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Child Care Modernization Act of 2025

Introduced Sep 17, 2025 · Last action Mar 19, 2026 Committee on Health, Education, Labor, and Pensions. Hearings held.

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Summary

This legislation is called the Child Care Modernization Act of 2025. Committee on Health, Education, Labor, and Pensions. Hearings held.

Full bill text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2828 Introduced in Senate (IS)]

<DOC>

119th CONGRESS
  1st Session
                                S. 2828

  To amend the Child Care and Development Block Grant Act of 1990 to
        reauthorize and update the Act, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

           September 17 (legislative day, September 16), 2025

   Mrs. Fischer (for herself, Mrs. Gillibrand, Ms. Collins, and Mr.
 Hickenlooper) introduced the following bill; which was read twice and
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

  To amend the Child Care and Development Block Grant Act of 1990 to
        reauthorize and update the Act, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Child Care Modernization Act of
2025''.

SEC. 2. PURPOSES.

    (a) Redesignation.--Section 658A of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9857) is redesignated as section 658
of such Act.
    (b) Amendment.--Subsection (b) of that section 658 is amended to
read as follows:
    ``(b) Purposes.--The purposes of this subchapter are--
            ``(1) to allow each State maximum flexibility in developing
        and implementing a mixed delivery system to provide child care
        that best suits the needs of children and working parents
        within that State;
            ``(2) to promote parental choice to empower working parents
        to make their own decisions regarding the child care services
        that best suit their family's needs;
            ``(3) to encourage States to provide consumer education
        information to help parents make informed choices about child
        care services and to promote involvement by parents and family
        members in the development of their children in child care
        settings;
            ``(4) to assist States in delivering high-quality,
        coordinated child care services to maximize parents' options to
        cover the full workday and full work year, to support
        continuity of care for children, and to support parents trying
        to achieve independence from public assistance;
            ``(5) to assist States in improving the overall quality of
        child care by implementing the health, safety, licensing, early
        learning and development, professional, and oversight standards
        established in this subchapter and in State law (including
        State regulations);
            ``(6) to assist States--
                    ``(A) in supporting the educational and
                professional development of child care staff; and
                    ``(B) in supporting child care providers in the
                recruitment of, professional development for, and
                retention of a qualified child care workforce; and
            ``(7) to increase the number and percentage of low-income
        children in high-quality child care settings.''.

SEC. 3. DEFINITIONS.

