[Congressional Record Volume 172, Number 49 (Wednesday, March 18, 2026)]
[Senate]
[Pages S1291-S1303]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4639. Mrs. MURRAY submitted an amendment intended to be proposed
by her to the bill S. 1383, to establish the Veterans Advisory
Committee on Equal Access, and for other purposes; which was ordered to
lie on the table; as follows:
At the appropriate place, insert the following:
DIVISION B--CHILD CARE
SECTION 1. SHORT TITLE.
This division 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 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
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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 2027 through 2032, 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 2027, out of any money in the Treasury not
otherwise appropriated, $20,000,000,000, to remain available
until September 30, 2032, 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 2027, out of any
money in the Treasury not otherwise appropriated,
$1,300,000,000, to remain available until September 30, 2032,
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, 2027, 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
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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.--
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(i) In general.--The State plan shall describe how the lead
agency will ensure that families have access to a low-barrier
enrollment (including re-enrollment) 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, 2027, 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 2027 through
2032:
(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 2027 through 2032, 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 2027 through
2032, 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, 2027, 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 2027 through
2032, 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 2027 through 2032,
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
[[Page S1295]]
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 2028
through 2032, 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
[[Page S1296]]
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 2024,
2025, and 2026.
(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 Personal Responsibility and Work
Opportunity Reconciliation Act of 1996 (8 U.S.C. 1611), 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--
[[Page S1297]]
(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
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 2027 through 2032, 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.
[[Page S1298]]
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
[[Page S1299]]
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 2027 through 2032.
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 2027 through 2032, 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 2027, out of any
money in the Treasury not otherwise appropriated--
(1) $2,500,000,000, to remain available until September 30,
2032, 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,
2032, 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,
2032, 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,
2032, for carrying out Federal activities to support the
activities funded under this title, including administration,
monitoring, technical assistance, and research, in fiscal
years 2027 through 2032; and
(5) $20,000,000,000, to remain available until September
30, 2032, 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 2027 Through 2032.--
(1) Preschool services.--For each of fiscal years 2027
through 2032, 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 2027;
(B) 90 percent of the State's expenditures in the year for
such preschool services, for fiscal year 2028;
(C) 80 percent of the State's expenditures in the year for
such preschool services, for fiscal year 2029;
(D) 75 percent of the State's expenditures in the year for
such preschool services, for fiscal year 2030;
(E) 65 percent of the State's expenditures in the year for
such preschool services, for fiscal year 2031; and
(F) 60 percent of the State's expenditures in the year for
such preschool services, for fiscal year 2032.
(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.
[[Page S1300]]
(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 (42 U.S.C. 9831 note), 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.--
[[Page S1301]]
(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 2027 through
2032, 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 2027 through
2032, 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
[[Page S1302]]
amount of such spending by the State for fiscal years 2024,
2025, and 2026, 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 2024, 2025, and 2026.
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 1380 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.
[[Page S1303]]
``(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 2027; 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 2027;
``(ii) $852,000,000 of the funds appropriated for fiscal
year 2028; and
``(iii) $872,000,000 of the funds appropriated for fiscal
year 2029.
``(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 2027;
``(2) $852,000,000 for fiscal year 2028; and
``(3) $872,000,000 for fiscal year 2029.
``(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
2027 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.
______