I 118th CONGRESS 2d Session H. R. 9901 IN THE HOUSE OF REPRESENTATIVES October 1, 2024 Mr. Khanna introduced the following bill; which was referred to the Committee on Education and the Workforce , and in addition to the Committees on Ways and Means , Agriculture , Energy and Commerce , and Financial Services , for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To enhance the supply of child care, and for other purposes.

1. Short title; table of contents (a) Short title This Act may be cited as the Child Care for America Act of 2024 . (b) Table of contents The table of contents of this Act is the following: Sec. 1. Short title; table of contents. Title I—Child Care for America Sec. 101. Definitions. Sec. 102. Funding. Sec. 103. Child care for America grant program. Title II—Stay-at-Home Parent Child Care Support Program Sec. 201. Definitions. Sec. 202. Establishment of stay-at-home parent support benefit program. Sec. 203. Funding authorization and allocation. Sec. 204. Application process. Sec. 205. Responsibilities of the Secretary of the Treasury. Sec. 206. Responsibilities of the Secretary. Sec. 207. Coordination. Sec. 208. Waste, fraud, and abuse. Sec. 209. Outreach and education. Sec. 210. Evaluation metrics. Sec. 211. Sunset provision/reauthorization requirement. Sec. 212. Interaction with other benefits. Sec. 213. Benefit structure and payment mechanism. Title III—Kin Care: Family, Friend, and Neighbor (FFN) Care Program Sec. 301. Definitions. Sec. 302. Authorization of appropriations. Sec. 303. Parent roles and responsibilities in the FFN Care Program. Sec. 304. FFN provider responsibilities in the Kin Care Program. Sec. 305. Child care practices for family, friend, and neighbor providers. Sec. 306. FFN provider verification procedures and ongoing monitoring. Sec. 307. FFN Provider Payment Process. Sec. 308. Data privacy and security measures. Sec. 309. Transition to licensed family child care. Sec. 310. Supports for serving children with special needs. Sec. 311. Collaboration with other early childhood programs. Sec. 312. Evaluation and research. Sec. 313. Community engagement for the Kin Care Program. I Child Care for America 101. Definitions For purposes of this Act: (1) eligible child The term eligible child means a child who is below the age of 6 and not yet in kindergarten, with no other eligibility conditions unless the context specifies otherwise. (2) eligible child care provider Unless the context specifies otherwise, the term eligible child care provider is any program that provides child care which— (A) is not an individual who is related to all children from whom child care services are provided; (B) is licensed, regulated or registered under State law; and (C) agrees to requirements as laid out in this Act. (3) Eligible family The term eligible family means— (A) a married couple with a combined annual income not exceeding $250,000; (B) an individual with an annual income not exceeding $125,000; or (C) a family under 85 percent State median income. (4) low-income The term “low-income” means an eligible child with a family income that is not more than 85 percent of State median income. (5) Secretary The term Secretary means the Secretary of Health and Human Services. (6) Tribal organization The term Tribal organization means the recognized governing body of any Native tribe, or any legally established organization of Natives, which is controlled, sanctioned or chartered by such governing body or which is democratically elected by the adult members of the Native community to be served by such organization and which includes the maximum participation of Natives in all phases of its activities. 102. Funding (a) Authorization of appropriations To carry out this title, there are authorized to be appropriated— (1) $78,000,000,000 for fiscal years 2024 through 2028, and (2) $78,000,000,000 for fiscal years 2029 through 2034. (b) Uses of funds (1) fiscal years 2024 through 2028 Funds appropriated for fiscal years 2024 through 2028 shall be distributed to States under section 658O(b) of the Child care and Development Block Grant Act of 1990 (42 19 U.S.C. 9858m(b) ). (2) requirements (A) matching funds To be eligible to received funds under this title— (i) in fiscal years 2026 and 2027, a State shall agree to match at least 5 percent of Federal funds; and (ii) in fiscal years 2028 through 2034, a State shall agree to match at least 10 percent. (B) maintenance of effort To be eligible to receive funds under this title for a fiscal year a State shall— (i) agree spend at least as much as the average of its expenditures on child care services. over the previous 3 previous fiscal years; and (ii) use such funds to supplement not supplant other Federal, State, or local public funds to support child care services; (iii) continue spending its own funds on child care services, not just Federal funds. (c) Allocation of funds To carry out this Act— (1) funds appropriated to carry out the section 4 shall be allocated— (A) to carry out a child care program for low- and moderate- income parents, (B) to carry out a Parent Fee Reduction Program with $20,000,000,000 annually every fiscal year from fiscal year 2024 through fiscal year 2034; and (C) to establish a Worker Wage Ladder; (2) to implement a Child care Facilities Fund with $250,000,000 annually every fiscal year from fiscal year 2024 through fiscal year 2034; (3) to implement a Homecare Fund with $250,000,000 annually every fiscal year from fiscal year 2024 through fiscal year 2034; and (4) to implement a Child Care Innovation Fund with $250,000,000 annually every fiscal year from fiscal year 2024 through fiscal year 2034. 103. Child care for America grant program (a) Establishment of program The Secretary shall establish and carry out a grant program entitled the Child care for America Grant Program to make grants to States and Tribal organizations to provide child care services in accordance with this section. (b) Allocation of funds Of the funds appropriated for a fiscal year, the Secretary shall— (1) reserve for Tribal organizations a portion of such funds based on the number of eligible children served by the Tribal organization and the demonstrated need for child care services in the Tribal community, and (2) allocate the remainder of such funds for grants to eligible States to provide child care services. (c) Eligibility of States To be eligible to receive a grant under this section, a State shall submit to the Secretary an application that includes— (1) identification of the lead agency and key contact information; (2) a description of the lead agency's roles, responsibilities, and organizational structure for administering the grant program; (3) a certification that the State will comply with all requirements of this section and applicable Federal laws and regulations; (4) an assurance that the State will administer the program in a manner that supports equal access and parental flexibility in child care services pursuant to assurances States are making to receive such funds; (5) a detailed plan for conducting meaningful consultation with stakeholders, including parents, child care providers, employers, child care workers, and local government representatives, in the development and implementation of the program; and (6) a proposed time line for implementing key components of the program, including— (A) providing advance disbursement of parent fees and wage supplements, subgranting with eligible providers, and establishing a wage and benefits ladder; (B) a description of the State's process for determining eligibility and prioritizing eligible child care providers for subgrants and funding; (C) the State's proposed formula for allocating subgrant amounts to eligible providers pursuant to section 103(m); (D) an outline of the State's plan for establishing and implementing a wage and benefits ladder for staff of eligible providers receiving assistance; (E) a plan for providing wage supplements to staff of eligible providers within 12 months of the program's implementation; (F) a description of the State's strategies for increasing access to high-quality child care services for underserved populations, including low-income families, children with disabilities, and families in need of non-traditional hour care; (G) a plan for conducting data collection and reporting on the use of funds and the effectiveness of the program; (H) any reasonable and relevant information or assurances required by the Secretary of Health and Human Services; (I) the Secretary will review the applications and provide feedback or requests for additional information as needed; (J) funds allocated to States and Tribal organizations under this section shall be used in accordance with the requirements and priorities outlined in subsection (f); and (K) applications shall be approved by the Secretary of Health and Human Services before the State can receive grant funding. (d) Eligibility of lead agency To receive grant funding the lead agency shall agree to the following certifications and assurances— (1) all communities in their State or respective territory will be served; (2) establish and administer a system for subgranting with eligible child care providers to cover annual operational expenses pursuant to subsection (i) of this section and subsection (m) of this section; (3) establish a wage and benefits ladder for staff of eligible child care providers receiving assistance under this grant, including assurances that wage and benefits for such staff, at minimum will meet subsection (p) of this section; (4) within the first 12 months after the date of the enactment of this Act, the State will establish a system for providing wage supplements to all full time and part-time staff members of eligible child care providers pursuant to subsection (p) of this section; (5) within the first 12 months after the date of the enactment of this Act, the State shall provide every eligible child care provider, who is accepted with— (A) 50 percent of their total parent fees charged in the previous fiscal year, (B) advance wage supplement disbursements; and (C) an assurance that programs already offering free services shall continue doing so, pursuant to subsection (h) of this section; (6) will provide necessary accommodations to ensure family child care, faith-based care, care during non-traditional hours, and care for children with disabilities are available, equitable and viable options for families, including but not limited to offering an incentive for providers to expand care offerings during non-traditional hours; (7) reserve no more than 5 percent of grants to administer subgrants, provide technical assistance and support for applicants to apply for and access the grant opportunity and to carry out the activities in this Act; (8) existing health and safety measures will be continued; (9) provide explanations to the Secretary as necessary; and (10) States may reserve up to 5 percent of their total grant allocation each fiscal year for administrative costs associated with implementing this section, including activities such as developing and implementing the State plan, providing technical assistance to child care providers, conducting monitoring and oversight, and compensating parents for providing input to the lead agency. This compensation shall be used to ensure consumers are included in the development of the State plan prior to submission and as an advisory body thereafter. (e) Eligibility of Tribal organizations (1) Tribal organizations are eligible to apply for and receive funding under this section. (2) The Secretary shall reserve a portion of the total appropriation for the program each fiscal year to be allocated to Tribal organizations based on the number of eligible children served by the Tribal organization and the demonstrated need for child care services in the Tribal community. (3) Tribal organizations that receive funding under this section shall comply with all the requirements outlined in the ‘‘Requirements for States Administering Subgrants to Eligible Child care Providers’’ section except that they may use their own Tribal licensing, regulatory, or monitoring systems in lieu of State systems, provided that such Tribal systems meet minimum Federal standards as established by the Secretary. (4) Tribal organizations that receive funding under the program established in this section are eligible to apply for and receive additional funding under the Low-Moderate Income Fee Reduction Program. Tribal organizations shall comply with all the requirements outlined in subsection (n)(7) of this section, except that they may use their own median income data and eligibility criteria, provided that such criteria align with the overall goals and requirements of the program. (5) Tribal organizations that receive funding under this section may reserve up to 15 percent of their total grant allocation each fiscal year for administrative costs, in recognition of the unique challenges and costs associated with administering child care programs in Tribal communities. (f) Use of Funds Funds appropriated to carry out the program under this section shall be used to support the provision of high-quality, affordable child care services for eligible, children and families, in accordance with the requirements and priorities established in this section. (1) Particular uses State and Tribal organizations shall use the funds to— (A) expand access to child care services, especially for low-income families and underserved populations; (B) improve the quality of child care services through investments in workforce development, facilities and other key areas; (C) provide financial assistance to eligible families to help them access child care services; and (D) support the implementation and administration of the grant received under this section and related initiatives. (2) Specific Allocations States and Tribal organizations will allocate funds received under this section in accordance with the following requirements: (A) At least 70 percent of the funds shall be used to provide direct services to eligible children and families, including through grants and subgrants with eligible child care providers and other initiatives designed to expand access and affordability. (B) At least 10 percent of the funds shall be used for quality improvement activities that are defined and co-created with families and the child care workforce. (C) No more than 5 percent of the funds may be used for State or Tribal administrative costs, as outlined in subsections (i) and (e) of this section. (D) Remaining funds may be used for other activities that support the goals and requirements of this section, as approved by the Secretary. (3) Prohibited uses Funds appropriated under this section shall not be used for the following: (A) The purchase or improvement of land, or the purchase, construction, or permanent improvement of any building or facility, except as authorized under the Quality Child Care Facilities Grant Program established in subsection (p)(9) of this section. (B) Any sectarian purpose or activity, including religious worship or instruction. (C) Any lobbying or political activity, as defined by the Secretary. (D) Any other purpose or activity that is not consistent with the goals and requirements of this section, as determined by the Secretary. (4) reporting and accountability (A) States and tribal organizations receiving funds under the child care for America Grant Program shall maintain detailed records on the use of funds and shall submit annual reports to the Secretary on the allocation and impact of these funds. (B) The Secretary shall establish reporting requirements and performance measures to ensure that funds are being used effectively and in accordance with the requirements of this Act. (C) The Secretary shall have the authority to withhold or recapture funds from States or tribal organizations that fail to comply with the requirements of this Act or that do not demonstrate adequate progress toward meeting the goals and priorities established in their State or tribal plans. (g) preventing waste, fraud and abuse (1) Policy and Practices (A) States and tribal organizations receiving funds under this section will have in place policies and practices that reduce the risk of waste, fraud and abuse including: (i) Establish procedures for verifying the accuracy of the reported parent fees. Such procedures should be as streamlined as reasonably possible in order to minimize administrative burden on providers. (ii) Monitoring child care providers to ensure compliance with program requirements, with a focus on supporting providers to meet these requirements rather than punitive measures. This monitoring shall be conducted in a manner that is culturally responsive, minimizes administrative burden, and prioritizes program quality and child well-being over strict procedural compliance. (iii) Maintaining records sufficient to document compliance with program requirements through appropriate measures, including investigating and recovering fraudulent payments and imposing sanctions on clients or providers in response to fraud. (B) Internal controls and accountability measures (i) Internal controls States and Tribal organizations receiving funds under this section shall have in place effective internal control procedures to ensure integrity and accountability in the program, including— (I) fiscal controls and accounting procedures sufficient to permit the tracing of funds to a level of expenditure adequate to establish that these funds have not been used in violation of the provisions of this Act or any other applicable Federal or State law; (II) record keeping requirements sufficient to ensure that all expenditures and receipts are accounted for and available for audit and examination; and (III) regular monitoring and inspection of child care providers to ensure compliance with health, safety, and quality standards, as well as proper use of grant funds. (ii) Guidance The Secretary will issue guidance and provide technical assistance to States and Tribal organizations on implementing effective internal control procedures and will monitor compliance through regular reporting and oversight. (2) Eligibility determination and verification (A) Verification States and Tribal organizations will have in place procedures for documenting and verifying the eligibility of children and families for assistance under this section, including— (i) verifying family income through automatic enrollment if already enrolled in another public assistance program or by pay stubs, tax returns or other reliable sources which can be submitted electronically (the State agency should make verification as simple and efficient to reduce the burden on families to prove their eligibility) or other reliable resources; (ii) establishing eligibility redetermination periods of a minimum of 12 months, with provisions for interim reporting of changes in income or employment status; and (iii) safeguarding the confidentiality and security of eligibility information and records, in accordance with applicable Federal and State privacy laws. (B) Guidance The Secretary shall provide guidance and technical assistance to States and Tribal organizations on implementing effective eligibility determination and verification procedures, and shall monitor compliance through regular reporting and oversight. (3) Identification of risk States and Tribal organizations will identify areas of risk for waste, fraud and abuse in their program under this sections, including conducting criminal background checks on child care providers, including prospective providers, in accordance with Federal requirements. (4) training and technical assistance The Secretary will provide training and technical assistance to States and Tribal organizations on effective policies and practices for preventing waste, fraud, and abuse, including— (A) conducting periodic training for State and Tribal staff on identifying and preventing fraud, (B) providing guidance on implementing risk assessment tools and procedures, and (C) developing and disseminating best practices for monitoring child care providers and enforcing program requirements. (5) reporting and investigation (A) procedures States and Tribal organizations will have procedures in place for reporting and investigating suspected cases of waste, fraud and abuse including— (i) establishing mechanisms for the public to report suspected fraud, such as hotlines or online reporting systems; (ii) conducting prompt and thorough investigations of suspected fraud, in coordination with law enforcement agencies and as appropriate; (iii) referring substantiated cases of fraud for criminal prosecution and taking steps to recover fraudulent payments; and (iv) reporting instances of waste, fraud and abuse to the Secretary, along with any actions taken in response. (B) Transparency and public reporting States and Tribal organization will make available to the public, in a consumer friendly and easily accessible format— (i) the results of monitoring and inspection reports for child care providers, including any violation of health, safety or quality standards and any corrective actions taken; (ii) aggregate data on the number of serious injuries, deaths, and substantiated cases of child abuse or neglect occurring in child care settings, by provider type and licensing status; and (iii) information on the availability and quality of child care services in different geographic areas and for different age groups and populations. At minimum, such information should include gathering data from parents and practitioners in a way that is reasonably representative of the State. (C) Annual reports The Secretary will compile and publish annual reports on the implementation and outcomes of the program established in this section, including data on program enrollment, expenditures and service delivery, as well as any instance of waste, fraud or abuse identified and corrective actions taken. (6) penalties and sanctions (A) procedures States and Tribal organizations shall have in place procedures for imposing penalties and sanctions on child care providers or clients who engage in waste, fraud or abuse, including— (i) terminating the eligibility of clients who engage in fraud and disqualifying them from future participation in the program; (ii) suspending or terminating the eligibility of providers who engage in fraud and prohibiting them from receiving future payments under the program; and (iii) recovering fraudulent payments from providers or clients through repayment plans or other means. (B) Fraud detection and repayment States and Tribal organizations shall have in place for identifying and investigating possible instances of fraud by child care providers or recipients of assistance under the this section, including— (i) conducting regular audits and reviews of provider records and claims for reimbursement, using risk-based sampling, and targeting methods; (ii) establishing mechanism for reporting suspected fraud by the public, including anomalously and for protecting whistleblowers from retaliation; and (iii) promptly referring substantiated cases of fraud to law enforcement for criminal investigation and prosecution. (C) penalty Any child care provider or recipient of assistance found to have engaged in fraud shall be subject to repayment of all misused funds, plus interest and penalties, and shall be disqualified from future participation in the program for a period of not less than five years. (D) guidance and technical assistance The Secretary shall provide guidance and technical assistance to States and Tribal organizations on implementing effective fraud detection and repayment procedures and shall monitor compliance through regular reporting and oversight. (7) Federal oversight The Secretary will monitor State and Tribal compliance with the requirements of this section through— (A) reviewing and approving State and Tribal plans for preventing waste, fraud or abuse; (B) conducting periodic reviews and audits of State and Tribal programs to identify potential instances of waste, fraud, or abuse; and (C) investigating and taking enforcement action in response to substantiated cases of waste, fraud or abuse, including imposing penalties on States or Tribal organizations that fail to comply with the program requirements. (h) Income eligibility (1) Only eligible families, as defined in section 101, may access the $10 per day child care program under this grant. (2) Families with incomes exceeding the thresholds specified in section 101 are not eligible for the $10 per day program but may still access child care services at rates determined by the State, subject to the other provisions of this Act. (3) States shall establish procedures to verify family income annually and to adjust eligibility accordingly. (4) The Secretary shall adjust the income thresholds specified in section 101 annually for inflation, using the Consumer Price Index for All Urban Consumers (CPI–U) as published by the Bureau of Labor Statistics. (i) initial funding for eligible child care providers (1) amount of funds Within 12 months after the date of enactment of this Act, each State shall provide all eligible child care providers whose applications have been accepted with the sum of the following: (A) An amount equal to 50 percent of the total parent fees charged by the provider in the previous fiscal year. (B) Disbursements of wage supplements for the provider's staff, as determined by the State's wage and benefits ladder established under this Act. (2) base level of funds The amounts provided in this section will serve as the base level of funding for each eligible child care provider on an annual basis until the provider enters a permanent subgrant with the State under this Act. (3) disbursement of funds States will disburse the funds described in subsection (a) to eligible child care providers within 12 months of the date of enactment of this Act, regardless of whether the provider's application for a permanent subgrant is still pending review or approval amount. (4) amount In determining the amount of— (A) parent fees charged in the previous fiscal year, the State will— (i) require eligible child care providers to submit documentation or attestation of their total parent fees charged during the applicable fiscal year; (ii) establish procedures for verifying the accuracy of the reported parent fees; and (iii) provide guidance to providers on the calculation and reporting of parent fees, including any allowable deductions or adjustments; (B) in determining the advance disbursements of wage supplements, the State will— (i) apply the wage and benefits ladder established in accordance with the requirements of this section; (ii) require eligible child care providers to submit information on their current staffing levels and compensation rates; and (iii) provide guidance to providers on the calculation and disbursement of wage supplements, including the frequency of payments and any necessary adjustments based on staffing changes or other factors; and (C) at minimum, States are required to establish procedures for eligible child care providers to appeal or seek reconsideration of the initial funding amounts determined under this section, in cases where the provider believes an error or miscalculation has occurred. (5) Guidance The Secretary will issue regulations and guidance as necessary to ensure consistent and equitable implementation of this section by States, including standards for documentation, verification, and calculation of initial funding amounts. (j) requirements for States administering subgrants to eligible child care providers (1) subgrants To receive funds under this subsection, each State will establish a program for subgranting with eligible child care providers within 3 years of enactment of this section. (2) purpose The purpose of this program is to ensure affordable, accessible, and high-quality child care options for families. (3) definition of State For the purpose of this subsection the term State includes Tribal organizations. Tribal organizations that receive funding under this subsection shall comply with all requirements outlined in this subsection, except that they may use Tribal licensing, regulatory, or monitoring systems in lieu of State systems, provided that such Tribal systems meet minimum Federal standards as established by the Secretary. (4) formula Within the first 12 months after the enactment of this Act, each State will develop and publish a formula for allocating subgrant amounts to eligible child care providers. (5) subgrants program To receive funds under this subsection, each State will establish a program for subgrants to eligible child care providers within 3 years of enactment of this Act. The purpose of this program is to ensure affordable, accessible, and high-quality child care options for families. (6) allocation of subgrants Within the first 12 months after the enactment of this Act, each State will develop and publish a formula for allocating subgrant amounts to eligible child care providers. The formula will be used to calculate the operational costs necessary for providers to operate sustainably while maintaining high-quality standards. (7) guidance The Secretary will provide guidance and minimum standards for States to follow in developing their subgrant allocation formulas. At a minimum these formulas will consider the following cost components: (A) Personnel costs, including wages, benefits, and professional development. (B) Facility maintenance and improvement costs, including outdoor environments. (C) Curricular materials, educational resources and other supplies. (D) Costs associate with meeting the needs of enrolled children with disabilities or special needs. (E) Food costs, if applicable. (F) Administrative and operational costs. (8) submission of subgrant formula Each State will submit its proposed subgrant allocation formula to the Secretary of Health and Human Services for review and approval. The Secretary will ensure that formulas comply with the minimum standards and guidance provided. (k) publication of application process for subgrants The lead agency in each State will develop and make available on its website an application process for child care providers to apply for and receive subgrants under this program. States will accept, process, and disburse funds for subgrants from eligible child care providers on a rolling and continuous basis pursuant to State Subgrants to Eligible Providers section of this Act. The application shall include at minimum the following: (1) The assurances outline in the State Subgrants to Eligible Providers section of this Act. (2) Process advance disbursement of funds pursuant to the Initial Funding for Child care Providers section of this Act. (l) priority States will establish a process to prioritize the disbursement of funds and the awarding of subgrants to eligible child care providers pursuant to the Low-Moderate Income section of this Act. (m) monitoring and compliance States will establish a monitoring and oversight system to ensure that subgranted child care providers maintain compliance with the terms of their subgrants, quality standards, and all applicable requirements under this section. (n) State subgrants to eligible child care providers (1) To be eligible to receive a subgrant funded under this section, a child care provider shall— (A) be licensed, regulated or registered under State law to provide child care services; (B) submit an application to the State lead agency and agree to the provider requirements in section c; and (C) meet the quality standards established by the State. (2) child care provider application and selection To receive funds from the State, the child care provider shall do the following: (A) make the following certifications, assurances: (i) When open and available, to provide child care services, implement policies in line with guidance from their State. (ii) Implement all State health, safety and quality standards and policies. (iii) Use subgrant funds solely for allowable expenses outlined in Allowable Use of Subgrant Funds. (iv) Limit annual increases in parent tuition fees to no more