    (a) In General.--Section 658P of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--
            (1) by redesignating paragraphs (5) through (7), (8) and
        (9), and (10) through (15), as paragraphs (6) through (8), (10)
        and (11), and (13) through (18), respectively;
            (2) in paragraph (3)--
                    (A) in subparagraph (B), by inserting ``and'' at
                the end;
                    (B) in subparagraph (C), by striking ``; and'' at
                the end and inserting a period; and
                    (C) by striking subparagraph (D);
            (3) by striking paragraph (4) and inserting the following:
            ``(4) Eligible activity.--The term `eligible activity',
        means an activity consisting of--
                    ``(A) full-time or part-time employment;
                    ``(B) self-employment;
                    ``(C) job search activities;
                    ``(D) job training;
                    ``(E) secondary, postsecondary, or adult education,
                including education through a program of high school
                classes, a course of study at an institution of higher
                education, classes towards an equivalent of a high
                school diploma recognized by State law, or English as a
                second language classes;
                    ``(F) health treatment (including mental health and
                substance use treatment) for a condition that prevents
                the parent involved from participating in other
                eligible activities;
                    ``(G) activities to prevent child abuse or neglect,
                or family violence prevention or intervention
                activities;
                    ``(H) employment and training activities under the
                employment and training program, of the supplemental
                nutrition assistance program, established under section
                6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C.
                2015(d)(4));
                    ``(I) employment and training activities under the
                Workforce Innovation and Opportunity Act (29 U.S.C.
                3101 et seq.);
                    ``(J) a work activity described in subsection (d)
                of section 407 of the Social Security Act (42 U.S.C.
                607) for which, consistent with clauses (ii) and (iii)
                of section 402(a)(1)(A) of such Act (42 U.S.C.
                602(a)(1)(A)), a parent is treated as being engaged in
                work for a month in a fiscal year for purposes of the
                program of block grants to States for temporary
                assistance for needy families established under part A
                of title IV of the Social Security Act (42 U.S.C. 601
                et seq.); or
                    ``(K) taking leave under the Family and Medical
                Leave Act of 1993 (29 U.S.C. 2601 et seq.) (or
                equivalent provisions for Federal employees), a State
                or local paid or unpaid leave law, or a program of
                employer-provided leave.
            ``(5) Eligible child.--The term `eligible child' means an
        individual--
                    ``(A) who is less than 13 years of age;
                    ``(B)(i) whose family income does not exceed--
                            ``(I) 85 percent of the State median income
                        for a family of the same size; or
                            ``(II) a higher percentage of that income
                        in a State with a waiver under section
                        658I(c)(1)(B); and
                    ``(ii) whose family assets do not exceed $1,000,000
                (as certified by a member of such family); and
                    ``(C) who--
                            ``(i) resides with a parent or parents who
                        are participating in an eligible activity;
                            ``(ii) is a child experiencing
                        homelessness, a child in kinship care, or a
                        child who is receiving, or needs to receive,
                        child protective services; or
                            ``(iii) resides with a parent who is more
                        than 65 years of age.'';
            (4) in paragraph (7), as so redesignated--
                    (A) in subparagraph (A), by striking ``or'' at the
                end;
                    (B) in subparagraph (B), by striking the period at
                the end and inserting ``; or'';
                    (C) by added at the end the following:
                    ``(C) notwithstanding section 645(a)(1)(B) of the
                Head Start Act (42 U.S.C. 9840(a)(1)(B)), a Head Start
                agency.''; and
                    (D) by adding at the end the following flush
                sentence:
        ``Notwithstanding subparagraph (B), a licensed, regulated, or
        registered child care provider (or a staff member of the child
        care provider) who is otherwise eligible for assistance under
        this Act shall continue to be eligible for such assistance for
        the care of children for whom the provider is the legal parent
        if other eligible children with respect to whom such provider
        is not the legal parent are also being cared for by that
        provider.'';
            (5) by striking paragraph (8), as so redesignated, and
        inserting the following:
            ``(8) Family child care provider.--The term `family child
        care provider' means an individual who provides child care
        services in a private residence--
                    ``(A) for fewer than 24 hours per day per child; or
                    ``(B) for 24 hours per day per child due to the
                nature of the work of the parent involved.
            ``(9) Homeless child.--The term `homeless child' means an
        individual described in section 725(2) of the McKinney-Vento
        Homeless Assistance Act (42 U.S.C. 11434a(2)).'';
            (6) in paragraph (10), as so redesignated, by striking
        ``(10)'' and all that follows through ``meaning'' and inserting
        the following:
            ``(10) Indian tribe; indian tribe.--The term `Indian Tribe'
        or `Indian tribe' has the meaning'';
            (7) by inserting after paragraph (11), as so redesignated,
        the following:
            ``(12) Mixed delivery system.--The term `mixed delivery
        system' means a system of child care services that--
                    ``(A) promotes parental choice to empower working
                parents to make their own decisions regarding the child
                care services that best suit their family's needs;
                    ``(B) delivers services through a combination of
                programs offered by eligible child care providers
                (including faith-based and community-based child care
                providers) in a variety of settings (including family
                child care homes, child care centers, Head Start
                centers, and public and private schools); and
                    ``(C) may be supported with a combination of public
                and private funds.'';
            (8) in paragraph (15), as so redesignated, by striking
        ``unless the context specifies otherwise'' and inserting
        ``except as otherwise specified''; and
            (9) in paragraph (18), as so redesignated, by striking
        ``(18)'' and all that follows through ``has the meaning'' and
        inserting the following:
            ``(18) Tribal organization; tribal organization.--
                    ``(A) In general.--The term `Tribal organization'
                or `tribal organization' has the meaning''.
    (b) Redesignation.--The Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9857 et seq.) is amended--
            (1) by redesignating section 658P as section 658A; and
            (2) by moving section 658A, as so redesignated, to follow
        section 658, as redesignated by section 2.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    (a) Part.--The Child Care and Development Block Grant Act of 1990
is amended by inserting before section 658B the following:

                    ``PART I--CHILD CARE SERVICES''.

    (b) In General.--Section 658B of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858) is amended to read as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this
subchapter (other than section 658T) such sums as may be necessary for
each of fiscal years 2026 through 2030.''.

SEC. 5. LEAD AGENCY.

    Section 658D(b) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858b(b)) is amended by striking paragraph (2) and
inserting the following:
            ``(2) Development of plan.--The lead agency shall develop
        the State plan described in paragraph (1)(B) in meaningful
        consultation with--
                    ``(A) parents of children eligible for services
                under this subchapter, which shall include parents of
                children in a priority population described in section
                658E(c)(2)(M);
                    ``(B) eligible child care providers that represent
                the various geographic areas and types of providers in
                the State;
                    ``(C) employers of various sizes and with various
                hours and days of operations whose employees rely on
                reliable and accessible child care to work; and
                    ``(D) appropriate representatives of units of
                general purpose local government and, as appropriate,
                of Indian Tribes and Tribal organizations.''.

