[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2828 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2828
To amend the Child Care and Development Block Grant Act of 1990 to
reauthorize and update the Act, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 17 (legislative day, September 16), 2025
Mrs. Fischer (for herself, Mrs. Gillibrand, Ms. Collins, and Mr.
Hickenlooper) introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Child Care and Development Block Grant Act of 1990 to
reauthorize and update the Act, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Child Care Modernization Act of
2025''.
SEC. 2. PURPOSES.
(a) Redesignation.--Section 658A of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9857) is redesignated as section 658
of such Act.
(b) Amendment.--Subsection (b) of that section 658 is amended to
read as follows:
``(b) Purposes.--The purposes of this subchapter are--
``(1) to allow each State maximum flexibility in developing
and implementing a mixed delivery system to provide child care
that best suits the needs of children and working parents
within that State;
``(2) to promote parental choice to empower working parents
to make their own decisions regarding the child care services
that best suit their family's needs;
``(3) to encourage States to provide consumer education
information to help parents make informed choices about child
care services and to promote involvement by parents and family
members in the development of their children in child care
settings;
``(4) to assist States in delivering high-quality,
coordinated child care services to maximize parents' options to
cover the full workday and full work year, to support
continuity of care for children, and to support parents trying
to achieve independence from public assistance;
``(5) to assist States in improving the overall quality of
child care by implementing the health, safety, licensing, early
learning and development, professional, and oversight standards
established in this subchapter and in State law (including
State regulations);
``(6) to assist States--
``(A) in supporting the educational and
professional development of child care staff; and
``(B) in supporting child care providers in the
recruitment of, professional development for, and
retention of a qualified child care workforce; and
``(7) to increase the number and percentage of low-income
children in high-quality child care settings.''.
SEC. 3. DEFINITIONS.
(a) In General.--Section 658P of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--
(1) by redesignating paragraphs (5) through (7), (8) and
(9), and (10) through (15), as paragraphs (6) through (8), (10)
and (11), and (13) through (18), respectively;
(2) in paragraph (3)--
(A) in subparagraph (B), by inserting ``and'' at
the end;
(B) in subparagraph (C), by striking ``; and'' at
the end and inserting a period; and
(C) by striking subparagraph (D);
(3) by striking paragraph (4) and inserting the following:
``(4) Eligible activity.--The term `eligible activity',
means an activity consisting of--
``(A) full-time or part-time employment;
``(B) self-employment;
``(C) job search activities;
``(D) job training;
``(E) secondary, postsecondary, or adult education,
including education through a program of high school
classes, a course of study at an institution of higher
education, classes towards an equivalent of a high
school diploma recognized by State law, or English as a
second language classes;
``(F) health treatment (including mental health and
substance use treatment) for a condition that prevents
the parent involved from participating in other
eligible activities;
``(G) activities to prevent child abuse or neglect,
or family violence prevention or intervention
activities;
``(H) employment and training activities under the
employment and training program, of the supplemental
nutrition assistance program, established under section
6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C.
2015(d)(4));
``(I) employment and training activities under the
Workforce Innovation and Opportunity Act (29 U.S.C.
3101 et seq.);
``(J) a work activity described in subsection (d)
of section 407 of the Social Security Act (42 U.S.C.
607) for which, consistent with clauses (ii) and (iii)
of section 402(a)(1)(A) of such Act (42 U.S.C.
602(a)(1)(A)), a parent is treated as being engaged in
work for a month in a fiscal year for purposes of the
program of block grants to States for temporary
assistance for needy families established under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.); or
``(K) taking leave under the Family and Medical
Leave Act of 1993 (29 U.S.C. 2601 et seq.) (or
equivalent provisions for Federal employees), a State
or local paid or unpaid leave law, or a program of
employer-provided leave.
