119-s2828

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

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2828

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

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 September 17 (legislative day, September 16), 2025

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

_______________________________________________________________________

 A BILL

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

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

SECTION 1. SHORT TITLE.

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

SEC. 2. PURPOSES.

    (a) Redesignation.--

Section 658A of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9857) is redesignated as 

section 658 
of such Act.

    (b) Amendment.--Subsection

    (b) of that 

section 658 is amended to 
read as follows:
 ``

    (b) 

=== Purposes ===
-The purposes of this subchapter are--
 ``

    (1) to allow each State maximum flexibility in developing 
 and implementing a mixed delivery system to provide child care 
 that best suits the needs of children and working parents 
 within that State;
 ``

    (2) to promote parental choice to empower working parents 
 to make their own decisions regarding the child care services 
 that best suit their family's needs;
 ``

    (3) to encourage States to provide consumer education 
 information to help parents make informed choices about child 
 care services and to promote involvement by parents and family 
 members in the development of their children in child care 
 settings;
 ``

    (4) to assist States in delivering high-quality, 
 coordinated child care services to maximize parents' options to 
 cover the full workday and full work year, to support 
 continuity of care for children, and to support parents trying 
 to achieve independence from public assistance;
 ``

    (5) to assist States in improving the overall quality of 
 child care by implementing the health, safety, licensing, early 
 learning and development, professional, and oversight standards 
 established in this subchapter and in State law (including 
 State regulations);
 ``

    (6) to assist States--
 ``
        (A) in supporting the educational and 
 professional development of child care staff; and
 ``
        (B) in supporting child care providers in the 
 recruitment of, professional development for, and 
 retention of a qualified child care workforce; and
 ``

    (7) to increase the number and percentage of low-income 
 children in high-quality child care settings.''.

SEC. 3. DEFINITIONS.

    (a) In General.--

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

    (1) by redesignating paragraphs

    (5) through

    (7) ,

    (8) and

    (9) , and

    (10) through

    (15) , as paragraphs

    (6) through

    (8) ,

    (10) and

    (11) , and

    (13) through

    (18) , respectively;

    (2) in paragraph

    (3) --
        (A) in subparagraph
        (B) , by inserting ``and'' at 
 the end;
        (B) in subparagraph
            (C) , by striking ``; and'' at 
 the end and inserting a period; and
            (C) by striking subparagraph
            (D) ;

    (3) by striking paragraph

    (4) and inserting the following:
 ``

    (4) Eligible activity.--The term `eligible activity', 
 means an activity consisting of--
 ``
        (A) full-time or part-time employment;
 ``
        (B) self-employment;
 ``
            (C) job search activities;
 ``
            (D) job training;
 ``
        (E) secondary, postsecondary, or adult education, 
 including education through a program of high school 
 classes, a course of study at an institution of higher 
 education, classes towards an equivalent of a high 
 school diploma recognized by State law, or English as a 
 second language classes;
 ``
        (F) health treatment (including mental health and 
 substance use treatment) for a condition that prevents 
 the parent involved from participating in other 
 eligible activities;
 ``
        (G) activities to prevent child abuse or neglect, 
 or family violence prevention or intervention 
 activities;
 ``
        (H) employment and training activities under the 
 employment and training program, of the supplemental 
 nutrition assistance program, established under 

section 6
            (d) (4) of the Food and Nutrition Act of 2008 (7 U.S.C. 
 2015
            (d) (4) );
 ``
            (I) employment and training activities under the 
 Workforce Innovation and Opportunity Act (29 U.S.C. 
 3101 et seq.);
 ``
        (J) a work activity described in subsection
            (d) of 

section 407 of the Social Security Act (42 U.S.C. 
 607) for which, consistent with clauses
            (ii) and
            (iii) of 

section 402

    (a)

    (1)
        (A) of such Act (42 U.S.C. 
 602

    (a)

    (1)
        (A) ), a parent is treated as being engaged in 
 work for a month in a fiscal year for purposes of the 
 program of block grants to States for temporary 
 assistance for needy families established under part A 
 of title IV of the Social Security Act (42 U.S.C. 601 
 et seq.); or
 ``
        (K) taking leave under the Family and Medical 
 Leave Act of 1993 (29 U.S.C. 2601 et seq.) (or 
 equivalent provisions for Federal employees), a State 
 or local paid or unpaid leave law, or a program of 
 employer-provided leave.
 ``

    (5) Eligible child.--The term `eligible child' means an 
 individual--
 ``
        (A) who is less than 13 years of age;
 ``
        (B)
            (i) whose family income does not exceed--
 ``
            (I) 85 percent of the State median income 
 for a family of the same size; or
 ``
            (II) a higher percentage of that income 
 in a State with a waiver under 

section 658I
            (c) (1)
        (B) ; and
 ``
            (ii) whose family assets do not exceed $1,000,000 
 (as certified by a member of such family); and
 ``
            (C) who--
 ``
            (i) resides with a parent or parents who 
 are participating in an eligible activity;
 ``
            (ii) is a child experiencing 
 homelessness, a child in kinship care, or a 
 child who is receiving, or needs to receive, 
 child protective services; or
 ``
            (iii) resides with a parent who is more 
 than 65 years of age.'';