SEC. 6. 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) in subparagraph (A)(i)(I), by striking ``a
                child'' and inserting ``an eligible child'';
                    (B) in subparagraph (D), by striking ``, not
                later'' and all that follows through ``subparagraph
                (K)(i),'';
                    (C) in subparagraph (E)(i)--
                            (i) in the matter preceding subclause (I),
                        by inserting ``, offered through a mixed
                        delivery system,'' after ``full diversity of
                        child care services'';
                            (ii) in subclause (I), by inserting
                        ``(including information on the hours and days
                        of operation and ages served)'' after ``of
                        child care services''; and
                            (iii) in subclause (IV)--
                                    (I) by striking ``and'' before
                                ``the Medicaid''; and
                                    (II) by inserting before the
                                semicolon the following: ``, and the
                                Maternal, Infant, and Early Childhood
                                Home Visiting Programs under section
                                511 of the Social Security Act (42
                                U.S.C. 711)'';
                    (D) in subparagraph (G)--
                            (i) in the subparagraph heading, by
                        striking ``Training and professional'' and
                        inserting ``Professional'';
                            (ii) in clause (i) and clause (ii) (in the
                        matter preceding subclause (I)), by striking
                        ``training and'' before ``professional
                        development'';
                            (iii) in clause (ii)(II), by striking ``,
                        and may engage'' and all that follows through
                        ``training framework''; and
                            (iv) in clause (iii), by striking
                        ``training'' and inserting ``professional
                        development'';
                    (E) in subparagraph (I)(i)(IX), by striking ``if
                applicable,'';
                    (F) in subparagraph (J)--
                            (i) by striking ``that procedures'' and
                        inserting the following: ``that--
                            ``(i) procedures'';
                            (ii) by striking the period at the end and
                        inserting ``; and''; and
                            (iii) by adding at the end the following:
                            ``(ii) the State will undertake a review of
                        State and local health and safety requirements
                        (including requirements for inspections under
                        this subchapter and the child and adult care
                        food program established under section 17 of
                        the Richard B. Russell National School Lunch
                        Act (42 U.S.C. 1766)) to determine redundancies
                        and oversights that may exist, to ensure--
                                    ``(I) children receive child care
                                services in healthy and safe
                                environments; and
                                    ``(II) child care providers can
                                easily identify, understand, and comply
                                with applicable health and safety
                                requirements.'';
                    (G) in subparagraph (K)(i)--
                            (i) in the matter preceding subclause (I),
                        by striking ``, not later'' and all that
                        follows through ``2014,''; and
                            (ii) in subclause (IV), by striking
                        ``section 658P(6)(B)'' and inserting ``section
                        658A(7)(B)'';
                    (H) in subparagraph (M)--
                            (i) by redesignating clauses (ii) through
                        (iv) as clauses (iv) through (vi),
                        respectively;
                            (ii) by striking clause (i) and inserting
                        the following:
                            ``(i) children in underserved areas,
                        including areas that have significant
                        concentrations of poverty or unemployment and
                        that do not have a sufficient supply of
                        eligible child care providers;
                            ``(ii) children experiencing homelessness,
                        children in foster care, children in kinship
                        care, and children who are receiving, or need
                        to receive, child protective services; and
                            ``(iii) children in rural areas;''; and
                            (iii) in clause (v), as so redesignated, by
                        striking ``, as defined by the State'';
                    (I) in subparagraph (N)(iii), by striking ``At the
                option of the State, the'' and inserting ``The'';
                    (J) in subparagraph (O)(i), by striking ``full-day
                services'' and inserting ``full workday and full work
                year services'';
                    (K) in subparagraph (S)(ii), by striking ``, to the
                extent'' and all that follows through ``fixed costs''
                and inserting ``implement enrollment and eligibility
                policies that support the fixed and operational
                costs'';
                    (L) in subparagraph (T)(i), by striking ``or
                implement'' and all that follows through ``of 2014)''
                and inserting ``and implement developmental
                guidelines'';
                    (M) in subparagraph (U)--
                            (i) in clause (ii), by inserting ``State
                        and local health agencies,'' after ``licensing
                        of child care providers,''; and
                            (ii) in clause (iii)(II), by striking
                        ``following the emergency or disaster, which
                        may include'' and inserting ``during and
                        following the emergency or disaster, which
                        shall include guidelines for'';
                    (N) in subparagraph (V), by striking ``develop''
                and all that follow through ``services.'' and inserting
                ``support child care business technical assistance
                including supporting--
                            ``(i) provision of strategies to support
                        management coaching and the use of core best
                        business practices;
                            ``(ii) development and use of shared
                        services initiatives including initiatives
                        involving provider networks such as child care
                        center alliances and family child care provider
                        networks; and
                            ``(iii) coordination of activities with
                        programs of the Small Business Administration,
                        programs of the Department of Agriculture, and
