119-hr2282

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2282 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 2282

To reauthorize the Child Care and Development Block Grant Act of 1990, 
 to improve access to relative caregivers, and for other purposes.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 March 24, 2025

Mr. Moore of West Virginia (for himself, Mr. Higgins of Louisiana, Mr. 
 Gill of Texas, and Mr. Smith of New Jersey) introduced the following 
 bill; which was referred to the Committee on Education and Workforce, 
and in addition to the Committee on Ways and Means, 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 reauthorize the Child Care and Development Block Grant Act of 1990, 
 to improve access to relative caregivers, 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 ``Respect Parents' Childcare Choices 
Act''.

SEC. 2. AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 
 1990.

    (a) Authorization of Appropriations.--

Section 658B of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is 
amended by striking ``this subchapter'' and all that follows and 
inserting the following: ``this subchapter, $14,000,000,000 for each of 
fiscal years 2026 through 2031.''.

    (b) Application and Plan.--

Section 658E
            (c) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858c
            (c) ) is amended--

    (1) in paragraph

    (2) --
        (A) by striking subparagraph
        (A) and inserting the 
 following:
 ``
        (A) Parental choice of providers.--Provide 
 assurances that--
 ``
            (i) the parent or parents of each 
 eligible child within the State, who receives 
 or is offered child care services for which 
 financial assistance is provided under this 
 subchapter, are given the option to receive a 
 child care certificate as defined in 

section 658P

    (2) ; and
 ``
            (ii) all direct services authorized in 
 this subchapter will be provided via child care 
 certificates.'';
        (B) in subparagraph
        (F) --
            (i) in clause
            (i) , by inserting ``(not 
 including in-home child care providers and 
 relative caregivers)'' after ``within the 
 State''; and
            (ii) in clause
            (ii) , by inserting ``(other 
 than in-home child care providers and relative 
 caregivers)'' after ``described in clause
            (i) '';
            (C) in subparagraph
        (G) --
            (i) in clause
            (i) --
            (I) in the first sentence, by 
 inserting ``(if any)'' after ``within 
 the State''; and
            (II) in the second sentence, by 
 inserting ``, except that such 
 requirements shall not apply to in-home 
 child care providers and relative 
 caregivers'' before the period; and
            (ii) in clause
            (ii) 
            (I) , by striking 
 ``(which may include encouraging the pursuit of 
 postsecondary education),'';
            (D) in subparagraph
        (K)
            (i) 
            (II) --
            (i) in item

    (aa) , by inserting ``(not 
 including in-home child care providers and 
 relative caregivers or their facilities)'' 
 before the semicolon; and
            (ii) in item

    (bb) , by inserting ``(not 
 including in-home child care providers and 
 relative caregivers or their facilities)'' 
 after ``facility in the State'';
        (E) in subparagraph
            (M) , by adding at the end the 
 following flush sentence:
 ``Nothing in this subchapter shall be construed to 
 imply that States are required to provide a portion of 
 the delivery of direct services through grants or 
 contracts.'';
        (F) in subparagraph
        (N) --
            (i) by striking ``
        (N) '' and all that 
 precedes clause
            (i) and inserting the 
 following:
 ``
        (N) Protection for working and newly married 
 parents.--'';
            (ii) in clause
            (i) 
            (I) --
            (I) by striking ``85 percent of''; 
 and
            (II) by striking ``of the same 
 size'' and inserting ``with the same 
 number of children and parents as 
 prescribed in 

section 658P

    (4) '';
            (iii) in clause
            (iii) --
            (I) by inserting before ``At the 
 option'' the following:
 ``
            (I) Cessation of work, training, 
 or education.--''; and
            (II) by adding at the end the 
 following:
 ``
            (II) Marriage of an unmarried 
 parent.--The plan shall certify that 
 the State will not terminate assistance 
 provided to carry out this subchapter 
 based on a factor consisting of an 
 unmarried parent's marriage which 
 causes the family income to rise above 
 the State median income for a family 
 with the same number of children and 
 parents as prescribed in 

section 658P

    (4) , without continuing the 
 assistance for at least 6 months after 
 such marriage.'';
            (iv) in clause
            (iv) --
            (I) by striking ``for children of 
 parents'' and inserting the following: 
 ``for children of--
 ``
            (I) parents''; and
            (II) by striking ``85 percent of 
 the State median income for a family of 
 the same size'' and inserting the 
 following: ``the State median income 
 for a family with the same number of 
 children and parents as prescribed in 
 