``(5) Eligible child.--The term `eligible child' means an
individual--
``(A) who is less than 13 years of age;
``(B)(i) whose family income does not exceed--
``(I) 85 percent of the State median income
for a family of the same size; or
``(II) a higher percentage of that income
in a State with a waiver under section
658I(c)(1)(B); and
``(ii) whose family assets do not exceed $1,000,000
(as certified by a member of such family); and
``(C) who--
``(i) resides with a parent or parents who
are participating in an eligible activity;
``(ii) is a child experiencing
homelessness, a child in kinship care, or a
child who is receiving, or needs to receive,
child protective services; or
``(iii) resides with a parent who is more
than 65 years of age.'';
(4) in paragraph (7), as so redesignated--
(A) in subparagraph (A), by striking ``or'' at the
end;
(B) in subparagraph (B), by striking the period at
the end and inserting ``; or'';
(C) by added at the end the following:
``(C) notwithstanding section 645(a)(1)(B) of the
Head Start Act (42 U.S.C. 9840(a)(1)(B)), a Head Start
agency.''; and
(D) by adding at the end the following flush
sentence:
``Notwithstanding subparagraph (B), a licensed, regulated, or
registered child care provider (or a staff member of the child
care provider) who is otherwise eligible for assistance under
this Act shall continue to be eligible for such assistance for
the care of children for whom the provider is the legal parent
if other eligible children with respect to whom such provider
is not the legal parent are also being cared for by that
provider.'';
(5) by striking paragraph (8), as so redesignated, and
inserting the following:
``(8) Family child care provider.--The term `family child
care provider' means an individual who provides child care
services in a private residence--
``(A) for fewer than 24 hours per day per child; or
``(B) for 24 hours per day per child due to the
nature of the work of the parent involved.
``(9) Homeless child.--The term `homeless child' means an
individual described in section 725(2) of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11434a(2)).'';
(6) in paragraph (10), as so redesignated, by striking
``(10)'' and all that follows through ``meaning'' and inserting
the following:
``(10) Indian tribe; indian tribe.--The term `Indian Tribe'
or `Indian tribe' has the meaning'';
(7) by inserting after paragraph (11), as so redesignated,
the following:
``(12) Mixed delivery system.--The term `mixed delivery
system' means a system of child care services that--
``(A) promotes parental choice to empower working
parents to make their own decisions regarding the child
care services that best suit their family's needs;
``(B) delivers services through a combination of
programs offered by eligible child care providers
(including faith-based and community-based child care
providers) in a variety of settings (including family
child care homes, child care centers, Head Start
centers, and public and private schools); and
``(C) may be supported with a combination of public
and private funds.'';
(8) in paragraph (15), as so redesignated, by striking
``unless the context specifies otherwise'' and inserting
``except as otherwise specified''; and
(9) in paragraph (18), as so redesignated, by striking
``(18)'' and all that follows through ``has the meaning'' and
inserting the following:
``(18) Tribal organization; tribal organization.--
``(A) In general.--The term `Tribal organization'
or `tribal organization' has the meaning''.
(b) Redesignation.--The Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9857 et seq.) is amended--
(1) by redesignating section 658P as section 658A; and
(2) by moving section 658A, as so redesignated, to follow
section 658, as redesignated by section 2.
SEC. 4. AUTHORIZATION OF APPROPRIATIONS.
(a) Part.--The Child Care and Development Block Grant Act of 1990
is amended by inserting before section 658B the following:
``PART I--CHILD CARE SERVICES''.
(b) In General.--Section 658B of the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858) is amended to read as follows:
``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this
subchapter (other than section 658T) such sums as may be necessary for
each of fiscal years 2026 through 2030.''.
SEC. 5. LEAD AGENCY.
Section 658D(b) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858b(b)) is amended by striking paragraph (2) and
inserting the following:
``(2) Development of plan.--The lead agency shall develop
the State plan described in paragraph (1)(B) in meaningful
consultation with--
``(A) parents of children eligible for services
under this subchapter, which shall include parents of
children in a priority population described in section
658E(c)(2)(M);
``(B) eligible child care providers that represent
the various geographic areas and types of providers in
the State;
``(C) employers of various sizes and with various
hours and days of operations whose employees rely on
reliable and accessible child care to work; and
``(D) appropriate representatives of units of
general purpose local government and, as appropriate,
of Indian Tribes and Tribal organizations.''.
SEC. 6. APPLICATION AND PLAN.
