[Congressional Record Volume 143, Number 48 (Tuesday, April 22, 1997)]
[Senate]
[Pages S3394-S3396]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




[[Page S3394]]



                      THE CHILD CARE EXPANSION ACT

  Mr. ROBERTS. Mr. President, I rise today to inform my colleagues of 
legislation that I introduced on April 10 called the Child Care 
Expansion Act.
  This legislation--the first legislation I have had the privilege of 
introducing in this body--does address one of the greatest challenges 
that faces families today, and that is finding dependable and 
affordable child care.
  The demand for quality child care is rising. We have changes in 
family structure, more working mothers, and significant changes in 
social policy, which all have helped--all have helped--drive this 
increase. In fact, only 2 years ago 60 percent of children under the 
age of 5 were cared for by someone other than a parent while their 
mother or father was working.
  We have had numerous studies that indicate the availability of child 
care has failed to keep up with this demand. Three out of four parents 
responding to a national poll indicate that there is an insufficient 
supply of child care, Mr. President, especially for infants.
  Child care keeps America working.
  In 1994, three out of five women with children under the age of 6 
were in the work force. A lack of dependable child care causes these 
workers to lose time and to be less productive. Child care benefits 
provided by employers help to recruit and retain quality employees. It 
pays off with lower costs in regard to the businesses that have a good 
child-care program. And child-care providers are also small business 
owners who contribute to the economy while keeping our children safe.
  Child care provides access to high-quality learning environments for 
children in their critical learning years.
  Just last week--I think it was last Wednesday--in the Wall Street 
Journal there was an article entitled ``Good, Early Care Has a Huge 
Impact on Kids, Studies Say.'' And that article pointed out the 
monumental importance of quality child care in the first 3 years of the 
infant's life. And according to the National Institute of Child Health 
and Human Development, a study cited in the article, high-quality child 
care provided by nurturing, stimulating care givers improves the 
cognitive learning and language skills. These are skills a child 
depends on for the rest of his or her life.
  So child care is central to the implementation of successful welfare 
reform.
  I might add, that the concept of this child-care bill, as far as I 
was concerned, became very evident as we went through welfare reform 
legislation in the past session of the Congress when I had the 
privilege of being the chairman of the House Agriculture Committee and 
we were approaching food stamp reform.
  It became obvious to me, if we were going to provide self-reliance, 
independence, and the tools with which about 2,000 people in Kansas 
needed to get off the welfare rolls and become self-reliant--these 
people had been on welfare for over 5 years--they did two things, job 
training, that is obvious, and the second thing was child care.
  Stringent new work requirements will move more welfare parents into 
the work force and create an even greater demand for quality child 
care. I think this legislation simply addresses these issues through a 
responsible four-pronged approach. There are no new entitlements, no 
new mandates on businesses. This legislation fills a pressing need 
without creating more bureaucracy or more government.
  Mr. President, I ask unanimous consent that the text of S. 548 be 
printed in the Congressional Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                 S. 548

       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 Expansion Act''.
                TITLE I--GENERAL EXPANSION OF ACTIVITIES

     SEC. 101. SMALL BUSINESS CHILD CARE GRANT PROGRAM.