                        other Federal, State, and local programs
                        supporting child care businesses.''; and
                    (O) by adding at the end the following:
                    ``(W) Benchmarks.--The plan shall include
                benchmarks for the indicators described in the clauses
                of section 658K(a)(3)(B).'';
            (2) in paragraph (3)--
                    (A) in subparagraph (B)(ii), by striking ``Not
                later'' and all that follows through ``shall prepare''
                and inserting ``Not later than September 30 of each
                fiscal year, the Secretary shall prepare''; and
                    (B) in subparagraph (D)--
                            (i) by striking ``with respect to'' and all
                        that follows through ``2020'' and inserting
                        ``with respect to each fiscal year)''; and
                            (ii) by striking ``described in clause (i),
                        (ii), (iii), or (iv) of'' and inserting ``in
                        priority populations described in'';
            (3) in paragraph (4)--
                    (A) by striking subparagraphs (A) and (B) and
                inserting the following:
                    ``(A) In general.--The State plan shall certify
                that, not later than the later of the date that is 5
                years after the date of submission of the application,
                and September 30, 2031, payment rates for the provision
                of child care services for which assistance is provided
                in accordance with this subchapter--
                            ``(i) will be sufficient to meet the cost
                        of providing the child care services, including
                        the fixed and operational costs of providing
                        the child care services; and
                            ``(ii) will be set and paid in accordance
                        with a cost estimation model described in
                        subparagraph (B).
                    ``(B) Cost estimation model.--The State plan
                shall--
                            ``(i) demonstrate that the State, after
                        consulting with eligible child care providers
                        that represent the various geographic areas of
                        the State and types of providers within the
                        State's mixed delivery system, State and local
                        child care program administrators, local child
                        care resource and referral agencies, and other
                        appropriate entities, has developed and uses
                        (or if the State has not used such a model
                        certify that the State, after such consultation
                        but not later than the later of the date that
                        is 5 years after the date of submission of the
                        application described in subsection (a), and
                        September 30, 2031, will develop and use) a
                        statistically valid and reliable cost
                        estimation model for the direct payment rates
                        for providers of child care services in the
                        State, that--
                                    ``(I) reflects the costs of service
                                delivery, including fixed costs and
                                operating expenses;
                                    ``(II) reflects the cost of staff
                                salaries and benefits necessary to
                                sufficiently recruit, train, and retain
                                a qualified child care workforce;
                                    ``(III) reflects variations in the
                                costs of service delivery by submarket,
                                type of provider, and children served,
                                including by--
                                            ``(aa) geographic area
                                        (such as location in a urban or
                                        rural area);
                                            ``(bb) ages of children;
                                            ``(cc) whether the children
                                        have particular needs (such as
                                        needs of children with
                                        disabilities and children
                                        served by child protective
                                        services);
                                            ``(dd) whether the
                                        providers provide services
                                        during weekend and other
                                        nontraditional hours; and
                                            ``(ee) quality of child
                                        care provider as determined by
                                        the State; and
                                    ``(IV) is reviewed once every 2
                                years and adjusted to--
                                            ``(aa) ensure payment rates
                                        remain sufficient to meet the
                                        requirements of this
                                        subchapter; and
                                            ``(bb) provide a cost of
                                        living increase to maintain the
                                        level of services provided
                                        during the year prior to the
                                        review; and
                            ``(ii) describe how the State will provide
                        for timely payments, set in accordance with the
                        model described in clause (i), for child care
                        services provided under this subchapter.'';
                    (B) in subparagraph (C)--
                            (i) by striking clause (ii); and
                            (ii) by striking ``(C)'' and all that
                        follows through ``Nothing'' and inserting the
                        following:
                    ``(C) Construction.--Nothing''; and
                    (C) by adding at the end the following:
                    ``(D) No federal control.--The Secretary may offer
                guidance to States on cost estimation models described
                in subparagraph (B), but shall not require a State to
                adopt a particular cost estimation model or an element
                of a particular cost estimation model (except that the
                model shall meet the requirements of subparagraph
                (B)(i)).''; and
            (4) by striking paragraph (5) and inserting the following:
            ``(5) Sliding fee scale.--The State plan shall provide that
        the State will establish and periodically revise by rule a
        sliding fee scale to determine a full copayment for a family
        receiving assistance under this subchapter (or, for a family
        receiving part-time care, a reduced copayment that is an
        appropriate amount of the full copayment) and that is not a
        barrier that restricts families from accessing child care
        services under this subchapter.''.