Section 658E(c) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858c(c)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)(i)(I), by striking ``a
child'' and inserting ``an eligible child'';
(B) in subparagraph (D), by striking ``, not
later'' and all that follows through ``subparagraph
(K)(i),'';
(C) in subparagraph (E)(i)--
(i) in the matter preceding subclause (I),
by inserting ``, offered through a mixed
delivery system,'' after ``full diversity of
child care services'';
(ii) in subclause (I), by inserting
``(including information on the hours and days
of operation and ages served)'' after ``of
child care services''; and
(iii) in subclause (IV)--
(I) by striking ``and'' before
``the Medicaid''; and
(II) by inserting before the
semicolon the following: ``, and the
Maternal, Infant, and Early Childhood
Home Visiting Programs under section
511 of the Social Security Act (42
U.S.C. 711)'';
(D) in subparagraph (G)--
(i) in the subparagraph heading, by
striking ``Training and professional'' and
inserting ``Professional'';
(ii) in clause (i) and clause (ii) (in the
matter preceding subclause (I)), by striking
``training and'' before ``professional
development'';
(iii) in clause (ii)(II), by striking ``,
and may engage'' and all that follows through
``training framework''; and
(iv) in clause (iii), by striking
``training'' and inserting ``professional
development'';
(E) in subparagraph (I)(i)(IX), by striking ``if
applicable,'';
(F) in subparagraph (J)--
(i) by striking ``that procedures'' and
inserting the following: ``that--
``(i) procedures'';
(ii) by striking the period at the end and
inserting ``; and''; and
(iii) by adding at the end the following:
``(ii) the State will undertake a review of
State and local health and safety requirements
(including requirements for inspections under
this subchapter and the child and adult care
food program established under section 17 of
the Richard B. Russell National School Lunch
Act (42 U.S.C. 1766)) to determine redundancies
and oversights that may exist, to ensure--
``(I) children receive child care
services in healthy and safe
environments; and
``(II) child care providers can
easily identify, understand, and comply
with applicable health and safety
requirements.'';
(G) in subparagraph (K)(i)--
(i) in the matter preceding subclause (I),
by striking ``, not later'' and all that
follows through ``2014,''; and
(ii) in subclause (IV), by striking
``section 658P(6)(B)'' and inserting ``section
658A(7)(B)'';
(H) in subparagraph (M)--
(i) by redesignating clauses (ii) through
(iv) as clauses (iv) through (vi),
respectively;
(ii) by striking clause (i) and inserting
the following:
``(i) children in underserved areas,
including areas that have significant
concentrations of poverty or unemployment and
that do not have a sufficient supply of
eligible child care providers;
``(ii) children experiencing homelessness,
children in foster care, children in kinship
care, and children who are receiving, or need
to receive, child protective services; and
``(iii) children in rural areas;''; and
(iii) in clause (v), as so redesignated, by
striking ``, as defined by the State'';
(I) in subparagraph (N)(iii), by striking ``At the
option of the State, the'' and inserting ``The'';
(J) in subparagraph (O)(i), by striking ``full-day
services'' and inserting ``full workday and full work
year services'';
(K) in subparagraph (S)(ii), by striking ``, to the
extent'' and all that follows through ``fixed costs''
and inserting ``implement enrollment and eligibility
policies that support the fixed and operational
costs'';
(L) in subparagraph (T)(i), by striking ``or
implement'' and all that follows through ``of 2014)''
and inserting ``and implement developmental
guidelines'';
(M) in subparagraph (U)--
(i) in clause (ii), by inserting ``State
and local health agencies,'' after ``licensing
of child care providers,''; and
(ii) in clause (iii)(II), by striking
``following the emergency or disaster, which
may include'' and inserting ``during and
following the emergency or disaster, which
shall include guidelines for'';
(N) in subparagraph (V), by striking ``develop''
and all that follow through ``services.'' and inserting
``support child care business technical assistance
including supporting--
``(i) provision of strategies to support
management coaching and the use of core best
business practices;
``(ii) development and use of shared
services initiatives including initiatives
involving provider networks such as child care
center alliances and family child care provider
networks; and
``(iii) coordination of activities with
programs of the Small Business Administration,