       (a) Establishment.--The Secretary of Health and Human 
     Services (hereafter referred to in this section as the 
     ``Secretary'') shall establish a program to award grants to 
     States to assist States in providing funds to encourage the 
     establishment and operation of employer operated child care 
     programs.
       (b) Application.--To be eligible to receive a grant under 
     this section, a State shall prepare and submit to the 
     Secretary an application at such time, in such manner, and 
     containing such information as the Secretary may require, 
     including an assurance that the State will provide the funds 
     required under subsection (e).
       (c) Amount of Grant.--The Secretary shall determine the 
     amount of a grant to a State under this section based on the 
     population of the State as compared to the population of all 
     States.
       (d) Use of Funds.--
       (1) In general.--A State shall use amounts provided under a 
     grant awarded under this section to provide assistance to 
     small businesses located in the State to enable such small 
     businesses to establish and operate child care programs. Such 
     assistance may include--
       (A) technical assistance in the establishment of a child 
     care program;
       (B) assistance for the start-up costs related to a child 
     care programs;
       (C) assistance for the training of child care providers;
       (D) scholarships for low-income wage earners;
       (E) the provision of services to care for sick children or 
     to provide care to school aged children;
       (F) the entering into of contracts with local resource and 
     referral or local health departments;
       (G) assistance for any other activity determined 
     appropriate by the State; or
       (H) care for children with disabilities.
       (2) Application.--To be eligible to receive assistance from 
     a State under this section, a small business shall prepare 
     and submit to the State an application at such time, in such 
     manner, and containing such information as the State may 
     require.
       (3) Preference.--
       (A) In general.--In providing assistance under this 
     section, a State shall give priority to applicants that 
     desire to form consortium to provide child care in geographic 
     areas within the State where such care is not generally 
     available or accessible.
       (B) Consortium.--For purposes of subparagraph (A), a 
     consortium shall be made up of 2 or more entities which may 
     include businesses, nonprofit agencies or organizations, 
     local governments, or other appropriate entities.
       (4) Limitation.--With respect to grant funds received under 
     this section, a State may not provide in excess of $50,000 in 
     assistance from such funds to any single applicant. A State 
     may not provide assistance under a grant to more than 10 
     entities.
       (e) Matching Requirement.--To be eligible to receive a 
     grant under this section a State shall provide assurances to 
     the Secretary that, with respect to the costs to be incurred 
     by an entity receiving assistance in carrying out activities 
     under this section, such entity will make available (directly 
     or through donations from public or private entities) non-
     Federal contributions to such costs in an amount equal to--
       (1) for the first fiscal year in which the entity receives 
     such assistance, not less than 25 percent of such costs ($1 
     for each $3 of assistance provided to the entity under the 
     grant);
       (2) for the second fiscal year in which an entity receives 
     such assistance, not less than 33\1/3\ percent of such costs 
     ($1 for each $2 of assistance provided to the entity under 
     the grant); and
       (3) for the third fiscal year in which an entity receives 
     such assistance, not less than 50 percent of such costs ($1 
     for each $1 of assistance provided to the entity under the 
     grant).
       (f) Requirements of Providers.--To be eligible to receive 
     assistance under a grant awarded under this section a child 
     care provider shall comply with all applicable State and 
     local licensing and regulatory requirements and all 
     applicable health and safety standards in effect in the 
     State.
       (g) Administration.--
       (1) State responsibility.--A State shall have 
     responsibility for administering the grant awarded under this 
     section and for monitoring entities that receive assistance 
     under such grant.
       (2) Audits.--A State shall require that each entity 
     receiving assistance under a grant awarded under this section 
     conduct of an annual audit with respect to the activities of 
     the entity. Such audits shall be submitted to the State.
       (3) Misuse of funds.--
       (A) Repayment.--If the State determines, through an audit 
     or otherwise, that an entity receiving assistance under a 
     grant awarded under this section has misused such assistance, 
     the State shall notify the Secretary of such misuses. The 
     Secretary, upon such a notification, may seek from such an 
     entity the repayment of an amount equal to the amount of any 
     misused assistance plus interest.
       (B) Appeals process.--The Secretary shall by regulation 
     provide for an appeals process with respect to repayments 
     under this paragraph.
       (h) Reporting Requirement.--
       (1) Study.--Not later than 2 years after the date on which 
     the Secretary first provides grants under this section, the 
     Secretary shall conduct a study to determine--
       (A) the capacity of entities to meet the child care needs 
     of communities within a State;
       (B) the kinds of partnerships that are being formed with 
     respect to child care at the local level; and
       (C) who is using the programs funded under this section and 
     the income levels of such individuals.

[[Page S3395]]

       (2) Report.--Not later than 28 months after the date of 
     enactment of this Act, the Secretary shall prepare and submit 
     to the appropriate committees of Congress, a report 
     concerning the effectiveness of the grant programs under this 
     section.
       (i) Definition.--As used in this section, the term ``small 
     business'' means an employer who employed an average of at 
     least 2 but not more than 50 employees on business days 
     during the preceding calendar year.
       (j) Authorization of Appropriations.--There is authorized 
     to be appropriated to carry out this section, $25,000,000 for 
     each of the fiscal years 1998 through 2000.
       (k) Termination of Program.--The program established under 
     subsection (a) shall terminate on September 30, 2001.

