119-hr4418

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4418 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 4418

 To increase the quality and supply of child care and lower child care 
 costs for families.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 July 15, 2025

Mr. Scott of Virginia (for himself, Ms. Lee of Pennsylvania, Mr. Davis 
 of Illinois, Ms. Brownley, Mr. Tonko, Mr. Fields, Ms. Norton, Ms. 
 Tlaib, Mrs. Ramirez, Ms. Pelosi, Mr. Thompson of Mississippi, Mr. 
 Jackson of Illinois, Ms. Stansbury, Ms. Salinas, Mrs. McIver, Ms. 
 Williams of Georgia, Mrs. McBath, Ms. Ansari, Mr. Swalwell, Ms. Moore 
of Wisconsin, Mr. Castro of Texas, Mr. Frost, Mr. Carson, Ms. Castor of 
 Florida, Mr. Latimer, Ms. Clark of Massachusetts, Ms. Pingree, Mr. 
 Garcia of California, Ms. Goodlander, Ms. Scholten, Mr. Thanedar, Ms. 
 Crockett, Ms. Bonamici, Ms. Kelly of Illinois, Ms. Underwood, Mr. 
 Carter of Louisiana, Mr. Pocan, Mrs. McClain Delaney, Mr. Lieu, Ms. 
 McBride, Mr. Vargas, Ms. Leger Fernandez, Ms. McCollum, Mrs. Dingell, 
Ms. Lois Frankel of Florida, Mr. Norcross, Ms. McClellan, Ms. McDonald 
 Rivet, Ms. Elfreth, Ms. DelBene, Ms. Dean of Pennsylvania, Mr. 
McGarvey, Ms. Tokuda, Ms. Clarke of New York, Mr. Moulton, Mr. Keating, 
 Ms. Sanchez, Ms. Chu, Mr. Menendez, Ms. Schakowsky, Ms. Simon, Ms. 
Wilson of Florida, Mr. Smith of Washington, Ms. Stevens, Mr. Landsman, 
 Ms. Ross, Ms. DeLauro, Mr. Nadler, Mr. Evans of Pennsylvania, Mr. 
Subramanyam, Mrs. Beatty, Mr. Gottheimer, Ms. Titus, Ms. Pettersen, Ms. 
 Budzinski, Mr. Magaziner, Ms. Sewell, Ms. Brown, Mr. Casten, Mr. 
 Garamendi, Mr. Raskin, Mr. Beyer, Ms. Davids of Kansas, and Mr. Amo) 
 introduced the following bill; which was referred to the Committee on 
 Education and Workforce

_______________________________________________________________________

 A BILL

 To increase the quality and supply of child care and lower child care 
 costs for families.

 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 for Working Families 
Act''.

 TITLE I--CHILD CARE AND EARLY LEARNING PROGRAM

SEC. 101. BIRTH THROUGH FIVE CHILD CARE AND EARLY LEARNING PROGRAM.

    (a) Child Care 

=== Definitions. ===
-The definitions in 

section 658P of the 
Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n) 
shall apply to this section, except as provided in subsection

    (b) and 
as otherwise specified.

    (b) Additional 

=== Definitions. ===
-In this section:

    (1) Apprenticeship.--The term ``apprenticeship'' means an 
 apprenticeship registered under the Act of August 16, 1937 
 (commonly known as the ``National Apprenticeship Act''; 50 
 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.).

    (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, 
 Tribal, territorial, or local government under this 
 section directly to a parent who shall use such 
 certificate only as payment for child care services or 
 as a deposit for child care services if such a deposit 
 is required of other children being cared for by the 
 provider.
        (B) Rule.--Nothing in this section shall preclude 
 the use of such certificates for sectarian child care 
 services if freely chosen by the parent. For the 
 purposes of this section, child care certificates shall 
 be considered indirect Federal financial assistance to 
 the provider.

    (3) Child experiencing homelessness.--The term ``child 
 experiencing homelessness'' means an individual who is a 
 homeless child or youth under 

section 725 of the McKinney-Vento 
 Homeless Assistance Act (42 U.S.C. 11434a).

    (4) Eligible activity.--The term ``eligible activity'', 
 with respect to a parent, shall include, at minimum, activities 
 consisting of--
        (A) full-time or part-time employment;
        (B) self-employment;
            (C) job search activities;
            (D) 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;
        (E) health treatment (including mental health and 
 substance use treatment) for a condition that prevents 
 the parent from participating in other eligible 
 activities;
        (F) activities to prevent child abuse and neglect, 
 or family violence prevention or intervention 
 activities;
        (G) employment and training activities, including 
 job training, under the Workforce Innovation and 
 Opportunity Act (29 U.S.C. 3101 et seq.); and
        (H) 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.--
        (A) In general.--The term ``eligible child'' means 
 an individual--
            (i) who is less than 6 years of age;
            (ii) who is not yet in kindergarten; and
            (iii) who--
            (I) resides with a parent or 
 parents who are participating in an 
 eligible activity;
            (II) is included in a population of 
 vulnerable children identified by the 
 lead agency involved, which at a 
 minimum shall include children with 
 disabilities, infants and toddlers with 
 disabilities, children experiencing 
 homelessness, children in foster care, 
 children in kinship care, children in a 
 family that is eligible for assistance 
 through the special supplemental 
 nutrition assistance program for women, 
 infants, and children established by 
 

section 17 of the Child Nutrition Act 
 of 1966 (42 U.S.C. 1786), a household 
 that is eligible to receive assistance 
 through the supplemental nutrition 
 assistance program established under 
 the Food and Nutrition Act of 2008 (7 
 U.S.C. 2011 et seq.), or a family that 
 is eligible to receive assistance 
 through 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.), and children 
 who are receiving, or need to receive, 
 child protective services; or
            (III) resides with--

    (aa) a parent who is more 
 than 65 years of age;

    (bb) a parent who is 
 employed by an eligible child 
 care provider; or
            (cc) a parent who is 
 enrolled in high school and has 
 not exceeded the maximum age of 
 enrollment in high school.
        (B) Longer-term period eligibility.--An individual 
 who is determined to be an eligible child shall not be 
 required to reverify eligibility for purposes of this 
 title during the period after the determination and 
 before the individual becomes 6 years of age or enters 
 kindergarten, whichever occurs earlier.

    (6) Eligible child care provider.--
        (A) In general.--The term ``eligible child care 
 provider'' means a center-based child care provider, a 
 family child care provider, or other provider of child 
 care services for compensation that--
            (i) is licensed to provide child care 
 services under State law applicable to the 
 child care services it provides or, in the case 
 of an Indian Tribe or Tribal organization, 
 meets the rules set by the Secretary;
            (ii) participates in the State's tiered 
 system for recognizing and supporting the 
 quality of child care services described in 
 subsection

    (f)

    (3)
        (B) , or, in the case of an 
 Indian Tribe or Tribal organization, meets the 
 rules set by the Secretary--
            (I) not later than 4 years after 
 the State first receives funds under 
 this section; and
            (II) for the remainder of the 
 period for which the provider receives 
 funds under this section; and
            (iii) satisfies the State and local 
 requirements, including those requirements 
 described in 

section 658E
            (c) (2)
            (I) of the Child 
 Care and Development Block Grant Act of 1990 
 (42 U.S.C. 9858c
            (c) (2)
            (I) ), applicable to the 
 child care services it provides.
        (B) Special rule.--A child care provider who is 
 eligible to provide child care services in a State for 
 children receiving assistance under the Child Care and 
 Development Block Grant Act of 1990 (42 U.S.C. 9857 et 
 seq.) on the date the State submits an application for 
 funds under this section, and remains in compliance 
 with any licensing or registration standards, or 
 regulations, of the State, shall be deemed to be an 
 eligible child care provider under this section for 3.5 
 years after the State first receives funding under this 
 section.

    (7) FMAP.--The term ``FMAP'' has the meaning given the term 
 ``Federal medical assistance percentage'' in the first sentence 
 of 

section 1905

    (b) of the Social Security Act (42 U.S.C. 
 1396d

    (b) ).

    (8) Family child care provider.--The term ``family child 
 care provider'' means one or more individuals who provide child 
 care services, in a private residence other than the residences 
 of the children involved, for less than 24 hours per day per 
 child, or for 24 hours per day per child due to the nature of 
 the work of the parent involved.

    (9) Inclusive care.--The term ``inclusive'', with respect 
 to care (including child care), means care provided by an 
 eligible child care provider--
        (A) for whom the percentage of children served by 
 the provider who are children with disabilities or 
 infants or toddlers with disabilities reflects the 
 prevalence of children with disabilities and infants 
 and toddlers with disabilities (whichever the provider 
 serves) among children within the State involved; and
        (B) that provides care and full participation for 
 children with disabilities and infants and toddlers 
 with disabilities (whichever the provider serves) 
 alongside children who are--
            (i) not children with disabilities; and
            (ii) not infants and toddlers with 
 disabilities.

    (10) Infant or toddler.--The term ``infant or toddler'' 
 means an individual who is less than 3 years of age.

    (11) Infant or toddler with a disability.--The term 
 ``infant or toddler with a disability'' has the meaning given 
 the term in 

section 632 of the Individuals with Disabilities 
 Education Act (20 U.S.C. 1432).

    (12) Lead agency.--The term ``lead agency'' means the 
 agency designated under subsection

    (e) .

    (13) Provider type.--The term ``provider type'' means a 
 type that is--
        (A) a center-based child care provider;
        (B) a family child care provider; or
            (C) another non-center-based child care provider.

    (14) Recognized postsecondary credential.--The term 
 ``recognized postsecondary credential'' has the meaning given 
 the term in 

section 3 of the Workforce Innovation and 
 Opportunity Act (29 U.S.C. 3102).

    (15) Staffed family child care network.--The term ``staffed 
 family child care network'' means a nonprofit organization or 
 nonprofit cooperative--
        (A) that may be a component of a child care 
 resource and referral organization;
        (B) that has at least one paid staff member; and
            (C) that offers evidence-based professional 
 development, quality improvement support, business 
 support, and technical assistance, including on 
 achieving licensure as a child care provider, to family 
 child care providers.

    (16) State.--The term ``State'' means any of the 50 States 
 and the District of Columbia.

    (17) Territory.--The term ``territory'' means the 
 Commonwealth of Puerto Rico, the Virgin Islands of the United 
 States, Guam, American Samoa, and the Commonwealth of the 
 Northern Mariana Islands.
            (c) Appropriations.--

    (1) Entitlement.--In addition to amounts otherwise 
 available, there is appropriated to the Department of Health 
 and Human Services, out of any money in the Treasury not 
 otherwise appropriated, such sums as may be necessary for each 
 of fiscal years 2026 through 2031, for payments to States, 
 territories, and Indian Tribes and Tribal organizations, and 
 for carrying out this section (other than carrying out 
 activities described in paragraph

    (2) or

    (3) ).

    (2) Grants to localities; awards to head start agencies.--
 In addition to amounts otherwise available, there is 
 appropriated to the Department of Health and Human Services for 
 fiscal year 2026, out of any money in the Treasury not 
 otherwise appropriated, $20,000,000,000, to remain available 
 until September 30, 2031, to carry out the programs of grants 
 to localities and awards to Head Start agencies described in 
 subsection
            (i) .

    (3) Federal administration.--In addition to amounts 
 otherwise available, there is appropriated to the Department of 
 Health and Human Services for fiscal year 2026, out of any 
 money in the Treasury not otherwise appropriated, 
 $1,300,000,000, to remain available until September 30, 2031, 
 to carry out subsections

    (k) and
            (l) .
            (d) Establishment of Birth Through Five Child Care and Early 
Learning Entitlement Program.--

    (1) In general.--The Secretary is authorized to administer 
 a child care and early learning entitlement program under which 
 an eligible child, in a State, territory, or Indian Tribe, or 
 served by a Tribal organization with an approved application 
 under subsection

    (f) or

    (g) , shall be provided an opportunity 
 to obtain high-quality child care services, subject to the 
 requirements of this section.

    (2) Assistance for every eligible child.--Beginning on 
 October 1, 2026, every child who applies for assistance under 
 this section, who is in a State with an approved application 
 under subsection

    (f) , or in a territory or Indian Tribe or 
 served by a Tribal organization with an approved application 
 under subsection

    (g) , and who is determined, by a lead agency 
 (or other entity designated by a lead agency) for the State, 
 territory, Indian Tribe, or Tribal organization involved, 
 following standards and procedures established by the Secretary 
 by rule, to be an eligible child, shall be offered and shall be 
 entitled to receive assistance for direct child care services 
 in accordance with and subject to the requirements and 
 limitations of this section.

    (e) Lead Agency.--The Governor of a State or the head of a 
territory or Indian Tribe, desiring for the State, territory, or Indian 
tribe or a related tribal organization to receive a payment under this 
section, shall designate a lead agency (such as a State agency or joint 
interagency office) to administer the child care program carried out 
under this section.

    (f) Applications and State Plans.--

    (1) Application.--To be eligible to receive assistance 
 under this section, a State shall prepare and submit to the 
 Secretary for approval an application containing a State plan 
 that meets the requirements under paragraph

    (3) and contains 
 that information.

    (2) Period covered by plan.--A State plan contained in the 
 application shall be designed to be implemented during a period 
 of not more than 3 years.