programs of the Department of Agriculture, and
other Federal, State, and local programs
supporting child care businesses.''; and
(O) by adding at the end the following:
``(W) Benchmarks.--The plan shall include
benchmarks for the indicators described in the clauses
of section 658K(a)(3)(B).'';
(2) in paragraph (3)--
(A) in subparagraph (B)(ii), by striking ``Not
later'' and all that follows through ``shall prepare''
and inserting ``Not later than September 30 of each
fiscal year, the Secretary shall prepare''; and
(B) in subparagraph (D)--
(i) by striking ``with respect to'' and all
that follows through ``2020'' and inserting
``with respect to each fiscal year)''; and
(ii) by striking ``described in clause (i),
(ii), (iii), or (iv) of'' and inserting ``in
priority populations described in'';
(3) in paragraph (4)--
(A) by striking subparagraphs (A) and (B) and
inserting the following:
``(A) In general.--The State plan shall certify
that, not later than the later of the date that is 5
years after the date of submission of the application,
and September 30, 2031, payment rates for the provision
of child care services for which assistance is provided
in accordance with this subchapter--
``(i) will be sufficient to meet the cost
of providing the child care services, including
the fixed and operational costs of providing
the child care services; and
``(ii) will be set and paid in accordance
with a cost estimation model described in
subparagraph (B).
``(B) Cost estimation model.--The State plan
shall--
``(i) demonstrate that the State, after
consulting with eligible child care providers
that represent the various geographic areas of
the State and types of providers within the
State's mixed delivery system, State and local
child care program administrators, local child
care resource and referral agencies, and other
appropriate entities, has developed and uses
(or if the State has not used such a model
certify that the State, after such consultation
but not later than the later of the date that
is 5 years after the date of submission of the
application described in subsection (a), and
September 30, 2031, will develop and use) a
statistically valid and reliable cost
estimation model for the direct payment rates
for providers of child care services in the
State, that--
``(I) reflects the costs of service
delivery, including fixed costs and
operating expenses;
``(II) reflects the cost of staff
salaries and benefits necessary to
sufficiently recruit, train, and retain
a qualified child care workforce;
``(III) reflects variations in the
costs of service delivery by submarket,
type of provider, and children served,
including by--
``(aa) geographic area
(such as location in a urban or
rural area);
``(bb) ages of children;
``(cc) whether the children
have particular needs (such as
needs of children with
disabilities and children
served by child protective
services);
``(dd) whether the
providers provide services
during weekend and other
nontraditional hours; and
``(ee) quality of child
care provider as determined by
the State; and
``(IV) is reviewed once every 2
years and adjusted to--
``(aa) ensure payment rates
remain sufficient to meet the
requirements of this
subchapter; and
``(bb) provide a cost of
living increase to maintain the
level of services provided
during the year prior to the
review; and
``(ii) describe how the State will provide
for timely payments, set in accordance with the
model described in clause (i), for child care
services provided under this subchapter.'';
(B) in subparagraph (C)--
(i) by striking clause (ii); and
(ii) by striking ``(C)'' and all that
follows through ``Nothing'' and inserting the
following:
``(C) Construction.--Nothing''; and
(C) by adding at the end the following:
``(D) No federal control.--The Secretary may offer
guidance to States on cost estimation models described
in subparagraph (B), but shall not require a State to
adopt a particular cost estimation model or an element
of a particular cost estimation model (except that the
model shall meet the requirements of subparagraph
(B)(i)).''; and
(4) by striking paragraph (5) and inserting the following:
``(5) Sliding fee scale.--The State plan shall provide that
the State will establish and periodically revise by rule a
sliding fee scale to determine a full copayment for a family
receiving assistance under this subchapter (or, for a family
receiving part-time care, a reduced copayment that is an
appropriate amount of the full copayment) and that is not a
barrier that restricts families from accessing child care
services under this subchapter.''.
SEC. 7. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.