SEC. 7. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

    Section 658G(a) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858e(a))--
            (1) in paragraph (1), by adding at the end the following:
        ``The State shall include, in the State's activities,
        developing and expanding initiatives to assist child care
        providers in their efforts to recruit, train, and retain a
        qualified child care workforce.''; and
            (2) in paragraph (2)--
                    (A) by striking subparagraph (A) and inserting the
                following:
                    ``(A) to carry out the activities described in
                paragraph (1), not less than 9 percent of the funds
                described in paragraph (1) for each fiscal year; and'';
                and
                    (B) in subparagraph (B), by striking ``received not
                later'' and all that follows through ``succeeding full
                fiscal year'' and inserting ``received for each fiscal
                year''.

SEC. 8. WAIVERS OF INCOME REQUIREMENT.

    Section 658I(c) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858g(c)) is amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by
                striking ``of not more than three years'' and inserting
                ``described in paragraph (5)'';
                    (B) in subparagraph (A), by striking ``(A)'' and
                inserting ``(A)(i)'';
                    (C) in subparagraph (B), by striking ``(B)'' and
                inserting the following:
                            ``(ii)'';
                    (D) in subparagraph (C), by striking ``(C)'' and
                inserting the following:
                            ``(iii)'';
                    (E) in subparagraph (D)--
                            (i) by striking ``(D)'' and inserting the
                        following:
                            ``(iv)''; and
                            (ii) in clause (iv), as so redesignated, by
                        striking the period and inserting ``; or''; and
                    (F) by adding at the end the following:
                    ``(B) the State, on the date of the request, has a
                maximum income standard that meets section
                658A(5)(B)(i), and requests the waiver to raise that
                standard.'';
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by striking ``and'' at the
                end;
                    (B) in subparagraph (C), by striking the period and
                inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) if the State seeks a waiver of section
                658A(5)(B)(i)(I) under paragraph (1)(B) include--
                            ``(i) the maximum income standard that the
                        State wishes to use;
                            ``(ii) such information as determined
                        necessary by the Secretary to demonstrate that
                        the State is serving all eligible children to
                        the best of the State's ability below the
                        maximum income standard in that section, and
                        will continue to prioritize and serve all
                        eligible children below the maximum income
                        standard if a waiver under paragraph (1)(B)
                        should be approved;
                            ``(iii) information demonstrating that the
                        State is meeting the requirements of the State
                        plan under section 658E(c), particularly the
                        requirements of subparagraphs (M) and (Q) of
                        paragraph (2) of that section; and
                            ``(iv) information demonstrating that the
                        payment rates described in that section are set
                        and paid in accordance with a cost estimation
                        model described in section 658E(c)(4)(B).'';
            (3) in paragraph (7)--
                    (A) by striking ``The Secretary may'' and inserting
                the following:
                    ``(A) General renewals.--The Secretary may'';
                    (B) in the first sentence, by inserting before the
                period the following: ``, in the case of a request for
                a waiver of a provision other than section
                658A(5)(B)(i)(I)'';
                    (C) in the second sentence, by striking ``seeking
                to renew their waiver approval'' and inserting
                ``seeking that renewal'';
                    (D) in the third sentence, by striking ``extension
                request'' and inserting ``renewal request''; and
                    (E) by adding at the end the following:
                    ``(B) Renewals of income requirement waivers.--A
                State may seek a renewal, of an existing waiver of
                section 658A(5)(B)(i)(I) under paragraph (1)(B)
                (including a previously renewed waiver), for a period
                no longer than 3 years. A State seeking that renewal
                shall inform the Secretary of this intent no later than
                30 days prior to the expiration date of the waiver. The
                State shall re-certify in its renewal request the
                provisions in paragraph (2). On determining that the
                State has accurately re-certified those provision, the
                Secretary shall grant the renewal.''; and
            (4) in paragraph (8)--
                    (A) by inserting ``, other than paragraph (1)(B),''
                after ``this subchapter'' each place the term appears;
                and
                    (B) by adding at the end the following: ``Nothing
                in this subsection, including paragraph (1)(B), shall
                be construed to permit a State to deny or limit access
                to, or increase copayments, as a direct result of
                obtaining this waiver, for child care services under
                this subchapter to any eligible child whose family
                income is below the maximum income standard described
                in paragraph (1)(B) and whose family assets are less
                than the asset limit described in section
                658A(5)(B)(ii).''.

SEC. 9. REPORTS AND AUDITS.