    (3) Requirements for state plans.--The Secretary shall 
 award funds under this section to States with an approved 
 application that contains a State plan, submitted under 
 paragraph

    (1) , at such time, in such manner, and containing 
 such information as the Secretary shall by rule require, 
 including, at a minimum, the following:
        (A) Payment rates and cost estimation.--
            (i) Payment rates.--The State plan shall 
 certify that payment rates for the provision of 
 direct child care services for which assistance 
 is provided in accordance with this section for 
 the period covered by the plan, within 3 years 
 after the State first receives funds under this 
 section--
            (I) will be sufficient to meet the 
 cost of child care (including fixed 
 costs such as rent or mortgage and 
 salaries), and set (with pay being 
 paid) in accordance with a cost 
 estimation model or cost study 
 described in clause
            (ii) that is 
 approved by the Secretary; and
            (II) will correspond to differences 
 in quality (including improved quality) 
 based on the State's tiered system for 
 recognizing and supporting the quality 
 of child care services described in 
 subparagraph
        (B) .
            (ii) Cost estimation.--Such State plan 
 shall--
            (I) demonstrate that the State has, 
 after consulting with the entities and 
 administrators described in subclause
            (II) , developed and uses a 
 statistically valid and reliable cost 
 estimation model or cost study for the 
 payment rates for direct child care 
 services in the State (that are 
 sufficient to cover providers' fixed 
 costs and take into account payments 
 made through BASE grants under title 
 II), for the cost of child care at each 
 of the tiers of the State's tiered 
 system for recognizing and supporting 
 the quality of child care services 
 described in subparagraph
        (B) , and for 
 variations in the cost of direct child 
 care services by geographic area, 
 provider type, and age of child, and 
 the additional costs associated with 
 providing inclusive care;
            (II) certify that the entities and 
 administrators consulted included the 
 State Advisory Council on Early 
 Childhood Education and Care designated 
 or established in 

section 642B

    (b)

    (1)
        (A)
            (i) of the Head Start Act 
 (42 U.S.C. 9837b

    (b)

    (1)
        (A)
            (i) ) 
 (including State Head Start 
 collaboration office directors), 
 administrators of local child care 
 programs and Head Start agencies, 
 organizations representing child care 
 directors, teachers, and other staff, 
 local child care resource and referral 
 organizations, organizations 
 representing parents of children with 
 disabilities and parents of infants and 
 toddlers with disabilities, the State 
 interagency coordinating council 
 established under 

section 641 of the 
 Individuals with Disabilities Education 
 Act (20 U.S.C. 1441), the State 
 advisory panel established under 
 

section 612

    (a)

    (21) of the Individuals 
 with Disabilities Education Act (20 
 U.S.C. 1412

    (a)

    (21) ), organizations and 
 labor organizations representing child 
 care providers, and other appropriate 
 entities;
            (III) certify that the State--

    (aa) not later than 30 days 
 after finalizing the cost 
 estimation model or cost study, 
 published a detailed report 
 containing the child care costs 
 estimated with the cost 
 estimation model or cost study, 
 and including an explanation 
 detailing how the wage 
 requirements described in 
 subclause
            (IV) 
            (cc) were applied 
 in the estimation of such 
 costs; and

    (bb) not later than 60 days 
 after publishing the report, 
 established a system to receive 
 public comment on the report 
 about making changes to the 
 cost estimation model or cost 
 study, provided an opportunity 
 for the public to comment on 
 the report through that system, 
 and submitted the report to the 
 Secretary;
            (IV) certify that the State's 
 payment rates for direct child care 
 services for which assistance is 
 provided in accordance with this 
 section--

    (aa) are set (with pay 
 being paid) in accordance with 
 the most recent estimates from 
 the most recent cost estimation 
 model or cost study under 
 subclause
            (I) , so that 
 providers at each tier of the 
 tiered system for recognizing 
 and supporting the quality of 
 child care services described 
 in subparagraph
        (B) receive a 
 payment that is sufficient to 
 fully meet the requirements of 
 such tier;

    (bb) are set so as to 
 provide payments to providers 
 not at the top tier of the 
 tiered system that are 
 sufficient to enable the 
 providers to increase quality 
 to meet the requirements for 
 the next tier;
            (cc) ensure adequate wages 
 for staff of child care 
 providers providing such direct 
 child care services that--

    (AA) at a minimum, 
 provide a living wage 
 for all staff of such 
 child care providers; 
 and

    (BB) are equivalent 
 to wages for elementary 
 educators with similar 
 credentials and 
 experience in the 
 State; and
            (dd) are adjusted on an 
 annual basis for cost-of-living 
 increases to ensure those 
 payment rates remain sufficient 
 to meet the requirements of 
 this section;
            (V) certify that the State will 
 update, not less often than once every 
 3 years, the cost estimation model or 
 cost study, following the process and 
 in accordance with the requirements of 
 this subparagraph; and
            (VI) certify that the State has 
 established a system for appeals of the 
 child care costs estimated with the 
 cost estimation model or cost study.
            (iii) Payment practices.--Such State plan 
 shall include an assurance that the State will 
 implement payment practices that support the 
 fixed costs of providing direct child care 
 services.
        (B) Tiered system for recognizing and supporting 
 the quality of child care services.--Such State plan 
 shall certify that the State has implemented, or assure 
 that the State will develop or revise within 3 years 
 after first receiving funds under this section, with 
 input (from early childhood education and development 
 experts, from a diverse group of child care providers 
 of a variety of provider types, from families, and from 
 organizations representing child care directors, 
 teachers, and other staff), a tiered system for 
 recognizing and supporting the quality of child care 
 services for which assistance is made available under 
 this section, and that are inclusive and appropriate 
 for such child care providers. Such tiered system 
 shall--
            (i) include a set of standards, for 
 determining the tier of quality of a child care 
 provider, that--
            (I) uses standards for a highest 
 tier that at a minimum are equivalent 
 to Head Start program performance 
 standards described in 

section 641A

    (a)

    (1)
        (B) of the Head Start Act (42 
 U.S.C. 9836a

    (a)

    (1)
        (B) ) or other 
 equivalent evidence-based standards 
 approved by the Secretary;
            (II) includes quality indicators 
 and thresholds that are appropriate for 
 child development for different types 
 of provider types, including center-
 based child care providers and family 
 child care providers, and are 
 appropriate for providers serving 
 different age groups (including mixed 
 age groups) of children; and
            (III) aligns standards for the 
 lowest tier with State licensing 
 requirements for child care providers 
 described in subparagraph
        (K) ;
            (ii) include a different set of standards 
 that includes indicators, when appropriate, for 
 care during nontraditional hours of operation; 
 and
            (iii) provide for sufficient resources and 
 supports for child care providers at tiers 
 lower than the highest tier to facilitate 
 progression toward meeting higher quality 
 standards.
            (C) Achieving high quality for all children.--Such 
 State plan shall certify the State has implemented, or 
 will implement within 3 years after first receiving 
 funds under this section, policies and financing 
 practices that will ensure all eligible children can 
 choose to attend child care, with services provided by 
 any of a variety of provider types including family 
 child care providers, at the highest quality tier 
 within 10 years after the date of enactment of this 
 Act.
            (D) Number and percentage of providers at each tier 
 and other characteristics.--Such plan shall provide 
 information on the number and percentage of eligible 
 child care providers, disaggregated (unless the 
 disaggregation involved would reveal personally 
 identifiable information about an individual provider 
 or child) by--
            (i) the tier of a provider's services on 
 the State's tiered system for recognizing and 
 supporting the quality of child care services 
 described in subparagraph
        (B) ;
            (ii) the primary language of the provider;
            (iii) the race and ethnicity of the 
 children served;
            (iv) the age of the children;
            (v) the disability status of the children; 
 and
            (vi) the primary language of the children.
        (E) Compensation.--Such plan shall provide a 
 certification that the State has or will have within 3 
 years after first receiving funds under this section, a 
 wage ladder for staff of eligible child care providers 
 receiving assistance under this section, including a 
 certification that wages for such staff, at a minimum, 
 will meet the requirements of subparagraph
        (A)
            (ii) 
            (IV) 
            (cc) .
        (F) Sliding fee scale for copayments.--
            (i) In general.--Except as provided in 
 clause
            (ii) 
            (I) , the State plan shall provide an 
 assurance that the State will for the period 
 covered by the plan use a sliding fee scale, 
 which shall gradually increase copayments as a 
 percentage of family income for families with 
 greater family incomes as described in clause
            (ii) , to determine a copayment for a family 
 receiving assistance under this section (or, 
 for a family receiving part-time care, a 
 reduced copayment that is the proportionate 
 amount of the full copayment).
            (ii) Sliding fee scale.--A full copayment 
 described in clause
            (i) shall be determined 
 using a sliding fee scale that provides that, 
 for a family with a family income--
            (I) of not more than 85 percent of 
 the State median income for a family of 
 the same size, the family shall not pay 
 a copayment, toward the cost of the 
 child care involved for all eligible 
 children in the family;
            (II) of more than 85 percent but 
 not more than 100 percent of the State 
 median income for a family of the same 
 size, the copayment shall be more than 
 0 but not more than 2 percent of that 
 family income, toward such cost for all 
 such children;
            (III) of more than 100 percent but 
 not more than 125 percent of the State 
 median income for a family of the same 
 size, the copayment shall be more than 
 2 but not more than 4 percent of that 
 family income, toward such cost for all 
 such children;
            (IV) of more than 125 percent but 
 not more than 150 percent of the State 
 median income for a family of the same 
 size, the copayment shall be more than 
 4 but not more than 7 percent of that 
 family income, toward such cost for all 
 such children; and
            (V) of more than 150 percent of the 
 State median income for a family of the 
 same size, the copayment shall be 7 
 percent of that family income, toward 
 such cost for all such children.
        (G) Prohibition on charging more than copayment.--
 The State plan shall certify that, after the State 
 develops and uses the cost estimation model or cost 
 study described in subparagraph
        (A)
            (ii) , the State will 
 not permit a child care provider receiving financial 
 assistance under this section to charge, for direct 
 child care services for an eligible child, more than 
 the total of--
            (i) the financial assistance provided for 
 the child under this section; and
            (ii) any applicable copayment pursuant to 
 subparagraph
        (F) .
        (H) Reduction of barriers.--The State plan shall 
 assure that each child who receives assistance under 
 this section will be considered to meet all eligibility 
 requirements for such assistance, and will receive such 
 assistance, for not less than 12 months unless the 
 child has aged out of the program, and the child's 
 eligibility determination and redetermination, 
 including any determination based on the State's 
 definition of eligible activities, shall be implemented 
 in a manner that supports child well-being and reduces 
 barriers to enrollment, including continuity of 
 services.
            (I) Policies to support access to child care for 
 underserved populations.--The State plan shall 
 demonstrate that the State will prioritize increasing 
 access to, and the quality and the supply of, child 
 care in the State for underserved populations, 
 including at a minimum, children from low-income 
 families, children in underserved areas, infants and 
 toddlers, children with disabilities and infants and 
 toddlers with disabilities, children who are dual 
 language learners, children experiencing homelessness, 
 children in foster or kinship care, children who 
 receive care during nontraditional hours, and 
 vulnerable children as defined by the lead agency 
 pursuant to subsection

    (b)

    (5)
        (A)
            (iii) 
            (II) .
        (J) Policies.--The State plan shall include a 
 certification that the State will apply, under this 
 section, the policies and procedures described in 
 subparagraphs
        (A) ,
        (B) ,
            (I) ,
        (J) ,
        (K)
            (i) ,
        (R) , and
        (U) of 

section 658E
            (c) (2) of the Child Care and Development 
 Block Grant Act of 1990 (42 U.S.C. 9858c
            (c) (2) ), and 
 the policies and procedures described in 

section 658H 
 of such Act (42 U.S.C. 9858f), to child care services 
 provided under this section.
        (K) Licensing.--
            (i) Consultation.--The State plan shall 
 demonstrate that the State has consulted or 
 will consult with organizations (including 
 labor organizations and child care and early 
 learning organizations) representing eligible 
 child care providers (including family child 
 care providers), child care associations, child 
 care directors, teachers, or other staff 
 (including directors, teachers, or staff from 
 child care providers serving higher proportions 
 of underserved populations as identified under 
 subparagraph
            (I) ), early childhood education 
 and development experts, maternal and child 
 health experts, and families in the development 
 of licensing standards described in this 
 subparagraph, including identifying barriers to 
 such licensing for child care providers who are 
 exempt from such licensing under the Child Care 
 and Development Block Grant of 1990 (42 U.S.C. 
 9857 et seq.).
            (ii) Licensing standards.--
            (I) In general.--The State plan 
 shall certify that the State will 
 develop or revise, within 2.5 years 
 after first receiving funds under this 
 section, licensing standards 
 appropriate for child care providers of 
 a variety of provider types and 
 provider sizes (which may, when 
 appropriate, include a different set of 
 licensing standards with respect to 
 care during nontraditional hours of 
 operation) and a pathway to licensure 
 described in this clause that is 
 available to and appropriate for such 
 child care providers, that will offer 
 providers eligible under the Child Care 
 and Development Block Grant Act of 1990 
 (42 U.S.C. 9857 et seq.) a reasonable 
 pathway to become eligible providers 
 under this section, and that will 
 assure an adequate supply of child 
 care.
            (II) Determination.--For purposes 
 of subclause
            (I) , provider size shall 
 be determined by measuring the number 
 of children served by the provider.
            (iii) Timeline.--Such plan shall describe 
 the timeline the State will use to ensure 
 sufficient time for providers described in 
 subsection

    (b)

    (6)
        (B) to comply with such 
 licensing standards in order to remain eligible 
 providers after 3.5 years after the State first 
 receives funding under this section.
            (iv) Financial support for providers.--Such 
 plan shall describe how the State will use 
 funds reserved under subsection

    (h)

    (3)
        (A) to 
 enable a variety of provider types to achieve 
 licensure, including paying for the costs of 
 required background checks, health screening, 
 and initial and ongoing training, and other 
 costs associated with achieving licensure.
            (L) Prohibition on suspensions, expulsions, and 
 aversive behavioral interventions.--The State plan 
 shall provide an assurance that the State will--
            (i) provide assistance to carry out this 
 section only to eligible child care providers 
 that prohibit--
            (I) the use of suspension and 
 expulsion of children; and
            (II) the use of aversive behavioral 
 interventions; and
            (ii) provide training resources to eligible 
 child care providers and information to 
 families to support the prohibition of 
 practices described in subclauses
            (I) and
            (II) of clause
            (i) .
            (M) Multitiered systems of support.--The State plan 
 shall provide an assurance that the State will provide 
 assistance to eligible child care providers to 
 implement multitiered systems of support such as 
 systems with positive behavioral interventions and 
 supports, infant and early childhood mental health 
 consultation and trauma-informed care that promote 
 positive social and emotional development and reduce 
 challenging behaviors.
        (N) Enrollment practices.--
            (i) In general.--The State plan shall 
 describe how the lead agency will ensure that 
 families have access to a low-barrier 
 enrollment (including reenrollment) process 
 that is accessible to and minimizes burdens for 
 families with diverse characteristics, by 
 implementing activities such as allowing for 
 simplified enrollment for siblings, 
 coordinating with other State agencies to 
 streamline enrollment processes across public 
 assistance programs, requiring minimal 
 paperwork, allowing for enrollment through a 
 State or local website, and providing flexible 
 submission deadlines.
            (ii) === Definition. ===
-In this subparagraph, the 
 term ``family with diverse characteristics'' 
 includes families with adults with 
 disabilities, with children with disabilities, 
 or with infants and toddlers with disabilities, 
 families experiencing homelessness, families 
 with limited access to internet connectivity, 
 families living in rural areas, families of 
 dual language learners, and families with 
 children in underserved populations identified 
 under subparagraph
            (I) .
        (O) Implementation for low-income families.--The 
 State plan shall include a certification that the 
 applicant, not later than October 1, 2026, will provide 
 assistance described in subsection
            (d) (2) to every 
 child in the State who is described in that subsection, 
 and is from a family with a family income of not more 
 than 85 percent of the State median income for a family 
 of the same size, before the applicant expands the 
 program involved to provide such assistance to children 
 from additional families.