    (4) in paragraph

    (7) , as so redesignated--
        (A) in subparagraph
        (A) , by striking ``or'' at the 
 end;
        (B) in subparagraph
        (B) , by striking the period at 
 the end and inserting ``; or'';
            (C) by added at the end the following:
 ``
            (C) notwithstanding 

section 645

    (a)

    (1)
        (B) of the 
 Head Start Act (42 U.S.C. 9840

    (a)

    (1)
        (B) ), a Head Start 
 agency.''; and
            (D) by adding at the end the following flush 
 sentence:
 ``Notwithstanding subparagraph
        (B) , a licensed, regulated, or 
 registered child care provider (or a staff member of the child 
 care provider) who is otherwise eligible for assistance under 
 this Act shall continue to be eligible for such assistance for 
 the care of children for whom the provider is the legal parent 
 if other eligible children with respect to whom such provider 
 is not the legal parent are also being cared for by that 
 provider.'';

    (5) by striking paragraph

    (8) , as so redesignated, and 
 inserting the following:
 ``

    (8) Family child care provider.--The term `family child 
 care provider' means an individual who provides child care 
 services in a private residence--
 ``
        (A) for fewer than 24 hours per day per child; or
 ``
        (B) for 24 hours per day per child due to the 
 nature of the work of the parent involved.
 ``

    (9) Homeless child.--The term `homeless child' means an 
 individual described in 

section 725

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

    (2) ).'';

    (6) in paragraph

    (10) , as so redesignated, by striking 
 ``

    (10) '' and all that follows through ``meaning'' and inserting 
 the following:
 ``

    (10) Indian tribe; indian tribe.--The term `Indian Tribe' 
 or `Indian tribe' has the meaning'';

    (7) by inserting after paragraph

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

    (12) Mixed delivery system.--The term `mixed delivery 
 system' means a system of child care services that--
 ``
        (A) promotes parental choice to empower working 
 parents to make their own decisions regarding the child 
 care services that best suit their family's needs;
 ``
        (B) delivers services through a combination of 
 programs offered by eligible child care providers 
 (including faith-based and community-based child care 
 providers) in a variety of settings (including family 
 child care homes, child care centers, Head Start 
 centers, and public and private schools); and
 ``
            (C) may be supported with a combination of public 
 and private funds.'';

    (8) in paragraph

    (15) , as so redesignated, by striking 
 ``unless the context specifies otherwise'' and inserting 
 ``except as otherwise specified''; and

    (9) in paragraph

    (18) , as so redesignated, by striking 
 ``

    (18) '' and all that follows through ``has the meaning'' and 
 inserting the following:
 ``

    (18) Tribal organization; tribal organization.--
 ``
        (A) In general.--The term `Tribal organization' 
 or `tribal organization' has the meaning''.

    (b) Redesignation.--The Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9857 et seq.) is amended--

    (1) by redesignating 

section 658P as 

section 658A; and

    (2) by moving 

section 658A, as so redesignated, to follow 
 

section 658, as redesignated by 

section 2.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

    (a) Part.--The Child Care and Development Block Grant Act of 1990 
is amended by inserting before 

section 658B the following:

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

    (b) In General.--

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

``

SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

 ``There is authorized to be appropriated to carry out this 
subchapter (other than 

section 658T) such sums as may be necessary for 
each of fiscal years 2026 through 2030.''.

SEC. 5. LEAD AGENCY.

 

Section 658D

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

    (b) ) is amended by striking paragraph

    (2) and 
inserting the following:
 ``

    (2) Development of plan.--The lead agency shall develop 
 the State plan described in paragraph

    (1)
        (B) in meaningful 
 consultation with--
 ``
        (A) parents of children eligible for services 
 under this subchapter, which shall include parents of 
 children in a priority population described in 

section 658E
            (c) (2)
            (M) ;
 ``
        (B) eligible child care providers that represent 
 the various geographic areas and types of providers in 
 the State;
 ``
            (C) employers of various sizes and with various 
 hours and days of operations whose employees rely on 
 reliable and accessible child care to work; and
 ``
            (D) appropriate representatives of units of 
 general purpose local government and, as appropriate, 
 of Indian Tribes and Tribal organizations.''.

SEC. 6. APPLICATION AND PLAN.