than 3 percent above the prior year. (v) Not charge mandatory parents ancillary fees expect as approved by the lead agency and after written approval from the Secretary. (vi) Cap total executive compensation at no more than 10 times the median employee wage. (vii) Not use funds for undue profit or to pay interest or dividends to investors. (viii) Maintain or increase wage and benefits in accordance with Wage Supplement section of this Act. (ix) Meet lead teacher qualifications standards pursuant to Lead Teacher Qualifications subsection. (x) Prioritize serving low-income populations pursuant to Low-Mod Income. The eligible child care provider will provider relief from co-payments and tuition payments for the families enrolled in the providers program, to the extent possible, with the goal of fees not exceeding $10 a day for full-time care. If available funds do not allow for this goal to be met, providers shall prioritize relief for families struggling to make either type of payment pursuant to Low- to Moderate-Income section. (xi) not engage in a sale-leaseback transaction that leaves a provider site with more debt than it previously held. (xii) if a child care company or its affiliate brands holds more than 20 licenses across all States, agree to submit detailed annual financial reports to the Department of Health and Human Services, the specifics of which will be determined by the Secretary. (B) Subgrants will be for every 2 years, and renewable. (C) Funds provided to eligible child care providers through State subgrants shall be used to support the provision of high-quality child care services and to meet the requirement outlined in the subgrant, such as improving compensation for workers, reducing fees for families and meeting quality standards established by the State. (3) Allowable Use of Subgrant Funds (A) Providers can use funds received under the subgrant, at minimum, for the following allowable operational expenses: (i) Personnel costs (wages, benefits, professional development). (ii) Mortgage, rent, and facility maintenance and improvement. (iii) Educational materials, supplies and technology. (iv) Food service, if applicable. (v) Administrative and general operating expenses. (B) The Secretary will establish guidance for State on categories of additional allowable expenses. (C) The Secretary will establish procedures for regularly getting feedback from States, parents, and providers and adjust the guidance as needed in response. (4) subgrant amount determination (A) Within 12 months after the date of the enactment of this Act, each State lead agency will develop a formula to determine annual subgrant amounts for eligible providers. (B) The subgrant amount formula will consider at minimum: (i) Staffing and personnel costs based on enrollment. (ii) Facility, maintenance, and improvement costs. (iii) Costs of curricula, materials, and other quality inputs. (iv) Administrative and operating expenses. (v) Regional cost of living adjustments. (vi) Other factors identified by the Secretary. (C) States will submit formulas to the Secretary for approval. (D) Subgrant amounts will be adjusted annually based on the State’s formula. (i) For each employee, the eligible child care provider will not pay less than the full compensation, including any benefits, that was provided to the employee as of the date of their subgrant in the last full year prior to the subgrant application or date of the subgrant application (whichever was higher application submission of the application for the subgrant and will not take any action that reduces the weekly amount of the employee’s compensation, or that reduces the employee’s rate of full compensation, or that reduces the employee’s rate of full compensation in compliance with subsection (p) of this section. (ii) The eligible child care provider will provider relief from co-payments and tuition payments for the families enrolled in the providers program, to the extent possible, with the goal of fees not exceeding $10 a day for full-time care. If available funds do not allow for this goal to be met, providers shall prioritize relief for families struggling to make either type of payment pursuant to subsection (n)(7) of this section. (E) The amount awarded in a subgrant to the eligible child care provider will be based on the providers current operating expenses for fiscal year 2024. This includes the costs associated with providing or preparing to provide child care services and to the extent practicable, cover sufficient operating expenses to ensure continuous operations for the intended part of the subgrant so that parent fees are significantly reduced overtime. (5) Monitoring, Enforcement and Appeals (A) The Secretary will establish monitoring requirements for State lead agencies to ensure provider compliance. (B) States shall implement enforcement mechanisms, including subgrant termination and funds recoupment for non-compliance. (C) States will provide an appeals process for providers to dispute subgrant amounts, termination or other adverse actions. (o) Parent fee reduction program (1) Establishment and Appropriations (A) The Secretary shall establish the parent fee reduction program as a mandatory component of the program under this section to assist States in reducing parent fees for child care services. (B) The parent fee reduction program will be funded through the appropriations authorized for the program under this section, as outlined in section 102 of this Act. (C) From the total appropriations to carry out this section, the Secretary will allocate sufficient funds each fiscal year to enable States to provide the initial 50 percent fee reduction to all eligible child care providers and to support ongoing fee reductions as needed. (D) The Secretary will work with States to determine the amount of funding needed for the parent fee reduction program based on the number of eligible child care providers, the total amount of parent fees collected by these providers, and other relevant factors. (E) If the appropriations authorized for the program under this section are insufficient to fully fund the parent fee reduction program, the Secretary will prioritize funding for this program, after the Low-Moderate Income Program. (2) Eligibility (A) Eligible Child care providers that meet the requirements for participation in the program under this section, as outlined in the State Subgrants to Eligible Child care Providers section, shall be eligible to receive funding through the 50 percent fee reduction program. (B) Eligible Child care Providers shall serve eligible children and shall agree to reduce fees by at least 50 percent for all families enrolled in their programs (since they would be receiving at least 50 percent of these parents fees through the program under this section to subsidize parent fees). (C) Eligible Child care Providers shall comply with all State and Federal health, safety and quality standards as established in these sections within this Act, as well as any additional requirements established by the State for participation in the parent fee reduction program. (3) Use of Funds (A) Funds provided to eligible child care providers through the parent fee reduction program established in this section will be used solely for the purpose of reducing parent fees. (B) Eligible child care providers are not allowed to use these funds to supplant other funding sources or to cover expenses not directly related to reducing parent fees. (C) Eligible child care provide shall maintain detailed records documenting the use of funds received through the 50 percent fee reduction program and shall make these records available to the State and the Secretary upon request. (D) Any funds not used for the purpose of reducing parent fees will be returned. The Secretary will establish guidance on how returning excess funds will work. (4) Secretary Requirements (A) The Secretary will provide guidance and technical assistance to States implementing the parent fee reduction program, including establishing guidelines for determining the amount of initial funding on ongoing support needed by eligible child care providers. (B) The Secretary will review and approve State plans that include States plans to administer the 50 percent fee reduction program, ensuring that they comply with the requirement. (5) State Requirements (A) States will be responsible for administering the 50 percent fee reduction program and disbursing funds to eligible child care providers in accordance with the requirements of this section. (B) Within their State plan, lead agencies will codify a process for implementing the parent fee reduction program and disbursing funds to eligible child care providers in accordance with the requirements of this section. (C) States will require eligible child care providers to submit documentation verifying the total amount of parent fees collected in the previous fiscal year and will establish a process for reviewing and verifying this documentation. (D) States will disburse the initial funding for the parent fee reduction program to eligible child care providers within 3 months of receiving the necessary documentation and will establish a process for transferring these funds. (E) States will establish a process for determining the amount of ongoing funding needed by each eligible child care providers to maintain reduced parent fees and will disburse this funding on a quarterly basis. (F) States will require eligible child care providers to submit quarterly reports documenting the amount of parent fees collected, the number of families served, and the use of funds received for fee reductions, and will review these reports and conduct periodic audits to ensure compliance with program requirements. (G) States will submit annual reports to the Secretary detailing the implementation and impact of the parent fee reduction program, including the total amount of funds disbursed, the number of families benefitting from reduced fees and challenges, successes encountered. (H) States will prioritize fee reductions and waivers for families enrolled in the Low- to Moderate-Income Fee Reduction Program. (6) Provider Requirements (A) Eligible child care providers will submit documentation to the State verifying the total amount of parent fees collected in the previous fiscal year and shall cooperate with the State in reviewing and verifying this documentation. (B) Eligible child care providers will work to use the funds received through the parent fee reduction program solely for the purpose of reducing parent fees and shall maintain records documenting the use of these funds. (C) Eligible child care providers will cooperate will submit quarterly reports to the State documenting the amount of parent fees collected, the number of families served and the use of funds received pursuant to this section. (D) Eligible child care providers will cooperate with the State in any audits or reviews conducted to ensure compliance with the requirement of the parent fee reduction program. (7) Low-moderate Income fee reduction program (A) Establishment and Appropriations (i) The Secretary shall establish the Low-Moderate Income Fee Reduction Program as a mandatory component of the program under this section to assist States in reducing child care fees for families with low to moderate incomes. (ii) For purposes of section, the term family with low to moderate income means a family with an income that is not more than 85 percent of State median income. (iii) Carve out $6 Billion annually from FY 2024 through FY 2026, $7 Billion from FY 2027 through FY 2029 and $8 Billion annually from FY 2030 through FY 2034 from the total new appropriations funding established for the entire grant program in Funding for Entire Bill section of this Act. (B) State Eligibility and Requirements States applying for the program under this section shall substantially agree to— (i) use the funding carve out in this section exclusively to cover 100 percent of parent fees for families making less than 85 percent State median income; (ii) use the funds exclusively to cover all child care fees for families with— (I) incomes at or below 85 percent of the State median income; and (II) children enrolled in licensed, registered, or regulated child care programs; (iii) prioritize funding for eligible families with incomes at or below 50 percent of the State median income if funding is limited; (iv) collect and report annual data on the use of funds to the Secretary, as a mandatory condition for receiving future funds; (v) promote policy changes that maximize the availability of funds and streamline determination procedures to improve the customer experience; (vi) provide explanations to the Secretary as needed; (vii) establish a process to prioritize disbursing funds to eligible child care providers serving underserved populations, as defined in this section and concurrently abiding by the requisites in section103(m) of this Act; (viii) include their plan for implementing this section in their grant application; (ix) be responsible for determining family eligibility for the Low-Moderate Income Fee Reduction Program based on income and other criteria established by the State in accordance with Federal guidelines; (x) develop and implement a streamlined application and eligibility determination process for the Low-Moderate Income Fee Reduction Program that minimizes the burden on families and providers; (xi) automatically deem families eligible for the Low-Moderate Income Fee Reduction Program if they are currently enrolled in other means-tested programs, such as WIC, SNAP, TANF, Section 8 housing assistance, or Medicaid; No additional income verification is required for these families; (xii) for families not enrolled in means-tested programs, States shall use existing data sources, such as State income records or eligibility determinations for other programs, to verify income whenever possible (when such data is not available States may use a simplified income verification process, such as self-attestation of income, with a random sample of applications selected for more rigorous verification); (xiii) States shall provide clear and timely communication to families and providers regarding eligibility determinations and any required documentation or verification; and (xiv) States will work with providers to establish a system to recertify parents every 12 months. (C) Provider Requirements Eligible child care providers receiving funds through the program under this section shall— (i) provide relief from co-payments and tuition for enrolled families pursuant to the parent fee reduction section; (ii) prioritize fee relief for low-moderate income families; (iii) assist families “or work with relevant partner agencies and organizations to assist families,” in completing the application for the Low-Moderate Income Fee Reduction Program and will provide any necessary documentation to the State to support eligibility determinations, as appropriate; (iv) providers will not be responsible for determining family eligibility for the Low-Moderate Income Fee Reduction Program but shall relay on eligibility determinations made by the State; (v) comply with State reporting requirements and provide necessary documentation to verify the use of funds; (vi) can provide parents with continuous eligibility for 12 months following the determination, and at the conclusion of the 12 months, be responsible for working with lead agencies to re-certify parents to ensure the provider is meeting their responsibility to uphold the mandatory prioritization of low-moderate income providers subsection and to be eligible for continued grant funding; (vii) collect and report annual data on the use of funds to the State, as a mandatory condition for receiving future funds; and (viii) provide explanations to the State as needed. (D) Secretarial Requirements (i) The Secretary will review State plans for implementing, and approve or deny funding based on compliance with the requirements I outlined in this section. (ii) The Secretary will provide guidance and technical assistance to States in