    (g) Payments.--

    (1) In general.--For each of fiscal years 2026 through 
 2031:
        (A) Child care assistance for eligible children.--
            (i) In general.--The Secretary shall pay to 
 each State with an approved application under 
 subsection

    (f) , and that State shall be 
 entitled to, an amount for each quarter equal 
 to 90 percent of expenditures (which shall be 
 the Federal share of such expenditures) in the 
 quarter for direct child care services 
 described under subsection

    (h)

    (2) for eligible 
 children.
            (ii) Exception.--Funds reserved from the 
 total under subsection

    (h)

    (3) shall be subject 
 to subparagraph
        (B) .
            (iii) Prohibition.--Activities described in 
 subparagraph
        (B) or
            (C) may not be included in 
 the cost of direct child care services 
 described in this subparagraph.
        (B) Activities to improve the quality and supply of 
 child care services.--The Secretary shall pay to each 
 State with such an approved application, and that State 
 shall be entitled to, the FMAP of expenditures (which 
 shall be the Federal share of such expenditures) to 
 carry out activities to improve the quality and supply 
 of child care services under subsection

    (h)

    (3) subject 
 to the limit specified in subparagraph
        (A) of such 
 subsection.
            (C) Administration.--The Secretary shall pay to 
 each State with such an approved application, and that 
 State shall be entitled to, an amount equal to 50 
 percent of expenditures (which shall be the Federal 
 share of such expenditures) for the costs of 
 administration incurred by the State--
            (i) which shall include costs incurred by 
 the State in carrying out the child care 
 program established in this section; and
            (ii) which may include, at the option of 
 the State, costs associated with carrying out 
 requirements, policies, and procedures 
 described in 

section 658H of the Child Care and 
 Development Block Grant Act of 1990 (42 U.S.C. 
 9858f).

    (2) Advance payment; retrospective adjustment.--For each of 
 fiscal years 2026 through 2031, the Secretary shall make 
 payments under this subsection for a period on the basis of 
 advance estimates of expenditures submitted by the State and 
 such other investigation as the Secretary may find necessary, 
 and shall reduce or increase the payments as necessary to 
 adjust for any overpayment or underpayment for previous 
 periods. No interest shall be charged or paid on any amount due 
 because of an overpayment or underpayment for previous periods.

    (3) Territories and tribes.--
        (A) In general.--For each of fiscal years 2026 
 through 2031, from amounts appropriated under 
 subsection
            (c) (1) the Secretary shall make payments to 
 territories, and Indian Tribes and Tribal 
 organizations, as the case may be, with applications 
 submitted as described in subparagraph
        (B) , and 
 approved by the Secretary for the purpose of carrying 
 out the child care program described in this section, 
 consistent, to the extent practicable as determined by 
 the Secretary (subject to subsection
            (d) (2) ), with the 
 requirements applicable to States.
        (B) Applications.--
            (i) Tribal applications.--An Indian Tribe 
 or Tribal organization seeking a payment under 
 this paragraph shall submit an application to 
 the Secretary at such time, in such manner, and 
 containing such information as the Secretary 
 may specify, including--
            (I) a certification described in 
 subsection

    (f)

    (3)
        (O) , except that each 
 reference in the subsection to ``child 
 in the State'' shall be considered to 
 be a reference to ``child served by the 
 Indian Tribe or Tribal organization, as 
 the case may be,''; and
            (II) an agreement to collect data 
 and provide reports under subsection

    (n) .
            (ii) Territorial applications.--A territory 
 seeking a payment under this paragraph shall 
 submit an application to the Secretary at such 
 time, in such manner, and containing such 
 information as the Secretary may specify, 
 including--
            (I) a certification described in 
 subsection

    (f)

    (3)
        (O) , except that each 
 reference in the subsection to ``child 
 in the State'' shall be considered to 
 be a reference to ``child in the 
 territory''; and
            (II) an agreement to collect data 
 and provide reports under subsection

    (n) .
            (C) Amount.--The Secretary shall make the payments 
 to the territories, Indian Tribes, and Tribal 
 organizations described in subparagraph
        (A) on the 
 basis of their relative need. Each entity that is such 
 a territory, Indian Tribe, or Tribal organization shall 
 be entitled to such a payment as may be necessary to 
 carry out the activities described in subsection

    (h) , 
 and to pay for the costs of administration incurred by 
 the entity, which shall include costs incurred by the 
 entity in carrying out the child care program, and 
 which may include, at the option of the entity, costs 
 associated with carrying out requirements, policies, 
 and procedures described in 

section 658H of the Child 
 Care and Development Block Grant Act of 1990.

    (h) Use of Funds.--

    (1) In general.--Starting on October 1, 2026, a State shall 
 use amounts provided to the State under subsection

    (g) for 
 direct child care services (provided on a sliding fee scale 
 basis), activities to improve the quality and supply of child 
 care services consistent with paragraph

    (3) , and State 
 administration consistent with subsection

    (g)

    (1)
            (C) .

    (2) Child care assistance for eligible children.--
        (A) In general.--For each of fiscal years 2026 
 through 2031, from payments made to the State under 
 subsection

    (g) for that particular fiscal year, the 
 State shall ensure that parents of eligible children 
 can access direct child care services provided by an 
 eligible child care provider under this section through 
 a grant or contract as described in subparagraph
        (B) or 
 a certificate as described in subparagraph
            (C) .
        (B) Grants and contracts.--The State shall award 
 grants or contracts to eligible child care providers, 
 consistent with the requirements under this section, 
 for the provision of child care services for eligible 
 children under this section that, at a minimum, support 
 providers' operating expenses to meet and sustain 
 health, safety, quality, wage, and licensing standards 
 required under this section.
            (C) Certificates.--The State shall issue a child 
 care certificate directly to a parent who shall use 
 such certificate only as payment for direct child care 
 services or as a deposit for direct child care services 
 if such a deposit is required of other children being 
 cared for by the provider, consistent with the 
 requirements under this section.

    (3) Activities to improve the quality and supply of child 
 care services.--
        (A) Quality child care activities.--
            (i) Amount.--For each of fiscal years 2026 
 through 2031, from the total of the payments 
 made to the State for a particular fiscal year, 
 the State shall reserve and use a quality child 
 care amount equal to not less than 5 percent 
 and not more than 10 percent of the amount made 
 available to the State through such payments 
 for the previous fiscal year.
            (ii) Use of quality child care amount.--
 Each State shall use the quality child care 
 amount described in clause
            (i) to implement 
 activities described in this paragraph to 
 improve the quality and supply of child care 
 services by eligible child care providers, and 
 increase the number of available slots in the 
 State for child care services funded under this 
 section, prioritizing assistance for child care 
 providers who are in underserved communities 
 and who are providing, or are seeking to 
 provide, child care services for underserved 
 populations identified under subsection

    (f)

    (3)
            (I) .
            (iii) Administration.--Activities funded 
 under this paragraph may be administered--
            (I) directly by the lead agency; or
            (II) through other State government 
 agencies, local or regional child care 
 resource and referral organizations, 
 community development financial 
 institutions, other intermediaries with 
 experience supporting child care 
 providers, or other appropriate 
 entities that enter into a contract 
 with the State to provide such 
 assistance.
        (B) Quality and supply activities.--Activities 
 funded under the quality child care amount described in 
 subparagraph
        (A) shall include each of the following:
            (i) Startup grants and supply expansion 
 grants.--
            (I) In general.--From a portion of 
 the quality child care amount, a State 
 shall make startup and supply expansion 
 grants to support child care providers 
 who are providing, or seeking to 
 provide, child care services to 
 children receiving assistance under 
 this section, with priority for 
 providers providing or seeking to 
 provide child care in underserved 
 communities and for underserved 
 populations identified under subsection

    (f)

    (3)
            (I) , to--

    (aa) support startup and 
 expansion costs; and

    (bb) assist such providers 
 in meeting health and safety 
 requirements, achieving 
 licensure, conducting 
 background checks, and meeting 
 requirements in the State's 
 tiered system for recognizing 
 and supporting the quality of 
 child care services described 
 in subsection

    (f)

    (3)
        (B) .
            (II) Requirement.--As a condition 
 of receiving a startup or supply 
 expansion grant under this clause, a 
 child care provider shall commit to 
 meeting the requirements of an eligible 
 provider under this section, and 
 providing child care services to 
 children receiving assistance under 
 this section on an ongoing basis.
            (ii) Quality grants.--From a portion of the 
 quality child care amount, a State shall 
 provide quality grants to support eligible 
 child care providers in providing child care 
 services to children receiving assistance under 
 this section to improve the quality of such 
 providers, including--
            (I) supporting such providers in 
 meeting or making progress toward the 
 requirements for the highest tier of 
 the State's tiered system for 
 recognizing and supporting the quality 
 of child care services described in 
 subsection

    (f)

    (3)
        (B) ; and
            (II) supporting such providers in 
 sustaining child care quality, 
 including supporting increased wages 
 for staff and supporting payment of 
 fixed costs.
            (iii) Facilities grants.--From a portion of 
 the quality child care amount, a State shall 
 provide support, including through awarding 
 facilities grants, for an activity (referred to 
 in this subparagraph as a ``covered activity'') 
 consisting of remodeling, renovation, or repair 
 of a building or facility, or for construction, 
 permanent improvement, or major renovation of a 
 building or facility primarily used for 
 providing direct child care services, in 
 accordance with the following:
            (I) Recipients.--The facilities 
 grants shall be awarded to eligible 
 child care providers with submitted or 
 approved applications under subsection

    (f) or

    (g) or to intermediaries with 
 experience supporting child care 
 providers in order to enable the 
 intermediaries to assist such eligible 
 child care providers with covered 
 activities.
            (II) Eligibility.--To be eligible 
 to receive funds through a facilities 
 grant under this clause, a child care 
 provider shall enter into an agreement 
 with the State in which the provider 
 commits to use the funds only after 
 obtaining approval of an application 
 under subsection

    (f) or

    (g) and commits 
 to provide child care services to 
 children receiving assistance under 
 this section on an ongoing basis.
            (III) Federal interest 
 application.--Provisions of Federal law 
 relating to a Federal interest in a 
 building or facility shall not apply to 
 a covered activity for privately owned 
 family child care homes under this 
 clause.
            (IV) Federal interest duration.--
 The Secretary shall not retain a 
 Federal interest after a period of 10 
 years in any building, or facility, at 
 which a covered activity was carried 
 out with funds awarded under this 
 clause.
            (V) Religious buildings and 
 facilities.--Eligible child care 
 providers may not use funds for 
 buildings or facilities that are used 
 primarily for sectarian instruction or 
 religious worship.
            (VI) Family child care homes.--The 
 Secretary shall develop parameters on 
 the use of funds under this clause for 
 family child care homes.
            (iv) State activities to improve the 
 quality of child care services.--A State shall 
 use a portion of the quality child care amount 
 to improve the quality of child care services 
 available under this section, which shall 
 include--
            (I) supporting the training of the 
 early childhood workforce, which shall 
 include supporting--

    (aa) degree attainment;

    (bb) high-quality training 
 programs that lead to a 
 recognized postsecondary 
 credential; or
            (cc) the development and 
 implementation of 
 apprenticeship programs;
            (II) supporting the professional 
 development of the early childhood 
 workforce through continued education 
 and credentialing;
            (III) developing, implementing, or 
 revising the State's tiered system for 
 recognizing and supporting the quality 
 of child care services described in 
 subsection

    (f)

    (3)
        (B) ;
            (IV) improving the supply and 
 quality of developmentally appropriate 
 and inclusive child care programs and 
 services for underserved populations 
 identified under subsection

    (f)

    (3)
            (I) ;
            (V) improving access to child care 
 services for vulnerable children as 
 defined by the lead agency pursuant to 
 subsection

    (b)

    (5)
        (A)
            (iii) 
            (II) ;
            (VI) providing outreach and 
 enrollment support for families of 
 eligible children;
            (VII) supporting eligible child 
 care providers to eliminate use of 
 suspensions, expulsions, and aversive 
 behavioral interventions, including 
 through adaptations and interventions 
 by special educators, mental health 
 consultants, and other community 
 resource personnel, such as behavior 
 coaches, psychologists, and other 
 appropriate specialists, and through 
 the provision of mental health services 
 for the providers;
            (VIII) promoting multitiered 
 systems of support such as systems with 
 positive behavioral interventions and 
 supports and trauma-informed care that 
 promote positive social and emotional 
 development and reduce challenging 
 behaviors;
            (IX) offering training, coaching, 
 or professional development 
 opportunities for eligible child care 
 providers that relate to the use of 
 evidence-based, developmentally 
 appropriate and age-appropriate 
 strategies to promote the social, 
 emotional, physical, adaptive, 
 communication, and cognitive 
 development of children;
            (X) improving coordination between 
 States and local governments with 
 respect to licensing and other 
 regulatory requirements for eligible 
 child care providers;
            (XI) increasing interrater 
 reliability concerning licensing 
 inspections or other evaluations of 
 eligible child care providers by 
 training licensing inspectors of the 
 providers and providing such inspectors 
 with additional professional 
 development;
            (XII) identifying and eliminating 
 barriers to licensing of eligible child 
 care providers, such as through 
 reducing fees for background checks, 
 translating licensing regulations into 
 languages other than English, and 
 collaborating with housing agencies or 
 local governments; and
            (XIII) establishing or supporting a 
 system of local or regional child care 
 resource and referral organizations 
 that is coordinated, to the extent 
 determined appropriate by the State, by 
 a statewide public or private 
 nonprofit, community-based or 
 regionally based, lead child care 
 resource and referral organization, as 
 described in 

section 658E
            (c) (3)
        (B)
            (iii) of the Child Care and Development Block 
 Grant Act of 1990 (42 U.S.C. 
 9858c
            (c) (3)
        (B)
            (iii) ).
            (v) Technical assistance.--From a portion 
 of the quality child care amount described in 
 subparagraph
        (A) , the State, in coordination 
 with local governments and staffed family child 
 care networks as appropriate, shall provide 
 technical assistance to increase the supply of 
 eligible child care providers in the State, 
 such as--
            (I) providing business startup 
 support;
            (II) conducting outreach to recruit 
 new child care providers and inform 
 such providers about the opportunities 
 provided under this title, including 
 support for participation in the tiered 
 system for recognizing and supporting 
 the quality of child care services 
 described in subsection

    (f)

    (3)
        (B) ;
            (III) providing support to enable 
 providers to achieve licensure 
 (including providing support for child 
 care providers operating legally 
 without a child care license to obtain 
 such license, such as providing, for 
 individuals seeking a child care 
 license, pre-licensing orientation and 
 technical assistance throughout the 
 child care licensing process);
            (IV) offering orientations for new 
 child care providers including 
 orientations explaining support under 
 programs such as 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); and
            (V) supporting the development of 
 shared service models for child care 
 programs.
            (i) Grants to Localities and Awards to Head Start Programs.--

    (1) Eligible locality defined.--In this subsection, the 
 term ``eligible locality'' means a city, county, or other unit 
 of general local government.