 

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

    (1) in paragraph

    (2) --
        (A) in subparagraph
        (A)
            (i) 
            (I) , by striking ``a 
 child'' and inserting ``an eligible child'';
        (B) in subparagraph
            (D) , by striking ``, not 
 later'' and all that follows through ``subparagraph
        (K)
            (i) ,'';
            (C) in subparagraph
        (E)
            (i) --
            (i) in the matter preceding subclause
            (I) , 
 by inserting ``, offered through a mixed 
 delivery system,'' after ``full diversity of 
 child care services'';
            (ii) in subclause
            (I) , by inserting 
 ``(including information on the hours and days 
 of operation and ages served)'' after ``of 
 child care services''; and
            (iii) in subclause
            (IV) --
            (I) by striking ``and'' before 
 ``the Medicaid''; and
            (II) by inserting before the 
 semicolon the following: ``, and the 
 Maternal, Infant, and Early Childhood 
 Home Visiting Programs under 

section 511 of the Social Security Act (42 
 U.S.C. 711)'';
            (D) in subparagraph
        (G) --
            (i) in the subparagraph heading, by 
 striking ``Training and professional'' and 
 inserting ``Professional'';
            (ii) in clause
            (i) and clause
            (ii) (in the 
 matter preceding subclause
            (I) ), by striking 
 ``training and'' before ``professional 
 development'';
            (iii) in clause
            (ii) 
            (II) , by striking ``, 
 and may engage'' and all that follows through 
 ``training framework''; and
            (iv) in clause
            (iii) , by striking 
 ``training'' and inserting ``professional 
 development'';
        (E) in subparagraph
            (I) 
            (i) 
            (IX) , by striking ``if 
 applicable,'';
        (F) in subparagraph
        (J) --
            (i) by striking ``that procedures'' and 
 inserting the following: ``that--
 ``
            (i) procedures'';
            (ii) by striking the period at the end and 
 inserting ``; and''; and
            (iii) by adding at the end the following:
 ``
            (ii) the State will undertake a review of 
 State and local health and safety requirements 
 (including requirements for inspections under 
 this subchapter and the child and adult care 
 food program established under 

section 17 of 
 the Richard B. Russell National School Lunch 
 Act (42 U.S.C. 1766)) to determine redundancies 
 and oversights that may exist, to ensure--
 ``
            (I) children receive child care 
 services in healthy and safe 
 environments; and
 ``
            (II) child care providers can 
 easily identify, understand, and comply 
 with applicable health and safety 
 requirements.'';
        (G) in subparagraph
        (K)
            (i) --
            (i) in the matter preceding subclause
            (I) , 
 by striking ``, not later'' and all that 
 follows through ``2014,''; and
            (ii) in subclause
            (IV) , by striking 
 ``

section 658P

    (6)
        (B) '' and inserting ``

section 658A

    (7)
        (B) '';
        (H) in subparagraph
            (M) --
            (i) by redesignating clauses
            (ii) through
            (iv) as clauses
            (iv) through
            (vi) , 
 respectively;
            (ii) by striking clause
            (i) and inserting 
 the following:
 ``
            (i) children in underserved areas, 
 including areas that have significant 
 concentrations of poverty or unemployment and 
 that do not have a sufficient supply of 
 eligible child care providers;
 ``
            (ii) children experiencing homelessness, 
 children in foster care, children in kinship 
 care, and children who are receiving, or need 
 to receive, child protective services; and
 ``
            (iii) children in rural areas;''; and
            (iii) in clause
            (v) , as so redesignated, by 
 striking ``, as defined by the State'';
            (I) in subparagraph
        (N)
            (iii) , by striking ``At the 
 option of the State, the'' and inserting ``The'';
        (J) in subparagraph
        (O)
            (i) , by striking ``full-day 
 services'' and inserting ``full workday and full work 
 year services'';
        (K) in subparagraph
        (S)
            (ii) , by striking ``, to the 
 extent'' and all that follows through ``fixed costs'' 
 and inserting ``implement enrollment and eligibility 
 policies that support the fixed and operational 
 costs'';
            (L) in subparagraph
        (T)
            (i) , by striking ``or 
 implement'' and all that follows through ``of 2014)'' 
 and inserting ``and implement developmental 
 guidelines'';
            (M) in subparagraph
        (U) --
            (i) in clause
            (ii) , by inserting ``State 
 and local health agencies,'' after ``licensing 
 of child care providers,''; and
            (ii) in clause
            (iii) 
            (II) , by striking 
 ``following the emergency or disaster, which 
 may include'' and inserting ``during and 
 following the emergency or disaster, which 
 shall include guidelines for'';
        (N) in subparagraph
            (V) , by striking ``develop'' 
 and all that follow through ``services.'' and inserting 
 ``support child care business technical assistance 
 including supporting--
 ``
            (i) provision of strategies to support 
 management coaching and the use of core best 
 business practices;
 ``
            (ii) development and use of shared 
 services initiatives including initiatives 
 involving provider networks such as child care 
 center alliances and family child care provider 
 networks; and
 ``
            (iii) coordination of activities with 
 programs of the Small Business Administration, 
 programs of the Department of Agriculture, and 
 other Federal, State, and local programs 
 supporting child care businesses.''; and
        (O) by adding at the end the following:
 ``
        (W) Benchmarks.--The plan shall include 
 benchmarks for the indicators described in the clauses 
 of 

section 658K

    (a)

