Respect Parents’ Childcare Choices Act

Bill: 119-s-535
Sponsor: full_name: Sen. Banks, Jim [R-IN]
Introduced: 2025-02-12
Policy area: Families
Subjects: Child care and development

Civil actions and liability

Congressional oversight

Family relationships

Fraud offenses and financial crimes

Income tax credits

Licensing and registrations

Marriage and family status

Religion

Social work, volunteer service, charitable organizations

State and local government operations

Tax treatment of families
Latest action: action_date: 2025-02-12
text: Read twice and referred to the Committee on Finance.

Summaries:

tv_txt: II 119th CONGRESS 1st Session S. 535 IN THE SENATE OF THE UNITED STATES February 12, 2025 Mr. Banks introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To reauthorize the Child Care and Development Block Grant Act of 1990, to improve access to relative caregivers, and for other purposes.

1. Short title This Act may be cited as the Respect Parents’ Childcare Choices Act . 2. Amendments to the Child Care and Development Block Grant Act of 1990 (a) Authorization of appropriations Section 658B of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858 ) is amended by striking this subchapter and all that follows and inserting the following: this subchapter, $14,000,000,000 for each of fiscal years 2026 through 2031. . (b) Application and plan Section 658E(c) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858c(c) ) is amended— (1) in paragraph (2)— (A) by striking subparagraph (A) and inserting the following: (A) Parental choice of providers Provide assurances that— (i) the parent or parents of each eligible child within the State, who receives or is offered child care services for which financial assistance is provided under this subchapter, are given the option to receive a child care certificate as defined in section 658P(2); and (ii) all direct services authorized in this subchapter will be provided via child care certificates. ; (B) in subparagraph (F)— (i) in clause (i), by inserting (not including in-home child care providers and relative caregivers) after within the State ; and (ii) in clause (ii), by inserting (other than in-home child care providers and relative caregivers) after described in clause (i) ; (C) in subparagraph (G)— (i) in clause (i)— (I) in the first sentence, by inserting (if any) after within the State ; and (II) in the second sentence, by inserting , except that such requirements shall not apply to in-home child care providers and relative caregivers before the period; and (ii) in clause (ii)(I), by striking (which may include encouraging the pursuit of postsecondary education), ; (D) in subparagraph (K)(i)(II)— (i) in item (aa), by inserting (not including in-home child care providers and relative caregivers or their facilities) before the semicolon; and (ii) in item (bb), by inserting (not including in-home child care providers and relative caregivers or their facilities) after facility in the State ; (E) in subparagraph (M), by adding at the end the following flush sentence: Nothing in this subchapter shall be construed to imply that States are required to provide a portion of the delivery of direct services through grants or contracts. ; (F) in subparagraph (N)— (i) by striking (N) and all that precedes clause (i) and inserting the following: (N) Protection for working and newly married parents ; (ii) in clause (i)(I)— (I) by striking 85 percent of ; and (II) by striking of the same size and inserting with the same number of children and parents as prescribed in section 658P(4) ; (iii) in clause (iii)— (I) by inserting before At the option the following: (I) Cessation of work, training, or education ; and (II) by adding at the end the following: (II) Marriage of an unmarried parent The plan shall certify that the State will not terminate assistance provided to carry out this subchapter based on a factor consisting of an unmarried parent's marriage which causes the family income to rise above the State median income for a family with the same number of children and parents as prescribed in section 658P(4), without continuing the assistance for at least 6 months after such marriage. ; (iv) in clause (iv)— (I) by striking for children of parents and inserting the following: “for children of— (I) parents ; and (II) by striking 85 percent of the State median income for a family of the same size and inserting the following: “the State median income for a family with the same number of children and parents as prescribed in section 658P(4); or (II) parents who married following the initial determination or most recent redetermination whose family income now exceeds the State’s income limit to qualify for such assistance due to the addition of their spouse’s income. ; and (G) by adding at the end the following: (W) Notification of program coverage for relative caregivers The plan shall certify that the State will— (i) clearly post on the State’s website described in subparagraph (E)(III); and (ii) annually notify the parents of each eligible child receiving a child care certificate under this subchapter that such