developing and implementing their Low-Moderate Income Fee Reduction Programs. (iii) The Secretary will compile and report to Congress annually on the outcomes and effectiveness of this section, including State-level data on the use of funds and the impact on families' access to affordable child care. (E) Mandatory Prioritization of Low-Moderate Income Providers (i) States will prioritize awarding subgrants funded by program under this section to providers serving families based on clause (ii). (ii) In each fiscal year, States will allocate all funds appropriate for the program under this section to eligible child care providers based on the following priority order: (I) Providers serving high proportions of families with incomes at or below 50 percent of the State median income then. (II) Providers serving families with incomes between 51 percent and 85 percent of the State median income then. (III) Providers serving families with incomes above 85 percent of the State median income, up to a maximum of 250 percent of the State median income (approximately $125,000 for single parents and $250,000 for married parents). (IV) All the funds carved out in this section, specifically, shall be given to families with low to moderate incomes to cover their parent fees and child care costs to ensure they pay $0 for child care. (V) States will develop a mechanism to ensure that providers serving the neediest populations receive priority funding and that funding progressively expands to serve higher-income families over time. (iii) Priority for Low-Income Families States will prioritize the use of funds allocated through the Low-Moderate Income Fee Reduction Program to reduce and waive fees for families at the lowest income levels first, before expanding. (8) Minimum Requirement for lead Teachers (A) States retain the authority to set higher qualification standards for lead child care teachers if deemed necessary. (B) Lead child care teachers employed by a eligible child care provider, at minimum, hold at least a certificate from an accredited institution related to child development within 3 years of the provider receiving funds. Employees with six years or more of full-time experience with a licensed child care provider this work experience is enough, an alternative to fulfill this requirement. (9) Child care Facilities Grant Program (A) Establishment and Purpose (i) The Secretary will establish the Child care Facilities Grant Program to support the improvement, renovation, and construction of child care facilities. (ii) The purpose of the fund is to address the need for facilities improvements in the child care sector and to expand access to safe, healthy and high-quality learning environments for children. (B) Funding Allocation and Grant Types (i) $3,000,000,000 will be allocated annually for the Child Care Facilities Grant Program from fiscal year 2024 through fiscal year 2034. (ii) Funding will be awarded for no longer than 3 years. (iii) The funding will be allocated as follows: (I) 50 percent for renovation grants to support the repair, innovation and modernization of existing child care facilities. (II) 40 percent for construction grants to support the construction of new child care facilities in underserved areas. (III) 10 percent for planning grants to support the planning and re-development activities for child care facility projects. (iv) The Secretary may adjust these allocations based on the quality and quantity of applications received, as well as the needs and priorities of the child care sector. (C) Eligibility and Application Process (i) The following entities are eligible to apply for grants from the Child Care Facilities Fund: States, Tribes, Territories, local governments and non-profit organizations. (ii) Applicants will submit a detailed application to the Secretary which should at minimum include. (I) A comprehensive project plan that describes the proposed facility improvements, including the need for the project, the target population to be served and the expected outcomes. (II) A detailed budget that outlines the costs associated with the proposed project, including any matching funds or other sources of support. (III) A time line for completing the proposed project, including key milestones and deliverables. o Documentation of the applicant’s experience and expertise in developing or financing child care facilities. (iii) Priority will be give to applications that do the following: (I) Serve low-income communities or other underserved populations o Address urgent health and safety needs or other critical facility deficiencies. (II) Demonstrate strong partnerships and collaboration with stakeholders, including child care providers, community organizations and families. (III) Propose projects that will result in a significant expansion of child care capacity or improvement in the quality of child care facilities. (IV) Commit to use at least 30 percent of their funding to improve home-based child care programs. (V) Grant funds may not be used for the following purposes:[(aa) [text is missing. (iv) Applicants shall make the following assurances to be eligible to receive funding: (I) Agree to prioritize child care facilities that primarily service eligible children in. (II) Mainly serve families with low income. (III) Take care of children under 6years old. (IV) Made significant changes for health and safety due to COVID–19  Are open during non-standard hours. (V) Are in rural areas or places that don't have enough child care options. (VI) Are not owned by for-profit corporations, or corporate affiliates, with annual operating budgets above $1 million. (D) Use of Funds (i) Grant funds may be used for the following purposes: (I) Renovation grants for repair, renovation, and modernization of existing child care facilities, including upgrades to meet the health and safety standards, improve energy efficiency and enhance learning environments. (II) Construction grant for new construction of child care facilities in underserved areas, including site acquisition, design, engineering, and construction costs. (III) Planning grants for needs assessments to determine the demand for child care facilities in a given area, feasibility studies to assess viability of proposed facilities projects, and pre-development activities such as site selection and preliminary design. (ii) Grant funds may not be used for the following purposes: (I) Purchase of land or buildings, except as necessary for the construction of a new child care facility. (II) Debt service or retirement of bonds or other financing mechanisms. (III) Lobbying or political activities. (IV) Supplanting other Federal, State, or local funds. (iii) No more than 10 percent of grant funds may be used for administrative expenses. (iv) The maximum allowable grant amount is $15,000,000. (v) Any grant funded under this program shall pay workers at least the prevailing wage in the area, following the Davis-Bacon Act, which ensures fair wages for construction work. (E) Preference is to be given to those with a proven track record in financing child care, can help States and local governments develop child care places, and propose to focus on facilities for children under 5, homecare-based programs and low-income families. (10) Matching Requirements (A) Grantees will provide a match of at least 10 percent of the total project cost, which may include cash or in-kind contributions. (B) The Secretary may waive or reduce the matching requirement for applicants that demonstrate significant financial hardship or service high-need communities. (11) Reporting and Oversight (A) Grantees will submit quarterly progress reports to the Secretary, including financial Statements, project milestones, and any challenges or delays encountered. (B) The Secretary or his designee may conduct periodic site visits and audits to monitor grantee compliance and project performance. (C) The Secretary may withhold or recapture funds from grantees that fail to comply with program requirements or demonstrate progress towards program completion. (12) Technical Assistance and Dissemination (A) States shall to tell the Secretary how they plan to use the money, including how they will report on what the funding achieved in the State plan. (B) A State may not receive more than $40,000,000 a year from this fund. (C) The government will prefer States that— (i) want to improve both in-home and center-based child care, including programs like Head Start, and (ii) plan to address child care needs in different types of areas (urban, suburban, rural) together with local governments, other State agencies, non-profits, and community organizations. (p) home-Based child care training and support fund (1) Establishment of program (A) The Secretary will establish the Home-Based Child Care Training and Support Fund to address the unique challenges faced by family child care providers and to promote their success and sustainability. (B) Appropriate $750 million annually from FY 2024 through FY 2034. (2) Eligibility and Application Process (A) The following entities are eligible to apply for subgrants: (i) Institutions of higher education, with priority given to community colleges. (ii) Nonprofit organizations with expertise in supporting and advocating for FCC providers. (iii) State and local government agencies responsible for child care licensing and regulation. (B) Eligible entities will submit an application to the Secretary that includes— (i) a description of the proposed activities to support FCC providers, including but not limited to coaching, mentoring and business training; (ii) a plan for engaging and recruiting FCC providers, particularly those from historically underserved populations; (iii) partnership with relevant stakeholders (such as local child care resources and referral agencies, business development organization and other regulatory bodies); and (iv) a budget and sustainability plan for the subgrant activity. (3) Use of Funds Grantees will use the funds to support the success and sustainability of FCC providers through activities like— (A) developing and implementing coaching and mentoring programs that provide individualized guidance and support to FCC providers; (B) offering high-quality certificate and degree programs aimed at enhancing child care educator training and preparation; (C) offering business training and classes on topics such as financial management, marketing and record-keeping; (D) providing resources and technical assistance to help FCC providers navigate licensing and regulatory requirements; (E) creating online platforms and resource to connect FCC providers with relevant support services; (F) establishing networks or cooperative that offer shared services and benefits to FCC providers (such as retirement plans, insurance, and bulk purchasing); and (G) offering business training and classes to scale an FCC facilities. (4) Grantee Responsibilities Grantees will— (A) design and implement high-quality programs and services that meet the unique needs of FCC providers; (B) engage and recruit a diverse range of FCC providers, particularly those from historically underserved populations; (C) collaborate with relevant stakeholders, including parents and child care providers who participate in the child care assistance program, to leverage resources and expertise; (D) collect and report data on program outcomes and impact to the Secretary annually; (E) establish a 20-member advisory council consisting of 10 parents and 10 providers who participate in the Child Care for America program to— (i) inform the lead agency of program improvements; (ii) provide feedback on program development and new initiatives; and (iii) center their expertise in program decisions; and (F) compensate participants in the advisory council using the quality set-aside funds. (5) Secretary Responsibilities The Secretary will— (A) establish an application process and criteria for awarding grants from the Home-Based Child care and Training and Support Fund; (B) review and approve applications based on their alignment with the purposes and requirements of this section; (C) provide guidance and technical assistance to grantees in developing and implementing their programs; (D) monitor grantee compliance and performance and take appropriate action in cases of non-compliance or under-performance; (E) gather leading practices and lessons learned as a result of the subgrant on a publicly available website; (F) report to appropriate congressional committees annually on the outcomes and impact of the subgrant; and (G) coordinate the subgrant with other Federal programs supporting child care providers within the Department of Health and Human Services and with the Administrator of Small Business, as appropriate. (q) Child Care Innovatioin Fund (1) Establishment and Appropriations (A) The Secretary will establish the Child Care Innovatioin Fund to support the development and implementation of innovative pilots, strategies and models that aim to improve the quality, accessibility, affordability and sustainability of child care programs. (B) $250,000,000 million is appropriated annually for the Fund from fiscal year 2024 through fiscal year 2034. (2) Funding Allocation and Grant Types 60 percent of funds shall be allocated for grants to pilot innovative approaches to child care delivery that address one or more of the following key areas: (A) Improving the quality of child care services. (B) Increasing accessibility of child care, particularly in underserved areas. (C) Enhancing affordability of child care for families. (D) Supporting workforce development and retention in the child care sector. (E) Improving child care facilities and infrastructure. (3) Eligibility and Application Process (A) The following entities are eligible to apply for the Child Care Innovatioin Fund: (i) Municipalities. (ii) State and local government agencies. (iii) Tribal organizations (iv) Nonprofit organizations. (v) Institutions of higher education. (vi) For-profit organizations. (vii) Consortia of the above entities. (B) Eligible entities will submit an application to the Secretary that includes— (i) a description of the proposed project, including its objectives, target population, and anticipated outcomes; (ii) a plan for implement the pilot, including key activities, time lines, and partnering organizations; (iii) a description of how the pilot project addresses one or more of the following areas: (I) quality improvement; (II) accessibility; (III) affordability; (IV) workforce development; or (V) facility improvement; (iv) evidence supporting the effectiveness of the pilot, such as research findings or results from previous pilots; (v) a plan for evaluating the innovation, including key metrics and data collection methods; and (vi) a budget proposal and sustainability plan. (C) In selecting grant recipients, the Secretary will consider the following factors: (i) The potential of the innovation to significantly improve the quality, accessibility, affordability or sustainability of child care programs. (ii) The strength of the evidence base support the proposal. (iii) The capacity of the application to implement the innovation effectively and efficiently. (iv) The potential for the proposal to be scaled or replicated in other settings. (v) The extent to which the innovation addresses the needs of underserved populations or areas. (vi) The level of collaboration and partnerships proposed. (4) Use of Funds (A) Grantees will use the funds to develop, implement and evaluate innovative approaches to child care delivery that aims to improve— (i) access to child care, particularly for underserved populations and areas; (ii) affordability of child care for families; and (iii) workforce development, compensation, and retention in the child care sector o Child care Facilities and Infrastructure. (B) Funds may be used for planning and design, training and professional development of child care providers, facility improvement and construction, technology and infrastructure development, community outreach and engagement, data collection, and evaluations. (C) Grant recipients