    (3)
        (B) .'';

    (2) in paragraph

    (3) --
        (A) in subparagraph
        (B)
            (ii) , by striking ``Not 
 later'' and all that follows through ``shall prepare'' 
 and inserting ``Not later than September 30 of each 
 fiscal year, the Secretary shall prepare''; and
        (B) in subparagraph
            (D) --
            (i) by striking ``with respect to'' and all 
 that follows through ``2020'' and inserting 
 ``with respect to each fiscal year)''; and
            (ii) by striking ``described in clause
            (i) ,
            (ii) ,
            (iii) , or
            (iv) of'' and inserting ``in 
 priority populations described in'';

    (3) in paragraph

    (4) --
        (A) by striking subparagraphs
        (A) and
        (B) and 
 inserting the following:
 ``
        (A) In general.--The State plan shall certify 
 that, not later than the later of the date that is 5 
 years after the date of submission of the application, 
 and September 30, 2031, payment rates for the provision 
 of child care services for which assistance is provided 
 in accordance with this subchapter--
 ``
            (i) will be sufficient to meet the cost 
 of providing the child care services, including 
 the fixed and operational costs of providing 
 the child care services; and
 ``
            (ii) will be set and paid in accordance 
 with a cost estimation model described in 
 subparagraph
        (B) .
 ``
        (B) Cost estimation model.--The State plan 
 shall--
 ``
            (i) demonstrate that the State, after 
 consulting with eligible child care providers 
 that represent the various geographic areas of 
 the State and types of providers within the 
 State's mixed delivery system, State and local 
 child care program administrators, local child 
 care resource and referral agencies, and other 
 appropriate entities, has developed and uses 
 (or if the State has not used such a model 
 certify that the State, after such consultation 
 but not later than the later of the date that 
 is 5 years after the date of submission of the 
 application described in subsection

    (a) , and 
 September 30, 2031, will develop and use) a 
 statistically valid and reliable cost 
 estimation model for the direct payment rates 
 for providers of child care services in the 
 State, that--
 ``
            (I) reflects the costs of service 
 delivery, including fixed costs and 
 operating expenses;
 ``
            (II) reflects the cost of staff 
 salaries and benefits necessary to 
 sufficiently recruit, train, and retain 
 a qualified child care workforce;
 ``
            (III) reflects variations in the 
 costs of service delivery by submarket, 
 type of provider, and children served, 
 including by--
 ``

    (aa) geographic area 
 (such as location in a urban or 
 rural area);
 ``

    (bb) ages of children;
 ``
            (cc) whether the children 
 have particular needs (such as 
 needs of children with 
 disabilities and children 
 served by child protective 
 services);
 ``
            (dd) whether the 
 providers provide services 
 during weekend and other 
 nontraditional hours; and
 ``

    (ee) quality of child 
 care provider as determined by 
 the State; and
 ``
            (IV) is reviewed once every 2 
 years and adjusted to--
 ``

    (aa) ensure payment rates 
 remain sufficient to meet the 
 requirements of this 
 subchapter; and
 ``

    (bb) provide a cost of 
 living increase to maintain the 
 level of services provided 
 during the year prior to the 
 review; and
 ``
            (ii) describe how the State will provide 
 for timely payments, set in accordance with the 
 model described in clause
            (i) , for child care 
 services provided under this subchapter.'';
        (B) in subparagraph
            (C) --
            (i) by striking clause
            (ii) ; and
            (ii) by striking ``
            (C) '' and all that 
 follows through ``Nothing'' and inserting the 
 following:
 ``
            (C) Construction.--Nothing''; and
            (C) by adding at the end the following:
 ``
            (D) No federal control.--The Secretary may offer 
 guidance to States on cost estimation models described 
 in subparagraph
        (B) , but shall not require a State to 
 adopt a particular cost estimation model or an element 
 of a particular cost estimation model (except that the 
 model shall meet the requirements of subparagraph
        (B)
            (i) ).''; and

    (4) by striking paragraph

    (5) and inserting the following:
 ``

    (5) Sliding fee scale.--The State plan shall provide that 
 the State will establish and periodically revise by rule a 
 sliding fee scale to determine a full copayment for a family 
 receiving assistance under this subchapter (or, for a family 
 receiving part-time care, a reduced copayment that is an 
 appropriate amount of the full copayment) and that is not a 
 barrier that restricts families from accessing child care 
 services under this subchapter.''.

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

 

Section 658G

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

    (a) )--

    (1) in paragraph

    (1) , by adding at the end the following: 
 ``The State shall include, in the State's activities, 
 developing and expanding initiatives to assist child care 
 providers in their efforts to recruit, train, and retain a 
 qualified child care workforce.''; and

    (2) in paragraph

    (2) --
        (A) by striking subparagraph
        (A) and inserting the 
 following:
 ``
        (A) to carry out the activities described in 
 paragraph

    (1) , not less than 9 percent of the funds 
 described in paragraph

    (1) for each fiscal year; and''; 
 and
        (B) in subparagraph
        (B) , by striking ``received not 
 later'' and all that follows through ``succeeding full 
 fiscal year'' and inserting ``received for each fiscal 
 year''.

