[House Report 118-382]
[From the U.S. Government Publishing Office]


118th Congress }                                               {   Report
                        HOUSE OF REPRESENTATIVES
 2d Session    }                                               { 118-382

======================================================================



 
     CHILD CARE SMALL BUSINESS INSIGHT AND IMPROVEMENT ACT OF 2023

                                _______
                                

 February 13, 2024.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Williams of Texas, from the Committee on Small Business, submitted 
                             the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 6156]

    The Committee on Small Business, to whom was referred the 
bill (H.R. 6156) to require the Administrator of the Small 
Business Administration to designate a point of contact for 
for-profit child care providers, submit a report to Congress, 
and for other purposes, having considered the same, reports 
favorably thereon with an amendment and recommends that the 
bill as amended do pass.

                                CONTENTS

                                                                   Page
   I. Purpose and Bill Summary........................................2
  II. Need for Legislation............................................2
 III. Hearings........................................................2
  IV. Committee Consideration.........................................3
   V. Committee Votes.................................................3
  VI. Section-by-Section of H.R. 6156.................................6
 VII. Congressional Budget Office Cost Estimate.......................6
VIII. New Budget Authority, Entitlement Authority, and Tax Expenditure6
  IX. Oversight Findings & Recommendations............................6
   X. Performance Goals and Objectives................................6
  XI. Statement of Duplication of Federal Programs....................7
 XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
      Benefits........................................................7
XIII. Federal Mandates Statement......................................7
 XIV. Federal Advisory Committee Statement............................7
  XV. Applicability to Legislative Branch.............................7
 XVI. Statement of Constitutional Authority...........................7
XVII. Minority Views..................................................8

    The amendment is as follows:
    Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Child Care Small Business Insight and 
Improvement Act of 2023''.

SEC. 2. REPORT ON FOR-PROFIT CHILD CARE PROVIDERS.

  (a) In General.--Not later than 120 days after the date of the 
enactment of this Act, the Administrator of the Small Business 
Administration shall submit to Congress a study and report on for-
profit child care providers that includes--
          (1) an assessment of the challenges and needs of such 
        providers;
          (2) a description of the resources and support that the Small 
        Business Administration provides to such providers;
          (3) any deficiencies in the resources and support described 
        under paragraph (2);
          (4) any recommendations for legislative actions necessary to 
        address any challenges or needs faced by such providers that 
        are identified by the report required in this subsection; and
          (5) an identification of the leadership needs in order to 
        successfully implement such recommendations.
  (b) For-Profit Child Care Provider Defined.--The term ``for-profit 
child care provider'' has the meaning given the term ``eligible child 
care provider'' in section 658P of the Child Care and Development Block 
Grant Act of 1990 (42 U.S.C. 9858n) and is a provider that operates--
          (1) on a for-profit basis; and
          (2) in one or more of the several States, territory or 
        possession of the United States, or the District of Columbia.
  (c) Compliance With CUTGO.--No additional amounts are authorized to 
be appropriated to carry out this Act.

                      I. PURPOSE AND BILL SUMMARY

    On November 1, 2023, Rep. Landsman, along with Rep. Letlow, 
introduced H.R. 6156. The purpose of H.R. 6156, the ``Child 
Care Small Business Insight and Improvement Act of 2023,'' is 
to require the Administrator of the Small Business 
Administration (SBA) to issue a report on the needs and 
challenges of for-profit childcare providers.

                        II. NEED FOR LEGISLATION

    Workforce issues are among the greatest concerns facing 
small business owners. The high cost of childcare can make it 
difficult for entrepreneurs to juggle growing families and the 
demands of owning a small business. This can also make it 
harder for small business employers to offer competitive 
salaries to employees who have to pay out of pocket for 
childcare. America's childcare providers supply vital resources 
to local communities, and we must understand the challenges 
that small businesses face in this field to ensure the vitality 
of our local economies.

                             III. HEARINGS

    In the 118th Congress, the Committee held one hearing 
examining the issues covered in H.R. 6156. On December 12, 
2023, the Committee held a hearing titled ``A Year in Review: 
The State of Small Business in America.'' Witnesses at the 
hearing discussed challenges related to recruiting and 
retaining qualified workers, many of whom depend on affordable 
childcare.

                      IV. COMMITTEE CONSIDERATION

    The Committee on Small Business met in open session, with a 
quorum being present, on January 31, 2024, and ordered H.R. 
6156 reported to the House of Representatives. During the 
markup, one amendment in the nature of a substitute (ANS) was 
offered and adopted by voice vote. In addition to ensuring that 
the legislation complies with CUTGO, the ANS streamlines the 
legislation by eliminating a requirement that the SBA hire a 
new employee who focuses on childcare issues. This will help 
ensure that the cost of the bill remains negligible while 
meeting the intent of the bill's authors.

                           V. COMMITTEE VOTES

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the recorded 
votes on the motion to report legislation and amendments 
thereto. The Committee voted to favorably report H.R. 6156 as 
amended to the House of Representatives at 12:02 p.m.


                  VI. SECTION-BY-SECTION OF H.R. 6156

Section 1--Short title

    This section cites the bill as the ``Child Care Small 
Business Insight and Improvement Act of 2023.''

Section 2--Report on for-profit child care providers

    This section requires the SBA to issue a report within 120 
days of the bill's enactment to the House and Senate Committees 
on Small Business on challenges faced by for-profit childcare 
providers.

             VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

    Pursuant to clause 3(d)(1) of House rule XIII, the 
Committee adopts as its own the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974. The Committee has 
requested but not received from the Director of the 
Congressional Budget Office a cost estimate for the Committee's 
provisions. Once available, the cost estimate will be published 
in the Congressional Record.

VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX EXPENDITURES

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a)(I) of the 
Congressional Budget Act of 1974, the Committee provides the 
following opinion and estimate with respect to new budget 
authority, entitlement authority, and tax expenditures. While 
the Committee has not received an estimate of new budget 
authority contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to Sec. 
402 of the Congressional Budget Act of 1974, the Committee does 
not believe that there will be any additional costs 
attributable to this legislation. H.R. 6156 does not direct new 
spending, but instead reallocates funding independently 
authorized and appropriated.

                IX. OVERSIGHT FINDINGS & RECOMMENDATIONS

    In accordance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the oversight findings and recommendations of the Committee on 
Small Business with respect to the subject matter contained in 
the H.R. 6156 are incorporated into the descriptive portions of 
this report.

                  X. PERFORMANCE GOALS AND OBJECTIVES

    With respect to the requirements of clause 3(c)(1) of rule 
XIII of the Rules of the House of Representatives, the 
performance goals and objectives of H.R. 6156 are to require a 
report from the SBA to Congress within 120 days of enactment on 
the needs and challenges of for-profit child care providers, 
identify what resources the SBA currently provides to for-
profit child care providers, and recommendations to address the 
challenges faced by for-profit child care providers.

            XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, no provision of H.R. 6156 is known to 
be duplicative of another Federal program, including any 
program that was included in a report to Congress pursuant to 
section 21 of Public Law 111-139 or the most recent Catalog of 
Federal Domestic Assistance.

 XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED TARIFF 
                                BENEFITS

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee finds that the bill 
does not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits as defined in clause 9(e), 
9(f), or 9(g) of rule XXI of the Rules of the House of 
Representatives.

                    XIII. FEDERAL MANDATES STATEMENT

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

               XIV. FEDERAL ADVISORY COMMITTEE STATEMENT

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                XV. APPLICABILITY TO LEGISLATIVE BRANCH

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

               XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY

    Pursuant to clause 7 of rule XII of the Rules of the House 
of Representatives, the Committee finds that the authority for 
this legislation in Art. I, Sec. 8, cl. 1 of the Constitution 
of the United States.

                          XVII. MINORITY VIEWS

    Affordable, high-quality childcare is essential for working 
families. Today, 60 percent of children have parents in the 
workforce,\1\ and of the 60 million children under 14 in the 
United States, (pre-pandemic) 12 million were placed in paid 
childcare.\2\ When quality, affordable childcare is readily 
available, the benefits are felt not only by families, but by 
small businesses, as well.
---------------------------------------------------------------------------
    \1\Economic Role of Paid Childcare, COMMITTEE FOR ECONOMIC 
DEVELOPMENT (Feb. 2022), https://www.ced.org/pdf/ 
Economic_Role_of_Paid_Child_Care._Part_I_-_Final.pdf.
    \2\Id.
---------------------------------------------------------------------------
    Access to affordable and quality childcare has a positive 
impact on workforce participation, allowing small firms to 
access a larger pool of workers and maintain a reliable 
workforce. Employers report fewer absences, less turnover, 
increased stability, and generally greater satisfaction among 
workers who have access to childcare.
    On the other hand, a lack of access to affordable, quality 
childcare for children under the age of three costs $122 
billion each year, resulting in a staggering economic toll on 
working parents, their employers, and taxpayers. A recent study 
found nearly two-thirds of parents of infants and toddlers face 
childcare issues that affect their productivity at work, 
resulting in $78 billion in forgone earnings and job search 
expenses for families, $23 billion in workforce shortages for 
employers, and $21 billion in lower federal, state, and local 
tax revenues.\3\
---------------------------------------------------------------------------
    \3\$122 Billion: The Growing, Annual Cost of the Infant Toddler 
Child Care Crisis, READY NATION COUNCIL FOR A STRONG AMERICA (February 
2023) https://strongnation.s3.
amazonaws.com/documents/1598/05d917e2-9618-4648-a0ee-
1b35d17e2a4d.pdf?1674854626
&inline%20filename=%22%24122%20Billion:%20The%20Growing,%20Annual%20Cos
t%20of%
20the%20Infant-Toddler%20Child%20Care%20Crisis.pdf.
---------------------------------------------------------------------------
    Unfortunately, quality childcare services and programs have 
been in short supply in the United States, and the COVID-19 
pandemic further exacerbated the shortages within the industry. 
In 2019 there were 675,000 childcare establishments producing 
$47.2 billion in revenue and employing 1.5 million workers.\4\ 
However, in 2021, there were only 595,366 childcare businesses, 
producing $58.4 billion in revenue and employing 1.3 million 
workers.
---------------------------------------------------------------------------
    \4\Child Care in State Economies, COMMITTEE FOR ECONOMIC 
DEVELOPMENT (2019), https://www.ced.org/assets/reports/childcareimpact/
181104%20CCSE%20Report%20Jan30.pdf.
---------------------------------------------------------------------------
    Expanding access to quality childcare services is critical 
to families, small businesses, and local economies. The Small 
Business Administration is well-poised to deliver critical 
assistance, particularly through its entrepreneurial 
development ecosystem. Requiring the SBA to conduct a study on 
the needs and challenges for for-profit childcare providers is 
an important first step that will provide policy makers with 
the information needed to meet the labor needs of small 
businesses and working families.
            Sincerely,
                                         Nydia M. Velaquez,
                                                    Ranking Member.