organization shall provide assurances that meet the 
        requirements of subsection (f).
    (e) Federal Reservation; Allotments and Payments.--
            (1) Reservation.--The Secretary shall reserve not more than 
        1 percent of the amount appropriated to carry out this section 
        to pay for the costs of the Federal administration of this 
        section. The amount appropriated to carry out this section and 
        reserved under this paragraph shall remain available through 
        fiscal year 2021.
            (2) Allotments and payments.--The Secretary shall use the 
        remaining portion of such amount to make allotments and 
        payments, to States, Indian tribes, and tribal organizations 
        that submit such a notice of intent to provide assurances, in 
        accordance with paragraphs (1) and (2) of subsection (a) and 
        subsection (b), of section 658O of the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9858m), for the 
        grants described in subsection (c).
    (f) Assurances.--A State, Indian tribe, or tribal organization that 
receives a grant under subsection (c) shall provide to the Secretary 
assurances that the lead agency will--
            (1) require as a condition of subgrant funding under 
        subsection (g) that each eligible child care provider applying 
        for a subgrant from the lead agency--
                    (A) has been an eligible child care provider in 
                continuous operation and serving children through a 
                child care program immediately prior to March 1, 2020;
                    (B) agree to follow 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;
                    (C) agree to comply with the documentation and 
                reporting requirements under subsection (h); and
                    (D) certify in good faith that the child care 
                program of the provider 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);
            (2) ensure eligible child care providers 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 or staffed family child care provider 
        networks;
            (3) ensure that subgrant funds are made available to 
        eligible child care providers regardless of whether the 
        eligible child care provider is providing services for which 
        assistance is made available under the Child Care and 
        Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) at 
        the time of application for a subgrant;
            (4) through at least December 31, 2020, continue to expend 
        funds provided under the Child Care and Development Block Grant 
        Act of 1990 (42 U.S.C. 9857 et seq.) for the purpose of 
        continuing payments and assistance to qualified child care 
        providers on the basis of applicable reimbursements prior to 
        March 2020;
            (5) undertake a review of burdensome State, local, and 
        tribal regulations and requirements that hinder the opening of 
        new licensed child care programs to meet the needs of the 
        working families in the State or tribal community, as 
        applicable;
            (6) make available to the public, which shall include, at a 
        minimum, posting to an internet website of the lead agency--
                    (A) notice of funding availability through 
                subgrants for qualified child care providers under this 
                section; and
                    (B) the criteria for awarding subgrants for 
                qualified child care providers, including the 
                methodology the lead agency used to determine and 
                disburse funds in accordance with subparagraphs (D) and 
                (E) of subsection (g)(4); and
            (7) ensure the maintenance of a delivery system of child 
        care services throughout the State that provides for child care 
        in a variety of settings, including the settings of family 
        child care providers.
    (g) Lead Agency Use of Funds.--
            (1) In general.--A lead agency that receives a Back to Work 
        Child Care grant under this section--
                    (A) shall use a portion that is not less than 94 
                percent of the grant funds to award subgrants to 
                qualified child care providers as described in the lead 
                agency's assurances pursuant to subsection (f);
                    (B) shall reserve not more than 6 percent of the 
                funds to--
                            (i) use not less than 1 percent of the 
                        funds to provide technical assistance and 
                        support in applying for and accessing funding 
                        through such subgrants to eligible child care 
                        providers, including to rural providers, family 
                        child care providers, and providers with 
                        limited administrative capacity; and
                            (ii) use the remainder of the reserved 
                        funds to--
                                    (I) administer subgrants to 
                                qualified child care providers under 
                                paragraph (4), which shall include 
                                monitoring the compliance of qualified 
                                child care providers with applicable 
                                State, local, and tribal health and 
                                safety requirements; and
                                    (II) comply with the reporting and 
                                documentation requirements described in 
                                subsection (h); and
                    (C)(i) shall not make more than 1 subgrant under 
                paragraph (4) to a child care provider, except as 
                described in clause (ii); and
                    (ii) may make multiple subgrants to a qualified 
                child care provider, if the lead agency makes each 
                subgrant individually for 1 child care program operated 
                by the provider and the funds from the multiple 
                subgrants are not pooled for use for more than 1 of the 
                programs.
            (2) Role of third party.--The lead agency may designate a 
        third party, such as a child care resource and referral agency, 
        to carry out the responsibilities of the lead agency, and 
        oversee the activities conducted by qualified child care 
        providers under this subsection.
            (3) Obligation and return of funds.--
                    (A) Obligation.--
                            (i) In general.--The lead agency shall 
                        obligate at least 50 percent of the grant funds 
                        in the portion described in paragraph (1)(A) 
                        for subgrants to qualified child care providers 
                        by the day that is 6 months after the date of 
                        enactment of this Act.
                            (ii) Waivers.--At the request of a State, 
                        Indian tribe, or tribal organization, and for 
                        good cause shown, the Secretary may waive the 
                        requirement under clause (i) for the State, 
                        Indian tribe, or tribal organization.