    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 (2)--
                    (A) in the matter preceding subparagraph (A)--
                            (i) by striking ``Not later than'' and all
                        that follows through ``a State'' and inserting
                        ``A State''; and
                            (ii) by inserting ``annually'' before
                        ``prepare'';
                    (B) in subparagraph (A), by striking ``section
                658P(6)'' and inserting ``section 658A(7)''; and
                    (C) in subparagraph (F), by striking ``section
                658P(6)(B)'' and inserting ``section 658A(7)(B)''; and
            (2) by adding at the end the following:
            ``(3) Additional state reports.--
                    ``(A) Information on percentage of income families
                are spending on child care.--In addition to the report
                described in paragraph (2), a State described in
                paragraph (1)(A) shall, not later than the date that
                the State submits a State plan under section 658E,
                prepare and submit to the Secretary a report that
                includes--
                            ``(i) information on--
                                    ``(I) the percentage of income
                                spent on child care for families that--
                                            ``(aa) have children that
                                        are eligible to receive but are
                                        not receiving assistance under
                                        this subchapter; and
                                            ``(bb) are residing in the
                                        State; and
                                    ``(II) the child care options that
                                are available to such families at an
                                affordable rate; and
                            ``(ii) the results of a feasibility study
                        on how, over the next 5 years, the State
                        could--
                                    ``(I) lower the percentage of the
                                family income, of families described in
                                clause (i), that the families spend on
                                child care copayments; and
                                    ``(II) increase access to child
                                care so that all eligible children in
                                the State receive child care.
                    ``(B) Progress report.--The State shall, not later
                than the date that the State submits a State plan under
                section 658E, prepare and submit to the Secretary a
                report that includes an analysis of the progress the
                State has made over the preceding 10 years, on
                benchmarks described in the State plan under section
                658E(c)(2)(W), in the child care program carried out
                under this subchapter, relating to indicators
                consisting of--
                            ``(i) child and family eligibility and
                        enrollment;
                            ``(ii) affordability of child care for
                        families with an eligible child;
                            ``(iii) expansion of parental choice and
                        equal access;
                            ``(iv) payment rates and payment practices;
                            ``(v) recruiting and retaining a skilled,
                        qualified, and appropriately compensated child
                        care workforce;
                            ``(vi) quality improvement activities;
                            ``(vii) lead agency coordination and
                        partnership;
                            ``(viii) family outreach and consumer
                        education; and
                            ``(ix) program integrity and
                        accountability.
                    ``(C) Reports to congress.--The Secretary shall
                submit a report to the Committee on Health, Education,
                Labor, and Pensions of the Senate and the Committee on
                Education and Workforce of the House of Representatives
                on the information reported to the Secretary by States
                as described in subparagraphs (A) and (B).''.

SEC. 10. REPORTS, HOTLINE, AND WEBSITE.

    Section 658L(a) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858j(a)) is amended by striking ``Not later'' and
all that follows through ``the Secretary shall'' and inserting ``The
Secretary shall biennially''.

SEC. 11. TECHNICAL AMENDMENTS.

    Section 658O(a) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858m(a)) is amended--
            (1) in paragraphs (1), (3), and (4) by striking ``this
        subchapter'' and inserting ``section 658B''; and
            (2) in paragraph (5) by striking ``this subchapter'' the
        first place it appears and inserting ``section 658B''.

SEC. 12. CHILD CARE SUPPLY AND FACILITIES GRANTS.

    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:

              ``PART II--CHILD CARE SUPPLY AND FACILITIES

``SEC. 658T. CHILD CARE SUPPLY AND FACILITIES GRANTS.