    (2) Grants to localities.--
        (A) In general.--The Secretary shall use funds 
 appropriated under subsection
            (c) (2) to award local 
 Birth Through Five Child Care and Early Learning 
 Grants, as determined by the Secretary, to eligible 
 localities located in States that have not received 
 payments under subsection

    (g) . The Secretary shall 
 award the grants to eligible localities in such a State 
 from the allotment made for that State under 
 subparagraph
        (B) .
        (B) Allotments.--
            (i) Poverty line defined.--In this 
 subparagraph, the term ``poverty line'' means 
 the poverty line defined and revised as 
 described in 

section 673 of the Community 
 Services Block Grant Act (42 U.S.C. 9902).
            (ii) General authority.--For each State 
 described in subparagraph
        (A) , the Secretary 
 shall allot for the State for a fiscal year an 
 amount that bears the same relationship to the 
 funds appropriated under subsection
            (c) (2) and 
 available to carry out this paragraph for the 
 fiscal year as the number of children from 
 families with family incomes that are at or 
 below 200 percent of the poverty line, and who 
 are under the age of 6, in the State bears to 
 the total number of all such children in all 
 States described in subparagraph
        (A) .
            (C) Application.--To receive a grant from the 
 corresponding State allotment under subparagraph
        (B) , 
 an eligible locality shall submit an application to the 
 Secretary at such time, in such manner, and containing 
 such information as the Secretary may require. The 
 requirements for the application shall, to the greatest 
 extent practicable, be consistent with the State plan 
 requirements applicable to States under subsection

    (f) .
            (D) Requirements.--The Secretary shall specify the 
 requirements for an eligible locality to provide access 
 to child care, which child care requirements shall, to 
 the greatest extent practicable, be consistent with the 
 requirements applicable to States under this section.
        (E) Recoupment of unused funds.--Notwithstanding 
 any other provision of this section, for each of fiscal 
 years 2027 through 2031, the Secretary shall have the 
 authority to recoup any unused funds allotted under 
 subparagraph
        (B) for awards under paragraph

    (3)
        (A) to 
 Head Start agencies in accordance with paragraph

    (3) .

    (3) Head start expansion in nonparticipating states.--
        (A) In general.--The Secretary shall use funds 
 appropriated under subsection
            (c) (2) or recouped under 
 paragraph

    (2) to make awards to Head Start agencies in 
 a State described in paragraph

    (2)
        (A) to carry out the 
 purposes of the Head Start Act (42 U.S.C. 9831 et seq.) 
 in such State.
        (B) Rule.--For purposes of carrying out the Head 
 Start Act in circumstances not involving awards under 
 this paragraph, funds awarded under subparagraph
        (A) shall not be included in the calculation of a ``base 
 grant'' as such term is defined in 

section 640

    (a)

    (7)
        (A) of the Head Start Act (42 U.S.C. 9835

    (a)

    (7)
        (A) ).
            (C) === Definition. ===
-In this paragraph, the term ``Head 
 Start agency'' means an entity designated or eligible 
 to be designated as a Head Start agency under 

section 641

    (a)

    (1) of the Head Start Act (42 U.S.C. 9836

    (a)

    (1) ) 
 or as an Early Head Start agency (by receiving a grant) 
 under 

section 645A

    (a) of such Act (42 U.S.C. 9840a).

    (4) Priority for serving underserved populations.--In 
 making determinations to award a grant or make an award under 
 this subsection, the Secretary shall give priority to entities 
 serving a high percentage of individuals from underserved 
 populations identified under subsection

    (f)

    (3)
            (I) .

    (j) Program Requirements.--

    (1) Nondiscrimination.--The following provisions of law 
 shall apply to any program or activity that receives funds 
 provided under this section:
        (A) Title IX of the Education Amendments of 1972 
 (20 U.S.C. 1681 et seq.).
        (B) Title VI of the Civil Rights Act of 1964 (42 
 U.S.C. 2000d et seq.).
            (C) Section 504 of the Rehabilitation Act of 1973 
 (29 U.S.C. 794).
            (D) The Americans with Disabilities Act of 1990 (42 
 U.S.C. 12101 et seq.).

    (2) Prohibition on additional eligibility requirements.--No 
 individual shall be determined, by the Secretary, a State, or 
 another recipient of funds under this section, to be ineligible 
 for child care services provided under this section, except on 
 the basis of eligibility requirements specified in or under 
 this section.

    (3) Maintenance of effort.--
        (A) In general.--A State that receives payments 
 under this section for a fiscal year, in using the 
 funds made available through the payments, shall 
 maintain the expenditures of the State for child care 
 services at the average level of such expenditures by 
 the State for the 3 preceding fiscal years.
        (B) Counting rule.--State expenditures counted for 
 purposes of meeting the requirement in subparagraph
        (A) may also be counted for purposes of meeting the 
 requirement to provide a non-Federal share under 
 subparagraph
        (A) ,
        (B) , or
            (C) , as appropriate, of 
 subsection

    (g)

    (1) .

    (4) Supplement not supplant.--Funds received under this 
 section shall be used to supplement and not supplant other 
 Federal, State, and local public funds expended to provide 
 child care services in the State on the date of enactment of 
 this Act, calculated as the average amount of such Federal, 
 State, and local public funds expended for fiscal years 2023, 
 2024, and 2025.

    (5) Allowable sources of non-federal share.--For purposes 
 of providing the non-Federal share required under subsection

    (g)

    (1) , a State's non-Federal share--
        (A) for direct child care services described in 
 subsection

    (g)

    (1)
        (A) --
            (i) shall not include contributions being 
 used as a non-Federal share or match for 
 another Federal award; and
            (ii) shall be provided from State or local 
 sources, contributions from philanthropy or 
 other private organizations, or a combination 
 of such sources and contributions; and
        (B) for activities to improve the quality and 
 supply of child care services described in subsection

    (g)

    (1)
        (B) , and administration described in subsection

    (g)

    (1)
            (C) --
            (i) shall not include contributions being 
 used as a non-Federal share or match for 
 another Federal award;
            (ii) shall be provided from State or local 
 sources, contributions from philanthropy or 
 other private organizations, or a combination 
 of such sources and contributions; and
            (iii) may be in cash or in-kind, fairly 
 evaluated, including facilities or property, 
 equipment, or services.

    (k) Monitoring and Enforcement.--

    (1) Review of compliance with requirements and state 
 plan.--The Secretary shall review and monitor compliance of 
 States, territories, Tribal entities, and local entities with 
 this section and State compliance with the State plan described 
 in subsection

    (f)

    (3) .

    (2) Issuance of rule.--The Secretary shall establish by 
 rule procedures for--
        (A) receiving, processing, and determining the 
 validity of complaints or findings concerning any 
 failure of a State to comply with the State plan or any 
 other requirement of this section;
        (B) notifying a State when the Secretary has 
 determined there has been a failure by the State to 
 comply with a requirement of this section; and
            (C) imposing sanctions under this subsection for 
 such a failure.
            (l) Federal Administration.--Using funds appropriated under 
subsection
            (c) (3) , the Secretary shall carry out administration of this 
section, shall provide (including through the use of grants or 
cooperative agreements) technical assistance to States, territories, 
Indian Tribes, and Tribal organizations, and shall carry out research 
and evaluations related to this section.
            (m) Nonpostsecondary Education Program.--For purposes of 

section 401 of the Act entitled ``An Act to provide for reconciliation pursuant 
to 

section 201

    (a)

    (1) of the concurrent resolution on the budget for 
fiscal year 1997'', approved August 22, 1996, the program carried out 
under this section shall be considered to be a program of 
nonpostsecondary education.

    (n) Reports.--

    (1) Collection of information by states.--
        (A) In general.--A State that receives funds to 
 carry out this section shall collect the information 
 described in subparagraph
        (B) on a monthly basis.
        (B) Required information.--The information required 
 to be collected under this subparagraph shall consist 
 of, with respect to a family receiving assistance under 
 this section, information concerning--
            (i) family income;
            (ii) county (or comparable local 
 jurisdiction) of residence;
            (iii) the gender, race and ethnicity, and 
 age of each child receiving such assistance;
            (iv) whether the head of the family is a 
 single parent;
            (v) the number of months the family has 
 received such assistance;
            (vi) the provider type with which the child 
 was enrolled;
            (vii) the amount of the copayment paid for 
 child care provided under this section;
            (viii) the average hours per month of such 
 care, during the period for which such 
 information is required to be submitted; and
            (ix) whether the children receiving 
 assistance under this section are either 
 children with disabilities or infants and 
 toddlers with disabilities.
            (C) Submission to the secretary.--A State described 
 in subparagraph
        (A) shall, on a quarterly basis, submit 
 the information required to be collected under 
 subparagraph
        (B) to the Secretary.
            (D) Use of samples.--
            (i) Authority.--A State may comply with the 
 requirement to collect the information 
 described in subparagraph
        (B) through the use 
 of disaggregated case record information for a 
 sample of families selected through the use of 
 scientifically acceptable sampling methods 
 approved by the Secretary.
            (ii) Sampling and other methods.--The 
 Secretary shall provide the States with such 
 case record sampling plans and data collection 
 procedures as the Secretary determines to be 
 necessary to produce statistically valid 
 samples of the information described in 
 subparagraph
        (B) . The Secretary may develop and 
 implement procedures for verifying the quality 
 of the data submitted by the States.
        (E) Prohibition.--Reports submitted to the 
 Secretary under subparagraph
            (C) shall not contain 
 personally identifiable information.

    (2) Annual reports.--Not later than 1 year after the date 
 of enactment of the Child Care for Working Families Act, and 
 annually thereafter, a State shall prepare and submit to the 
 Secretary a report containing such information as the Secretary 
 may require, that includes at a minimum, the description and 
 analysis described in paragraph

    (3) and aggregate data 
 concerning--
        (A) the number of child care providers that 
 received funding under this section and licensed 
 capacity of such providers, and such data disaggregated 
 by provider type, by the quality rating on the State's 
 tiered system for recognizing and supporting the 
 quality of child care services described in subsection

    (f)

    (3)
        (B) (referred to in this subsection as the 
 ``quality rating'') of such providers, and by the 
 geographic area of such providers;
        (B)
            (i) the total number of children, and families 
 with children, receiving child care services funded 
 under this section;
            (ii) the percentage of children, and families with 
 children, receiving child care services funded under 
 this section, among all children less than 6 years of 
 age, and all families with such children, respectively, 
 in all States; and
            (iii) the data described in clause
            (i) , and the 
 data described in clause
            (ii) , disaggregated for 
 children, and families with children, by--
            (I) race and ethnicity of the child 
 involved;
            (II) family income of the child's family;
            (III) age of the child;
            (IV) the child's status as an infant or 
 toddler with a disability or child with a 
 disability;
            (V) the child's status as a child 
 experiencing homelessness;
            (VI) the child's status as a child in 
 foster care; and
            (VII) the child's status (to the extent the 
 status is known) as a dual language learner;
            (C) the monthly child care subsidy payment rate 
 paid to eligible child care providers for child care 
 services funded under this section, as determined by 
 the State's cost estimation model or cost study 
 described in subsection

    (f)

    (3)
        (A)
            (i) , including any 
 variation in the rate by geographic area, provider 
 type, age of child, and costs associated with providing 
 inclusive care;
            (D) the amount of the copayment paid by families 
 for such child care services, and such data 
 disaggregated by family income;
        (E) the number and percentage of payments made by 
 the State for such services to eligible child care 
 providers through certificates, grants, and contracts, 
 and such data disaggregated by provider type;
        (F) the manner in which consumer education 
 information was provided to parents and the number of 
 parents to whom such information was provided under 
 this section;
        (G) the number of child fatalities occurring among 
 children while in the care or facility of child care 
 providers funded under this section, and such data 
 disaggregated by provider type;
        (H) the geographic area of child care providers 
 funded under this section;
            (I) the quality features of child care services 
 provided by providers funded under this section, 
 compared to the quality features of child care services 
 provided by other child care providers, to the extent 
 possible, including data on quality features such as--
            (i) amount of staff wages and other 
 compensation (including benefits);
            (ii) length of staff retention;
            (iii) presence of coaching and professional 
 development activities;
            (iv) number of providers remaining open 
 through the year covered;
            (v) measured parent satisfaction; and
            (vi) presence of provision of information 
 in languages other than English;
        (J) the quality features of child care services 
 received by children and funded under this section, and 
 such data disaggregated by the children's--
            (i) race and ethnicity;
            (ii) family income;
            (iii) age;
            (iv) status as an infant or toddler with a 
 disability or a child with a disability;
            (v) status as a child experiencing 
 homelessness;
            (vi) status as a child in foster care; and
            (vii) status (to the extent the status is 
 known) as a dual language learner;
        (K) the number of child care providers, listed by 
 provider type, geographic area, and provider quality 
 rating, that received--
            (i) a startup or supply expansion grant 
 under subsection

    (h)

    (3)
        (B)
            (i) ;
            (ii) a quality grant under subsection

    (h)

    (3)
        (B)
            (ii) ; or
            (iii) a facilities grant under subsection

    (h)

    (3)
        (B)
            (iii) ; and
            (L) the average wages (including salaries) or other 
 compensation for staff of eligible child care providers 
 funded under this section, and such data disaggregated 
 by provider type, job position type, and to the extent 
 possible, staff race and ethnicity.