                    (B) Return of funds.--Not later than the date that 
                is 12 months after a grant is awarded to a lead agency 
                in accordance with this section, the lead agency shall 
                return to the Secretary any of the grant funds that are 
                not obligated by the lead agency by such date. The 
                Secretary shall return any funds received under this 
                subparagraph to the Treasury of the United States.
            (4) Subgrants.--
                    (A) In general.--A lead agency that receives a 
                grant under subsection (c) shall make subgrants to 
                qualified child care providers to assist in paying for 
                fixed costs and increased operating expenses, for a 
                transition period of not more than 9 months, so that 
                parents have a safe place for their children to receive 
                child care as the parents return to the workplace.
                    (B) Use of funds.--A qualified child care provider 
                may use subgrant funds for--
                            (i) sanitation and other costs associated 
                        with cleaning the facility, including deep 
                        cleaning in the case of an outbreak of COVID-
                        19, of a child care program used to provide 
                        child care services;
                            (ii) recruiting, retaining, and 
                        compensating child care staff, including 
                        providing professional development to the staff 
                        related to child care services and 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;
                            (iii) paying for fixed operating costs 
                        associated with providing child care services, 
                        including the costs of payroll, the 
                        continuation of existing (as of March 1, 2020) 
                        employee benefits, mortgage or rent, utilities, 
                        and insurance;
                            (iv) acquiring equipment and supplies 
                        (including personal protective equipment) 
                        necessary to provide child care services in a 
                        manner that is safe for children and staff in 
                        accordance with applicable State, local, and 
                        tribal health and safety requirements;
                            (v) replacing materials that are no longer 
                        safe to use as a result of the COVID-19 public 
                        health emergency;
                            (vi) making facility changes and repairs to 
                        address enhanced protocols for child care 
                        services related to COVID-19 or another health 
                        or safety condition, to ensure children can 
                        safely occupy a child care facility;
                            (vii) purchasing or updating equipment and 
                        supplies to serve children during 
                        nontraditional hours;
                            (viii) adapting the child care program or 
                        curricula to accommodate children who have not 
                        had recent access to a child care setting;
                            (ix) carrying out any other activity 
                        related to the child care program of a 
                        qualified child care provider; and
                            (x) reimbursement of expenses incurred 
                        before the provider received a subgrant under 
                        this paragraph, if the use for which the 
                        expenses are incurred is described in any of 
                        clauses (i) though (ix) and is disclosed in the 
                        subgrant application for such subgrant.
                    (C) Subgrant application.--To be qualified to 
                receive a subgrant under this paragraph, an eligible 
                child care provider 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 budget plan that includes--
                                    (I) information describing how the 
                                eligible child care provider will use 
                                the subgrant funds to pay for fixed 
                                costs and increased operating expenses, 
                                including, as applicable, payroll, 
                                employee benefits, mortgage or rent, 
                                utilities, and insurance, described in 
                                subparagraph (B)(iii);
                                    (II) data on current operating 
                                capacity, taking into account previous 
                                operating capacity for a period of time 
                                prior to the COVID-19 public health 
                                emergency, and updated group size 
                                limits and staff-to-child ratios;
                                    (III) child care enrollment, 
                                attendance, and revenue projections 
                                based on current operating capacity and 
                                previous enrollment and revenue for the 
                                period described in subclause (II); and
                                    (IV) a demonstration of how the 
                                subgrant funds will assist in promoting 
                                the long-term viability of the eligible 
                                child care provider and how the 
                                eligible child care provider will 
                                sustain its operations after the 
                                cessation of funding under this 
                                section;
                            (ii) assurances that the eligible child 
                        care provider will--
                                    (I) report to the lead agency, 
                                before every month for which the 
                                subgrant funds are to be received, data 
                                on current financial characteristics, 
                                including revenue, and data on current 
                                average enrollment and attendance;
                                    (II) not artificially suppress 
                                revenue, enrollment, or attendance for 
                                the purposes of receiving subgrant 
                                funding;
                                    (III) provide the necessary 
                                documentation under subsection (h) to 
                                the lead agency, including providing 
                                documentation of expenditures of 
                                subgrant funds; and
                                    (IV) 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 paragraph, unless such program is 
                        closed due to extraordinary circumstances 
                        described in subsection (f)(1)(D).
                    (D) Subgrant disbursement.--In providing funds 
                through a subgrant under this paragraph--
                            (i) the lead agency shall--
                                    (I) disburse such subgrant funds to 
                                a qualified child care provider in 
                                installments made not less than once 
                                monthly;
                                    (II) disburse a subgrant 
                                installment for a month after the 
                                qualified child care provider has 
                                provided, before that month, the 
                                enrollment, attendance, and revenue 
                                data required under subparagraph 
                                (C)(ii)(I) and, if applicable, current 
                                operating capacity data required under 
                                subparagraph (C)(i)(II); and
                                    (III) make subgrant installments to 
                                any qualified child care provider for a 
                                period of not more than 9 months; and
                            (ii) the lead agency may, notwithstanding 
                        subparagraph (E)(i), disburse an initial 
                        subgrant installment to a provider in a greater 
                        amount than that subparagraph provides for, and 
                        adjust the succeeding installments, as 
                        applicable.