certificates may be used— (I) as a payment to a relative caregiver including the child’s grandparent, great grandparent, adult sibling, aunt, or uncle; or (II) as a disbursement to married parents in which at least one parent is acting as a relative caregiver to the parent’s own eligible child, so long as such families are in compliance with the income and work requirements described in section 658P(4)(C)(iii). (X) Review of requirements on relative caregivers The plan shall include certification that the State will (at least once every 5 years) review State and local regulations, requirements, and licensing standards applicable to relative caregivers to identify burdensome or redundant requirements that are unnecessary to protect the health and safety of children and that— (i) limit or lower the number of relative caregivers who care for eligible children under this subchapter; or (ii) prevent parents from choosing to have a relative caregiver provide childcare for their eligible child. ; (2) in paragraph (3)(E)(ii), by striking 70 percent to fund direct services (provided by the State) in accordance with paragraph (2)(A) and inserting 90 percent to fund direct services (provided by the State) via child care certificates ; and (3) in paragraph (4)— (A) by redesignating subparagraph (C) as subparagraph (D); and (B) by inserting after subparagraph (B), the following: (C) Payment rate The State plan shall certify that the payment rate to relative caregivers is not less than 75 percent of the rate for family child care providers for children of the same age and in the same geographic location. . (c) Limitations Section 658F(b)(2) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858d(b)(2) ) is amended— (1) in the paragraph heading, by striking Sectarian and inserting Religious ; and (2) by striking sectarian and inserting religious . (d) Improving the quality of child care Section 658G of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858e ) is amended— (1) in subsection (a), by striking paragraphs (2) and (3) and inserting the following: (2) Amount of reservations Such State shall reserve and use— (A) not more than 9 percent of the funds described in paragraph (1) each year to carry out the activities described in paragraph (1); and (B) in addition to the funds reserved under subparagraph (A), 3 percent of the funds described in paragraph (1) to carry out the activities described in paragraph (1) and subsection (b)(4), as such activities relate to the quality of care for infants and toddlers. ; and (2) in subsection (b)(1)— (A) in subparagraph (F), by adding and at the end; (B) in subparagraph (G), by striking ; and and inserting a period; and (C) by striking subparagraph (H). (e) Reports Section 658K(a) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858i(a) ) is amended— (1) in paragraph (1)(B)(vii), by striking home care and inserting in-home care ; and (2) in paragraph (2)(C), by striking contracts, . (f) Hotline and Website Section 658L(b)(2)(B) of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858j(b)(2)(B) ) is amended— (1) in clause (iv), by striking and at the end; (2) in clause (v), by striking the period and inserting ; and ; and (3) by adding at the end the following: (vi) notice that the parents of eligible children may use child care certificates— (I) as a payment to a relative caregiver including the child’s grandparent, great grandparent, adult sibling, aunt, or uncle; or (II) as a disbursement to married parents in which at least one parent is acting as a relative caregiver to the parent’s own eligible child, so long as such families are in compliance with the income and work requirements described in section 658P(4)(C)(iii). . (g) Sectarian activities Section 658M of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858k ) is amended— (1) by striking subsection (a); and (2) by striking (b) Tuition .—With and inserting With . (h) Nondiscrimination Section 658N of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858l ) is amended— (1) in subsection (a)— (A) in paragraph (1)(B), by striking sectarian and inserting religious ; (B) in paragraph (3)— (i) by striking subparagraph (A); and (ii) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and (C) by striking paragraph (4) and inserting the following: (4) Protections for Religious Child Care Providers (A) In general A State receiving funds under this subchapter shall ensure that— (i) in licensing child care providers, the State shall not impose any requirement on a religious organization that results in the imposition of a greater burden on the religious organization when compared to the related burden imposed on any private nonreligious organization; (ii) in licensing child care providers, the State shall not impose a requirement on a religious organization to provide or comply with any document, agreement, covenant, memorandum of understanding, policy, or regulation, or to provide an assurance or notice, unless the State also imposes that requirement on nonreligious organizations; and (iii) a religious organization receiving funds under this subchapter that provides