shall not use more than 15 percent of their total award for administrative costs. (D) Examples of innovative approaches may include, but are not limited to— (i) shared services models that help providers reduce costs and improve quality; (ii) technology solutions that streamline enrollment, pay and reporting processes; (iii) alternative financing mechanisms, such as pay-for-success or social impact bonds; and (iv) strategies for integrating child care with other family support services, such as health care or housing assistance. (E) Grantee Responsibilities Grantees shall— (i) design and implement their proposal in according with the approved application and time line; (ii) collect and report data on project outcomes and impact to the Secretary annually; (iii) participate in knowledge-sharing activities and contribute to the “what works clearinghouse for early care and education; and (iv) develop plans for scaling and sustaining successful approaches beyond the grant period. (F) Secretarial Responsibilities The Secretary shall— (i) establish an application process and criteria for awarding grants from the Child Care Innovatioin Fund; (ii) review and approve applications based on their alignment with the purposes and requirements of this subsection; (iii) provide guidance and technical assistance to grantees in developing and implementing their projects; (iv) monitor grantee compliance and performance and take appropriate action in cases of non-compliance or under-performance; (v) compile and disseminate best practice and lesson learned from grantees; (vi) establish and maintain the “What Works Clearinghouse for Early Care and Education” to facilitate knowledge sharing and replication of successful approaches; and (vii) report to Congress annually on the outcomes and impact of the Child Care Innovatioin Fund. (5) General Sections (A) Workforce Support and Compensation (i) A Wage and Benefits Ladder shall require as a condition of receiving funding under section that States shall establish a wage and benefits ladder for staff of eligible child care providers receiving assistance. (ii) The Wage and Benefits Ladder will, at minimum— (I) provide a clear pathway for staff to increase their compensation and benefits based on factors such as education, training and experience and performance; (II) ensure that staff wages and benefits meet or exceed the minimum wage and benefit standards established by the Secretary under this Act; (III) be developed in consultation with early childhood education experts, labor organizations and other relevant stakeholders; (IV) require States to submit their proposed wage and benefits ladder to the Secretary for approval as part of their application for a grant under this section; and (V) require the Secretary to provide guidance and technical assistance to State in developing and implementing their wage and benefits ladders. (iii) Minimum wage requirements will require wage supplements for full-time staff members will be sufficient to ensure that— (I) the median wage for full-time workers employed by eligible child care providers is at least $24 per hour; and (II) full-time workers receive an additional wage supplement of at least $4 per hour. (iv) Wage supplements for part-time staff members will be sufficient to ensure that— (I) the median wage for part-time workers employed by eligible child care providers is at least $15 per hour; and (II) part-time workers receive a wage supplement of at least $2 per hour if the median hourly wage for part-time staff exceeds $15 per hour. (v) Eligible child care providers receiving assistance under this section will— (I) comply with the wage and benefits ladders established by their State; (II) provide documentation to the State demonstrating compliance with the minimum wage requirements outlined in this section; and (III) report data on staff wages, benefits and turnover to the State as required for program monitoring and evaluation. (vi) States will— (I) disburse wage supplement funds to eligible child care providers within 12 months of the enactment of this Act; (II) monitor provider compliance with the wage and benefits ladder and minimum wage requirements and take appropriate action in cases of non-compliance; and (III) report data on staff wages, benefits and turnover to the Secretary annually, as a condition of continued funding under the program under this section. (vii) The Secretary shall— (I) review and approve State wage and benefits ladders as part of the application process under this section; (II) provide guidance and technical assistance to States in implementing their wage and benefits ladders and minimum wage requirements; and (III) compile and report to Congress annually on the impact of the workforce support and compensation provisions on staff wages, benefits and turnover in the child care sector. (B) Labor standards and workforce protections (i) Right to organize Providers receiving funds under this title shall inform their employees of their rights under the National Labor Relations Act ( 29 U.S.C. 151 et seq. ), including the right to organize and collectively bargain. (ii) Neutrality No provider receiving funds under this title shall use any funds to deter union organizing or shall in any way interfere with employees' rights to form, join, or assist labor organizations. (iii) Employee classification For purposes of this title and any other Federal labor laws, all individuals employed by providers receiving funds under this title shall be considered employees rather than independent contractors, unless they meet all criteria for independent contractor status under applicable Federal law. (iv) Enforcement The Secretary of Labor shall have authority to investigate and enforce compliance with this section. Violations may result in civil penalties and ineligibility for funds under this title. (v) Professional development The Secretary shall establish a comprehensive professional development program for workers, developed in consultation with labor unions representing such workers. This program shall include: (I) Ongoing training opportunities. (II) Career ladder programs to support professional advancement; and (3) Mentoring and leadership development initiatives. (vi) Whistleblower protections No provider receiving funds under this title may discharge or discriminate against any employee because such employee has filed any complaint or instituted or caused to be instituted any proceeding under or related to this title, or has testified or is about to testify in any such proceeding. (r) Nondiscrimination The nondiscrimination requirements applicable under following Act shall apply with respect to financial assistance provided under this section: (1) Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq) (2). (2) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000Det seq.). (3) Section 504 of the Rehabilitation Act of 1973 ( 29 U.S.C. 794 ). (4) The Americans with Disabilities Act of 1990 (42.U.S.C. 12101 et seq). (s) Research and Evaluation (1) In General (A) The Secretary will conduct research, demonstrations and evaluations that are directly relevant to the program under this section and the overall goals of expanding access to high-quality, affordable child care. (B) The Secretary may award grants or subgrants to eligible entities to conduct research, demonstrations and evaluations. (C) Eligible entities include State agencies, Tribal organizations, institutions of higher education, and other nonprofit or for-profit organizations with expertise in child care research and evaluation. (2) Priority Areas The Secretary will prioritize research, demonstrations and evaluations that focus on the following areas: (A) Identifying leading practices and strategies for improving the quality of child care services, including those related to workforce development, curriculum and instruction, family engagement, and program administration. (B) Evaluating the impact of the child care policies, programs and mechanisms in this section on child outcomes, family well-being, and the overall supply and quality of child care services. (C) Examining the factors that contribute to the disparities in access to high-quality child care, particularly for low-income families, rural communities, and other underserved populations. (D) Analyzing the costs and benefits of different approaches to child care financing, including the program under this section and other Federal, State, and local funding streams. (E) Explore the use of technology and data systems to improve the delivery, coordination, and evaluation of child care services. (3) Dissemination The Secretary will make sure— (A) the results of research, demonstrations, and evaluations conducted under this section are publicly available through various means, such as websites, reports and conferences; and (B) the results from the research, demonstrations to inform the administration of the program under this section and provide technical support. The Secretary will provide assistance to States, Tribal organizations, and other entities involved in the delivery of child care services. (4) Coordination (A) The Secretary will coordinate the research, demonstrations and evaluations conducted under this section with other relevant Federal research and evaluation activities, including those carried out by the Department of Education, the Department of Labor, and other agencies as appropriate. (B) The Secretary can use funds reserved under this section to support cross-agency research and evaluation initiatives that align with the goals of the program under this section. (5) Funding The Secretary will reserve and use 1 percent of the total appropriation for the program under this section each fiscal year to carry out the activities described in this subsection. (6) Use of funds Funds allocated for research and evaluation activities under this subsection shall be used to support studies, assessments and other activities that inform the implementation, improvement, and impact of the program under this subsection and its various initiatives, as determined by the Secretary. (t) Federal Administration The Secretary will reserve up to 1 percent of the total appropriation for the program under this section each fiscal year for Federal administrative costs, including activities such as providing technical assistance to States and Tribal organizations, conducting monitoring and oversight, and implementing the research and evaluation agenda. (u) Child care and Development Block Grant The Child care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858n ) shall apply to this section except as provided or as otherwise specified. (1) Child care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858n ) shall apply to this subsection except as provided in clause and as otherwise specified. (2) Within 3 years after the date of the enactment of this Act, the Secretary shall propose a plan to transition the Child care and Development Block Grant program to serve school aged children. (3) School aged children ages 6 through 13 and will not be eligible for any program in this Act. (v) Head Start Funding (1) There is appropriated $18,000,000 a year for fiscal year 2024 through fiscal year 2034 to carry out the Head Start Act, which shall be in addition to existing funding already appropriated and shall be exempt from the requirements of this Act. (2) Funds appropriated under this subsection can be allocated by the Secretary as statutorily directed in Public Law110–134 (121 Stat. 1363). II Stay-at-Home Parent Child Care Support Program 201. Definitions For purposes of this title: (1) Stay-at-home parent child care stipend program The term stay-at-home parent child care stipend program , means the program established under section 202. (2) Support program The term stipend program means the stay-at-home parent child care support program. (3) Benefit The term benefit means a stay-at-home parent support benefit received under the support program. (4) Eligible child The term eligible child means a child less than 3 years of age who does not participate in a child care program implemented under title I or title III. (5) Parent The term parent means a stay-at-home individual who— (A) is the biological parent or legal guardian of an eligible child, (B) is the primary child care provider for an eligible child, and (C) has a household income of not to exceed— (i) 75,000 for single individual, and (ii) $150,000 for married individual filing jointly. (6) Secretary The term Secretary means the Secretary of Health and Human Services. (7) Secretary of the Treasury The term Secretary of the Treasury means the Secretary of the Treasury or the Secretary of the Treasury’s delegate. (8) Stay-at-home parent The term stay-at-home parent means a parent who chooses to directly care for an eligible child of such parent in such parent’s home. 202. Establishment of stay-at-home parent support benefit program The Secretary shall establish the stay-at-home parent support program to provide financial assistance to parents who opt to directly care for their eligible children at home. 203. Funding authorization and allocation (a) Authorization of appropriations There is authorized to be appropriated $4,000,000,000 for each of the fiscal years 2024 through fiscal year 2034 to carry out this title. (b) Availability of funds Of the amount appropriated for a fiscal year— (1) 95 percent shall be available for allocation under subsection (c) for the payment benefits, (2) 3 percent shall be available to the Secretary of the Treasury for program administration, and (3) 2 percent should be allocated to Secretary for program support and evaluation. (c) Allocation of appropriations among States Funds shall be allocated among the States based on the proportion of children under age 3 in each State, adjusted for State median levels. 204. Application process (a) In general Except as otherwise provided in this Act, the stay-at-home parent child care stipend program shall be administered in the same manner as the child tax credit. (b) Self-Certification Eligible applicants shall annually self-certify their eligibility through the Internal Revenue Service as part of the individual’s annual income tax return. (c) Penalty of perjury Eligible applicants shall attest under penalty of perjury that the applicants meets the eligibility criteria to receive the stipend. 205. Responsibilities of the Secretary of the Treasury The Secretary of the Treasury shall, with respect to the stay-at-home parent child care stipend program— (1) modify relevant tax forms and systems to allow for claiming the stipend, (2) develop and implement systems for processing claims and distributing payments, (3) utilize existing programs and databases to verify eligibility based on income and dependent information, (4) distribute monthly advanced payments of the stipend using direct deposit, (5) verify eligible children and eligible parents, (6) process claims and distribute monthly payments, (7) conduct periodic audits to ensure program integrity, (8) establish procedures for handling overpayments and underpayments, (9) implement a system for reconciliation of payments through annual income tax returns, and (10) develop a process for mid-year changes in eligibility including, but not limited to, the birth of a child or change in income status. 206. Responsibilities of the Secretary The Secretary shall— (1) develop and maintain education resources for parents, and (2) conduct research on the impact of the support program on child development and the well-being of the families of eligible children whose parents receive benefits, and coordinate the support program with other Federal early childhood programs. 207. Coordination In carrying out the support program, the Secretary and the Secretary of the Treasury shall— (1) coordinate their activities, (2) work with the Social Security Administration, to verify the eligibility of children whose parents receive benefits, and (3) ensure that the Social Security Administration or the Secretary of the Treasury, as appropriate, shall— (A) send notifications to parents via letter and email, two months prior to their child's third birthday and one month prior to their child's third birthday, informing them that their eligibility is ending; and (B) assume responsibility for pausing payments upon the child's third birthday, to verify the eligibility of children and parents participating in the support program so as to minimize waste, fraud, and abuse involving such program. 