    (3) Description and analysis.--The State shall include in 
 each report described in paragraph

    (2) --
        (A) a description of whether there are inequities 
 in how child care providers with quality features 
 described in paragraph

    (2)
            (I) are distributed among 
 children served under this section; and
        (B) an analysis of the State's child care supply, 
 including an analysis of the number of child care slots 
 with licensed child care providers that were added or 
 lost by the State in the covered year, and trends in 
 such addition or loss by provider type and quality 
 rating of child care provider.

    (4) Rule on disaggregation.--Nothing in this paragraph 
 shall require disaggregation of data if the disaggregation 
 involved would reveal personally identifiable information about 
 an individual provider or child.

    (o) Reports to Congress.--The Secretary shall--

    (1) submit an annual report to the Committee on Health, 
 Education, Labor, and Pensions and the Committee on 
 Appropriations of the Senate and the Committee on Education and 
 Workforce and the Committee on Appropriations of the House of 
 Representatives, summarizing the findings from the reports 
 received under subsection

    (n)

    (2) ; and

    (2) make such report publicly available on the website of 
 the Department of Health and Human Services.

    (p) Transition Provisions.--

    (1) Treatment of child care and development block grant 
 funds.--For each of fiscal years 2026 through 2031, a State 
 receiving assistance under this section shall not use more than 
 15 percent of any funds received under the Child Care and 
 Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) to 
 provide assistance for direct child care services to children 
 who are under the age of 6, are not yet in kindergarten, and 
 are eligible under that Act.

    (2) Special rules regarding eligibility.--Any child who is 
 less than 6 years of age, is not yet in kindergarten, and is 
 receiving assistance under the Child Care and Development Block 
 Grant Act of 1990 on the date funding is first allocated to the 
 lead agency for the State, territory, Indian Tribe, or Tribal 
 organization involved under this section--
        (A) shall be deemed immediately eligible to receive 
 assistance under this section; and
        (B) may continue to use the child care provider of 
 the family's choice.

    (3) Transition procedures.--The Secretary is authorized to 
 institute procedures for implementing this section, including 
 issuing guidance for States receiving funds under subsection

    (g) .

 TITLE II--BUILDING AN AFFORDABLE SYSTEM FOR EARLY EDUCATION GRANTS

SEC. 201. PURPOSES.

 The purposes of this title are to make child care services more 
accessible for families and to support the stability and quality of 
eligible child care providers by--

    (1) promoting the stability of the child care sector by 
 providing a source of stable funding to eligible child care 
 providers to help offset their operating expenses;

    (2) supporting sustained and increased wages for early 
 childhood educators or other staff of eligible child care 
 providers, in order to stabilize and grow the child care 
 workforce;

    (3) expanding the supply and capacity of eligible child 
 care providers to ensure working families have a range of high-
 quality, affordable child care options, in a variety of 
 settings, that meet their unique needs; and

    (4) supporting access to child care services for 
 communities facing a particular shortage of child care options, 
 including child care services for infants and toddlers, child 
 care services during nontraditional or extended hours, and 
 inclusive child care services for children with disabilities.

SEC. 202. DEFINITIONS.

 In this title:

    (1) CCDBG terms.--The terms ``child care certificate'', 
 ``child with a disability'', ``family child care provider'', 
 ``lead agency'', ``Secretary'', and ``State'' have the meanings 
 given the terms in 

section 658P of the Child Care and 
 Development Block Grant Act of 1990 (42 U.S.C. 9858n). The 
 terms ``Indian Tribe'' and ``Tribal organization'' have the 
 meanings given the terms ``Indian tribe'' and ``tribal 
 organization'' in 

section 658P of that Act.

    (2) Eligible child care provider.--The term ``eligible 
 child care provider'' means--
        (A) an eligible child care provider as defined in 
 

section 658P of the Child Care and Development Block 
 Grant Act of 1990; and
        (B) an eligible child care provider as defined in 
 title I.

    (3) Infant or toddler.--The term ``infant or toddler'' 
 means an individual who is less than 3 years of age.

    (4) Infant or toddler with a disability.--The term ``infant 
 or toddler with a disability'' has the meaning given the term 
 in 

section 101

    (b) .

    (5) Provider type.--The term ``provider type'' means a type 
 that is--
        (A) a center-based child care provider;
        (B) a family child care provider; or
            (C) another non-center-based child care provider.

SEC. 203. SECRETARIAL RESERVATION.

 From the funds appropriated to carry out this title, the Secretary 
shall reserve not more than 3 percent for the Federal administration of 
grants described in 

section 204, which may include providing technical 
assistance to the lead agencies.

SEC. 204. GRANTS.

    (a) In General.--From the amounts appropriated to carry out this 
title that remain after the Secretary makes the reservation required 
under 

section 203, and under the authority of 

section 658O of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m) and this 
section, the Secretary shall award to each lead agency a BASE Grant, 
without regard to the requirements in subparagraphs
            (C) and
        (E) of 

section 658E
            (c) (3) , and in 

section 658G, of that Act (42 U.S.C. 
9858c
            (c) (3) , 9858e). Such grant shall be made from an amount allotted 
in accordance with 

section 658O of that Act (42 U.S.C. 9858m), 
excluding paragraphs

    (3) through

    (5) of subsection

    (a) of that section.

    (b) Payments for Indian Children.--In accordance with 

section 658O 
of that Act, the Secretary may make BASE Grants to Indian Tribes or 
Tribal organizations for the planning and carrying out of programs or 
activities consistent with the objectives of this title.

SEC. 205. STATE APPLICATION.

 To be eligible to receive a grant under 

section 204, a lead agency 
shall submit an application to the Secretary at such time, in such 
manner, and including such information as the Secretary may reasonably 
require, including--

    (1) a description of the process the lead agency will 
 establish to award subgrant funds to eligible child care 
 providers under this title;

    (2) a description of how the lead agency will, in 
 determining the subgrant amount for an eligible child care 
 provider under this title--
        (A) ensure such subgrant is sufficient to support 
 the ongoing operations and long-term sustainability of 
 the eligible child care provider;
        (B) account for the cost of providing high-quality 
 child care services, including--
            (i) variations in the cost of child care 
 services related to geographic area, provider 
 type, size of provider, and age of child 
 served;
            (ii) costs associated with providing care 
 during nontraditional or extended hours;
            (iii) costs associated with serving 
 children with disabilities, including infants 
 and toddlers with disabilities; and
            (iv) costs associated with meeting group 
 sizes and ratios necessary to support high-
 quality and inclusive child care services, 
 including for infants and toddlers;
            (C) account for the cost of attracting, training, 
 and retaining a qualified and skilled workforce, which 
 shall include at a minimum, supporting increased wages 
 for all staff of the provider, as described in 

section 209

    (5) ; and
            (D) if the lead agency uses a formula for awarding 
 such a subgrant that is based on general cost 
 estimates, base such estimates on the provider's 
 enrollment capacity rather than attendance;

    (3) a description of how the lead agency will work with the 
 eligible child care providers to improve the quality of child 
 care services, which may include improving the State's tiered 
 system for recognizing and supporting the quality of child care 
 services described in 

section 101

    (f)

    (3)
        (B) ; and

    (4) a description of how the lead agency will use funds 
 reserved under 

section 207

    (a)

    (1) to conduct widespread outreach 
 and provide technical assistance to eligible child care 
 providers (including family child care providers, providers 
 with limited administrative capacity, and providers whose 
 primary language is not English), either directly or through 
 child care resource and referral organizations, staffed family 
 child care networks, or local governments, to ensure such 
 providers are aware of the subgrants available under this title 
 and are able to apply for and manage the resources provided 
 through such subgrants.

SEC. 206. ADMINISTRATION.

 Activities funded under a grant made for a State under 

section 204 
may be administered--

    (1) directly by the State's lead agency; or

    (2) under a grant or contract to provide such 
 administration, through another State government agency, a 
 local or regional child care resource and referral 
 organization, a community development financial institution, 
 another nonprofit intermediary with experience supporting child 
 care providers, or another appropriate entity.

SEC. 207. STATE ACTIVITIES AND SUBGRANTS.

    (a) In General.--A lead agency for a State that receives a BASE 
Grant pursuant to 

section 204 shall--

    (1) reserve not more than 10 percent of the grant funds to 
 administer subgrants, provide technical assistance and support 
 to enable all provider types to apply for, access, and manage 
 the resources provided through such subgrants and other sources 
 of public financial assistance available for the objectives of 
 this title, publicize the availability of the subgrants, and 
 carry out activities to increase the supply of child care 
 services, under this title; and

    (2) with the remaining grant funds, make subgrants to 
 eligible child care providers to carry out the activities 
 described in 

section 210.

    (b) Subgrant Period.--The lead agency shall make the subgrants for 
a period of 5 years.
            (c) Payment Practices.--The lead agency shall make the subgrant 
payments in advance, with necessary adjustments on account of 
overpayments or underpayments.

SEC. 208. PRIORITY FOR SUBGRANTS.

    (a) In General.--In making subgrants under this title, the lead 
agency shall give priority to eligible child care providers that--

    (1) provide child care services during nontraditional or 
 extended hours;

    (2) provide child care services to infants and toddlers;

    (3) provide child care services to dual language learners, 
 children with disabilities, children experiencing homelessness, 
 children in foster care, or children from low-income families;

    (4) provide child care services to children whose families 
 received subsidies under the Child Care and Development Block 
 Grant Act of 1990 (42 U.S.C. 9857 et seq.) or under title I, as 
 applicable, for the child care services;

    (5) operate in communities, including communities with a 
 high proportion of children in households with incomes below 
 the poverty line and rural communities, with a low supply of 
 child care services; or

    (6) are small business concerns, as defined in 

section 3 of 
 the Small Business Act (15 U.S.C. 632), or nonprofit 
 organizations that are described in 

section 501
            (c) (3) of the 
 Internal Revenue Code of 1986 and exempt from taxation under 
 

section 501

    (a) of such Code.

    (b) 

=== Definition. ===
-In this section, the term ``poverty line'' means 
the poverty line defined and revised as described in 

section 673 of the 
Community Services Block Grant Act (42 U.S.C. 9902).

SEC. 209. ELIGIBLE CHILD CARE PROVIDER APPLICATION.

 To be qualified to receive a subgrant under this title, an eligible 
child care provider shall submit to the corresponding lead agency, at 
such time and in such manner as the lead agency may reasonably require, 
an application containing each of the following:

    (1) A description of how the eligible child care provider 
 meets the priority requirements in 

section 208, if applicable.

    (2) An assurance that the eligible child care provider 
 accepts child care subsidies in the form of certificates, 
 grants, or contracts as authorized under the Child Care 
 Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.), 
 or child care subsidies in the form of certificates, grants, or 
 contracts under title I, as an acceptable form of payment, 
 regardless of whether children who are the beneficiaries of the 
 child care subsidies are actually enrolled.

    (3) An assurance that the eligible child care provider, for 
 the duration of the period of the grant under 

section 204, will 
 be open and available to serve children unless temporarily 
 closed due to or for a building safety issue or maintenance as 
 a result of a building safety issue, widespread illness or a 
 staff shortage, a routine closure or break due to a holiday or 
 scheduled staff professional development session, or a state of 
 emergency, major disaster, or emergency within the meaning of 
 

section 658E
            (c) (2)
        (U) of the Child Care Development Block Grant 
 Act of 1990 (42 U.S.C. 9858c
            (c) (2)
        (U) ).

    (4) A description of how the eligible child care provider 
 will use funds provided under the subgrant to improve the 
 quality of child care services and operations, such as through 
 participation in a State's tiered system for recognizing and 
 supporting the quality of child care services.

    (5) A description of how the eligible child care provider 
 will pay staff increased compensation over the course of the 
 grant period including, at a minimum, providing--
        (A) annual cost-of-living adjustments; and
        (B) graduated pay increases based on a staff 
 member's credentials, experience, and job 
 responsibilities, including, for a provider with 15 or 
 more staff, a wage ladder based on the credentials, 
 experience, and responsibilities.

SEC. 210. USE OF FUNDS.

    (a) In General.--An eligible child care provider that receives a 
subgrant under this title--

    (1) shall use at least 70 percent of subgrant funds for 
 child care personnel costs, including--
        (A) wages (including salaries), or similar 
 compensation for a person who is a staff member or any 
 sole proprietor or independent contractor, aligned with 
 wage standards; and
        (B)
            (i) annual cost-of-living adjustments for staff; 
 and
            (ii) graduated pay increases based on a staff 
 member's credentials, experience, and job 
 responsibilities, including, for a provider with 15 or 
 more staff, a wage ladder based on the credentials, 
 experience, and responsibilities; and

    (2) may use the subgrant funds for costs of activities 
 related to the provider's program, consisting of--
        (A) professional development and instructional 
 coaching for staff involved in the direct education and 
 care of children, and providing support for planning 
 and instruction;
        (B) providing recruitment and retention bonuses for 
 staff;
            (C) providing staff benefits, such as health 
 insurance, paid leave (including parental, family, 
 medical, sick, and bereavement leave, and including 
 personal leave or vacation), and funds for retirement 
 accounts;
            (D) hiring staff, including conducting background 
 checks, and including hiring staff to reduce staff-to-
 child ratios or substitute staff to support use of paid 
 leave;
        (E) paying for occupancy, including making payments 
 for--
            (i) rent (including rent under a lease), or 
 on any mortgage obligation; and
            (ii) insurance, utilities, and maintenance;
        (F) obtaining equipment, repairs, supplies, 
 services, and training necessary to ensure compliance 
 with applicable health, safety, educational, and 
 quality requirements and to support high-quality, 
 developmentally appropriate child care services, and 
 achieving licensure as a child care provider;
        (G) providing comprehensive services to support the 
 health, including mental health, and well-being, of 
 children and families from underserved populations, as 
 described in 

section 101

    (f)

    (3)
            (I) ;
        (H) improving the quality of child care services in 
 a way that is appropriate for child development by 
 provider type involved, and for the age group of the 
 children served; and
            (I) providing inclusive and developmentally 
 appropriate care for children with disabilities, 
 including implementing reasonable accommodations, 
 making space more accessible, and providing additional 
 staffing and coordinating early intervention services 
 provided through the provider's program with early 
 intervention services provided through other early 
 childhood programs.

