[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.
____________________