                    (E) Subgrant installment amount.--The lead agency--
                            (i) shall determine the amount of a 
                        subgrant installment under this paragraph by 
                        basing the amount on--
                                    (I)(aa) at a minimum, the fixed 
                                costs associated with the provision of 
                                child care services by a qualified 
                                child care provider; and
                                    (bb) at the election of the lead 
                                agency, an additional amount determined 
                                by the State, for the purposes of 
                                assisting qualified child care 
                                providers with, as applicable, 
                                increased operating costs and lost 
                                revenue, associated with the COVID-19 
                                public health emergency; and
                                    (II) any other methodology that the 
                                lead agency determines to be 
                                appropriate, and which is disclosed in 
                                reporting submitted by the lead agency 
                                under subsection (f)(6)(B);
                            (ii) shall ensure that, for any period for 
                        which subgrant funds are disbursed under this 
                        paragraph, no qualified child care provider 
                        receives a subgrant installment that when added 
                        to current revenue for that period exceeds the 
                        revenue for the corresponding period 1 year 
                        prior; and
                            (iii) may factor in decreased operating 
                        capacity due to updated group size limits and 
                        staff-to-child ratios, in determining subgrant 
                        installment amounts.
                    (F) Repayment of subgrant funds.--A qualified child 
                care provider that receives a subgrant under this 
                paragraph shall be required to repay the subgrant funds 
                if the lead agency determines that the provider fails 
                to provide the assurances described in subparagraph 
                (C)(ii)(II), or to comply with such an assurance.
            (5) Supplement not supplant.--Amounts made available to 
        carry out this section shall be used to supplement and not 
        supplant other Federal, State, tribal, and local public funds 
        expended to provide child care services, including funds 
        provided under the Child Care and Development Block Grant Act 
        of 1990 (42 U.S.C. 9857 et seq.) and State and tribal child 
        care programs.
    (h) Documentation and Reporting Requirements.--
            (1) Documentation.--A State, Indian tribe, or tribal 
        organization receiving a grant under subsection (c) shall 
        provide documentation of any State or tribal expenditures from 
        grant funds received under subsection (c) in accordance with 
        section 658K(b) of the Child Care Development Block Grant Act 
        of 1990 (42 U.S.C. 9858i(b)), and to the independent entity 
        described in that section.
            (2) Reports.--
                    (A) Lead agency report.--A lead agency receiving a 
                grant under subsection (c) shall, not later than 12 
                months after receiving such grant, submit a report to 
                the Secretary that includes for the State or tribal 
                community involved a description of the program of 
                subgrants carried out to meet the objectives of this 
                section, including--
                            (i) a description of how the lead agency 
                        determined--
                                    (I) the criteria for awarding 
                                subgrants for qualified child care 
                                providers, including the methodology 
                                the lead agency used to determine and 
                                disburse funds in accordance with 
                                subparagraphs (D) and (E) of subsection 
                                (g)(4); and
                                    (II) the types of providers that 
                                received priority for the subgrants, 
                                including considerations related to--
                                            (aa) setting;
                                            (bb) average monthly 
                                        revenues, enrollment, and 
                                        attendance, before and during 
                                        the COVID-19 public health 
                                        emergency and after the 
                                        expiration of State, local, and 
                                        tribal stay-at-home orders; and
                                            (cc) geographically based 
                                        child care service needs across 
                                        the State or tribal community; 
                                        and
                            (ii) the number of eligible child care 
                        providers in operation and serving children on 
                        March 1, 2020, and the average number of such 
                        providers for March 2020 and each of the 11 
                        months following, disaggregated by age of 
                        children served, geography, region, center-
                        based child care setting, and family child care 
                        setting;
                            (iii) the number of child care slots, in 
                        the capacity of a qualified child care provider 
                        given applicable group size limits and staff-
                        to-child ratios, that were open for attendance 
                        of children on March 1, 2020, the average 
                        number of such slots for March 2020 and each of 
                        11 months following, disaggregated by age of 
                        children served, geography, region, center-
                        based child care setting, and family child care 
                        setting;
                            (iv)(I) the number of qualified child care 
                        providers that received a subgrant under 
                        subsection (g)(4), disaggregated by age of 
                        children served, geography, region, center-
                        based child care setting, and family child care 
                        setting, and the average and range of the 
                        amounts of the subgrants awarded; and
                            (II) the percentage of all eligible child 
                        care providers that are qualified child care 
                        providers that received such a subgrant, 
                        disaggregated as described in subclause (I); 
                        and
                            (v) information concerning how qualified 
                        child care providers receiving subgrants under 
                        subsection (g)(4) used the subgrant funding 
                        received, disaggregated by the allowable uses 
                        of funds described in subsection (g)(4)(B).
                    (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 Health, 
                Education, Labor, and Pensions of the Senate and the 
                Committee on Education and Labor of the House of 
                Representatives a report summarizing the findings of 
                the lead agency reports.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out the activities 
under this Act.
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