section 658P

    (4) ; or
 ``
            (II) parents who married 
 following the initial determination or 
 most recent redetermination whose 
 family income now exceeds the State's 
 income limit to qualify for such 
 assistance due to the addition of their 
 spouse's income.''; and
        (G) by adding at the end the following:
 ``
        (W) Notification of program coverage for relative 
 caregivers.--The plan shall certify that the State 
 will--
 ``
            (i) clearly post on the State's website 
 described in subparagraph
        (E)
            (III) ; and
 ``
            (ii) annually notify the parents of each 
 eligible child receiving a child care 
 certificate under this subchapter that such 
 certificates may be used--
 ``
            (I) as a payment to a relative 
 caregiver including the child's 
 grandparent, great grandparent, adult 
 sibling, aunt, or uncle; or
 ``
            (II) as a disbursement to married 
 parents in which at least one parent is 
 acting as a relative caregiver to the 
 parent's own eligible child, so long as 
 such families are in compliance with 
 the income and work requirements 
 described in 

section 658P

    (4)
            (C) 
            (iii) .
 ``
            (X) Review of requirements on relative 
 caregivers.--The plan shall include certification that 
 the State will (at least once every 5 years) review 
 State and local regulations, requirements, and 
 licensing standards applicable to relative caregivers 
 to identify burdensome or redundant requirements that 
 are unnecessary to protect the health and safety of 
 children and that--
 ``
            (i) limit or lower the number of relative 
 caregivers who care for eligible children under 
 this subchapter; or
 ``
            (ii) prevent parents from choosing to 
 have a relative caregiver provide childcare for 
 their eligible child.'';

    (2) in paragraph

    (3)
        (E)
            (ii) , by striking ``70 percent to 
 fund direct services (provided by the State) in accordance with 
 paragraph

    (2)
        (A) '' and inserting ``90 percent to fund direct 
 services (provided by the State) via child care certificates''; 
 and

    (3) in paragraph

    (4) --
        (A) by redesignating subparagraph
            (C) as 
 subparagraph
            (D) ; and
        (B) by inserting after subparagraph
        (B) , the 
 following:
 ``
            (C) Payment rate.--The State plan shall certify 
 that the payment rate to relative caregivers is not 
 less than 75 percent of the rate for family child care 
 providers for children of the same age and in the same 
 geographic location.''.
            (c) Limitations.--

Section 658F

    (b)

    (2) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858d

    (b)

    (2) ) is 
amended--

    (1) in the paragraph heading, by striking ``Sectarian'' and 
 inserting ``Religious''; and

    (2) by striking ``sectarian'' and inserting ``religious''.
            (d) Improving the Quality of Child Care.--

Section 658G of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858e) is 
amended--

    (1) in subsection

    (a) , by striking paragraphs

    (2) and

    (3) and inserting the following:
 ``

    (2) Amount of reservations.--Such State shall reserve and 
 use--
 ``
        (A) not more than 9 percent of the funds 
 described in paragraph

    (1) each year to carry out the 
 activities described in paragraph

    (1) ; and
 ``
        (B) in addition to the funds reserved under 
 subparagraph
        (A) , 3 percent of the funds described in 
 paragraph

    (1) to carry out the activities described in 
 paragraph

    (1) and subsection

    (b)

    (4) , as such activities 
 relate to the quality of care for infants and 
 toddlers.''; and

    (2) in subsection

    (b)

    (1) --
        (A) in subparagraph
        (F) , by adding ``and'' at the 
 end;
        (B) in subparagraph
        (G) , by striking ``; and'' and 
 inserting a period; and
            (C) by striking subparagraph
        (H) .

    (e) Reports.--

Section 658K

    (a) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858i

    (a) ) is amended--

    (1) in paragraph

    (1)
        (B)
            (vii) , by striking ``home care'' and 
 inserting ``in-home care''; and

    (2) in paragraph

    (2)
            (C) , by striking ``contracts,''.