     SEC. 102. PROJECTS FOR CHILD CARE BY OLDER INDIVIDUALS.

       (a) Community Service Employment Program.--Section 502 of 
     the Older Americans Act of 1965 (42 U.S.C. 3056) is amended 
     by adding at the end the following:
       ``(f) In carrying out this title, the Secretary, and any 
     entity entering into an agreement under this title, shall 
     take necessary steps, including the development of special 
     projects, where appropriate, to encourage the fullest 
     participation of eligible individuals (including eligible 
     individuals described in subsection (e), as appropriate), in 
     projects to provide child care under this title. Such child 
     care projects shall, to the extent practicable, be carried 
     out in communities with child care shortages, as determined 
     by the appropriate State agency designated under section 
     658D(a) of the Child Care and Development Block Grant Act of 
     1990 (42 U.S.C. 9858b(a)).''.
       (b) Domestic Volunteer Service Act.--Title IV of the 
     Domestic Volunteer Service Act of 1973 (42 U.S.C. 5043 et 
     seq.) is amended by adding at the end the following:

     ``SEC. 427. PARTICIPATION IN PROJECT TO PROVIDE CHILD CARE.

       ``(a) In General.--In carrying out this Act, the Director, 
     and any recipient of a grant or contract under this Act, 
     shall take necessary steps, including the development of 
     special projects, where appropriate, to encourage the fullest 
     participation of individuals 55 and older, in projects to 
     provide child care under this Act. Such child care projects 
     shall, to the extent practicable, be carried out in 
     communities with child care shortages, as determined by the 
     appropriate State agency designated under section 658D(a) of 
     the Child Care and Development Block Grant Act of 1990 (42 
     U.S.C. 9858b(a)).
       ``(b) Funding of Projects.--The Director may, using amounts 
     available for experimental projects under section 502(e), 
     provide for the development of special projects under 
     subsection (a).''.
              TITLE II--TAX INCENTIVES FOR DEPENDENT CARE

     SEC. 201. EXPANSION OF CHILD AND DEPENDENT CARE CREDIT.

       (a) Increase in Credit Percentage for Low and Middle Income 
     Workers.--Section 21(a)(2) of the Internal Revenue Code of 
     1986 (relating to credit for expenses for household and 
     dependent care services necessary for gainful employment) is 
     amended to read as follows:
       ``(2) Applicable percentage defined.--For purposes of 
     paragraph (1), the term `applicable percentage' means 30 
     percent reduced (but not below 20 percent) by 1 percentage 
     point for each $2,000 (or fraction thereof) by which the 
     taxpayer's adjusted gross income exceeds $20,000.''
       (b) Increase in Maximum Amount Creditable.--Section 21(c) 
     of the Internal Revenue Code of 1986 (relating to dollar 
     limit on amount creditable) is amended--
       (1) by striking ``$2,400'' in paragraph (1) and inserting 
     ``$3,600'', and
       (2) by striking ``$4,800'' in paragraph (2) and inserting 
     ``$5,400''.
       (c) Phase-Out of Credit for Higher Income Taxpayers.--
       (1) In general.--Section 21(c) of the Internal Revenue Code 
     of 1986 (relating to dollar limit on amount creditable) is 
     amended by adding at the end the following new paragraph:
       ``(2) Phaseout of credit.--
       ``(A) In general.--The amount of the credit allowed under 
     subsection (a) shall be reduced (but not below zero) by the 
     amount determined under subparagraph (B).
       ``(B) Amount of reduction.--The amount determined under 
     this paragraph equals the amount which bears the same ratio 
     to the credit (determined without regard to this subsection) 
     as--
       ``(i) the excess of--

       ``(I) the taxpayer's adjusted gross income for such taxable 
     year, over
       ``(II) the threshold amount, bears to

       ``(ii) $10,000.

     Any amount determined under this subparagraph which is not a 
     multiple of $10 shall be rounded to the next lowest $10.
       ``(C) Threshold amount.--For purposes of this paragraph, 
     the term `threshold amount' means--
       ``(i) $90,000 in the case of a joint return,
       ``(ii) $65,000 in the case of an individual who is not 
     married, and
       ``(iii) $45,000 in the case of a married individual filing 
     a separate return.