SEC. 8. WAIVERS OF INCOME REQUIREMENT.

 

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

    (1) in paragraph

    (1) --
        (A) in the matter preceding subparagraph
        (A) , by 
 striking ``of not more than three years'' and inserting 
 ``described in paragraph

    (5) '';
        (B) in subparagraph
        (A) , by striking ``
        (A) '' and 
 inserting ``
        (A)
            (i) '';
            (C) in subparagraph
        (B) , by striking ``
        (B) '' and 
 inserting the following:
 ``
            (ii) '';
            (D) in subparagraph
            (C) , by striking ``
            (C) '' and 
 inserting the following:
 ``
            (iii) '';
        (E) in subparagraph
            (D) --
            (i) by striking ``
            (D) '' and inserting the 
 following:
 ``
            (iv) ''; and
            (ii) in clause
            (iv) , as so redesignated, by 
 striking the period and inserting ``; or''; and
        (F) by adding at the end the following:
 ``
        (B) the State, on the date of the request, has a 
 maximum income standard that meets 

section 658A

    (5)
        (B)
            (i) , and requests the waiver to raise that 
 standard.'';

    (2) in paragraph

    (2) --
        (A) in subparagraph
        (B) , by striking ``and'' at the 
 end;
        (B) in subparagraph
            (C) , by striking the period and 
 inserting ``; and''; and
            (C) by adding at the end the following:
 ``
            (D) if the State seeks a waiver of 

section 658A

    (5)
        (B)
            (i) 
            (I) under paragraph

    (1)
        (B) include--
 ``
            (i) the maximum income standard that the 
 State wishes to use;
 ``
            (ii) such information as determined 
 necessary by the Secretary to demonstrate that 
 the State is serving all eligible children to 
 the best of the State's ability below the 
 maximum income standard in that section, and 
 will continue to prioritize and serve all 
 eligible children below the maximum income 
 standard if a waiver under paragraph

    (1)
        (B) should be approved;
 ``
            (iii) information demonstrating that the 
 State is meeting the requirements of the State 
 plan under 

section 658E
            (c) , particularly the 
 requirements of subparagraphs
            (M) and
        (Q) of 
 paragraph

    (2) of that section; and
 ``
            (iv) information demonstrating that the 
 payment rates described in that section are set 
 and paid in accordance with a cost estimation 
 model described in 

section 658E
            (c) (4)
        (B) .'';

    (3) in paragraph

    (7) --
        (A) by striking ``The Secretary may'' and inserting 
 the following:
 ``
        (A) General renewals.--The Secretary may'';
        (B) in the first sentence, by inserting before the 
 period the following: ``, in the case of a request for 
 a waiver of a provision other than 

section 658A

    (5)
        (B)
            (i) 
            (I) '';
            (C) in the second sentence, by striking ``seeking 
 to renew their waiver approval'' and inserting 
 ``seeking that renewal'';
            (D) in the third sentence, by striking ``extension 
 request'' and inserting ``renewal request''; and
        (E) by adding at the end the following:
 ``
        (B) Renewals of income requirement waivers.--A 
 State may seek a renewal, of an existing waiver of 
 

section 658A

    (5)
        (B)
            (i) 
            (I) under paragraph

    (1)
        (B) (including a previously renewed waiver), for a period 
 no longer than 3 years. A State seeking that renewal 
 shall inform the Secretary of this intent no later than 
 30 days prior to the expiration date of the waiver. The 
 State shall re-certify in its renewal request the 
 provisions in paragraph

    (2) . On determining that the 
 State has accurately re-certified those provision, the 
 Secretary shall grant the renewal.''; and

    (4) in paragraph

    (8) --
        (A) by inserting ``, other than paragraph

    (1)
        (B) ,'' 
 after ``this subchapter'' each place the term appears; 
 and
        (B) by adding at the end the following: ``Nothing 
 in this subsection, including paragraph

    (1)
        (B) , shall 
 be construed to permit a State to deny or limit access 
 to, or increase copayments, as a direct result of 
 obtaining this waiver, for child care services under 
 this subchapter to any eligible child whose family 
 income is below the maximum income standard described 
 in paragraph

    (1)
        (B) and whose family assets are less 
 than the asset limit described in 

section 658A

    (5)
        (B)
            (ii) .''.

SEC. 9. REPORTS AND AUDITS.