    (f) Hotline and Website.--

Section 658L

    (b)

    (2)
        (B) of the Child Care 
and Development Block Grant Act of 1990 (42 U.S.C. 9858j

    (b)

    (2)
        (B) ) is 
amended--

    (1) in clause
            (iv) , by striking ``and'' at the end;

    (2) in clause
            (v) , by striking the period and inserting ``; 
 and''; and

    (3) by adding at the end the following:
 ``
            (vi) notice that the parents of eligible 
 children may use child care certificates--
 ``
            (I) as a payment to a relative 
 caregiver including the child's 
 grandparent, great grandparent, adult 
 sibling, aunt, or uncle; or
 ``
            (II) as a disbursement to married 
 parents in which at least one parent is 
 acting as a relative caregiver to the 
 parent's own eligible child, so long as 
 such families are in compliance with 
 the income and work requirements 
 described in 

section 658P

    (4)
            (C) 
            (iii) .''.

    (g) Sectarian Activities.--

Section 658M of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858k) is amended--

    (1) by striking subsection

    (a) ; and

    (2) by striking ``

    (b) Tuition.--With'' and inserting 
 ``With''.

    (h) Nondiscrimination.--

Section 658N of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858l) is amended --

    (1) in subsection

    (a) --
        (A) in paragraph

    (1)
        (B) , by striking ``sectarian'' 
 and inserting ``religious'';
        (B) in paragraph

    (3) --
            (i) by striking subparagraph
        (A) ; and
            (ii) by redesignating subparagraphs
        (B) and
            (C) as subparagraphs
        (A) and
        (B) , respectively; 
 and
            (C) by striking paragraph

    (4) and inserting the 
 following:
 ``

    (4) Protections for religious child care providers.--
 ``
        (A) In general.--A State receiving funds under 
 this subchapter shall ensure that--
 ``
            (i) in licensing child care providers, 
 the State shall not impose any requirement on a 
 religious organization that results in the 
 imposition of a greater burden on the religious 
 organization when compared to the related 
 burden imposed on any private nonreligious 
 organization;
 ``
            (ii) in licensing child care providers, 
 the State shall not impose a requirement on a 
 religious organization to provide or comply 
 with any document, agreement, covenant, 
 memorandum of understanding, policy, or 
 regulation, or to provide an assurance or 
 notice, unless the State also imposes that 
 requirement on nonreligious organizations; and
 ``
            (iii) a religious organization receiving 
 funds under this subchapter that provides child 
 care services shall retain its independence 
 from State and local governments, including 
 retaining the autonomy, right of expression, 
 religious character or affiliation, authority 
 over internal governance, or other aspects of 
 the independence of such organization.
 ``
        (B) Requirements.--A religious organization 
 receiving funds under this subchapter that provides 
 child care services may--
 ``
            (i) retain religious terms in the 
 organization's name;
 ``
            (ii) continue to carry out the 
 organization's mission, including the 
 definition, development, practice, and 
 expression of its religious beliefs;
 ``
            (iii) use the organization's facilities 
 to provide a program without concealing, 
 removing, or altering religious art, icons, 
 scriptures, or other symbols from the 
 facilities;
 ``
            (iv) select, promote, or dismiss the 
 members of the organization's governing body, 
 and the organization's employees, on the basis 
 of their acceptance of or adherence to the 
 religious tenets of the organization; and
 ``
            (v) include religious references in the 
 organization's mission statement and other 
 chartering or governing documents.
 ``
            (C) Religious exemptions.--A religious 
 organization's exemptions, as provided in title VII of 
 the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) 
 (including exemptions from prohibitions of employment 
 discrimination in 

section 702

    (a) of that Act (42 U.S.C. 
 2000e-1

    (a) )), title VIII of the Civil Rights Act of 
 1968 (42 U.S.C. 3601 et seq.), title IX of the 
 Education Amendments of 1972 (20 U.S.C. 1681 et seq.), 
 the Americans with Disabilities Act of 1990 (42 U.S.C. 
 12101 et seq.), the Religious Freedom Restoration Act 
 of 1993 (42 U.S.C. 2000bb et seq.), the Religious Land 
 Use and Institutionalized Persons Act of 2000 (42 
 U.S.C. 2000cc et seq.), or any other provision in law 
 providing an exemption for a religious organization, 
 shall not be waived because of the religious 
 organization's receipt of funds under this subchapter.
 ``
            (D) Private right of action.--Any religious 
 organization that alleges a violation of its rights 
 under this paragraph and seeks to enforce such rights--
 ``
            (i) may bring an action in a court of 
 competent jurisdiction and assert that 
 violation as a claim, or assert that violation 
 as a defense in a civil action; and
 ``
            (ii) may obtain appropriate relief, 
 including attorney's fees, against an entity or 
 agency that committed such violation.''; and