     For purposes of this subparagraph, marital status shall be 
     determined under section 7703.
       ``(D) Adjusted gross income.--For purposes of this 
     paragraph, adjusted gross income of any taxpayer shall be 
     increased by any amount excluded from gross income under 
     section 911, 931, or 933.''
       (2) Conforming amendments.--Section 21(c) of such Code is 
     amended--
       (A) by striking ``(c) Dollar Limit on Amount Creditable.--
     The'' and inserting:
       ``(c) Limitations.--
       ``(1) Dollar limit.--The'',
       (B) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively, and
       (C) by striking ``paragraph (1) or (2)'' in the last 
     sentence and inserting ``subparagraph (A) or (B)''.
       (c) Effective Date.--The amendments made by this section 
     apply to taxable years beginning after December 31, 1997.

     SEC. 202. EXPANSION OF HOME OFFICE DEDUCTION TO INCLUDE USE 
                   OF OFFICE FOR DEPENDENT CARE.

       (a) In General.--Section 280A(c)(1) of the Internal Revenue 
     Code of 1986 (relating to certain business use) is amended by 
     adding at the end the following: ``A portion of a dwelling 
     unit and the exclusive use of such portion otherwise 
     described in this paragraph shall not fail to be so described 
     if such portion is also used by the taxpayer during such 
     exclusive use to care for a dependent of the taxpayer.''.
       (b) Effective Date.--The amendment made by this section 
     applies to taxable years beginning after December 31, 1997.

  Mr. ROBERTS. Mr. President, first, the Child Care Expansion Act 
includes funding for a short-term, flexible grant program to encourage 
small businesses to work together to provide day care services for 
employees. This program is a demonstration project that will sunset at 
the end of 3 years. In the meantime, small businesses will be eligible 
for grants up to $50,000 for startup costs, training, scholarships or 
other related activities. Businesses will be required to match Federal 
funds to encourage self-sustaining facilities well into the future.
  The idea behind this 3-year grant is for the small communities and 
small businesses in that community to get together to provide the child 
care facility. The $50,000 grant over 3 years will provide startup 
money for our smaller communities, for the major businesses in that 
community to come together and provide a facility that otherwise would 
not be achieved.
  Second, this legislation includes an expansion of the child and 
dependent care tax credit, targeting the credit to working parents who 
need it the most, not only the people who are trying to be self-reliant 
in regard to welfare reform but the low- and middle-income family. It 
will increase from $720 for one child, up to $1,080, and from the 
current $1,140 for two or more children to $1,620 for families with 
more than one dependent. In addition, the credit is phased out for 
higher income wage earners, which means that the deficit exposure or 
the expenditure side is very, very limited.
  This legislation also addresses the needs of parents who choose to 
work from the home. In this case, the Internal Revenue Service rules 
are expanded to allow taxpayers who need to use the family room or some 
other room for home-based business while caring for dependents. The 
current IRS rules are much too strict and simply do not make sense for 
people who want to work at home but have to take care of the youngsters 
as well.
  Finally, this legislation encourages our Nation's most experienced 
care givers, our older Americans, who are already participating in 
federally supported work programs, to provide child care services in 
communities where it is feasible to do so. Obviously, there is a 
bonding that goes on, Mr. President, in regard to grandkids and also 
grandparents. This bill certainly encourages that bonding.
  This legislation includes no new entitlements or mandates on the 
business community. It fills a pressing need without creating more 
bureaucracy or Government. Child care is an issue that impacts each and 
every one of us. While parents continue to struggle to meet the 
constant demand of work and family, it seems to me we must continue to 
do our part to expand the child care options and protect our Nation's 
most valuable resource--our children. I urge my colleagues to join me 
in support of America's kids and cosponsor the Child Care Expansion 
Act.
  I yield the floor.
  The PRESIDING OFFICER. The Chair recognizes the Senator from 
Maryland.
  Ms. MIKULSKI. Mr. President, I ask unanimous consent I be permitted 
to speak for such time as is necessary for the nomination of Alexis 
Herman.

[[Page S3396]]

  The PRESIDING OFFICER. Is this part of the hour that is under the 
Democrat leader's control?
  Ms. MIKULSKI. Yes.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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