[Federal Register Volume 89, Number 121 (Monday, June 24, 2024)]
[Rules and Regulations]
[Pages 52396-52398]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13716]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Part 98

RIN 0970-AD02


Improving Child Care Access, Affordability, and Stability in the 
Child Care and Development Fund (CCDF); Corrections

AGENCY: Office of Child Care (OCC), Administration for Children and 
Families (ACF), Department of Health and Human Services (HHS).

ACTION: Correcting amendments.

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SUMMARY: On March 1, 2024, the Department of Health and Human Services 
published a final rule to improve child care access, affordability, and 
stability in the Child Care and Development Fund. Some amendments in 
the final rule could not be incorporated due to technical inaccuracies 
in the instructions. Additionally, that document inadvertently failed 
to update certain amended cross-references. This document makes 
technical changes to correct the final regulations.

DATES: Effective on June 24, 2024.

FOR FURTHER INFORMATION CONTACT: Megan Campbell, Office of Child Care, 
202-690-6499 or [email protected].

SUPPLEMENTARY INFORMATION: The ``Improving Child Care Access, 
Affordability, and Stability in the Child Care and Development Fund 
(CCDF)'' rule, published at 89 FR 15366 on March 1, 2024, included 
inaccurate amendatory instructions for Sec.  98.16 and inadvertently 
failed to update certain amended cross-references. This document 
corrects the final regulations.

List of Subjects in 45 CFR Part 98

    Child care, Grant programs--social programs.

    Accordingly, 45 CFR part 98 is corrected by making the following 
correcting amendments:

PART 98--CHILD CARE AND DEVELOPMENT FUND

0
1. The authority citation for part 98 continues to read as follows:

    Authority:  42 U.S.C. 618, 9858.


0
2. Amend Sec.  98.2 by revising the definition of Sliding fee scale to 
read as follows:


Sec.  98.2  Definitions.

* * * * *
    Sliding fee scale means a system of cost-sharing by a family based 
on income and size of the family, in accordance with Sec.  98.45(l);
* * * * *

0
3. Amend Sec.  98.16 by:
0
a. Revising paragraph (x);
0
b. Redesignating paragraphs (y) through (ii) as paragraphs (bb) through 
(ll);
0
c. Adding new paragraphs (y) through (aa); and
0
d. Revising newly redesignated paragraphs (ee), (ff), and (kk).
    The additions and revisions read as follows:


Sec.  98.16  Plan revisions.

* * * * *
    (x) A description of the supply of child care available regardless 
of subsidy participation relative to the population of children 
requiring child care, including care for infants and toddlers, children 
with disabilities as defined by the Lead Agency, children who receive 
care during nontraditional hours, and children in underserved 
geographic areas, including the data sources used to identify shortages 
in the supply of child care providers;
    (y) A description of the Lead Agency's strategies and the actions 
it will take to address the supply shortages identified in paragraph 
(x) of this section and improve parent choice specifically for families 
eligible to participate in CCDF, including:
    (1) For families needing care during nontraditional hours, which 
may include strategies such as higher

[[Page 52397]]

payment rates, engaging with home-based child care networks, partnering 
with employers that have employees working nontraditional hours, and 
grants or contracts for direct services;
    (2) For families needing infant and toddler care, which must 
include grants or contracts for direct services pursuant to Sec.  
98.30(b) and described further in paragraph (z) of this section and may 
include additional strategies such as enhanced payment rates, training 
and professional development opportunities for the child care 
workforce, and engaging with staffed family child care networks and/or 
child care provider membership organizations;
    (3) For families needing care for children with disabilities, which 
must include grants or contracts for direct services pursuant to Sec.  
98.30(b) and described further in paragraph (z) of this section and may 
include additional strategies such as enhanced payment rates, training 
and professional development opportunities for the child care 
workforce, and engaging with staffed family child care networks and/or 
child care provider membership organizations;
    (4) For families in underserved geographic areas, which must 
include grants or contracts for direct services pursuant to Sec.  
98.30(b) and described further in paragraph (z) of this section and may 
include additional strategies such as enhanced payment rates, training 
and professional development opportunities for the child care 
workforce, and engaging with staffed family child care networks and/or 
child care provider membership organizations; and,
    (5) A method of tracking progress toward goals to increase supply 
and support equal access and parental choice;
    (z) A description of how the Lead Agency will use grants or 
contracts for direct services to achieve supply building goals for 
children in underserved geographic areas, infants and toddlers, 
children with disabilities as defined by the Lead Agency, and, at Lead 
Agency option, children who receive care during nontraditional hours. 
This must include a description of the proportion of the shortages for 
these groups would be filled by contracted or grant funded slots. Lead 
Agencies must continue to provide CCDF families the option to choose a 
certificate for the purposes of acquiring care;
    (aa) A description of how the Lead Agency will improve the quality 
of child care services for children in underserved geographic areas, 
infants and toddlers, children with disabilities as defined by the Lead 
Agency, and children who receive care during nontraditional hours;
* * * * *
    (ee) A description of generally-accepted payment practices 
applicable to providers of child care services for which assistance is 
provided under this part, pursuant to Sec.  98.45(m), including 
practices to ensure timely payment for services, to delink provider 
payments from children's occasional absences to the extent practicable, 
cover mandatory fees, and pay based on a full or part-time basis;
    (ff) A description of internal controls to ensure integrity and 
accountability, processes in place to investigate and recover 
fraudulent payments and to impose sanctions on clients or providers in 
response to fraud, and procedures in place to document and verify 
eligibility, pursuant to Sec.  98.68;
* * * * *
    (kk) A description of how the Lead Agency will respond to 
complaints submitted through the national hotline and website, required 
in section 658L(b) of the CCDBG Act of 2014 (42 U.S.C.9858j(b)), 
including the designee responsible for receiving and responding to such 
complaints regarding both licensed and license-exempt child care 
providers; and
* * * * *