    (2) in subsection

    (b) , by striking ``sectarian'' each place 
 it appears and inserting ``religious''.
            (i) === Definitions. ===
-

Section 658P of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--

    (1) by striking paragraph

    (2) and inserting the following:
 ``

    (2) Child care certificate.--
 ``
        (A) In general.--The term `child care 
 certificate' means a certificate (that may be a check 
 or other disbursement) that is issued by a State or 
 local government under this subchapter directly to a 
 parent who may use such certificate--
 ``
            (i) as payment for child care services;
 ``
            (ii) as a deposit for child care services 
 if such a deposit is required of other children 
 being cared for by the provider; or
 ``
            (iii) as a disbursement to married 
 parents described in paragraph

    (4)
            (C) 
            (iii) in 
 which at least one parent is acting as a 
 relative caregiver to the parent's own child, 
 so long as such disbursement is not less than 
 the payment rate set for other relative 
 caregivers for children of the same age and in 
 the same geographic location.
 ``
        (B) Rule of construction.--Nothing in this 
 subchapter shall be construed to allow State or Federal 
 agencies to preclude the use of such certificates for 
 child care services provided by a religious child care 
 provider if such services are freely chosen by the 
 parent. Such certificates may be expended by providers 
 for any religious purpose or activity that is a part of 
 the child care services, including religious worship 
 and instruction.
 ``
            (C) Not grants or contracts.--For purposes of 
 this subchapter, child care certificates shall not be 
 considered to be grants or contracts.'';

    (2) in paragraph

    (4) , by striking subparagraphs
        (B) and
            (C) and inserting the following:
 ``
        (B) whose family assets do not exceed $1,000,000 
 (as certified by a member of such family); and
 ``
            (C) who--
 ``
            (i) resides in a family that is headed by 
 an unmarried person who is the child's parent, 
 who is working or attending a job training or 
 educational program, and that has a family 
 income that does not exceed 85 percent of the 
 State median income for a family with the same 
 number of children headed by an unmarried 
 person, based on the most recent data that is 
 published by the Bureau of the Census;
 ``
            (ii) resides in a family that is headed 
 by two married persons who are the child's 
 parents, who are both working or attending a 
 job training or educational program, and that 
 has a family income that does not exceed 70 
 percent of the State median income for a family 
 with the same number of children headed by two 
 married persons, based on the most recent data 
 that is published by the Bureau of the Census;
 ``
            (iii) resides in a family that is headed 
 by two married persons who are the child's 
 parents, and who work a combined total of at 
 least 40 hours per week and that has one or 
 both parents acting as a relative caregiver for 
 the child, with a family income that does not 
 exceed 70 percent of the State median income 
 for a family with the same number of children 
 headed by two married persons, based on the 
 most recent data that is published by the 
 Bureau of the Census; or
 ``
            (iv) is receiving, or needs to receive, 
 protective services and resides with a parent 
 or parents not described in clause
            (i) ,
            (ii) , 
 or
            (iii) .'';

    (3) in paragraph

    (6) --
        (A) in subparagraph
        (A) , by striking ``a group home 
 child care provider''; and
        (B) by striking subparagraph
        (B) and inserting the 
 following:
 ``
        (B) a relative caregiver or in-home child care 
 provider, if such caregiver or other provider complies 
 with any applicable requirements that govern child care 
 provided by the type of provider involved.'';

    (4) in paragraph

    (7) --
        (A) by striking ``one individual who provides'' and 
 inserting ``one or more individuals who provide''; and
        (B) by striking ``as the sole caregiver, and'';

    (5) by redesignating paragraphs

    (8) ,

    (9) ,

    (10) ,

    (11) ,

    (12) ,

    (13) ,

    (14) , and

    (15) as paragraphs

    (9) ,

    (10) ,

    (11) ,

    (13) ,

    (14) ,

    (15) ,

    (16) , and

    (17) , respectively;

    (6) by inserting after paragraph

    (7) , the following:
 ``

    (8) In-home child care provider.--The term `in-home child 
 care provider' means an individual who provides child care 
 services (excluding services provided by a family child care 
 provider) in the child's own home.''; and

    (7) by inserting after paragraph

    (11) (as so redesignated), 
 the following:
 ``

    (12) Relative caregiver.--The term `relative caregiver' 
 means a child care provider that is 18 years of age or older 
 who provides child care services only to eligible children who 
 are, by affinity or consanguinity, or by court decree, the 
 child (if the parent or parents acting as a relative caregiver 
 are married and work a combined total of at least 40 hours per 
 week), grandchild, great grandchild, sibling, niece, or nephew 
 of such provider.''.