208. Waste, fraud, and abuse (a) Payment recoupment (1) Eligibility changes Stipend recipients must report changes affecting eligibility within 30 days of the occurrence of such change. Changes affecting eligibility include enrollment in an eligible child care program, income exceeding threshold, and employment exceeding 10 hours per week. (2) Notification process The Internal Revenue Service shall provide multiple notification methods, including an online portal, mail, and phone, for reporting changes. Failure to report changes may result in penalties, including program disqualification. (3) Repayment procedures (A) Ineligibility If ineligibility is determined, the Internal Revenue Service will immediately cease future payments. (B) Methods of recoupment Overpayments will be recouped through the following methods: (i) Reduction of future tax refunds. (ii) Establishment of a repayment plan, not exceeding 12 months. (iii) Deduction from other Federal tax benefits, subject to applicable laws. (C) Hardship exemption Hardship exemptions may be granted for repayment on the basis for criteria established by the Internal Revenue Service. (4) Grace period A 90-day grace period will be granted for repayment without interest or penalties if the parent voluntarily reports the change. (b) Appeals (1) In general Stipend recipients may appeal recoupment decisions through the existing Internal Revenue Service appeals process. (2) Grounds for appeal Grounds for Appeal include— (A) Denial of eligibility. (B) Disagreement with benefit amount. (C) Recoupment decisions. (D) Program disqualification. (3) Timeline (A) Filing of appeal Stipend recipients must file an appeal within 60 days of receiving an adverse decision. (B) Acknowledgment The Internal Revenue Service shall acknowledge receipt of appeals within 30 days. (C) Decision A decision on the appeal shall be made within 90 days of receipt. (4) Appeal Submission Appeals may be submitted online, by mail, or by fax. The appeal must at least include the taxpayers identification information, specific reason for the appeal and supporting documentation. (5) Review Process An independent Internal Revenue Service appeals office will review each case. The officer may request additional information from the stipend recipient or relevant agencies. (6) Final decision Decisions of the Internal Revenue Service will be provided in writing, including the rationale. If the appeal is denied, information of further review options (including the Tax Court) shall be provided. (7) Continued Benefits Benefits shall continue during the appeals process if the appeal is filed within 10 days of the adverse decision. If the appeal is denied, any benefits paid during the appeal process may be subject to recoupment. (c) Privacy and data protections (1) Data Collection Limitations Only information necessary for determining eligibility and administering the program shall be collected. Social Security numbers will be collected and used in accordance with section 7 of the Privacy Act. (2) Data usage Information collected shall be used solely for the administration of the stay-at-home parent child care stipend program and related tax administration purposes. o Data sharing between the Internal Revenue Service, Department of Health and Human Service, and Social Security Administration will be limited to information necessary for program administration and evaluation. (3) Data retention and disposal Personal data will be retained only for the duration necessary for program administration and in accordance with Internal Revenue Service records retention schedules. Secure data disposal methods will be used when destroying records. (4) Transparency and Consent Stipend recipients will provide informed consent for the collection and use of their data when applying for the program. Stipend recipients will have the right to request access to their data and correct any inaccuracies. Any third-party contractors handling program data will be contractually bound to the same privacy and security standards as Federal employees. 209. Outreach and education (a) In general The Secretary of the Treasury, in collaboration with the Secretary of Health and Human Services, shall develop and implement a comprehensive outreach strategy within 6 months of the date of the enactment of this Act to inform families of options available for childcare. (b) Program requirements At minimum, the strategy must include: (1) Targeted messaging for potentially eligible families. (2) Partnerships with State and local agencies, community organizations and tax preparation services. (3) Multilingual materials and outreach effort including the use of multiple mediums of communication delivery including online, mail, and print. (c) Educational Resources (1) Internal Revenue Service Pursuant to such strategy, the Internal Revenue Service shall develop and maintain— (A) a dedicated website with program information, eligibility calculator, and answers to frequently asked questions (FAQ), (B) printed materials for distribution at Internal Revenue Service offices, community centers, and healthcare facilities, and (C) a toll-free help line for program inquiries. (2) Health and Human Services The Secretary shall develop— (A) resources on child development and effective home-based early learning practices, and (B) guides on transitioning children to formal childcare (including the programs authorized in this Act) or preschool programs (including making connections to relevant State agencies so parents have more of a seamless experience during the transition). (3) Tax Preparer Training The Internal Revenue Service shall provide training materials and guidance to tax preparers on the program and its interaction with other tax credits. (4) Annual Awareness Campaign The Secretary of the Treasury shall conduct an annual awareness campaign prior to tax filing season to remind eligible parents about the program. 210. Evaluation metrics (a) Establishment of metrics Not later than 6 months after the date of the enactment of this Act, the Secretary of Secretary shall establish a set of evaluation metrics. (b) Data collection The Secretary shall establish a data collection system to gather information on these metrics. (c) Annual evaluation The Secretary of shall conduct an annual evaluation of the program using these metrics and submit a report to Congress. (d) Longitudinal study The Secretary of shall initiate a longitudinal study to track long-term outcome for child and families participating in the program. (e) Independent Review Every 3 years the Government Accountability Office shall conduct an independent review of the program’s effectiveness based on these metrics. 211. Sunset provision/reauthorization requirement (a) Program Duration.—The stay-at-home parent support program is authorized for a period of 10 years from the date of enactment. (b) Reauthorization process Not later than 18 months prior to the program’s expiration, the Secretary of the Treasury and the Secretary shall jointly submit a report to Congress on the program’s effectiveness and recommendations for continuation, modification or termination. (c) Congressional review Congress shall review the program and vote on its reauthorization not later than 6 months prior to its expiration date. (d) Transition plan If Congress decides not to reauthorize the program, the Secretary in collaboration with relevant agencies shall develop and implement a transition plan to phase out benefits over a 12-month period. 212. Interaction with other benefits (a) Child tax credit The stay-at-home parent support program benefit will be in addition to any child tax credit for which a family is eligible and not a substitute. Receipt of the stay-at-home parent child care stipend shall not affect child tax credit eligibility or amount. (b) Earned Income Tax Credit For the purposes of calculating the earned income tax credit, the stay-at-home parent support program stipend will not be considered earned income or counted as income for determining earned income tax credit eligibility. (c) Child and Dependent Care Credit Individuals receiving the stay-at-home parent support program stipend with respect to any child are not be eligible for the child and dependent care credit with respect to such child for any taxable year during which such stipend is received. (d) Head Start and Early Head Start Head Start and Early Head Start.—Receipt of the benefit will not affect eligibility for Head Start or Early Head Start programs”, although the decision to enroll in Head Start or Early Head Start for more than 10 hours a week will render a family ineligible for the benefit under this title. (e) Temporary Assistance for Needy Families States shall not take into account the stay-at-home parent support program stipend for purposes of determining TANF eligibility or benefit amounts. (f) Supplemental Assistance for Needy Families The stay-at-home parent support program stipend shall not be counted as income for SNAP eligibility or benefit calculation purposes. (g) Medicaid and CHIP The stay-at-home parent support program stipend shall not be counted as income for determining eligibility for Medicaid or the Children’s Health Insurance Program CHIP. (h) Housing Assistance The stay-at-home parent support program stipend shall not be counted as income for determining eligibility for Federal housing assistance programs. (i) Annual Review The Secretary of the Treasury, the Secretary, and other relevant agency heads shall conduct an annual review of the program’s interaction with other Federal benefits and tax credits, and report to Congress any unintended consequences or recommended adjustments. 213. Benefit structure and payment mechanism (a) Benefit amount (1) In general Eligible stay-at-home parents will receive $300 per month per eligible child. (2) Cost-of-living adjustment The Secretary of the Treasury shall have the authority to adjust the benefit amount annually based on cost-of-living increases, subject to Congressional approval. (b) Payment distribution (1) Monthly The Internal Revenue Service shall distribute payments monthly through accessible payment methods to families including but not limited to direct deposit to the bank account designated by the parent, prepaid debit cards for parents without bank accounts, paper checks as a last report if neither of the above options is feasible. Payments shall be made on a set date each month, to be determined by the Secretary of the Treasury. (2) First payment The first payment shall be made within 30 days of the eligibility determination or recertification. (c) Duration of benefits (1) In general Benefits will continue until the eligible child reaches the age of 3 or enters another childcare program funded by the Child Care for America Grant Program or the program under title III for more than 10 hours a week, whichever comes first. (2) Annual recertification Annual recertification shall be completed not later than the due date (determined without regard to any extensions) for the income tax return of the eligible recipient of the benefits. (d) Recertifcation process (1) Reminders The Internal Revenue Service shall provide multiple reminders to parents about the recertification requirement, including but not limited to the following: (A) Notices with monthly benefit payments starting three months before the tax filing deadline. (B) Email and text message reminders if parents have opted in for such communications. (2) Suspension of benefits Parents who fail to recertify by the deadline may have their benefits suspended 30 days after the due date referred to in subsection (c)(2). (3) Recertifications within 90 days of deadline If recertification is completed within 90 days after the deadline: (A) Benefits shall be reinstated prospectively from the date of recertification. (B) Any missed payments due to late recertification shall be paid retroactively in a lump sum within one year after the original deadline. (4) Methods of recertification The Internal Revenue Service shall provide multiple channels for recertification including but not limited to: (A) Automatic recertification on income tax returns other relevant tax documents during tax filing season. (B) A process for recertification and disclosure of change of status that may make a parent ineligible throughout the calendar year in the form of a website or other accessible service delivery channel. (e) Mid-Year changes (1) In general Benefits will continue until the eligible child reaches the age of 3 or enters another childcare program funded by the Child Care for America Grant Program or the program under title III for more than 10 hours a week, whichever comes first: (A) Child enrolling in a childcare program for more than 10 hours a week that makes them ineligible for the benefit. (B) Changes in income affecting eligibility. (2) On-line portal and dedicated phone line The Internal Revenue Service shall provide an online portal and a dedicated phone line for reporting changes. (3) Benefits Benefits shall be adjusted or terminated as appropriate based on reported changes, effective from the month following the change. (f) Appeals process (1) In general Benefit recipients will have the right to appeal decisions regarding benefit amounts, eligibility determinations or recoupment of overpayments. (2) Deadline Appeals must be filed within 60 days of receiving notice of the decision. (3) Expedited appeals The Internal Revenue Service shall establish an expedited review process for such appeals. (g) Payment security and fraud prevention (1) In general The Internal Revenue Service shall implement robust security measures to prevent unauthorized access to payment information. (2) Audits The Internal Revenue Service shall conduct regular audits to identify and prevent fraudulent claims. (3) Penalties Penalties for fraudulent claims shall include repayment of benefits, fines and potential criminal prosecution. (h) Report to Congress The Secretary of the Treasury shall submit an annual report to Congress describing the number of families receiving the benefit, total amount distributed and any significant issues or challenges in benefit distribution. (i) Program evaluation The Secretary of the Treasury and the Secretary shall conduct an annual evaluation of the payment mechanism and benefit structure. The evaluation must also assess the efficiency of benefit distribution, impact on eligible families and any recommended improvements. III Kin Care: Family, Friend, and Neighbor (FFN) Care Program 301. Definitions For purposes of this title— (1) the term FFN provider means an individual who provides childcare services to eligible children in a home setting and is not required to be licensed under State law; (2) the term eligible FFN provider means a FFN provider who meets the requirements set forth in this section and is registered with the State law; and (3) the term FFN care means child care services provided by an eligible FFN provider. 302. Authorization of appropriations There is authorized to be appropriated $5,000,000,000 annually for fiscal years 2024 through 2034 to carry out this title, to be allocated as follows: (1) 75 percent for direct payments to verified FFN provider; (2) 15 percent for State-level program administration and support services; (3) 8 percent for Federal administration, including the development and maintenance of a national FFN database and verification system; and (4) 2 percent for research, evaluation, and continuous improvement initiatives. 