0
4. Amend Sec.  98.21 by revising paragraph (b)(3) to read as follows:


Sec.  98.21  Eligibility determination processes.

    (b) * * *
    (3) A family meeting the conditions described in paragraph (b)(2) 
of this section shall be eligible for services pursuant to the 
conditions described in Sec.  98.20 and all other paragraphs of this 
section, with the exception of the co-payment restrictions at paragraph 
(a)(3) of this section. To help families transition off of child care 
assistance, Lead Agencies may gradually adjust co-pay amounts for 
families whose children are determined eligible under the graduated 
phase-out conditions described in paragraph (b)(2) and may require 
additional reporting on changes in family income as described in 
paragraph (h)(3) of this section, provided such requirements do not 
constitute an undue burden, pursuant to conditions described in 
paragraphs (h)(2)(ii) and (iii) of this section.
* * * * *

0
5. Amend Sec.  98.50 by revising paragraphs (a)(2) and (c)(2) to read 
as follows:


Sec.  98.50  Child care services.

    (a) * * *
    (2) Using a sliding fee scale, as described in Sec.  98.45(l);
* * * * *
    (c) * * *
    (2) Must include measurable indicators of progress in accordance 
with Sec.  98.53(g); and
* * * * *

0
6. Amend Sec.  98.53 by revising paragraph (a) introductory text to 
read as follows:


Sec.  98.53  Activities to improve the quality of child care.

    (a) The Lead Agency must expend funds from each fiscal year's 
allotment on quality activities pursuant to Sec. Sec.  98.50(b) and 
98.83(g) in accordance with an assessment of need by the Lead Agency. 
Such funds must be used to carry out at least one of the following 
quality activities to improve the quality of child care services for 
all children, regardless of CCDF receipt, in accordance with paragraph 
(e) of this section:
* * * * *

0
7. Amend Sec.  98.55 by revising paragraphs (g)(2) and (i) to read as 
follows:


Sec.  98.55  Matching fund requirements.

* * * * *
    (g) * * *
    (2) Family contributions to the cost of care as required by Sec.  
98.45(l).
* * * * *
    (i) Matching funds are subject to the obligation and liquidation 
requirements at Sec.  98.60(d)(4).

0
8. Amend Sec.  98.60 by revising paragraph (d)(5) introductory text to 
read as follows:


Sec.  98.60  Availability of funds.

* * * * *
    (d) * * *
    (5) Except for paragraph (d)(6) of this section, determination of 
whether funds have been obligated and liquidated will be based on:
* * * * *

0
9. Amend Sec.  98.70 by revising paragraph (d)(3) to read as follows:


Sec.  98.70  Reporting requirements.

* * * * *
    (d) * * *
    (3) Annual quality progress reports under Sec.  98.53(g).

0
10. Amend Sec.  98.83 by revising paragraph (d)(1)(xii) to read as 
follows:


Sec.  98.83  Requirements for tribal programs.

* * * * *
    (d) * * *

[[Page 52398]]

    (1) * * *
    (xii) The requirement to complete the quality progress report at 
Sec.  98.53(g);
* * * * *

Elizabeth J. Gramling,
Executive Secretary, Department of Health and Human Services.
[FR Doc. 2024-13716 Filed 6-21-24; 8:45 am]
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