    (j) Parental Rights.--

Section 658Q of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858o) is amended--

    (1) by striking ``

    (a) In General.--''; and

    (2) by striking subsection

    (b) .

    (k) Fraud Prevention and Increased Relative Caregiving.--The Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) 
is amended by adding at the end the following:

``

SEC. 658T. PILOT GRANT PROGRAM TO PREVENT FRAUD.

 ``

    (a) In General.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall establish and implement 
a 2-year pilot program to award grants to States to increase the 
State's ability to--
 ``

    (1) verify that children receiving assistance under this 
 subchapter meet eligibility criteria at the time of eligibility 
 determination and redetermination;
 ``

    (2) prevent payments to ineligible children;
 ``

    (3) verify the relationship of relative caregivers to 
 eligible children;
 ``

    (4) identify cases of fraud and intentional program 
 violation by child care providers; and
 ``

    (5) recover payments that are the result of fraud.
 ``

    (b) Authorization of Appropriations.--There is authorized to be 
appropriated $50,000,000 to carry out this section.

``

SEC. 658U. INCREASING RELATIVE CAREGIVING.

 ``

    (a) In General.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall submit to Congress and 
make publicly available a report on regulations that prevent family 
members from acting as relative caregivers to eligible children under 
this subchapter.
 ``

    (b) Contents.--The report required under this section shall 
include the following:
 ``

    (1) A list of the provisions under this subchapter and 
 other Federal laws that decrease the number of relative 
 caregivers.
 ``

    (2) A description of State or local government policies, 
 regulations, or licensing standards that decrease the number of 
 relative caregivers or that place burdensome requirements upon 
 such caregivers beyond basic health and safety requirements.
 ``

    (3) Recommendations and legislative proposals for 
 Congress, State legislatures, and State lead agencies to lessen 
 or remove unnecessary, burdensome regulations that prevent 
 family members (including parents, grandparents, adult 
 siblings, aunts, and uncles) from providing child care for 
 eligible children under this subchapter.
 ``
            (c) Pilot Programs.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall establish and implement 
a 2-year pilot program to award grants to States to carry out 
innovative State programs to promote child care provided by relative 
caregivers and to increase the number of relative caregivers providing 
child care to eligible children under this subchapter.
 ``
            (d) Authorization of Appropriations.--There is authorized to be 
appropriated $50,000,000 to carry out this section.''.

SEC. 3. REPEAL OF CREDIT FOR EXPENSES FOR HOUSEHOLD AND DEPENDENT CARE 
 SERVICES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by striking 

section 21.

    (b) Conforming Amendments.--

    (1) Section 23

    (f)

    (1) of the Internal Revenue Code of 1986 
 is amended to read as follows:
 ``

    (1) Rules for married couples.--
 ``
        (A) Married couples must file joint return.--If 
 the taxpayer is married at the close of the taxable 
 year, the credit shall be allowed under subsection

    (a) only if the taxpayer and his spouse file a joint return 
 for the taxable year.
 ``
        (B) Marital status.--An individual legally 
 separated from his spouse under a decree of divorce or 
 of separate maintenance shall not be considered as 
 married.
 ``
            (C) Certain married individuals living apart.--
 If--
 ``
            (i) an individual who is married and who 
 files a separate return--
 ``
            (I) maintains as his home a 
 household which constitutes for more 
 than one-half of the taxable year the 
 principal place of abode of a 
 qualifying individual, and
 ``
            (II) furnishes over half of the 
 cost of maintaining such household 
 during the taxable year, and
 ``
            (ii) during the last 6 months of such 
 taxable year such individual's spouse is not a 
 member of such household,
 such individual shall not be considered as married.''.

    (2) Section 35

    (g)

    (6) of such Code is amended to read as 
 follows:
 ``

    (6) Marital status; certain married individuals living 
 apart.--Rules similar to the rules of subparagraphs
        (B) and
            (C) of 

section 23

    (f)

    (1) shall apply for purposes of this 
 section.''.

    (3) Section 129

    (a)

    (2)
            (C) of such Code is amended to read as 
 follows:
 ``
            (C) Marital status.--For purposes of this 
 paragraph, marital status shall be determined under the 
 rules of subparagraphs
        (B) and
            (C) of 

section 23

    (f)

    (1) .''.