303. Parent roles and responsibilities in the FFN Care Program (a) Eligibility and initial enrollment (1) Eligibility criteria To be eligible for the FFN Care Program, a parent shall meet income eligibility requirements (up to 100 percent of State median income). (2) Application process An eligible parent shall— (A) complete the FFN care subsidy application through the Kin Care Interface within 30 days of seeking care; and (B) provide accurate and complete information, including— (i) proof of income; (ii) number and ages of children needing care; and (iii) hours of care needed. (3) Provider selection An eligible parent shall— (A) nominate their FFN provider to the Interface for verification, after which time FFN providers may voluntarily join the Interface and seek verification as set out in the provider section; and (B) confirm the care arrangement with the chosen provider through the Kin Care Interface within 5 days of selection. (b) Care arrangement confirmation and documentation (1) Written agreement The parent shall— (A) enter into a standard consent agreement with the FFN provider within 7 days of selection, outlining— (i) care schedule; and (ii) expectations for both parties; and (B) enter into a written agreement with the FFN provider within 7 days of selection, outlining— (i) care schedule; (ii) compensation details; (iii) expectations for both parties; and (iv) upload the signed agreement to the Kin Care Interface within 3 days of signing. (2) Care setting verification For care in the child's home, the parent shall— (A) provide written confirmation about the suitability of their home for childcare within 5 days of provider selection; (B) complete a home safety checklist provided through the Kin Care Interface within 10 days of provider selection; and (C) allow for virtual or in-person safety assessments of the home environment as required by the State agency. (3) Ongoing responsibilities (A) Attendance verification The parent shall verify child attendance through the Kin Care Interface on a weekly basis, within 2 days of the end of each care week. (B) Provider evaluation and feedback The parent shall— (i) complete semi-annual care quality surveys through the Kin Care Interface; (ii) provide additional feedback or concerns as they arise, within 24 hours for urgent matters; and (iii) any major safety incidents while the child is in FFN care, with major safety incidents defined as hospitalization resulting from provider neglect, or any incident leading to suspicion of child abuse. (C) Reporting changes The parent shall report the following changes within 10 days of occurrence— (i) income changes that may affect eligibility; (ii) employment or education/training status changes; (iii) family size or composition changes; and (iv) relocation or contact information updates. (D) Cooperation with monitoring and investigations The parent shall— (i) participate in annual re-certification processes; (ii) completing all required documentation within 30 days of request; (iii) cooperate with any investigations or follow-ups regarding reported incidents or concerns within the timeframe specified by the investigating agency; and (iv) allow for and facilitate visits by State agency representatives if care is provided in the child’s home. (E) Training and education The parent shall complete any required parent orientation or training modules within 30 days of enrollment in the FFN care program. (F) Health and safety The parent shall— (i) provide up-to-date immunization records for the child to the provider within 7 days of care commencement or any updates; and (ii) inform the provider of any health concerns, allergies, or special needs of the child before care begins and as new information arises. (G) Program compliance The parent shall— (i) adhere to all rules and regulations of the FFN care program as outlined in the parent handbook; and (ii) acknowledge that failure to comply with these responsibilities may result in termination from the program or repayment of subsidies. 304. FFN provider responsibilities in the Kin Care Program (a) Eligibility and initial registration (1) Eligibility criteria To be eligible as an FFN provider, an individual shall— (A) be at least 18 years old as of the date of application; (B) be a grandparent, aunt or uncle of the child; (C) not have any criminal record involving violent offenses, nor prior credible child abuse findings, nor be present on any sex offender registry; and (D) after the first three years of the Kin Care program, the Secretary may, in consultation with relevant stakeholders, elect to extend eligibility to additional family members, trusted friends, and trusted neighbors. (2) Interaction with ccdbg (A) Transition from ccdbg A FFN caregiver currently registered as a subsidy-receiving provider via the Child Care and Development Block Grant Act of 1990 shall discontinue their participation upon being verified to be part of the Kin Care program and beginning to receive payments via the Kin Care program. (B) Continued ccdbg participation FFN caregivers who are not eligible for the Kin Care program but who are eligible for payment under CCDBG may continue to participate in that program. (C) Potential ccdbg repeal In the case that the Secretary elects to extend eligibility for the Kin Care program to cover all those FFN providers eligible under CCDBG, the relevant sections of CCDBG are to be repealed. (3) Registration process The provider shall— (A) complete the online registration form through the Kin Care Interface within 30 days of deciding to become an FFN provider; (B) provide accurate and complete information as required by the Kin Care Interface; and (C) submit to comprehensive background checks within 10 days of registration. (4) Care setting verification The provider shall— (A) for care in provider’s home— (i) submit clear, recent photos or a video tour of all areas used for child care within 7 days of registration; (ii) participate in a virtual safety assessment within 14 days of registration; and (iv) allow for an in-person home visit within 30 days of approval. (B) for care in child’s home— (i) sign an agreement to maintain safe practices in the child’s home within 5 days of registration; and (ii) schedule a home familiarization visit with the family within 10 days of registration. (5) Training and education (A) Initial training The provider shall— (i) complete 20 hours of mandatory online health and safety training within 30 days of registration; (ii) achieve a minimum score of 80 percent on module quizzes to progress; and (iii) complete a standardized knowledge assessment within 7 days of completing all training modules. (B) Ongoing education The provider shall— (i) complete 10 hours of approved ongoing training annually; (ii) obtain and maintain certification in pediatric first aid and CPR; and (iii) submit certificates of completion for all training through the Kin Care Interface within 7 days of completion. (6) Operational requirements (A) Child care practices The provider shall— (i) care for no more than 6 children at a time, including the provider’s own children under age 13; (ii) maintain a daily log of all children in care; (iii) maintain direct sight or sound supervision of all children at all times; and (iv) make reasonable efforts to implement daily activities that support child's development and early learning, including reading and outdoor play. (B) Health and safety standards The provider shall— (i) maintain a smoke-free environment at all times during hours of operation; (ii) ensure all areas used for child care are free from visible safety hazards; (iii) implement safe sleep practices for infants and toddlers; (iv) store all medications and hazardous materials in locked containers out of children's reach; (v) maintain a fully stocked first aid kit and emergency preparedness plan; and (vi) have and maintain working carbon monoxide and smoke detectors and fire extinguisher(s). (C) Nutrition and meals If providing meals, the provider shall— (i) develop weekly meal plans that meet USDA Child and Adult Care Food Program (CACFP) guidelines; (ii) maintain current food handler's certification if preparing meals; and (iii) follow proper food safety and hygiene practices. (D) Program compliance and reporting (i) Kin Care interface utilization The provider shall submit weekly care hours through the Kin Care Interface within 2 days of the end of each care week. (ii) Financial responsibilities The provider shall report all income from child care services on annual tax returns. (iii) Incident reporting The provider shall— (I) report any injuries requiring medical attention within 24 hours of occurrence; and (II) report any suspected child abuse or neglect immediately to the appropriate authorities and the State agency. (iv) Cooperation with monitoring The provider shall— (I) participate in annual re-verification process, completing all requirements within 30 days of notification; (II) be available for random virtual check-ins during declared hours of operation; and (III) allow for both announced and unannounced in-person visits by State agency representatives. 305. child care practices for family, friend, and neighbor providers (a) Child-to-Provider ratio (1) An FFN provider shall not care for more than 4children at any given time, including the provider's own children under the age of 13. (2) The provider shall indicate via the Kin Care Interface the number, age, and initials of children cared for each day. (3) The provider shall ensure that no more than 2 children under the age of 2 are in care at any time. (4) For children with special needs, the provider shall adjust ratios as required by the child's individual care plan, in consultation with the child's parents and Kin Care Program administrators. 306. FFN provider verification procedures and ongoing monitoring (a) Development and maintenance of the Kin Care interface (1) System development The Secretary shall— (A) contract with a reputable software development firm to create the Kin Care Interface within 100 days after the date of the enactment of this Act; (B) ensure the interface is web-based and includes a mobile application version; (C) incorporate robust security measures, including end-to-end encryption and multi-factor authentication; (D) develop user-friendly interfaces for providers, parents, and State administrators; (E) be prepared to launch the Interface within one year of passage of this Act; (F) collect only minimum required data to meet the intent and requirements of this Act; and (G) ensure that at launch, the interface is available in at least English and Spanish, and that it is made available in all languages spoken by at least 1 percent of the U.S. population within one year of launch, and all languages spoken by at least 0.1 percent of the U.S. population within two years of launch. (2) Functionality requirements The Kin Care Interface shall include— (A) provider registration and profile management capabilities; (B) document upload capabilities for ID’s, background check results, and training certificates; (C) a secure messaging system between providers, parents, and State administrators; (D) an automated alert system for expired documents or pending re-verifications; (E) integration with State and Federal databases for background check verificationl; (F) a secure payment system, including a method for providing compensation to individuals who, at registration, lack a bank account; (G) capabilities for States or the Department to design or upload training modules, and for providers to complete said modules; and (H) all other functionalities as needed to carry out the provisions of this Act. (3) Ongoing maintenance The Secretary shall— (A) conduct quarterly system updates to address bugs and improve functionality; (B) perform annual security audits and penetration testing; and (C) maintain a 24/7 technical support helpline for users and State administrators. (4) Establishment of Federal guidelines (A) Identity verification standards The Secretary shall— (i) specify acceptable forms of government-issued photo ID; (ii) set requirements for third-party identity verification services; and (iii) define acceptable documents for address confirmation, such as utility bills no older than 60 days. (B) Background check standards The Secretary shall— (i) establish a comprehensive list of disqualifying offenses; and (ii) set standards for an appeals process for providers with concerning but non-disqualifying results. (C) Care setting assessment standards The Secretary shall— (i) develop a standardized checklist for virtual safety assessments which includes items necessary to ensure safety but do not present an undue burden to providers; (ii) establish means for providers to remedy any concerns and receive a timely re-assessment; and (iii) establish minimum photo/video documentation requirements for provider's home assessments. (D) Training and education standards The Secretary shall— (i) develop a mandatory online health and safety training curriculum; and (ii) require training to be available in at least 5 languages. (E) Ongoing monitoring and re-verification standards The Secretary shall— (i) set a 30-day window for annual re-verification completion; and (ii) establish required components of re-verification. (F) Continuous background check monitoring The Secretary shall— (i) establish partnerships with State law enforcement agencies for real-time arrest notifications for violent offenses, child abuse offenses, or offenses resulting in addition to sex offender registries. No such partnerships shall be construed by the Secretary or States as means to provide law enforcement agencies with information outside the relevant scope of the Kin Care program, notwithstanding information sharing required under existing State and Federal law; (ii) develop a system for providers to self-report new criminal charges or child protective services involvement within 48 hours; and (iii) set a 3-year cycle for full background check renewals. (G) Incident reporting and investigation The Secretary shall— (i) develop a standardized incident report form; and (ii) establish a tiered response system based on incident severity. (5) Compliance and enforcement The Secretary shall— (A) establish a graduated system of enforcement actions; and (B) develop an appeals process for providers facing adverse actions. (b) State agency responsibilities Each State agency shall— (1) designate a State-level administrator to oversee the Kin Care Interface; (2) review all provider registrations within 10 business days of submission; (3) conduct identity verification processes within specified timeframes; (4) administer background checks according to Federal guidelines; (5) conduct care setting verifications for both provider's home and child's home care settings; (6) verify completion of required training and education by providers; (7) manage the annual re-verification process for providers; (8) conduct random virtual check-ins with 5 percent of approved providers each month; (9) maintain a system for continuous background check monitoring; (10) manage the parent feedback system and respond to concerns in a timely manner; (11) investigate and respond to reported incidents according to the tiered response system; (12) implement compliance and enforcement actions as necessary; (13) provide quality improvement support to providers as needed; (14) submit required reports to the Secretary on program operations and outcomes; (15) establish a localized schedule of payment rates, and ensure timely payment to providers (no more than five business days after the end of a payment period); (16) ensure all State Kin Care Interface materials and related materials are available in, at minimum, all languages spoken by more than 1 percent of the population in their State; (17) establish a process for parents and providers to offer feedback, complaints and concerns regarding monitoring, enforcement and program operations; and (18) create or utilize an existing FFN advisory or governance structure to give input and oversee implementation; this committee must be provided data and information regarding the program including numbers of participants and participant complaints/concerns with program operations. (c) Reporting and evaluation (1) The Secretary shall establish a system for regular reporting and evaluation of the FFN Provider Verification Procedures and Ongoing Monitoring processes. (2) State agencies shall submit monthly and quarterly reports as specified by the Secretary. (3) The Secretary shall conduct an annual evaluation of the effectiveness of these procedures and make recommendations for improvements as necessary. (4) The States and Secretary shall gather participant experience data to understand barriers, administrative and paperwork burdens, use of technology challenges, etc., that may be limiting participation. 