[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9901 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 9901
To enhance the supply of child care, and for other purposes.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 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.
TITLE I--CHILD CARE FOR AMERICA
SEC. 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.
SEC. 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.
SEC. 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).
TITLE II--STAY-AT-HOME PARENT CHILD CARE SUPPORT PROGRAM
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
TITLE III--KIN CARE: FAMILY, FRIEND, AND NEIGHBOR (FFN) CARE PROGRAM
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
SEC. 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.
<all>