    (4) Section 129

    (b)

    (2) of such Code is amended to read as 
 follows:
 ``

    (2) Special rules for spouse who is a student or 
 incapable of caring for self.--In the case of a spouse who is a 
 student or an individual described in subsection

    (e)

    (1)
        (B)
            (ii) 
            (III) (determined without regard to the amount of 
 time spent in the taxpayer's household), for purposes of 
 paragraph

    (1) , such spouse shall be deemed for each month 
 during which such spouse is a full-time student at an 
 educational institution, or is an individual so described in 
 subsection

    (e)

    (1)
        (B)
            (ii) 
            (III) , to be gainfully employed and to 
 have earned income of not less than--
 ``
        (A) $250 if there is 1 individual described in 
 subclauses
            (I) through
            (III) of subsection

    (e)

    (1)
        (B) with respect to the taxpayer for the taxable year, or
 ``
        (B) $500 if there are 2 or more such individuals 
 with respect to the taxpayer for the taxable year.
 In the case of any husband and wife, this paragraph shall apply 
 with respect to only one spouse for any month.''.

    (5) Section 129

    (e)

    (1) of such Code is amended--
        (A) by striking ``The term'' and inserting the 
 following:
 ``
        (A) In general.--The term'',
        (B) by striking ``under 

section 21

    (b)

    (2) (relating 
 to expenses for household and dependent care services 
 necessary for gainful employment)'', and
            (C) by adding at the end the following:
 ``
        (B) Employment-related expenses.--
 ``
            (i) In general.--The term `employment-
 related expenses' means amounts paid for the 
 following expenses, but only if such expenses 
 are incurred to enable the taxpayer to be 
 gainfully employed for any period for which 
 there are 1 or more qualifying individuals with 
 respect to the taxpayer:
 ``
            (I) Expenses for household 
 services, and
 ``
            (II) Expenses for the care of a 
 qualifying individual.
 Such term shall not include any amount paid for 
 services outside the taxpayer's household at a 
 camp where the qualifying individual stays 
 overnight.
 ``
            (ii) Exception.--Employment-related 
 expenses described in clause
            (i) which are 
 incurred for services outside the taxpayer's 
 household shall be taken into account only if 
 incurred for the care of--
 ``
            (I) a dependent of the taxpayer 
 (as defined in 

section 152

    (a)

    (1) ) who 
 has not attained age 13,
 ``
            (II) a dependent of the taxpayer 
 (as defined in 

section 152, determined 
 without regard to subsections

    (b)

    (1) ,

    (b)

    (2) , and
            (d) (1)
        (B) ) who is 
 physically or mentally incapable of 
 caring for himself or herself, who has 
 the same principal place of abode as 
 the taxpayer for more than one-half of 
 such taxable year, and who regularly 
 spends at least 8 hours each day in the 
 taxpayer's household, or
 ``
            (III) the spouse of the taxpayer, 
 if the spouse is physically or mentally 
 incapable of caring for himself or 
 herself, has the same principal place 
 of abode as the taxpayer for more than 
 one-half of such taxable year, and 
 regularly spends at least 8 hours each 
 day in the taxpayer's household.
 ``
            (iii) Dependent care centers.--
 Employment-related expenses described in clause
            (i) which are incurred for services provided 
 outside the taxpayer's household by a dependent 
 care center shall be taken into account only 
 if--
 ``
            (I) such center complies with all 
 applicable laws and regulations of a 
 State or unit of local government, and
 ``
            (II) The requirements of clause
            (ii) are met.
 ``
            (iv) Dependent care center defined.--For 
 purposes of this paragraph, the term `dependent 
 care center' means any facility which--
 ``
            (I) provides care for more than 
 six individuals (other than individuals 
 who reside at the facility), and
 ``
            (II) receives a fee, payment, or 
 grant for providing services for any of 
 the individuals (regardless of whether 
 such facility is operated for 
 profit).''.

    (6) Section 213 of such Code is amended by striking 
 subsection

    (e) .

    (7) Section 6213

    (g)

    (2) of such Code is amended--
        (A) in subparagraph
        (H) , by striking ``

section 21 
 (relating to expenses for household and dependent care 
 services necessary for gainful employment) or'', and
        (B) in subparagraph
            (L) , by striking ``21,''.
            (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
 <all>