child care services shall retain its independence from State and local governments, including retaining the autonomy, right of expression, religious character or affiliation, authority over internal governance, or other aspects of the independence of such organization. (B) Requirements A religious organization receiving funds under this subchapter that provides child care services may— (i) retain religious terms in the organization's name; (ii) continue to carry out the organization's mission, including the definition, development, practice, and expression of its religious beliefs; (iii) use the organization's facilities to provide a program without concealing, removing, or altering religious art, icons, scriptures, or other symbols from the facilities; (iv) select, promote, or dismiss the members of the organization’s governing body, and the organization’s employees, on the basis of their acceptance of or adherence to the religious tenets of the organization; and (v) include religious references in the organization's mission statement and other chartering or governing documents. (C) Religious exemptions A religious organization’s exemptions, as provided in title VII of the Civil Rights Act of 1964 ( 42 U.S.C. 2000e et seq. ) (including exemptions from prohibitions of employment discrimination in section 702(a) of that Act ( 42 U.S.C. 2000e–1(a) )), title VIII of the Civil Rights Act of 1968 ( 42 U.S.C. 3601 et seq. ), title IX of the Education Amendments of 1972 ( 20 U.S.C. 1681 et seq. ), the Americans with Disabilities Act of 1990 ( 42 U.S.C. 12101 et seq. ), the Religious Freedom Restoration Act of 1993 ( 42 U.S.C. 2000bb et seq. ), the Religious Land Use and Institutionalized Persons Act of 2000 ( 42 U.S.C. 2000cc et seq. ), or any other provision in law providing an exemption for a religious organization, shall not be waived because of the religious organization's receipt of funds under this subchapter. (D) Private right of action Any religious organization that alleges a violation of its rights under this paragraph and seeks to enforce such rights— (i) may bring an action in a court of competent jurisdiction and assert that violation as a claim, or assert that violation as a defense in a civil action; and (ii) may obtain appropriate relief, including attorney’s fees, against an entity or agency that committed such violation. ; and (2) in subsection (b), by striking sectarian each place it appears and inserting religious . (i) Definitions Section 658P of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858n ) is amended— (1) by striking paragraph (2) and inserting the following: (2) Child care certificate (A) In general The term child care certificate means a certificate (that may be a check or other disbursement) that is issued by a State or local government under this subchapter directly to a parent who may use such certificate— (i) as payment for child care services; (ii) as a deposit for child care services if such a deposit is required of other children being cared for by the provider; or (iii) as a disbursement to married parents described in paragraph (4)(C)(iii) in which at least one parent is acting as a relative caregiver to the parent’s own child, so long as such disbursement is not less than the payment rate set for other relative caregivers for children of the same age and in the same geographic location. (B) Rule of construction Nothing in this subchapter shall be construed to allow State or Federal agencies to preclude the use of such certificates for child care services provided by a religious child care provider if such services are freely chosen by the parent. Such certificates may be expended by providers for any religious purpose or activity that is a part of the child care services, including religious worship and instruction. (C) Not grants or contracts For purposes of this subchapter, child care certificates shall not be considered to be grants or contracts. ; (2) in paragraph (4), by striking subparagraphs (B) and (C) and inserting the following: (B) whose family assets do not exceed $1,000,000 (as certified by a member of such family); and (C) who— (i) resides in a family that is headed by an unmarried person who is the child’s parent, who is working or attending a job training or educational program, and that has a family income that does not exceed 85 percent of the State median income for a family with the same number of children headed by an unmarried person, based on the most recent data that is published by the Bureau of the Census; (ii) resides in a family that is headed by two married persons who are the child’s parents, who are both working or attending a job training or educational program, and that has a family income that does not exceed 70 percent of the State median income for a family with the same number of children headed by two married persons, based on the most recent data that is published by the Bureau of the Census; (iii) resides in a family that is headed by two married persons who are the child’s parents, and who work a combined total of at least 40 hours per week and that has one or both