    (b) Special Rule for States Participating in Title I Program.--
Notwithstanding subsection

    (a) and subject to the approval of the 
Secretary, a lead agency of a State participating in the program 
established in title I may make alternative uses of the funds received 
through a grant made under 

section 204, if such funds support--

    (1) the provision of high-quality, affordable child care 
 services, in accordance with title I;

    (2) compensation for early childhood educators and staff of 
 child care programs, of eligible child care providers, that 
 meet the requirements of title I; or

    (3) initiatives to expand the supply of eligible child care 
 providers or improve the quality of child care services 
 provided by eligible child care providers.
            (c) Rule.--For purposes of subsection

    (a) , the terms ``staff'' and 
``staff member'' include a person described in subsection

    (a)

    (1)
        (A) .

SEC. 211. REPORTING.

    (a) Lead Agency Reports.--Not later than 1 year after a lead agency 
has received a grant under 

section 204 and annually thereafter, the 
lead agency shall submit to the Secretary, in such manner and 
containing such information as the Secretary may require, a report that 
includes, at a minimum--

    (1) the total number of eligible child care providers who 
 applied for a subgrant under this title relative to the total 
 number of eligible child care providers in the State, 
 disaggregated by provider type, race and ethnicity of provider, 
 and geographic area;

    (2) the total number of eligible child care providers that 
 received such a subgrant (referred to in this section as a 
 ``subgrant recipient'') relative to the total number of 
 eligible child care providers in the State, disaggregated by 
 provider type, race and ethnicity of provider, and geographic 
 area;

    (3) information stating the lead agency's methodology for 
 determining the amounts of subgrants under 

section 207

    (a)

    (2) ;

    (4) the average and range of the subgrant amounts made 
 available by the lead agency, disaggregated by provider type, 
 race and ethnicity of provider, and geographic area;

    (5) the percentages, of the subgrant recipients, that--
        (A) provided child care services during 
 nontraditional or extended hours;
        (B) served dual language learners, children with 
 disabilities, children experiencing homelessness, 
 children in foster care, children from low-income 
 families, or infants and toddlers;
            (C) served children whose families received 
 subsidies under the Child Care and Development Block 
 Grant Act of 1990 (42 U.S.C. 9857 et seq.) or under 
 title I, as applicable, for the child care services;
            (D) operated in communities described in 

section 208

    (a)

    (5) ; and
        (E) are concerns or organizations described in 
 

section 208

    (a)

    (6) ;

    (6) the enrollment capacity of and average monthly 
 attendance of children (by age) served by the subgrant 
 recipients;

    (7) the average family tuition for a subgrant recipient, 
 disaggregated by--
        (A) age of the child served; and
        (B) provider type;

    (8) the average wages (including salaries), or similar 
 compensation specified in 

section 210

    (a)

    (1)
        (A) of staff of a 
 subgrant recipient, disaggregated by provider type;

    (9) the percentages of subgrant recipients, for each of the 
 provider types;

    (10) the percentage of subgrant recipients that have staff 
 members that are represented by labor organizations;

    (11) information about how the subgrant recipients used the 
 funds received under such a subgrant, including how funds were 
 used for child care personnel costs;

    (12) information about how the lead agency used funds 
 reserved under 

section 207

    (a)

    (1) ;

    (13) a description of how the lead agency publicized the 
 availability of the subgrants, including through making 
 applications and materials available in multiple languages, and 
 provided technical assistance and support to ensure all 
 provider types were able to apply for and access the subgrants; 
 and

    (14)
        (A) information about subgrant recipients that have 
 corporate or other business relationships across multiple 
 locations and serve more than 5,000 children in the year 
 covered by the report; and
        (B) the percentage of all children served by subgrant 
 recipients that are subgrant recipients described in 
 subparagraph
        (A) .

    (b) Reports to Congress.--The Secretary shall--

    (1) submit an annual report to the Committee on Health, 
 Education, Labor, and Pensions and the Committee on 
 Appropriations of the Senate and the Committee on Education and 
 Workforce and the Committee on Appropriations of the House of 
 Representatives, summarizing the findings from the reports 
 received under subsection

    (a) ; and

    (2) make such report publicly available on the website of 
 the Department of Health and Human Services.

SEC. 212. SUPPLEMENT NOT SUPPLANT.

 Amounts made available to carry out this title shall be used to 
supplement and not supplant other Federal, State, and local public 
funds expended to provide child care services for eligible individuals.

SEC. 213. APPROPRIATIONS.

 In addition to amounts otherwise available, there is appropriated 
to the Department of Health and Human Services, out of any money in the 
Treasury not otherwise appropriated to carry out this title, 
$9,000,000,000 for each of fiscal years 2026 through 2031.

 TITLE III--UNIVERSAL PRESCHOOL

SEC. 301. DEFINITIONS.

 In this section:

    (1) Child experiencing homelessness.--The term ``child 
 experiencing homelessness'' means an individual who is a 
 homeless child or youth under 

section 725 of the McKinney-Vento 
 Homeless Assistance Act (42 U.S.C. 11434a).

    (2) Child with a disability.--The term ``child with a 
 disability'' has the meaning given the term in 

section 602 of 
 the Individuals with Disabilities Education Act (20 U.S.C. 
 1401).

    (3) Comprehensive services.--The term ``comprehensive 
 services'' means services that are provided to children and 
 their families, and that are health, educational, nutritional, 
 social, and other services that are determined, based on family 
 needs assessments, to be necessary, within the meaning of 
 

section 636 of the Head Start Act (42 U.S.C. 9831).

    (4) Dual language learner.--The term ``dual language 
 learner'' means a child who is learning 2 or more languages at 
 the same time, or a child who is learning a second language 
 while continuing to develop the child's first language.

    (5) Eligible child.--The term ``eligible child'' means a 
 child who is age 3 or 4, on the date established by the 
 applicable local educational agency for kindergarten entry.

    (6) Eligible provider.--The term ``eligible provider'' 
 means--
        (A) a local educational agency, acting alone or in 
 a consortium or in collaboration with an educational 
 service agency (as defined in 

section 8101 of the 
 Elementary and Secondary Education Act of 1965 (20 
 U.S.C. 7801)), that is licensed by the State or meets 
 comparable health and safety standards;
        (B) a Head Start agency or delegate agency funded 
 under the Head Start Act (42 U.S.C. 9831 et seq.);
            (C) a licensed center-based child care provider, 
 licensed family child care provider, or network of 
 licensed family child care providers; or
            (D) a consortium of entities described in any of 
 subparagraphs
        (A) ,
        (B) , and
            (C) .

    (7) Head start agency.--The term ``Head Start agency'', as 
 used in paragraph

    (6)
        (B) , or 

section 303

    (e)

    (4) or 306

    (a) , means 
 an entity designated as a Head Start agency under 

section 641

    (a)

    (1) of the Head Start Act (42 U.S.C. 9836

    (a)

    (1) ) or as an 
 Early Head Start agency (by receiving a grant) under 

section 645A

    (a) of such Act (42 U.S.C. 9840a

    (a) ).

    (8) Indian tribe.--The term ``Indian Tribe'' has the 
 meaning given the term in 

section 4 of the Indian Self-
 Determination and Education Assistance Act (25 U.S.C. 5304).

    (9) Local educational agency.--The term ``local educational 
 agency'' has the meaning given the term in 

section 8101 of the 
 Elementary and Secondary Education Act of 1965 (20 U.S.C. 
 7801).

    (10) Poverty line.--The term ``poverty line'' means the 
 poverty line defined and revised as described in 

section 673 of 
 the Community Services Block Grant Act (42 U.S.C. 9902).

    (11) Secretary.--The term ``Secretary'' means the Secretary 
 of Health and Human Services.

    (12) State.--The term ``State'' means each of the several 
 States and the District of Columbia.

    (13) Territory.--The term ``territory'' means each of the 
 Commonwealth of Puerto Rico, the United States Virgin Islands, 
 Guam, American Samoa, and the Commonwealth of the Northern 
 Mariana Islands.

    (14) Tribal organization.--The term ``Tribal organization'' 
 has the meaning given the term ``tribal organization'' in 
 

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

SEC. 302. UNIVERSAL PRESCHOOL.

    (a) Appropriations for States.--In addition to amounts otherwise 
available, there is appropriated to the Department of Health and Human 
Services, out of any money in the Treasury not otherwise appropriated, 
such sums as may be necessary for each of fiscal years 2026 through 
2031, for payments to States, for carrying out this title (except 
provisions and activities covered by subsection

    (b) ).

    (b) Additional Appropriations.--In addition to amounts otherwise 
available, there is appropriated to the Department of Health and Human 
Services for fiscal year 2026, out of any money in the Treasury not 
otherwise appropriated--

    (1) $2,500,000,000, to remain available until September 30, 
 2031, for carrying out payments to Indian Tribes and Tribal 
 organizations for activities described in this title;

    (2) $1,250,000,000, to remain available until September 30, 
 2031, for carrying out payments to the territories, to be 
 distributed among the territories on the basis of their 
 relative need, as determined by the Secretary in accordance 
 with the objectives of this title, for activities described in 
 this title;

    (3) $300,000,000, to remain available until September 30, 
 2031, for carrying out payments to eligible local entities that 
 serve children in families who are engaged in migrant or 
 seasonal agricultural labor, for activities described in this 
 title;

    (4) $995,000,000, to remain available until September 30, 
 2031, for carrying out Federal activities to support the 
 activities funded under this title, including administration, 
 monitoring, technical assistance, and research, in fiscal years 
 2026 through 2031; and

    (5) $20,000,000,000, to remain available until September 
 30, 2031, to carry out the program of grants to localities 
 described in subsections

    (b) and
            (c) of 

section 306.

SEC. 303. PAYMENTS FOR STATE UNIVERSAL PRESCHOOL SERVICES.

    (a) In General.--A State that has submitted, and had approved by 
the Secretary in collaboration with the Secretary of Education, the 
State plan described in subsection

    (e) is entitled to a payment under 
this section.

    (b) Payments for Fiscal Years 2026 Through 2031.--

    (1) Preschool services.--For each of fiscal years 2026 
 through 2031, the Secretary shall pay to each State with an 
 approved State plan under subsection

    (e) , an amount for that 
 year equal to--
        (A) 90 percent of the State's expenditures in the 
 year for preschool services provided under 

section 304, 
 for fiscal year 2026;
        (B) 90 percent of the State's expenditures in the 
 year for such preschool services, for fiscal year 2027;
            (C) 80 percent of the State's expenditures in the 
 year for such preschool services, for fiscal year 2028;
            (D) 75 percent of the State's expenditures in the 
 year for such preschool services, for fiscal year 2029;
        (E) 65 percent of the State's expenditures in the 
 year for such preschool services, for fiscal year 2030; 
 and
        (F) 60 percent of the State's expenditures in the 
 year for such preschool services, for fiscal year 2031.

    (2) State activities.--The Secretary shall pay to each 
 State with an approved State plan under subsection

    (e) an 
 amount for a fiscal year equal to 50 percent of the amount of 
 the State's expenditures for the activities described in 
 subsection
            (c) , and system-wide activities similar to those 
 described in subsection
            (c) for the State's entire birth 
 through 5 year old early childhood system, except that in no 
 case shall a payment for a fiscal year under this paragraph 
 exceed the amount equal to 10 percent of the State's 
 expenditures described in paragraph

    (1) for such fiscal year.

    (3) Non-federal share.--The remainder of the cost paid by 
 the State for preschool services, that is not provided under 
 paragraph

    (1) , shall be considered the non-Federal share of the 
 cost of those services. The remainder of the cost paid by the 
 State for State activities, that is not provided under 
 paragraph

    (2) , shall be considered the non-Federal share of the 
 cost of those activities.

    (4) Advance payment; retrospective adjustment.--The 
 Secretary shall make a payment under paragraph

    (1) or

    (2) for a 
 year on the basis of advance estimates of expenditures 
 submitted by the State and such other investigation as the 
 Secretary may find necessary, and shall reduce or increase the 
 payment as necessary to adjust for any overpayment or 
 underpayment for a previous year.
            (c) State Activities.--A State that receives a payment under 
subsection

    (b) shall carry out all of the following activities:

    (1) State administration of the State preschool program 
 described in this section.

    (2) Supporting a continuous quality improvement system for 
 providers of preschool services participating, or seeking to 
 participate, in the State preschool program, through the use of 
 data, research, monitoring, training, technical assistance, 
 professional development, and coaching.

    (3) Providing outreach and enrollment support for families 
 of eligible children.

    (4) Supporting data systems building to ensure that the 
 State has the capacity to manage and implement data systems 
 that allow data sharing among and between preschools, 
 elementary schools, and secondary schools.

    (5) Supporting staff of eligible providers through 
 professional development and coaching, and supporting staff in 
 pursuing credentials and degrees, including baccalaureate 
 degrees.

    (6) Supporting activities that ensure access to inclusive 
 preschool programs for children with disabilities.

    (7) Providing age-appropriate transportation services for 
 children, which at a minimum shall include transportation 
 services for children experiencing homelessness and children in 
 foster care.

    (8) Conducting or updating a statewide needs assessment of 
 access to high-quality preschool services.
            (d) Lead Agency.--The Governor of a State desiring for the State to 
receive a payment under this section shall designate a lead agency 
(such as a State agency or joint interagency office) for the 
administration of the State's preschool program under this section.

    (e) State Plan.--In order to be eligible for payments under this 
section, the Governor of a State shall submit a State plan to the 
Secretary for approval by the Secretary, in collaboration with the 
Secretary of Education, at such time, in such manner, and containing 
such information as the Secretary shall by rule require, that includes 
a plan for achieving universal, high-quality, free, inclusive, and 
mixed-delivery preschool services. Such plan shall include, at a 
minimum, each of the following:

    (1) A certification that--
        (A) the State has in place, or will have in place 
 no later than 1 year after the State first receives 
 funding under this section, developmentally 
 appropriate, evidence-based preschool education 
 standards that, at a minimum, are as rigorous as the 
 standards specified in subparagraph
        (B) of 

section 641A

    (a)

    (1) of the Head Start Act (42 U.S.C. 
 9836a

    (a)

    (1) ) and include program standards for class 
 sizes and ratios; and
        (B) the State will coordinate such standards with 
 other early learning standards in the State.