Section 658G(a) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858e(a))--
(1) in paragraph (1), by adding at the end the following:
``The State shall include, in the State's activities,
developing and expanding initiatives to assist child care
providers in their efforts to recruit, train, and retain a
qualified child care workforce.''; and
(2) in paragraph (2)--
(A) by striking subparagraph (A) and inserting the
following:
``(A) to carry out the activities described in
paragraph (1), not less than 9 percent of the funds
described in paragraph (1) for each fiscal year; and'';
and
(B) in subparagraph (B), by striking ``received not
later'' and all that follows through ``succeeding full
fiscal year'' and inserting ``received for each fiscal
year''.
SEC. 8. WAIVERS OF INCOME REQUIREMENT.
Section 658I(c) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858g(c)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``of not more than three years'' and inserting
``described in paragraph (5)'';
(B) in subparagraph (A), by striking ``(A)'' and
inserting ``(A)(i)'';
(C) in subparagraph (B), by striking ``(B)'' and
inserting the following:
``(ii)'';
(D) in subparagraph (C), by striking ``(C)'' and
inserting the following:
``(iii)'';
(E) in subparagraph (D)--
(i) by striking ``(D)'' and inserting the
following:
``(iv)''; and
(ii) in clause (iv), as so redesignated, by
striking the period and inserting ``; or''; and
(F) by adding at the end the following:
``(B) the State, on the date of the request, has a
maximum income standard that meets section
658A(5)(B)(i), and requests the waiver to raise that
standard.'';
(2) in paragraph (2)--
(A) in subparagraph (B), by striking ``and'' at the
end;
(B) in subparagraph (C), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(D) if the State seeks a waiver of section
658A(5)(B)(i)(I) under paragraph (1)(B) include--
``(i) the maximum income standard that the
State wishes to use;
``(ii) such information as determined
necessary by the Secretary to demonstrate that
the State is serving all eligible children to
the best of the State's ability below the
maximum income standard in that section, and
will continue to prioritize and serve all
eligible children below the maximum income
standard if a waiver under paragraph (1)(B)
should be approved;
``(iii) information demonstrating that the
State is meeting the requirements of the State
plan under section 658E(c), particularly the
requirements of subparagraphs (M) and (Q) of
paragraph (2) of that section; and
``(iv) information demonstrating that the
payment rates described in that section are set
and paid in accordance with a cost estimation
model described in section 658E(c)(4)(B).'';
(3) in paragraph (7)--
(A) by striking ``The Secretary may'' and inserting
the following:
``(A) General renewals.--The Secretary may'';
(B) in the first sentence, by inserting before the
period the following: ``, in the case of a request for
a waiver of a provision other than section
658A(5)(B)(i)(I)'';
(C) in the second sentence, by striking ``seeking
to renew their waiver approval'' and inserting
``seeking that renewal'';
(D) in the third sentence, by striking ``extension
request'' and inserting ``renewal request''; and
(E) by adding at the end the following:
``(B) Renewals of income requirement waivers.--A
State may seek a renewal, of an existing waiver of
section 658A(5)(B)(i)(I) under paragraph (1)(B)
(including a previously renewed waiver), for a period
no longer than 3 years. A State seeking that renewal
shall inform the Secretary of this intent no later than
30 days prior to the expiration date of the waiver. The
State shall re-certify in its renewal request the
provisions in paragraph (2). On determining that the
State has accurately re-certified those provision, the
Secretary shall grant the renewal.''; and
(4) in paragraph (8)--
(A) by inserting ``, other than paragraph (1)(B),''
after ``this subchapter'' each place the term appears;
and
(B) by adding at the end the following: ``Nothing
in this subsection, including paragraph (1)(B), shall
be construed to permit a State to deny or limit access
to, or increase copayments, as a direct result of
obtaining this waiver, for child care services under
this subchapter to any eligible child whose family
income is below the maximum income standard described
in paragraph (1)(B) and whose family assets are less
than the asset limit described in section
658A(5)(B)(ii).''.
SEC. 9. REPORTS AND AUDITS.