    ``(a) Purposes.--The purposes of this section are to provide grants
to States, territories described in section 658O(a)(1) (referred to
individually in this part as a `territory'), Indian Tribes, and Tribal
organization to--
            ``(1) expand the supply and capacity of qualified child
        care providers and staff so that working parents have multiple
        high-quality child care options to choose from in making their
        own decisions regarding the child care services that best suit
        their family's needs; and
            ``(2) ensure child care facilities are designed and
        equipped to keep children healthy and safe and to enhance
        children's physical, cognitive, and behavioral development.
    ``(b) Qualified Child Care Provider.--In this section, the term
`qualified child care provider' means--
            ``(1) an eligible child care provider as defined in section
        658A(7)(A) that is providing, or seeking to provide, child care
        services to children eligible for services under this
        subchapter; or
            ``(2) a child care provider that has applied under this
        subchapter to become an eligible child care provider as defined
        in section 658A(7)(A) and that commits to provide child care
        services to children eligible for services under this
        subchapter.
    ``(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section such sums as may be necessary
for each of fiscal years 2027 through 2030.
    ``(d) Grants Authorized; Allotments.--
            ``(1) In general.--From funds made available under
        subsection (c), the Secretary shall make grants to States,
        territories, Indian Tribes, and Tribal organizations to carry
        out the activities described in subsection (f).
            ``(2) Reservation.--The Secretary shall reserve not more
        than 1 percent of the amount appropriated under subsection (c)
        for a fiscal year to carry out this section to pay for the
        costs of the Federal administration of this section.
            ``(3) Allotments.--From the amount appropriated to carry
        out this section for a fiscal year that remains after the
        Secretary makes the reservation under paragraph (2), the
        Secretary shall award to each lead agency with an approved plan
        under subsection (e), a child care supply and facilities grant
        in accordance with paragraphs (1) and (2) of subsection (a),
        and subsection (b), of section 658O, for the grants authorized
        under paragraph (1). A grant made under this paragraph in
        accordance with paragraph (1) or (2) of that subsection shall
        be for the purpose of carrying out the program described in
        this section, consistent, to the extent practicable as
        determined by the Secretary, with the requirements applicable
        to States.
    ``(e) State Plan.--
            ``(1) In general.--In order to receive a grant under this
        section, a State shall submit a plan to the Secretary, at such
        time and in such manner as the Secretary may reasonably
        require.
            ``(2) Contents.--Each plan submitted by a State under this
        section shall include each of the following:
                    ``(A) A description of how the State will use funds
                received under this section for State-level activities
                under subsection (f)(1).
                    ``(B) A description of how the State will ensure
                that qualified child care providers in rural, suburban,
                and urban areas can readily apply for and access
                funding under this section, which shall include
                providing technical assistance either directly or
                through a third party which may include a resource and
                referral agency or a staffed family child care provider
                network.
                    ``(C) A description of how the State will determine
                the prioritization of subgrants to qualified child care
                providers in accordance with subsection (f)(5).
                    ``(D) An assurance that the State will make
                available to the public, which shall include, at a
                minimum, posting to an internet website of the lead
                agency--
                            ``(i) a notice of funding availability
                        through subgrants for qualified child care
                        providers under this section; and
                            ``(ii) the criteria for awarding subgrants
                        for qualified child care providers, including
                        the methodology the lead agency will use to
                        determine the amounts of such subgrants for
                        qualified child care providers.
                    ``(E) A determination by the State of the duration
                of child care services required for qualified child
                care providers to receive subgrants under this
                subchapter.
    ``(f) State Use of Funds.--
            ``(1) Reservation.--A lead agency that receives a grant
        under subsection (d) shall reserve not more than 10 percent of
        the grant funds for State-level activities, consisting of
        administering subgrants and providing technical assistance and
        support, for activities supported under this section.
            ``(2) Subgrants.--The lead agency shall use the remainder
        of the grant funds awarded pursuant to subsection (d) to make
        subgrants as described in paragraphs (3) and (4).
            ``(3) Startup and supply expansion subgrants.--
                    ``(A) In general.--The lead agency shall make
                startup and supply expansion subgrants to qualified
                child care providers that are providing, or seeking to
                provide, child care services under this subchapter to
                eligible children, to--
                            ``(i) support the providers in paying for
                        startup and expansion costs;
                            ``(ii) assist such providers in meeting--
                                    ``(I) the health and safety
                                requirements (including the
                                requirements referred to in section
                                658E(c)(2)(I)) of the State, territory,
                                Indian Tribe, or local government
                                involved, as the case may be;
                                    ``(II) the child-to-provider ratio
                                standards (including the requirements
                                referred to in section 658E(c)(2)(H))
                                applicable to the provider;
                                    ``(III) licensing and other
                                regulatory standards of the State,
                                territory, Indian Tribe, or local
                                government involved, as the case may
                                be, for child care providers; and
                                    ``(IV) as applicable, the
                                requirements of a State's tiered
                                quality rating system for child care
                                providers;
                            ``(iii) establish or expand the operation
                        of community-or neighborhood-based family child
                        care networks; and
                            ``(iv) support access to child care
                        services facing a particular shortage of child
                        care options, including child care services
                        during nontraditional or extended hours, and
                        child care services for children with
                        disabilities (including, for purposes of this
                        clause, a child who has documentation other
                        than an individualized education program (as
                        defined in section 602 of the Individuals with