parents acting as a relative caregiver for the child, with a family income that does not exceed 70 percent of the State median income for a family with the same number of children headed by two married persons, based on the most recent data that is published by the Bureau of the Census; or (iv) is receiving, or needs to receive, protective services and resides with a parent or parents not described in clause (i), (ii), or (iii). ; (3) in paragraph (6)— (A) in subparagraph (A), by striking a group home child care provider ; and (B) by striking subparagraph (B) and inserting the following: (B) a relative caregiver or in-home child care provider, if such caregiver or other provider complies with any applicable requirements that govern child care provided by the type of provider involved. ; (4) in paragraph (7)— (A) by striking one individual who provides and inserting one or more individuals who provide ; and (B) by striking as the sole caregiver, and ; (5) by redesignating paragraphs (8), (9), (10), (11), (12), (13), (14), and (15) as paragraphs (9), (10), (11), (13), (14), (15), (16), and (17), respectively; (6) by inserting after paragraph (7), the following: (8) In-home child care provider The term in-home child care provider means an individual who provides child care services (excluding services provided by a family child care provider) in the child’s own home. ; and (7) by inserting after paragraph (11) (as so redesignated), the following: (12) Relative caregiver The term relative caregiver means a child care provider that is 18 years of age or older who provides child care services only to eligible children who are, by affinity or consanguinity, or by court decree, the child (if the parent or parents acting as a relative caregiver are married and work a combined total of at least 40 hours per week), grandchild, great grandchild, sibling, niece, or nephew of such provider. . (j) Parental rights Section 658Q of the Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9858o ) is amended— (1) by striking (a) In General .— ; and (2) by striking subsection (b). (k) Fraud prevention and increased relative caregiving The Child Care and Development Block Grant Act of 1990 ( 42 U.S.C. 9857 et seq. ) is amended by adding at the end the following: 658T. Pilot grant program to prevent fraud (a) In general Not later than 1 year after the date of the enactment of this section, the Secretary shall establish and implement a 2-year pilot program to award grants to States to increase the State’s ability to— (1) verify that children receiving assistance under this subchapter meet eligibility criteria at the time of eligibility determination and redetermination; (2) prevent payments to ineligible children; (3) verify the relationship of relative caregivers to eligible children; (4) identify cases of fraud and intentional program violation by child care providers; and (5) recover payments that are the result of fraud. (b) Authorization of appropriations There is authorized to be appropriated $50,000,000 to carry out this section. 658U. Increasing Relative Caregiving (a) In general Not later than 1 year after the date of the enactment of this section, the Secretary shall submit to Congress and make publicly available a report on regulations that prevent family members from acting as relative caregivers to eligible children under this subchapter. (b) Contents The report required under this section shall include the following: (1) A list of the provisions under this subchapter and other Federal laws that decrease the number of relative caregivers. (2) A description of State or local government policies, regulations, or licensing standards that decrease the number of relative caregivers or that place burdensome requirements upon such caregivers beyond basic health and safety requirements. (3) Recommendations and legislative proposals for Congress, State legislatures, and State lead agencies to lessen or remove unnecessary, burdensome regulations that prevent family members (including parents, grandparents, adult siblings, aunts, and uncles) from providing child care for eligible children under this subchapter. (c) Pilot programs Not later than 1 year after the date of the enactment of this section, the Secretary shall establish and implement a 2-year pilot program to award grants to States to carry out innovative State programs to promote child care provided by relative caregivers and to increase the number of relative caregivers providing child care to eligible children under this subchapter. (d) Authorization of appropriations There is authorized to be appropriated $50,000,000 to carry out this section. . 