Section 658K(a) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858i(a)) is amended--
(1) in paragraph (2)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``Not later than'' and all
that follows through ``a State'' and inserting
``A State''; and
(ii) by inserting ``annually'' before
``prepare'';
(B) in subparagraph (A), by striking ``section
658P(6)'' and inserting ``section 658A(7)''; and
(C) in subparagraph (F), by striking ``section
658P(6)(B)'' and inserting ``section 658A(7)(B)''; and
(2) by adding at the end the following:
``(3) Additional state reports.--
``(A) Information on percentage of income families
are spending on child care.--In addition to the report
described in paragraph (2), a State described in
paragraph (1)(A) shall, not later than the date that
the State submits a State plan under section 658E,
prepare and submit to the Secretary a report that
includes--
``(i) information on--
``(I) the percentage of income
spent on child care for families that--
``(aa) have children that
are eligible to receive but are
not receiving assistance under
this subchapter; and
``(bb) are residing in the
State; and
``(II) the child care options that
are available to such families at an
affordable rate; and
``(ii) the results of a feasibility study
on how, over the next 5 years, the State
could--
``(I) lower the percentage of the
family income, of families described in
clause (i), that the families spend on
child care copayments; and
``(II) increase access to child
care so that all eligible children in
the State receive child care.
``(B) Progress report.--The State shall, not later
than the date that the State submits a State plan under
section 658E, prepare and submit to the Secretary a
report that includes an analysis of the progress the
State has made over the preceding 10 years, on
benchmarks described in the State plan under section
658E(c)(2)(W), in the child care program carried out
under this subchapter, relating to indicators
consisting of--
``(i) child and family eligibility and
enrollment;
``(ii) affordability of child care for
families with an eligible child;
``(iii) expansion of parental choice and
equal access;
``(iv) payment rates and payment practices;
``(v) recruiting and retaining a skilled,
qualified, and appropriately compensated child
care workforce;
``(vi) quality improvement activities;
``(vii) lead agency coordination and
partnership;
``(viii) family outreach and consumer
education; and
``(ix) program integrity and
accountability.
``(C) Reports to congress.--The Secretary shall
submit a report to the Committee on Health, Education,
Labor, and Pensions of the Senate and the Committee on
Education and Workforce of the House of Representatives
on the information reported to the Secretary by States
as described in subparagraphs (A) and (B).''.
SEC. 10. REPORTS, HOTLINE, AND WEBSITE.
Section 658L(a) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858j(a)) is amended by striking ``Not later'' and
all that follows through ``the Secretary shall'' and inserting ``The
Secretary shall biennially''.
SEC. 11. TECHNICAL AMENDMENTS.
Section 658O(a) of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858m(a)) is amended--
(1) in paragraphs (1), (3), and (4) by striking ``this
subchapter'' and inserting ``section 658B''; and
(2) in paragraph (5) by striking ``this subchapter'' the
first place it appears and inserting ``section 658B''.
SEC. 12. CHILD CARE SUPPLY AND FACILITIES GRANTS.
The Child Care and Development Block Grant Act of 1990 (42 U.S.C.
9857 et seq.) is amended by adding at the end the following:
``PART II--CHILD CARE SUPPLY AND FACILITIES
``SEC. 658T. CHILD CARE SUPPLY AND FACILITIES GRANTS.
``(a) Purposes.--The purposes of this section are to provide grants
to States, territories described in section 658O(a)(1) (referred to
individually in this part as a `territory'), Indian Tribes, and Tribal
organization to--
``(1) expand the supply and capacity of qualified child
care providers and staff so that working parents have multiple
high-quality child care options to choose from in making their
own decisions regarding the child care services that best suit
their family's needs; and
``(2) ensure child care facilities are designed and
equipped to keep children healthy and safe and to enhance
children's physical, cognitive, and behavioral development.
``(b) Qualified Child Care Provider.--In this section, the term
`qualified child care provider' means--
``(1) an eligible child care provider as defined in section
658A(7)(A) that is providing, or seeking to provide, child care
services to children eligible for services under this
subchapter; or
``(2) a child care provider that has applied under this
subchapter to become an eligible child care provider as defined
in section 658A(7)(A) and that commits to provide child care
services to children eligible for services under this
subchapter.
``(c) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section such sums as may be necessary
for each of fiscal years 2027 through 2030.
``(d) Grants Authorized; Allotments.--
``(1) In general.--From funds made available under
subsection (c), the Secretary shall make grants to States,
territories, Indian Tribes, and Tribal organizations to carry
out the activities described in subsection (f).