 

Section 658K

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

    (a) ) is amended--

    (1) in paragraph

    (2) --
        (A) in the matter preceding subparagraph
        (A) --
            (i) by striking ``Not later than'' and all 
 that follows through ``a State'' and inserting 
 ``A State''; and
            (ii) by inserting ``annually'' before 
 ``prepare'';
        (B) in subparagraph
        (A) , by striking ``

section 658P

    (6) '' and inserting ``

section 658A

    (7) ''; and
            (C) in subparagraph
        (F) , by striking ``

section 658P

    (6)
        (B) '' and inserting ``

section 658A

    (7)
        (B) ''; and

    (2) by adding at the end the following:
 ``

    (3) Additional state reports.--
 ``
        (A) Information on percentage of income families 
 are spending on child care.--In addition to the report 
 described in paragraph

    (2) , a State described in 
 paragraph

    (1)
        (A) shall, not later than the date that 
 the State submits a State plan under 

section 658E, 
 prepare and submit to the Secretary a report that 
 includes--
 ``
            (i) information on--
 ``
            (I) the percentage of income 
 spent on child care for families that--
 ``

    (aa) have children that 
 are eligible to receive but are 
 not receiving assistance under 
 this subchapter; and
 ``

    (bb) are residing in the 
 State; and
 ``
            (II) the child care options that 
 are available to such families at an 
 affordable rate; and
 ``
            (ii) the results of a feasibility study 
 on how, over the next 5 years, the State 
 could--
 ``
            (I) lower the percentage of the 
 family income, of families described in 
 clause
            (i) , that the families spend on 
 child care copayments; and
 ``
            (II) increase access to child 
 care so that all eligible children in 
 the State receive child care.
 ``
        (B) Progress report.--The State shall, not later 
 than the date that the State submits a State plan under 
 

section 658E, prepare and submit to the Secretary a 
 report that includes an analysis of the progress the 
 State has made over the preceding 10 years, on 
 benchmarks described in the State plan under 

section 658E
            (c) (2)
        (W) , in the child care program carried out 
 under this subchapter, relating to indicators 
 consisting of--
 ``
            (i) child and family eligibility and 
 enrollment;
 ``
            (ii) affordability of child care for 
 families with an eligible child;
 ``
            (iii) expansion of parental choice and 
 equal access;
 ``
            (iv) payment rates and payment practices;
 ``
            (v) recruiting and retaining a skilled, 
 qualified, and appropriately compensated child 
 care workforce;
 ``
            (vi) quality improvement activities;
 ``
            (vii) lead agency coordination and 
 partnership;
 ``
            (viii) family outreach and consumer 
 education; and
 ``
            (ix) program integrity and 
 accountability.
 ``
            (C) Reports to congress.--The Secretary shall 
 submit a report to the Committee on Health, Education, 
 Labor, and Pensions of the Senate and the Committee on 
 Education and Workforce of the House of Representatives 
 on the information reported to the Secretary by States 
 as described in subparagraphs
        (A) and
        (B) .''.

SEC. 10. REPORTS, HOTLINE, AND WEBSITE.

 

Section 658L

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

    (a) ) is amended by striking ``Not later'' and 
all that follows through ``the Secretary shall'' and inserting ``The 
Secretary shall biennially''.

SEC. 11. TECHNICAL AMENDMENTS.

 

Section 658O

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

    (a) ) is amended--

    (1) in paragraphs

    (1) ,

    (3) , and

    (4) by striking ``this 
 subchapter'' and inserting ``

section 658B''; and

    (2) in paragraph

    (5) by striking ``this subchapter'' the 
 first place it appears and inserting ``

section 658B''.

SEC. 12. CHILD CARE SUPPLY AND FACILITIES GRANTS.

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

 ``PART II--CHILD CARE SUPPLY AND FACILITIES

``

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

 ``

    (a) 

=== Purposes ===
-The purposes of this section are to provide grants 
to States, territories described in 

section 658O

    (a)

    (1) (referred to 
individually in this part as a `territory'), Indian Tribes, and Tribal 
organization to--
 ``

    (1) expand the supply and capacity of qualified child 
 care providers and staff so that working parents have multiple 
 high-quality child care options to choose from in making their 
 own decisions regarding the child care services that best suit 
 their family's needs; and
 ``

    (2) ensure child care facilities are designed and 
 equipped to keep children healthy and safe and to enhance 
 children's physical, cognitive, and behavioral development.
 ``

    (b) Qualified Child Care Provider.--In this section, the term 
`qualified child care provider' means--
 ``

    (1) an eligible child care provider as defined in 

section 658A

    (7)
        (A) that is providing, or seeking to provide, child care 
 services to children eligible for services under this 
 subchapter; or
 ``

    (2) a child care provider that has applied under this 
 subchapter to become an eligible child care provider as defined 
 in 

section 658A

    (7)
        (A) and that commits to provide child care 
 services to children eligible for services under this 
 subchapter.
 ``
            (c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2027 through 2030.
 ``
            (d) Grants Authorized; Allotments.--
 ``

    (1) In general.--From funds made available under 
 subsection
            (c) , the Secretary shall make grants to States, 
 territories, Indian Tribes, and Tribal organizations to carry 
 out the activities described in subsection