                        Disabilities Education Act (20 U.S.C. 1401))
                        establishing the child's disability (as defined
                        in section 3 of the Americans with Disabilities
                        Act of 1990 (42 U.S.C. 12101))).
                    ``(B) Requirement.--As a condition of receiving a
                startup or supply expansion subgrant under this
                paragraph, a qualified child care provider shall commit
                to meeting the requirements for an eligible child care
                provider under this subchapter and to providing child
                care services under this subchapter to eligible
                children, on an ongoing basis, as determined by the
                State.
            ``(4) Facilities subgrants.--
                    ``(A) In general.--The lead agency shall make
                facilities subgrants to qualified child care providers
                that are providing, or seeking to provide, child care
                services under this subchapter to eligible children,
                for, notwithstanding section 658F(b)--
                            ``(i) remodeling, renovation, or repair of
                        a building or facility used for providing
                        direct child care services; and
                            ``(ii) construction, permanent improvement,
                        or major renovation of a building or facility
                        used for providing direct child care services.
                    ``(B) Requirement.--As a condition of receiving a
                facilities subgrant under this paragraph, a child care
                provider shall commit to meeting the requirements for
                an eligible child care provider under this subchapter
                and to providing child care services under this
                subchapter to eligible children on an ongoing basis, as
                determined by the State.
                    ``(C) Federal interest.--
                            ``(i) Family child care homes.--Federal law
                        regarding a Federal interest in real property
                        shall not apply to the renovation, remodeling,
                        repair, or permanent improvement of privately
                        owned family child care homes with funds
                        provided under this paragraph, and the
                        Secretary shall develop parameters for the use
                        of such funds for family child care homes.
                            ``(ii) Retention.--If the Secretary retains
                        a Federal interest in any facility constructed,
                        renovated, remodeled, repaired, or permanently
                        improved with funds provided under this
                        paragraph, the Secretary shall not retain the
                        Federal interest for more than 10 years.
            ``(5) Priority.--In awarding subgrants under paragraphs (3)
        and (4), the lead agency shall give priority to qualified child
        care providers providing or seeking to provide child care
        services to priority populations of children described in
        section 658E(c)(2)(M).
    ``(g) Supplement Not Supplant.--Amounts made available to carry out
this section shall be used to supplement and not supplant other
Federal, State, and local public funds expended to increase the supply
of child care and to improve child care facilities.
    ``(h) Documentation and Reporting Requirements.--
            ``(1) Documentation.--A State receiving a grant under
        subsection (d) shall provide documentation of any State
        expenditures from grant funds received under subsection (d) in
        accordance with section 658K(b), to the independent entity
        described in that section.
            ``(2) Reports.--
                    ``(A) Lead agency annual report.--A lead agency
                receiving a grant under subsection (d) shall, not later
                than 12 months after making subgrants from the funds
                made available through such grant, and annually for the
                duration of the grant, submit a report to the Secretary
                that includes, for the State involved, a description of
                each of the lead agency's programs of subgrants carried
                out to meet the objectives of this section, including--
                            ``(i) the number of eligible child care
                        providers in operation at the start of the
                        grant period, and the number of such providers
                        11 months later, disaggregated by age of
                        children served, geographic region, and child
                        care setting (including whether the provider
                        was in a center-based or family child care
                        setting);
                            ``(ii) the number of child care slots, in
                        the capacity of eligible child care providers
                        given applicable group size limits and staff-
                        to-child ratios, that were open for attendance
                        of children at the start of the grant period
                        and the number of such slots 11 months later,
                        disaggregated by age of children served,
                        geographic region, and child care setting
                        (including whether the slot was in a center-
                        based or family child care setting), and each
                        priority population of children described in
                        section 658E(c)(2)(M);
                            ``(iii)(I) the number and percentage of
                        qualified child care providers that received a
                        subgrant under subsection (f)(3), disaggregated
                        by age of children served, geographic region,
                        and child care setting (including whether the
                        provider was in a center-based or family child
                        care setting), and the average and range of the
                        amounts of the subgrants awarded; and
                            ``(II) the number and percentage of
                        qualified child care providers that received a
                        subgrant under subsection (f)(4), disaggregated
                        by age of children served, geographic region,
                        and child care setting (including whether the
                        provider was in a center-based or family child
                        care setting), and the average and range of the
                        amounts of the subgrants awarded; and
                            ``(iv) information concerning how qualified
                        child care providers receiving subgrants under
                        subsection (f)(3) or (f)(4) used the subgrant
                        funding received.
                    ``(B) Report to congress.--The Secretary shall
                transmit annually to the Committee on Health,
                Education, Labor, and Pensions of the Senate and the
                Committee on Education and Workforce of the House of
                Representatives a report that provides national and
                State-level data for the information collected under
                subparagraph (A).
    ``(i) Construction.--No reference in part 1 to `this subchapter'
shall be considered to refer to a provision of this part.''.

SEC. 13. DEPARTMENT OF AGRICULTURE LOAN RESTRICTIONS.

    The Secretary of Agriculture shall revise section 3555.102(c) of
title 7, Code of Federal Regulations, as in effect on the date of
enactment of this Act, to exclude a business that is licensed,
regulated, or registered as a child care provider under State law.
                                 <all>

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  1. 1Introduced
  2. 2Committee
  3. 3Floor
  4. 4Passed
  5. 5Signed

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