307. FFN Provider Payment Process (a) Payment rates (1) The Secretary shall establish a national base rate for FFN care that is no less than 75 percent of the State's rate for licensed family child care homes. (2) States may adjust the base rate to account for— (A) geographic cost of living differences; (B) number and ages of children in care; (C) non-traditional hours care (evenings, weekends, overnight); (D) care for children with special needs; (E) provider education and training levels; and (F) the Secretary shall review and update the national base rate annually to reflect changes in the cost of living and child care market rates. (b) Payment frequency and method (1) FFN providers shall submit number of weekly hours of service through the Kin Care Interface within 2 days of the end of each care week. (2) The Kin Care Interface shall automatically calculate payment amounts based on— (A) reported hours; (B) approved rate for the provider; and (C) any adjustments for non-traditional hours, special needs care, or other adjustments. (3) Parents shall verify reports via the Kin Care Interface within a reasonable timeframe. (c) Reporting and payment calculation (1) FFN providers shall submit weekly attendance reports through the Kin Care Interface within 2 days of the end of each care week. (2) The Kin Care Interface shall automatically calculate payment amounts based on— (A) reported attendance; (B) approved rate for the provider; (C) any adjustments for non-traditional hours or special needs care. (3) Parents shall verify the attendance reports within 1 day of submission by the provider. (d) Payment processing (1) The State agency shall process payments within 3 business days of verified submission. (2) The Kin Care Interface shall generate a detailed payment Statement for each pay period, accessible to both the provider and the State agency. (e) Overpayments and underpayments (1) In cases of overpayment due to error or misreporting— (A) the State agency shall notify the provider within 5 business days of discovery; and (B) recovery of overpayments shall be through reduced future payments, not to exceed 10 percent of each payment until the overpayment is recovered. (2) In cases of underpayment, The State agency shall issue an additional payment to correct the underpayment within 5 business days of discovery. (f) Payment for training and professional development (1) FFN providers shall be compensated at their regular rate for time spent in required training and professional development activities, which providers shall record as normal hours of service. (2) The State agency shall pay for any fees associated with required training courses or materials. (g) Tax reporting (1) The Kin Care Interface shall generate annual tax documents (e.g., 1099 forms) for FFN providers by January 31st of each year. (2) FFN providers shall be responsible for reporting all income and paying applicable taxes. (h) Payment disputes (1) FFN providers may file a payment dispute through the Kin Care Interface within 30 days of the payment date. (2) The State agency shall investigate and resolve payment disputes within 10 business days of filing. (3) If the dispute is not resolved to the provider's satisfaction, they may appeal to a designated State appeal board within 15 days of the State agency's decision. 308. Data privacy and security measures (a) Data protection standards (1) The Secretary shall establish comprehensive data protection standards for the Kin Care Interface, including— (A) end-to-end encryption for all data transmissions; (B) multi-factor authentication for user access; and (C) regular security audits and penetration testing. (2) All data stored in the Kin Care Interface shall be classified according to sensitivity level and protected accordingly. (b) Data collection and use (1) The Kin Care Interface shall collect only information necessary for program administration and evaluation. (2) Personal identifying information shall be used solely for the purposes of: (A) verifying eligibility; (B) facilitating payments; (C) conducting background checks; and (D) communicating with program participants. (c) Data sharing (1) Data sharing between State agencies and the Federal Government shall be governed by formal data sharing agreements. (2) Any data shared for research purposes shall be de-identified to protect individual privacy. (d) User rights FFN providers and parents shall have the right to— (1) access their personal data stored in the Kin Care Interface; (2) request corrections to inaccurate data; and (3) receive notification of any data breaches affecting their information within 72 hours. (e) Data retention and disposal (1) The Secretary shall establish data retention schedules for different types of data collected. (2) Data shall be securely disposed of when no longer necessary, using methods that prevent reconstruction. 309. Transition to licensed family child care (a) Transition support program (1) The Secretary shall establish a Transition Support Program to assist FFN providers in voluntarily becoming licensed family child care providers. (2) The program shall include— (A) guidance on State licensing requirements; (B) financial assistance for meeting licensing standards; and (C) mentorship from experienced licensed providers. (b) Eligibility FFN providers who have participated in the Kin Care Program for at least one year shall be eligible for the Transition Support Program. (c) Financial assistance Eligible providers may receive grants of up to $5,000 to cover costs associated with meeting licensing requirements, including— (1) home modifications for safety compliance; (2) purchase of required equipment and materials; and (3) fees for required training and certifications. (d) Training and education The State agency shall provide specialized training to support the transition, including— (1) business management for family child care; (2) advanced child development courses; and (3) curriculum planning and implementation. (e) Licensing process support The State agency shall assign a dedicated licensing navigator to each transitioning provider to assist with the licensing application and inspection process. 310. Supports for serving children with special needs (a) Specialized training (1) The Secretary shall develop a specialized training module for FFN providers caring for children with special needs. (2) The training shall cover— (A) understanding common disabilities and developmental delays; (B) adapting activities and environments; (C) collaborating with early intervention specialists; and (D) supporting families of children with special needs. (b) Enhanced payment rates FFN providers caring for children with diagnosed special needs shall receive an enhanced payment rate, to be determined by the State agency based on the child's specific needs. (c) Equipment and materials grants FFN providers may apply for grants of up to $1,000 annually to purchase specialized equipment or materials needed to care for children with special needs. (d) Support network The State agency shall facilitate a peer support network for FFN providers caring for children with special needs. 311. Collaboration with other early childhood programs (1) Coordination requirement State agencies shall establish formal coordination agreements with— (A) Early Head Start and Head Start programs; (B) State pre-kindergarten programs; (C) part C early intervention programs under IDEAl; and (D) State Child Care Resource and Referral Agencies. (2) Shared services The Secretary shall encourage and facilitate shared services among Kin Care and other early childhood programs, including— (A) joint professional development opportunities; (B) shared curriculum resources; and (C) coordinated developmental screening services. (3) Transition support State agencies shall develop protocols to support children's transitions between FFN care and other early childhood programs. (4) Data sharing The Secretary shall establish guidelines for appropriate data sharing between Kin Care and other early childhood programs to support coordinated services and program evaluation. 312. Evaluation and research (a) Annual program evaluation The Secretary shall conduct an annual evaluation of the Kin Care Program, assessing— (1) program reach and participation rates; (2) care practices; (3) family outcomes, including parental employment and economic stability; and (4) provider outcomes, including job satisfaction and financial stability. (b) Longitudinal study The Secretary shall commission a 10-year longitudinal study to assess the long-term impacts of participation in FFN care through the Kin Care Program. (c) Innovation research The Secretary shall establish a research grant program to study innovative approaches to supporting and enhancing FFN care. (d) Data collection The Kin Care Interface shall include mechanisms for ongoing data collection to support evaluation and research efforts. o State agencies shall be required to participate in all national evaluation efforts as a condition of receiving Kin Care Program funds. (e) Dissemination of findings The Secretary shall ensure wide dissemination of research findings through— (1) annual reports to Congress; (2) peer-reviewed journal publications; (3) presentations at national conferences; and (4) easily accessible summaries on the program website. (f) Continuous improvement (1) The Secretary shall establish a process for using evaluation and research findings to continuously improve the Kin Care Program. (2) This process shall include annual review and updating of program policies and practices based on the latest evidence. 313. Community engagement for the Kin Care Program (a) Establishment of local community advisory boards (1) LCAB’s Each State agency shall establish Local Community Advisory Boards (LCABs) to provide input on Kin Care Program implementation and operation. The State may establish a reasonable minimum population size for establishing LCABs, or have one LCAB cover multiple jurisdictions if necessary. (2) Composition Each LCAB shall consist of— (A) at least two FFN providers participating in the Kin Care Program; (B) at least two parents utilizing FFN care through the Kin Care Program; (C) one representative from the local child care resource and referral agency; (D) one early childhood education expert from a local college or university; (E) one representative from a local community-based organization serving families; (F) one representative from the local business community; (G) one representative from the local government; and (H) one expert from a local (or, if no local, Statewide) FFN-serving organization”. (3) Appointment and terms (A) The State agency shall develop a fair and transparent process for appointing LCAB members. (B) Members shall serve staggered three-year terms, with the possibility of reappointment for one additional term. (4) Responsibilities Each LCAB shall— (A) meet at least quarterly to review local Kin Care Program implementation; (B) provide recommendations to the State agency on program improvements; (C) assist in identifying and addressing barriers to program participation; (D) support community outreach efforts; and (E) submit an annual report to the State agency summarizing their activities and recommendations. (b) Community partnerships (1) The State agency shall establish formal partnerships with community organizations to support the Kin Care Program, including but not limited to— (A) faith-based organizations; (B) cultural and ethnic community groups; (C) public libraries; (D) community centers; (E) local health departments; (F) school districts; and (G) local businesses. (2) Partnership agreements Each partnership shall be formalized through a written agreement that outlines— (A) the roles and responsibilities of each party; (B) the resources each party will contribute; (C) the expected outcomes of the partnership; and (D) the duration of the partnership and conditions for renewal. (3) Collaboration activities Community partnerships shall focus on— (A) outreach to potential FFN providers and families; (B) providing venues for training and support group meetings; (C) offering complementary services to Kin Care Program participants; (D) assisting with culturally and linguistically appropriate program implementation; and (E) supporting program evaluation efforts. (c) Community outreach and engagement (1) Plan The State agency shall develop and implement a comprehensive community outreach and engagement plan that includes— (A) multilingual marketing materials about the Kin Care Program; (B) social media campaigns targeting potential FFN providers and families; (C) information sessions at community events and gatherings; (D) door-to-door outreach in targeted neighborhoods; (E) partnerships with local media outlets, including ethnic media; and (F) a dedicated community liaison position within the State agency. (2) Culturally responsive outreach The State agency shall ensure that all outreach efforts are culturally responsive and appropriate for the diverse communities served by the Kin Care Program. (3) Technology-based engagement The State agency shall utilize technology to enhance community engagement, including— (A) a mobile-friendly website with program information and resources; (B) text message reminders and updates for program participants; (C) virtual information sessions and webinars; and (D) an online community forum for FFN providers and families. (d) Community feedback mechanisms (1) Feedback channels The State agency shall establish multiple channels for ongoing community feedback, including— (A) an annual community survey on the Kin Care Program; (B) focus groups with diverse stakeholders; (C) a dedicated email address and phone line for community input; and (D) public comment periods for proposed program changes. (2) Feedback utilization The State agency shall— (A) Review all community feedback on a quarterly basis; (B) Incorporate relevant feedback into program improvement efforts; and (C) provide public responses to major themes in community feedback. (3) Community-based training and support The State agency shall collaborate with community partners to offer— (A) localized training sessions for FFN providers; (B) peer support groups in community settings; (C) family engagement activities; and (D) community-based child development workshops for parents and FFN providers. (4) Reporting and evaluation (A) The State agency shall include a community engagement section in its annual report to the Secretary, detailing— (i) LCAB activities and recommendations; (ii) outcomes of community partnerships; (iii) reach and impact of outreach efforts; (iv) summary of community feedback received; and (v) changes made to the program based on community input. (B) The Secretary shall evaluate the effectiveness of community engagement efforts as part of the annual Kin Care Program evaluation. (5) Funding for community engagement (A) The State agency shall allocate at least 5 percent of its Kin Care Program administrative budget to community engagement activities. (B) The Secretary shall provide supplemental grants to State agencies demonstrating innovative and effective community engagement strategies. (C) The Secretary shall establish a fund of $1,000,000 annually to issue grants to trusted FFN serving organizations in order for those organizations to conduct outreach, support enrollment in the program, and support FFN providers. The application for such a Fund shall be streamlined and simplified to the maximum extent possible under Federal law.