3. Repeal of credit for expenses for household and dependent care services (a) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 21. (b) Conforming amendments (1) Section 23(f)(1) of the Internal Revenue Code of 1986 is amended to read as follows: (1) Rules for married couples (A) Married couples must file joint return If the taxpayer is married at the close of the taxable year, the credit shall be allowed under subsection (a) only if the taxpayer and his spouse file a joint return for the taxable year. (B) Marital status An individual legally separated from his spouse under a decree of divorce or of separate maintenance shall not be considered as married. (C) Certain married individuals living apart If— (i) an individual who is married and who files a separate return— (I) maintains as his home a household which constitutes for more than one-half of the taxable year the principal place of abode of a qualifying individual, and (II) furnishes over half of the cost of maintaining such household during the taxable year, and (ii) during the last 6 months of such taxable year such individual's spouse is not a member of such household, such individual shall not be considered as married. . (2) Section 35(g)(6) of such Code is amended to read as follows: (6) Marital status; certain married individuals living apart Rules similar to the rules of subparagraphs (B) and (C) of section 23(f)(1) shall apply for purposes of this section. . (3) Section 129(a)(2)(C) of such Code is amended to read as follows: (C) Marital status For purposes of this paragraph, marital status shall be determined under the rules of subparagraphs (B) and (C) of section 23(f)(1). . (4) Section 129(b)(2) of such Code is amended to read as follows: (2) Special rules for spouse who is a student or incapable of caring for self In the case of a spouse who is a student or an individual described in subsection (e)(1)(B)(ii)(III) (determined without regard to the amount of time spent in the taxpayer's household), for purposes of paragraph (1), such spouse shall be deemed for each month during which such spouse is a full-time student at an educational institution, or is an individual so described in subsection (e)(1)(B)(ii)(III), to be gainfully employed and to have earned income of not less than— (A) $250 if there is 1 individual described in subclauses (I) through (III) of subsection (e)(1)(B) with respect to the taxpayer for the taxable year, or (B) $500 if there are 2 or more such individuals with respect to the taxpayer for the taxable year. In the case of any husband and wife, this paragraph shall apply with respect to only one spouse for any month. . (5) Section 129(e)(1) of such Code is amended— (A) by striking The term and inserting the following: (A) In general The term , (B) by striking under section 21(b)(2) (relating to expenses for household and dependent care services necessary for gainful employment) , and (C) by adding at the end the following: (B) Employment-related expenses (i) In general The term employment-related expenses means amounts paid for the following expenses, but only if such expenses are incurred to enable the taxpayer to be gainfully employed for any period for which there are 1 or more qualifying individuals with respect to the taxpayer: (I) Expenses for household services, and (II) Expenses for the care of a qualifying individual. Such term shall not include any amount paid for services outside the taxpayer's household at a camp where the qualifying individual stays overnight. (ii) Exception Employment-related expenses described in clause (i) which are incurred for services outside the taxpayer's household shall be taken into account only if incurred for the care of— (I) a dependent of the taxpayer (as defined in section 152(a)(1)) who has not attained age 13, (II) a dependent of the taxpayer (as defined in section 152, determined without regard to subsections (b)(1), (b)(2), and (d)(1)(B)) who is physically or mentally incapable of caring for himself or herself, who has the same principal place of abode as the taxpayer for more than one-half of such taxable year, and who regularly spends at least 8 hours each day in the taxpayer's household, or (III) the spouse of the taxpayer, if the spouse is physically or mentally incapable of caring for himself or herself, has the same principal place of abode as the taxpayer for more than one-half of such taxable year, and regularly spends at least 8 hours each day in the taxpayer's household. (iii) Dependent Care Centers Employment-related expenses described in clause (i) which are incurred for services provided outside the taxpayer's household by a dependent care center shall be taken into account only if— (I) such center complies with all applicable laws and regulations of a State or unit of local government, and (II) The requirements of clause (ii) are met. (iv) Dependent Care Center Defined For purposes of this paragraph, the term dependent care center means any facility which— (I) provides care for more than six individuals (other than individuals who reside at the facility), and (II) receives a fee, payment, or grant for providing services for any of the individuals (regardless of whether such facility is operated for profit). . (6) Section 213 of such Code is amended by striking subsection (e). (7) Section 6213(g)(2) of such Code is amended— (A) in subparagraph (H), by striking section 21 (relating to expenses for household and dependent care services necessary for gainful employment) or , and (B) in subparagraph (L), by striking 21, . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.