    (f) .
 ``

    (2) Reservation.--The Secretary shall reserve not more 
 than 1 percent of the amount appropriated under subsection
            (c) for a fiscal year to carry out this section to pay for the 
 costs of the Federal administration of this section.
 ``

    (3) Allotments.--From the amount appropriated to carry 
 out this section for a fiscal year that remains after the 
 Secretary makes the reservation under paragraph

    (2) , the 
 Secretary shall award to each lead agency with an approved plan 
 under subsection

    (e) , a child care supply and facilities grant 
 in accordance with paragraphs

    (1) and

    (2) of subsection

    (a) , 
 and subsection

    (b) , of 

section 658O, for the grants authorized 
 under paragraph

    (1) . A grant made under this paragraph in 
 accordance with paragraph

    (1) or

    (2) of that subsection shall 
 be for the purpose of carrying out the program described in 
 this section, consistent, to the extent practicable as 
 determined by the Secretary, with the requirements applicable 
 to States.
 ``

    (e) State Plan.--
 ``

    (1) In general.--In order to receive a grant under this 
 section, a State shall submit a plan to the Secretary, at such 
 time and in such manner as the Secretary may reasonably 
 require.
 ``

    (2) Contents.--Each plan submitted by a State under this 
 section shall include each of the following:
 ``
        (A) A description of how the State will use funds 
 received under this section for State-level activities 
 under subsection

    (f)

    (1) .
 ``
        (B) A description of how the State will ensure 
 that qualified child care providers in rural, suburban, 
 and urban areas can readily apply for and access 
 funding under this section, which shall include 
 providing technical assistance either directly or 
 through a third party which may include a resource and 
 referral agency or a staffed family child care provider 
 network.
 ``
            (C) A description of how the State will determine 
 the prioritization of subgrants to qualified child care 
 providers in accordance with subsection

    (f)

    (5) .
 ``
            (D) An assurance that the State will make 
 available to the public, which shall include, at a 
 minimum, posting to an internet website of the lead 
 agency--
 ``
            (i) a notice of funding availability 
 through subgrants for qualified child care 
 providers under this section; and
 ``
            (ii) the criteria for awarding subgrants 
 for qualified child care providers, including 
 the methodology the lead agency will use to 
 determine the amounts of such subgrants for 
 qualified child care providers.
 ``
        (E) A determination by the State of the duration 
 of child care services required for qualified child 
 care providers to receive subgrants under this 
 subchapter.
 ``

    (f) State Use of Funds.--
 ``

    (1) Reservation.--A lead agency that receives a grant 
 under subsection
            (d) shall reserve not more than 10 percent of 
 the grant funds for State-level activities, consisting of 
 administering subgrants and providing technical assistance and 
 support, for activities supported under this section.
 ``

    (2) Subgrants.--The lead agency shall use the remainder 
 of the grant funds awarded pursuant to subsection
            (d) to make 
 subgrants as described in paragraphs

    (3) and

    (4) .
 ``

    (3) Startup and supply expansion subgrants.--
 ``
        (A) In general.--The lead agency shall make 
 startup and supply expansion subgrants to qualified 
 child care providers that are providing, or seeking to 
 provide, child care services under this subchapter to 
 eligible children, to--
 ``
            (i) support the providers in paying for 
 startup and expansion costs;
 ``
            (ii) assist such providers in meeting--
 ``
            (I) the health and safety 
 requirements (including the 
 requirements referred to in 

section 658E
            (c) (2)
            (I) ) of the State, territory, 
 Indian Tribe, or local government 
 involved, as the case may be;
 ``
            (II) the child-to-provider ratio 
 standards (including the requirements 
 referred to in 

section 658E
            (c) (2)
        (H) ) 
 applicable to the provider;
 ``
            (III) licensing and other 
 regulatory standards of the State, 
 territory, Indian Tribe, or local 
 government involved, as the case may 
 be, for child care providers; and
 ``
            (IV) as applicable, the 
 requirements of a State's tiered 
 quality rating system for child care 
 providers;
 ``
            (iii) establish or expand the operation 
 of community-or neighborhood-based family child 
 care networks; and
 ``
            (iv) support access to child care 
 services facing a particular shortage of child 
 care options, including child care services 
 during nontraditional or extended hours, and 
 child care services for children with 
 disabilities (including, for purposes of this 
 clause, a child who has documentation other 
 than an individualized education program (as 
 defined in 

section 602 of the Individuals with 
 Disabilities Education Act (20 U.S.C. 1401)) 
 establishing the child's disability (as defined 
 in 

section 3 of the Americans with Disabilities 
 Act of 1990 (42 U.S.C. 12101))).
 ``
        (B) Requirement.--As a condition of receiving a 
 startup or supply expansion subgrant under this 
 paragraph, a qualified child care provider shall commit 
 to meeting the requirements for an eligible child care 
 provider under this subchapter and to providing child 
 care services under this subchapter to eligible 
 children, on an ongoing basis, as determined by the 
 State.
 ``