    (2) An assurance that the State will ensure--
        (A) all preschool services in the State funded 
 under this section will--
            (i) be universally available 
 to all children in the State without any additional 
 eligibility requirements; and
            (ii) be high-quality, free, and inclusive; 
 and
        (B) that the local preschool programs in the State 
 funded under this section will--
            (i) by not later than 18 months after the 
 program receives such funding, meet the State's 
 preschool education standards described in 
 paragraph

    (1) ;
            (ii) offer programming that meets the 
 duration requirements of at least 1,020 annual 
 hours;
            (iii) adopt policies and practices to 
 conduct outreach and provide expedited 
 enrollment, including prioritization, to--
            (I) children experiencing 
 homelessness (which, in the case of a 
 child attending a program provided by 
 an eligible provider described in 
 

section 301

    (6)
        (A) , shall include 
 immediate enrollment for the child);
            (II) children in foster care or 
 kinship care;
            (III) children in families who are 
 engaged in migrant or seasonal 
 agricultural labor;
            (IV) children with disabilities, 
 including eligible children who are 
 served under part C of the Individuals 
 with Disabilities Education Act (20 
 U.S.C. 1431 et seq.); and
            (V) dual language learners;
            (iv) provide for salaries, and set 
 schedules for salaries, for staff of providers 
 in the State preschool program, including staff 
 serving infants and toddlers employed by the 
 same provider, that are equivalent to salaries 
 of elementary school staff with similar 
 credentials and experience;
            (v) at a minimum, provide a living wage for 
 all staff of such providers; and
            (vi) require educational qualifications for 
 teachers in the preschool program including, at 
 a minimum, requiring that lead teachers in the 
 preschool program have a baccalaureate degree 
 in early childhood education or a related field 
 by not later than 6 years after the date on 
 which the State first receives funds under this 
 section, except that--
            (I) subject to subclause
            (II) , the 
 requirements under this clause shall 
 not apply to individuals who were 
 employed by an eligible provider or 
 early education program for a 
 cumulative 3 of the 5 years immediately 
 preceding the date of enactment of this 
 Act and have the necessary content 
 knowledge and teaching skills for early 
 childhood educators, as demonstrated 
 through measures determined by the 
 State; and
            (II) nothing in this section shall 
 require the State to lessen State 
 requirements for educational 
 qualifications, in existence on the 
 date of enactment of this Act, to serve 
 as a teacher in a State preschool 
 program.

    (3) For States with existing publicly funded State 
 preschool programs (as of the date of submission of the State 
 plan), a description of how the State plans to use funding 
 provided under this section to ensure that such existing 
 programs in the State meet the requirements of this title for a 
 State preschool program.

    (4) A description of how the State, in establishing and 
 operating the State preschool program supported under this 
 section, will--
        (A) support a mixed-delivery system for any new 
 slots funded under this section, including by 
 facilitating the participation of Head Start programs 
 and programs offered by licensed child care providers;
        (B) ensure the State preschool program does not 
 disrupt the stability of infant and toddler child care 
 throughout the State;
            (C) ensure adequate consultation with the State 
 Advisory Council on Early Childhood Education and Care 
 designated or established in 

section 642B

    (b)

    (1)
        (A)
            (i) of the Head Start Act (42 U.S.C. 9837b

    (b)

    (1)
        (A)
            (i) ) in 
 the development of its plan, including consultation in 
 how the State intends to distribute slots under 
 subparagraph
        (E) ;
            (D) partner with Head Start agencies to ensure the 
 full utilization of Head Start programs within the 
 State; and
        (E) distribute new preschool slots and resources 
 equitably among child care (including family child 
 care) providers, Head Start agencies, and schools 
 within the State.

    (5) A certification that the State, in operating the 
 program described in this section for a fiscal year--
        (A) will not reduce the total preschool slots 
 provided in State-funded preschool programs from the 
 number of such slots in the previous fiscal year; or
        (B) if the number of eligible children identified 
 in the State declines from the previous fiscal year, 
 will maintain at least the previous year's ratio of the 
 total preschool slots described in subparagraph
        (A) to 
 eligible children so identified.

    (6) An assurance that the State will use funding provided 
 under this section to ensure children with disabilities have 
 access to and participate in inclusive preschool programs 
 consistent with provisions in the Individuals with Disabilities 
 Education Act (20 U.S.C. 1400 et seq.), and a description of 
 how the State will collaborate with entities carrying out 
 programs under 

section 619 or part C of the Individuals with 
 Disabilities Education Act (20 U.S.C. 1419, 1431 et seq.), to 
 support inclusive preschool programs.

    (7) An assurance that the State will provide assistance 
 under this section only to eligible providers that prohibit the 
 use of suspension, expulsion, and aversive behavioral 
 interventions in the State preschool program described in this 
 section.

    (8) An assurance that the State will coordinate services 
 provided under this title with services and supports provided 
 under the Child Care and Development Block Grant Act of 1990 
 (42 U.S.C. 9857 et seq.), 

section 619 and part C of the 
 Individuals with Disabilities Education Act (20 U.S.C. 1419, 
 1431 et seq.), the Head Start Act (42 U.S.C. 9831 et seq.), the 
 Preschool Development Grants program under 

section 9212 of the 
 Every Student Succeeds Act (Public Law 114-95), the Elementary 
 and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), 
 the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et 
 seq.), and the maternal, infant, and early childhood home 
 visiting programs under 

section 511 of the Social Security Act 
 (42 U.S.C. 711).

    (9) A certification that the State will support the 
 continuous quality improvement of programs providing preschool 
 services under this title, including support through technical 
 assistance, monitoring, and research.

    (10) A certification that the State will ensure a highly 
 qualified early childhood workforce to support the requirements 
 of this title.

    (11) An assurance that the State will meet the requirements 
 of clauses
            (ii) and
            (iii) of 

section 658E
            (c) (2)
        (T) of the Child 
 Care and Development Block Grant Act of 1990 (42 U.S.C. 
 9858c
            (c) (2)
        (T) ), with respect to funding and assessments under 
 this title.

    (12) A certification that subgrant and contract amounts 
 provided as described in 

section 304 will be sufficient to 
 enable eligible providers to meet the requirements of this 
 title, and will provide for increased payment amounts based on 
 the criteria described in clauses
            (iv) and
            (v) of paragraph

    (2)
        (B) .

    (13) An agreement to provide to the Secretary such periodic 
 reports, providing a detailed accounting of the uses of funding 
 received under this section, as the Secretary may require for 
 the administration of this section.

    (f) Duration of the Plan.--Each State plan shall remain in effect 
for a period of not more than 3 years. Amendments to the State plan 
shall remain in effect for the duration of the plan.

SEC. 304. SUBGRANTS AND CONTRACTS FOR LOCAL PRESCHOOL PROGRAMS.

    (a) Subgrants and Contracts.--

    (1) In general.--A State that receives a payment under 
 

section 303

    (b) for a fiscal year shall use amounts provided 
 through the payment to pay the costs of subgrants to, or 
 contracts with, eligible providers to operate universal, high-
 quality, free, and inclusive preschool programs (which State-
 funded programs may be referred to in this section as ``local 
 preschool programs'') through the State preschool program in 
 accordance with subsection
            (c) . A State shall reduce or 
 increase the amounts provided under such subgrants or contracts 
 if needed to adjust for any overpayment or underpayment 
 described in 

section 303

    (b)

    (4) .

    (2) Amount.--A State shall award a subgrant or contract 
 under this section in a sufficient amount to enable the 
 eligible provider to operate a local preschool program that 
 meets the requirements of 

section 303

    (e)

    (2) , which amount shall 
 reflect variations in the cost of preschool services by 
 geographic area, type of provider, and age of child, and the 
 additional costs associated with providing inclusive preschool 
 services for children with disabilities.

    (3) Duration.--The State shall award a subgrant or contract 
 under this section for a period of not less than 3 years, 
 unless the subgrant or contract is terminated or suspended, or 
 the subgrant period is reduced, for cause.

    (b) Enhanced Payments for Comprehensive Services.--In awarding 
subgrants or contracts under this subsection and in addition to meeting 
the requirements of subsection

    (a)

    (2) , the State shall award subgrants 
or contracts with enhanced payments to eligible providers that offer 
local preschool programs funded under this section to a high percentage 
of low-income children to support comprehensive services.
            (c) Establishing and Expanding Universal Preschool Programs.--

    (1) Establishing and expanding universal preschool programs 
 in high-need communities.--In awarding subgrants or contracts 
 under this section, the State shall first prioritize 
 establishing and expanding universal local preschool programs 
 within and across high-need communities by awarding subgrants 
 or contracts to eligible providers operating within and across, 
 or with capacity to operate within and across, such high-need 
 communities. The State shall--
        (A) use a research-based methodology approved by 
 the Secretary to identify such high-need communities, 
 as determined by--
            (i) the rate of poverty in the community;
            (ii) rates of access to high-quality 
 preschool within the community; and
            (iii) other indicators of community need as 
 required by the Secretary; and
        (B) distribute funding for preschool services under 
 this section within such a high-need community so that 
 a majority of children in the community are offered 
 such preschool services before the State establishes 
 and expands preschool services in communities with 
 lower levels of need.

    (2) Use of funds.--Subgrants or contracts awarded under 
 paragraph

    (1) shall be used to enroll and serve children in 
 such a local preschool program involved, including by paying 
 the costs--
        (A) of personnel (including classroom and 
 administrative personnel), including compensation 
 (including benefits);
        (B) associated with implementing the State's 
 preschool standards, providing curriculum supports, and 
 meeting early learning and development standards;
            (C) of professional development, teacher supports, 
 and training;
            (D) of implementing and meeting developmentally 
 appropriate health and safety standards (including 
 licensure, where applicable), teacher to child ratios, 
 and group size maximums;
        (E) of materials, equipment, and supplies; and
        (F) of rent or a mortgage, utilities, building 
 security, indoor and outdoor maintenance, and 
 insurance.
            (d) Establishing and Expanding Universal Preschool Programs in 
Additional Communities.--Once a State that receives a payment under 

section 303

    (b) meets the requirements of subsection
            (c) with respect to 
establishing and expanding local preschool programs within and across 
high-need communities, the State shall use funds from such payment to 
enroll and serve children in local preschool programs, as described in 
such subsection, in additional communities in accordance with the 
metrics described in subsection
            (c) (1)
        (A) . Such funds shall be used for 
the activities described in subparagraphs
        (A) through
        (F) of subsection
            (c) (2) .

SEC. 305. PAYMENTS FOR UNIVERSAL PRESCHOOL SERVICES TO INDIAN TRIBES 
 AND TERRITORIES.

    (a) Indian Tribes and Tribal Organizations.--

    (1) In general.--For each of fiscal years 2026 through 
 2031, from the amount appropriated for Indian Tribes and Tribal 
 organizations under 

section 302

    (b)

    (1) , the Secretary shall make 
 payments to Indian Tribes and Tribal organizations with an 
 application approved under paragraph

    (2) , and the Tribes and 
 Tribal organizations shall be entitled to such payments for the 
 purpose of carrying out the preschool program described in this 
 title, consistent, to the extent practicable as determined by 
 the Secretary, with the requirements applicable to States.

    (2) Applications.--An Indian Tribe or Tribal organization 
 seeking a payment under this subsection shall submit an 
 application to the Secretary at such time, in such manner, and 
 containing such information as the Secretary may specify.

    (b) Territories.--

    (1) In general.--For each of fiscal years 2026 through 
 2031, from the amount appropriated for territories under 
 

section 302

    (b)

    (2) , the Secretary shall make payments to the 
 territories with an application approved under paragraph

    (2) , 
 and the territories shall be entitled to such payments, for the 
 purpose of carrying out the preschool program described in this 
 title, consistent, to the extent practicable as determined by 
 the Secretary, with the requirements applicable to States.

    (2) Applications.--A territory seeking a payment under this 
 subsection shall submit an application to the Secretary at such 
 time, in such manner, and containing such information as the 
 Secretary may specify.
            (c) Lead Agency.--The head of an Indian Tribe or territory desiring 
for the Indian Tribe or a related Tribal organization, or territory, to 
receive a payment under this section shall designate a lead agency 
(such as a tribal or territorial agency or joint interagency office) 
for the administration of the preschool program of the Indian Tribe or 
territory, under this section.

SEC. 306. GRANTS TO LOCALITIES AND HEAD START EXPANSION IN 
 NONPARTICIPATING STATES.

    (a) Eligible Locality Defined.--In this section, the term 
``eligible locality'' means a city, county, or other unit of general 
local government, a local educational agency, or a Head Start agency.

    (b) Grants to Localities.--

    (1) In general.--The Secretary, in consultation with the 
 Secretary of Education, shall use funds reserved in 

section 302

    (b)

    (5) to award local universal preschool grants, as 
 determined by the Secretary of Health and Human Services, to 
 eligible localities located in States that have not received 
 payments under 

section 303. The Secretary shall award the 
 grants to eligible localities in a State from the allotment 
 made for that State under paragraph

    (2) . The Secretary shall 
 specify the requirements for an eligible locality to conduct a 
 preschool program under this section which shall, to the 
 greatest extent practicable, be consistent with the 
 requirements applicable to States under this title, for a 
 universal, high-quality, free, and inclusive preschool program.

    (2) Allotments.--For each State described in paragraph

    (1) , 
 the Secretary shall allot for the State for a fiscal year an 
 amount that bears the same relationship to the funds 
 appropriated under 

section 302

    (b)

    (5) for the fiscal year as the 
 number of children from families with family incomes at or 
 below 200 percent of the poverty line, and who are under the 
 age of 6, in the State bears to the total number of all such 
 children in all States described in paragraph

    (1) .

    (3) Application.--To receive a grant from the corresponding 
 State allotment under this section, an eligible locality shall 
 submit an application to the Secretary at such time, in such 
 manner, and containing such information as the Secretary may 
 require. The requirements for the application shall, to the 
 greatest extent practicable, be consistent with the State plan 
 requirements applicable to States under this title.
            (c) Head Start Expansion in Nonparticipating States.--

    (1) In general.--The Secretary shall use funds appropriated 
 under 

section 302

    (b)

    (5) , to make awards to Head Start agencies 
 in a State described in subsection

    (b)

    (1) to carry out the 
 purposes of the Head Start Act (42 U.S.C. 9831 et seq.) in such 
 State.

    (2) Rule.--For purposes of carrying out the Head Start Act 
 in circumstances not involving awards under this subsection, 
 funds awarded under paragraph

    (1) shall not be included in the 
 calculation of a ``base grant'' as such term is defined in 
 

section 640

    (a)

    (7)
        (A) of the Head Start Act (42 U.S.C. 
 9835

    (a)

    (7)
        (A) ).