``(2) Reservation.--The Secretary shall reserve not more
than 1 percent of the amount appropriated under subsection (c)
for a fiscal year to carry out this section to pay for the
costs of the Federal administration of this section.
``(3) Allotments.--From the amount appropriated to carry
out this section for a fiscal year that remains after the
Secretary makes the reservation under paragraph (2), the
Secretary shall award to each lead agency with an approved plan
under subsection (e), a child care supply and facilities grant
in accordance with paragraphs (1) and (2) of subsection (a),
and subsection (b), of section 658O, for the grants authorized
under paragraph (1). A grant made under this paragraph in
accordance with paragraph (1) or (2) of that subsection shall
be for the purpose of carrying out the program described in
this section, consistent, to the extent practicable as
determined by the Secretary, with the requirements applicable
to States.
``(e) State Plan.--
``(1) In general.--In order to receive a grant under this
section, a State shall submit a plan to the Secretary, at such
time and in such manner as the Secretary may reasonably
require.
``(2) Contents.--Each plan submitted by a State under this
section shall include each of the following:
``(A) A description of how the State will use funds
received under this section for State-level activities
under subsection (f)(1).
``(B) A description of how the State will ensure
that qualified child care providers in rural, suburban,
and urban areas can readily apply for and access
funding under this section, which shall include
providing technical assistance either directly or
through a third party which may include a resource and
referral agency or a staffed family child care provider
network.
``(C) A description of how the State will determine
the prioritization of subgrants to qualified child care
providers in accordance with subsection (f)(5).
``(D) An assurance that the State will make
available to the public, which shall include, at a
minimum, posting to an internet website of the lead
agency--
``(i) a notice of funding availability
through subgrants for qualified child care
providers under this section; and
``(ii) the criteria for awarding subgrants
for qualified child care providers, including
the methodology the lead agency will use to
determine the amounts of such subgrants for
qualified child care providers.
``(E) A determination by the State of the duration
of child care services required for qualified child
care providers to receive subgrants under this
subchapter.
``(f) State Use of Funds.--
``(1) Reservation.--A lead agency that receives a grant
under subsection (d) shall reserve not more than 10 percent of
the grant funds for State-level activities, consisting of
administering subgrants and providing technical assistance and
support, for activities supported under this section.
``(2) Subgrants.--The lead agency shall use the remainder
of the grant funds awarded pursuant to subsection (d) to make
subgrants as described in paragraphs (3) and (4).
``(3) Startup and supply expansion subgrants.--
``(A) In general.--The lead agency shall make
startup and supply expansion subgrants to qualified
child care providers that are providing, or seeking to
provide, child care services under this subchapter to
eligible children, to--
``(i) support the providers in paying for
startup and expansion costs;
``(ii) assist such providers in meeting--
``(I) the health and safety
requirements (including the
requirements referred to in section
658E(c)(2)(I)) of the State, territory,
Indian Tribe, or local government
involved, as the case may be;
``(II) the child-to-provider ratio
standards (including the requirements
referred to in section 658E(c)(2)(H))
applicable to the provider;
``(III) licensing and other
regulatory standards of the State,
territory, Indian Tribe, or local
government involved, as the case may
be, for child care providers; and
``(IV) as applicable, the
requirements of a State's tiered
quality rating system for child care
providers;
``(iii) establish or expand the operation
of community-or neighborhood-based family child
care networks; and
``(iv) support access to child care
services facing a particular shortage of child
care options, including child care services
during nontraditional or extended hours, and
child care services for children with
disabilities (including, for purposes of this
clause, a child who has documentation other
than an individualized education program (as
defined in section 602 of the Individuals with
Disabilities Education Act (20 U.S.C. 1401))
establishing the child's disability (as defined
in section 3 of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101))).
``(B) Requirement.--As a condition of receiving a
startup or supply expansion subgrant under this
paragraph, a qualified child care provider shall commit
to meeting the requirements for an eligible child care
provider under this subchapter and to providing child
care services under this subchapter to eligible
children, on an ongoing basis, as determined by the
State.