    (4) Facilities subgrants.--
 ``
        (A) In general.--The lead agency shall make 
 facilities subgrants to qualified child care providers 
 that are providing, or seeking to provide, child care 
 services under this subchapter to eligible children, 
 for, notwithstanding 

section 658F

    (b) --
 ``
            (i) remodeling, renovation, or repair of 
 a building or facility used for providing 
 direct child care services; and
 ``
            (ii) construction, permanent improvement, 
 or major renovation of a building or facility 
 used for providing direct child care services.
 ``
        (B) Requirement.--As a condition of receiving a 
 facilities subgrant under this paragraph, a child care 
 provider shall commit to meeting the requirements for 
 an eligible child care provider under this subchapter 
 and to providing child care services under this 
 subchapter to eligible children on an ongoing basis, as 
 determined by the State.
 ``
            (C) Federal interest.--
 ``
            (i) Family child care homes.--Federal law 
 regarding a Federal interest in real property 
 shall not apply to the renovation, remodeling, 
 repair, or permanent improvement of privately 
 owned family child care homes with funds 
 provided under this paragraph, and the 
 Secretary shall develop parameters for the use 
 of such funds for family child care homes.
 ``
            (ii) Retention.--If the Secretary retains 
 a Federal interest in any facility constructed, 
 renovated, remodeled, repaired, or permanently 
 improved with funds provided under this 
 paragraph, the Secretary shall not retain the 
 Federal interest for more than 10 years.
 ``

    (5) Priority.--In awarding subgrants under paragraphs

    (3) and

    (4) , the lead agency shall give priority to qualified child 
 care providers providing or seeking to provide child care 
 services to priority populations of children described in 
 

section 658E
            (c) (2)
            (M) .
 ``

    (g) Supplement Not Supplant.--Amounts made available to carry out 
this section shall be used to supplement and not supplant other 
Federal, State, and local public funds expended to increase the supply 
of child care and to improve child care facilities.
 ``

    (h) Documentation and Reporting Requirements.--
 ``

    (1) Documentation.--A State receiving a grant under 
 subsection
            (d) shall provide documentation of any State 
 expenditures from grant funds received under subsection
            (d) in 
 accordance with 

section 658K

    (b) , to the independent entity 
 described in that section.
 ``

    (2) Reports.--
 ``
        (A) Lead agency annual report.--A lead agency 
 receiving a grant under subsection
            (d) shall, not later 
 than 12 months after making subgrants from the funds 
 made available through such grant, and annually for the 
 duration of the grant, submit a report to the Secretary 
 that includes, for the State involved, a description of 
 each of the lead agency's programs of subgrants carried 
 out to meet the objectives of this section, including--
 ``
            (i) the number of eligible child care 
 providers in operation at the start of the 
 grant period, and the number of such providers 
 11 months later, disaggregated by age of 
 children served, geographic region, and child 
 care setting (including whether the provider 
 was in a center-based or family child care 
 setting);
 ``
            (ii) the number of child care slots, in 
 the capacity of eligible child care providers 
 given applicable group size limits and staff-
 to-child ratios, that were open for attendance 
 of children at the start of the grant period 
 and the number of such slots 11 months later, 
 disaggregated by age of children served, 
 geographic region, and child care setting 
 (including whether the slot was in a center-
 based or family child care setting), and each 
 priority population of children described in 
 

section 658E
            (c) (2)
            (M) ;
 ``
            (iii) 
            (I) the number and percentage of 
 qualified child care providers that received a 
 subgrant under subsection

    (f)

    (3) , disaggregated 
 by age of children served, geographic region, 
 and child care setting (including whether the 
 provider was in a center-based or family child 
 care setting), and the average and range of the 
 amounts of the subgrants awarded; and
 ``
            (II) the number and percentage of 
 qualified child care providers that received a 
 subgrant under subsection

    (f)

    (4) , disaggregated 
 by age of children served, geographic region, 
 and child care setting (including whether the 
 provider was in a center-based or family child 
 care setting), and the average and range of the 
 amounts of the subgrants awarded; and
 ``
            (iv) information concerning how qualified 
 child care providers receiving subgrants under 
 subsection

    (f)

    (3) or

    (f)

    (4) used the subgrant 
 funding received.
 ``
        (B) Report to congress.--The Secretary shall 
 transmit annually to the Committee on Health, 
 Education, Labor, and Pensions of the Senate and the 
 Committee on Education and Workforce of the House of 
 Representatives a report that provides national and 
 State-level data for the information collected under 
 subparagraph
        (A) .
 ``
            (i) Construction.--No reference in part 1 to `this subchapter' 
shall be considered to refer to a provision of this part.''.

SEC. 13. DEPARTMENT OF AGRICULTURE LOAN RESTRICTIONS.

 The Secretary of Agriculture shall revise 

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