    (3) === Definition. ===
-In this subsection, the term ``Head Start 
 agency'' means an entity designated or eligible to be 
 designated as a Head Start agency under 

section 641

    (a)

    (1) of 
 the Head Start Act (42 U.S.C. 9836

    (a)

    (1) ) or as an Early Head 
 Start agency (by receiving a grant) under 

section 645A

    (a) of 
 such Act (42 U.S.C. 9840a

    (a) ).
            (d) Priority for Serving Underserved Communities.--In making 
determinations to award a grant or make an award under this section, 
the Secretary shall give priority to entities serving communities with 
a high percentage of children from families with family incomes at or 
below 200 percent of the poverty line.

SEC. 307. ALLOWABLE SOURCES OF NON-FEDERAL SHARE.

 For purposes of calculating the amount of the non-Federal share, as 
determined under 

section 303

    (b)

    (3) , relating to a payment under 

section 303

    (b) , a State's non-Federal share--

    (1) may be in cash or in-kind, fairly evaluated, including 
 facilities or property, equipment, or services;

    (2) shall include any increase in amounts spent by the 
 State to expand half-day kindergarten programs in the State, as 
 of the day before the date of enactment of this Act, into full 
 day kindergarten programs;

    (3) shall not include contributions being used as a non-
 Federal share or match for another Federal award;

    (4) shall be provided from State or local sources, 
 contributions from philanthropy or other private organizations, 
 or a combination of such sources and contributions; and

    (5) shall count not more than 100 percent of the State's 
 current spending on prekindergarten programs, calculated as the 
 average amount of such spending by the State for fiscal years 
 2023, 2024, and 2025, toward the State's non-Federal share.

SEC. 308. MAINTENANCE OF EFFORT.

    (a) In General.--If a State reduces its combined fiscal effort per 
child for the State preschool program (whether a publicly funded 
preschool program or a program under this title) or through State 
supplemental assistance funds for Head Start programs assisted under 
the Head Start Act, or through any State spending on early childhood 
programs or preschool services for any fiscal year that a State 
receives payments under 

section 303

    (b) (referred to in this paragraph 
as the ``reduction fiscal year'') relative to the previous fiscal year, 
the Secretary, in collaboration with the Secretary of Education, shall 
reduce support for such State under such subsection by the same amount 
as the total reduction in that State fiscal effort for such reduction 
fiscal year.

    (b) Waiver.--The Secretary, in collaboration with the Secretary of 
Education, may waive the requirements of subsection

    (a) if--

    (1) the Secretaries determine that a waiver would be 
 appropriate due to a precipitous decline in the financial 
 resources of a State as a result of unforeseen economic 
 hardship, or a natural disaster, that has necessitated across-
 the-board reductions in State services during the 5-year period 
 preceding the date of the determination, including for early 
 childhood education programs; or

    (2) due to the circumstance of a State requiring reductions 
 in specific programs, including early childhood education 
 programs, the State presents to the Secretaries a justification 
 and demonstration why other programs could not be reduced and 
 how early childhood education programs in the State will not be 
 disproportionately harmed by such State reductions.

SEC. 309. SUPPLEMENT NOT SUPPLANT.

 Funds received under this title shall be used to supplement and not 
supplant other Federal, State, and local public funds expended on 
prekindergarten programs in the State on the date of enactment of this 
Act, calculated as the average amount of such Federal, State, and local 
public funds expended for fiscal years 2023, 2024, and 2025.

SEC. 310. NONDISCRIMINATION PROVISIONS.

 The following provisions of law shall apply to any program or 
activity that receives funds provided under this title:

    (1) Title IX of the Education Amendments of 1972 (20 U.S.C. 
 1681 et seq.).

    (2) Title VI of the Civil Rights Act of 1964 (42 U.S.C. 
 2000d et 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.).

SEC. 311. MONITORING AND ENFORCEMENT.

    (a) Review of Compliance With Requirements and State Plan.--The 
Secretary shall review and monitor compliance of States, territories, 
Tribal entities, and local entities with this title and State 
compliance with the State plan described in 

section 303

    (e) , including a 
process for progress updates on the requirements described in 

section 303

    (e)

    (1) .

    (b) Issuance of Rule.--The Secretary shall establish by rule 
procedures for--

    (1) receiving, processing, and determining the validity of 
 complaints or findings concerning any failure of a State to 
 comply with the State plan or any other requirement of this 
 title;

    (2) notifying a State when the Secretary has determined 
 there has been a failure by the State to comply with a 
 requirement of this title; and

    (3) imposing sanctions under this section for such a 
 failure.

SEC. 312. REPORTING.

    (a) In General.--Each State that receives a payment under 

section 303 shall prepare an annual report, in such manner and containing such 
information as the Secretary of Health and Human Services may 
reasonably require.

    (b) Contents.--A report prepared under subparagraph

    (a) shall 
contain, at a minimum--

    (1) a description of the manner in which the State has used 
 the funds made available through the payment and a report of 
 the expenditures made with the funds;

    (2) a summary of the State's progress toward providing 
 access to high-quality preschool programs for eligible 
 children;

    (3) the number and percentage of children in the State 
 participating in eligible preschool programs, disaggregated by 
 race, ethnicity, family income, child age, disability, and 
 whether the children are homeless children, children in foster 
 care, or dual language learners;

    (4) data on the number and percentage of children in the 
 State participating in public kindergarten programs, 
 disaggregated by race, family income, child age, disability, 
 and whether the children are homeless children, children in 
 foster care, or dual language learners, with information on 
 whether such programs are offered--
        (A) for a full day; and
        (B) at no cost to families;

    (5) data on the kindergarten readiness of children across 
 the State;

    (6) data on recruitment and retention of early childhood 
 staff disaggregated by provider type, and age of children 
 served; and

    (7) data regarding coordination efforts with other child 
 care and early childhood education programs, including those 
 funded under the Head Start Act (42 U.S.C. 9831 et seq.).

 TITLE IV--HEAD START EXTENDED DURATION

SEC. 401. EXTENDED DURATION.

    (a) In General.--The Head Start Act (42 U.S.C. 9801 et seq.) is 
amended--

    (1) by redesignating 

section 657C (42 U.S.C. 9852c) as 
 

section 657D; and

    (2) by inserting after 

section 657B (42 U.S.C. 9852b) the 
 following:

``

SEC. 657C. EXTENDED DURATION.

 ``

    (a) In General.--The Secretary shall make grants to Head Start 
agencies (including Early Head Start agencies) funded under this 
subchapter to enable such agencies--
 ``

    (1) to provide access to a full school year and a full 
 school day of services;
 ``

    (2) in the case of a migrant and seasonal Head Start 
 agency, to provide access to additional service hours to ensure 
 continuous Head Start services as determined by the Secretary; 
 or
 ``

    (3) in the case of a Head Start agency (including an 
 Early Head Start agency) that already meets the full-day, full-
 year services needs within its community, to enhance the 
 quality of Head Start services (including Early Head Start 
 services) provided to children served by such agency.
 ``

    (b) Application.--
 ``

    (1) In general.--To be eligible to receive a grant under 
 this section, a Head Start agency shall submit an application 
 at such time and in such manner as the Secretary may require. 
 Such application shall include--
 ``
        (A) evidence of--
 ``
            (i) the number and percentage of slots--
 ``
            (I) in the agency's Head Start 
 center-based programs (that are not 
 Early Head Start programs)--
 ``

    (aa) that are currently 
 funded (as of the date of 
 submission of the application); 
 and
 ``

    (bb) in which services 
 are provided for at least the 
 equivalent of 1,020 hours per 
 year; and
 ``
            (II) in the agency's Early Head 
 Start center-based programs--
 ``

    (aa) that are currently 
 funded (as of that date); and
 ``

    (bb) in which services 
 are provided for at least the 
 equivalent of 1,380 hours per 
 year; and
 ``
            (ii) the number and percentage of slots, 
 in the agency's Head Start family child care 
 programs--
 ``
            (I) that are currently funded (as 
 of that date); and
 ``
            (II) in which services are 
 provided for at least the equivalent of 
 1,380 hours per year;
 ``
        (B) a description of an approach, using the 
 current community-wide strategic planning and needs 
 assessment described in 

section 640

    (g)

    (1)
            (C) and 
 current program schedule (current as of the date of 
 submission of the application), that transitions all of 
 the agency's Head Start programs to a full school day, 
 full school year program schedule; and
 ``
            (C) a budget justification that estimates the 
 supplemental funding necessary to provide for 
 incremental ongoing operating costs for the extended 
 hours of service under such a program schedule for the 
 current enrollment in the agency's Head Start programs.
 ``

    (2) Exceptions.--
 ``
        (A) Migrant and seasonal head start.--
 ``
            (i) In general.--A migrant and seasonal 
 Head Start agency may apply for a grant 
 described in subsection

    (a) without meeting the 
 requirements specified in paragraph

    (1) to 
 ensure continuous Head Start services are 
 provided to children enrolled in a migrant and 
 seasonal Head Start program. To be eligible to 
 receive the grant, the agency shall submit an 
 application at such time and in such manner as 
 the Secretary may require.
 ``
            (ii) Priority.--In making grants to 
 applicants described in clause
            (i) , the 
 Secretary shall give priority to a migrant and 
 seasonal Head Start agency operating for fewer 
 than 8 months per year.
 ``
        (B) Full-day, full-year head start agencies.--
 ``
            (i) In general.--A Head Start agency 
 (including an Early Head Start agency) that 
 certifies to the Secretary that it is meeting 
 the full-day, full-year need within its 
 community may apply for a grant to enhance the 
 quality of services provided to children 
 enrolled in its Head Start program (including 
 its Early Head Start program) in accordance 
 with subsection
            (c) (2) .
 ``
            (ii) Application.--A Head Start agency 
 (including Early Head Start agency) that meets 
 the requirements of clause
            (i) shall submit an 
 application, which shall include--
 ``
            (I) the proposed uses of funds in 
 accordance with subsection
            (c) (2) ; and
 ``
            (II) how such uses of funds 
 relate to the community-wide strategic 
 planning and needs assessment described 
 under 

section 640

    (g)

    (1)
            (C) .
 ``
            (c) Use of Funds.--
 ``

    (1) Extended duration.--A Head Start agency that meets 
 the requirements of paragraph

    (1) or

    (2) of subsection

    (a) receiving a grant under this section shall use the grant funds 
 to cover the costs associated with extending those hours of 
 service for the current enrollment, such as additional costs 
 for--
 ``
        (A) the purchase, rental, renovation, and 
 maintenance of additional facilities;
 ``
        (B) ongoing purchases of classroom supplies;
 ``
            (C) staff providing services during the extended 
 hours; and
 ``
            (D) professional development to staff 
 transitioning to providing services during the extended 
 hours.
 ``

    (2) Enhancing program quality.--A Head Start agency 
 (including an Early Head Start agency) that meets the 
 requirements of subsection

    (a)

    (3) shall use funds for the 
 activities authorized under 

section 640

    (a)

    (5)
        (B) .
 ``

    (3) Exception.--The Head Start agency shall not use the 
 grant funds to expand the number of children served in the Head 
 Start program (including the Early Head Start program) of the 
 agency.
 ``
            (d) Reservations.--
 ``

    (1) Activities.--From the total amount appropriated to 
 carry out this section, the Secretary shall--
 ``
        (A) for making grants for the activities 
 described in subsection
            (c) (1)
        (A) , reserve 
 $4,000,000,000 of the funds appropriated for fiscal 
 year 2026; and
 ``
        (B) for making grants for the activities 
 described in any of subparagraphs
        (B) through
            (D) of 
 subsection
            (c) (1) , reserve--
 ``
            (i) $833,000,000 of the funds 
 appropriated for fiscal year 2026;
 ``
            (ii) $852,000,000 of the funds 
 appropriated for fiscal year 2027; and
 ``
            (iii) $872,000,000 of the funds 
 appropriated for fiscal year 2028.
 ``

    (2) Priority.--The Secretary shall prioritize Head Start 
 agencies (including Early Head Start agencies) that are 
 applying to use funds to carry out the activities described in 
 subsection

    (a)

    (1) .
 ``

    (3) Migrant or seasonal head start programs.--From the 
 amount appropriated to carry out this section for a fiscal year 
 and reserved under paragraph

    (1)
        (B) , the Secretary shall 
 reserve 4.5 percent for migrant or seasonal Head Start 
 programs.
 ``

    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
 ``

    (1) $4,833,000,000 for fiscal year 2026;
 ``

    (2) $852,000,000 for fiscal year 2027; and
 ``

    (3) $872,000,000 for fiscal year 2028.
 ``

    (f) 

=== Definitions. ===
-In this section:
 ``

    (1) Full school day; full school year.--The terms `full 
 school day' and `full school year' mean such a day and year, 
 respectively, within the meaning of the Head Start Program 
 Performance standards issued under 

section 641A

    (a) .
 ``

    (2) Migrant and seasonal head start agency.--The term 
 `migrant and seasonal Head Start agency' means an agency that 
 is funded under this subchapter to provide a migrant and 
 seasonal Head Start program.''.

    (b) Conforming Amendments.--

Section 640 of the Head Start Act (42 
U.S.C. 9835) is amended--

    (1) in subsection

    (a)

    (6) , by striking ``appropriated under 
 this subchapter'' each place it appears and inserting 
 ``appropriated under 

section 639''; and

    (2) in subsection

    (g)

    (3)
        (A) --
        (A) by striking ``amount appropriated'' each place 
 it appears and inserting ``amount appropriated under 
 

section 639'';
        (B) by striking ``services provided under this 
 subchapter'' and inserting ``services provided under 
 this subchapter (other than 

section 657C)''; and
            (C) by striking ``agency under this subchapter'' 
 and inserting ``agency under this subchapter (other 
 than 

section 657C)''.

SEC. 402. APPROPRIATION FOR WAGES.

    (a) Appropriation.--There is authorized to be appropriated, and 
there is appropriated, out of any funds in the Treasury not otherwise 
appropriated, $2,700,000,000 for fiscal year 2026 and each subsequent 
fiscal year, to carry out subsection

    (b) .

    (b) Use of Funds.--Using funds made available under subsection

    (a) , 
the Secretary of Health and Human Services shall assist Head Start 
agencies (including Early Head Start agencies) funded under the Head 
Start Act (42 U.S.C. 9831 et seq.), to the extent needed to ensure that 
their teachers and staff--

    (1) receive wages that are comparable to wages for 
 elementary educators with similar credentials and experience in 
 the State; or

    (2) at a minimum, receive a living wage.
            (c) Application.--In carrying out subsection

    (b) , the Secretary 
shall apply the Head Start Act, except to the extent that subsection

    (b) is inconsistent with that Act.
 <all>