``(4) Facilities subgrants.--
``(A) In general.--The lead agency shall make
facilities subgrants to qualified child care providers
that are providing, or seeking to provide, child care
services under this subchapter to eligible children,
for, notwithstanding section 658F(b)--
``(i) remodeling, renovation, or repair of
a building or facility used for providing
direct child care services; and
``(ii) construction, permanent improvement,
or major renovation of a building or facility
used for providing direct child care services.
``(B) Requirement.--As a condition of receiving a
facilities subgrant under this paragraph, a child care
provider shall commit to meeting the requirements for
an eligible child care provider under this subchapter
and to providing child care services under this
subchapter to eligible children on an ongoing basis, as
determined by the State.
``(C) Federal interest.--
``(i) Family child care homes.--Federal law
regarding a Federal interest in real property
shall not apply to the renovation, remodeling,
repair, or permanent improvement of privately
owned family child care homes with funds
provided under this paragraph, and the
Secretary shall develop parameters for the use
of such funds for family child care homes.
``(ii) Retention.--If the Secretary retains
a Federal interest in any facility constructed,
renovated, remodeled, repaired, or permanently
improved with funds provided under this
paragraph, the Secretary shall not retain the
Federal interest for more than 10 years.
``(5) Priority.--In awarding subgrants under paragraphs (3)
and (4), the lead agency shall give priority to qualified child
care providers providing or seeking to provide child care
services to priority populations of children described in
section 658E(c)(2)(M).
``(g) Supplement Not Supplant.--Amounts made available to carry out
this section shall be used to supplement and not supplant other
Federal, State, and local public funds expended to increase the supply
of child care and to improve child care facilities.
``(h) Documentation and Reporting Requirements.--
``(1) Documentation.--A State receiving a grant under
subsection (d) shall provide documentation of any State
expenditures from grant funds received under subsection (d) in
accordance with section 658K(b), to the independent entity
described in that section.
``(2) Reports.--
``(A) Lead agency annual report.--A lead agency
receiving a grant under subsection (d) shall, not later
than 12 months after making subgrants from the funds
made available through such grant, and annually for the
duration of the grant, submit a report to the Secretary
that includes, for the State involved, a description of
each of the lead agency's programs of subgrants carried
out to meet the objectives of this section, including--
``(i) the number of eligible child care
providers in operation at the start of the
grant period, and the number of such providers
11 months later, disaggregated by age of
children served, geographic region, and child
care setting (including whether the provider
was in a center-based or family child care
setting);
``(ii) the number of child care slots, in
the capacity of eligible child care providers
given applicable group size limits and staff-
to-child ratios, that were open for attendance
of children at the start of the grant period
and the number of such slots 11 months later,
disaggregated by age of children served,
geographic region, and child care setting
(including whether the slot was in a center-
based or family child care setting), and each
priority population of children described in
section 658E(c)(2)(M);
``(iii)(I) the number and percentage of
qualified child care providers that received a
subgrant under subsection (f)(3), disaggregated
by age of children served, geographic region,
and child care setting (including whether the
provider was in a center-based or family child
care setting), and the average and range of the
amounts of the subgrants awarded; and
``(II) the number and percentage of
qualified child care providers that received a
subgrant under subsection (f)(4), disaggregated
by age of children served, geographic region,
and child care setting (including whether the
provider was in a center-based or family child
care setting), and the average and range of the
amounts of the subgrants awarded; and
``(iv) information concerning how qualified
child care providers receiving subgrants under
subsection (f)(3) or (f)(4) used the subgrant
funding received.
``(B) Report to congress.--The Secretary shall
transmit annually to the Committee on Health,
Education, Labor, and Pensions of the Senate and the
Committee on Education and Workforce of the House of
Representatives a report that provides national and
State-level data for the information collected under
subparagraph (A).
``(i) Construction.--No reference in part 1 to `this subchapter'
shall be considered to refer to a provision of this part.''.
SEC. 13. DEPARTMENT OF AGRICULTURE LOAN RESTRICTIONS.
The Secretary of Agriculture shall revise section 3555.102(c) of
title 7, Code of Federal Regulations, as in effect on the date of
enactment of this Act, to exclude a business that is licensed,
regulated, or registered as a child care provider under State law.
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