H.R. 9224

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9224 Introduced in House (IH)]

<DOC>

119th CONGRESS
2d Session
H. R. 9224

To amend the Child Care and Development Block Grant Act of 1990 to 
reauthorize and update the Act, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

June 9, 2026

Mr. Mackenzie (for himself, Ms. McDonald Rivet, Mrs. Hinson, and Ms. 
Lee of Nevada) introduced the following bill; which was referred to the 
Committee on Education and Workforce, and in addition to the Committee 
on Financial Services, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To amend the Child Care and Development Block Grant Act of 1990 to 
reauthorize and update the Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Child Care Modernization Act of 
2026''.

SEC. 2. PURPOSES.

(a) Redesignation.--Section 658A of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9857) is redesignated as section 658 
of such Act.
(b) Amendment.--Subsection (b) of that section 658 is amended to 
read as follows:
``(b) Purposes.--The purposes of this subchapter are--
``(1) to allow each State maximum flexibility in developing 
and implementing a mixed delivery system to provide child care 
that best suits the needs of children and working parents 
within that State;
``(2) to promote parental choice to empower working parents 
to make their own decisions regarding the child care services 
that best suit their family's needs;
``(3) to encourage States to provide consumer education 
information to help parents make informed choices about child 
care services and to promote involvement by parents and family 
members in the development of their children in child care 
settings;
``(4) to assist States in delivering high-quality, 
coordinated child care services to maximize parents' options to 
cover the full workday and full work year, to support 
continuity of care for children, and to support parents trying 
to achieve independence from public assistance;
``(5) to assist States in improving the overall quality of 
child care by implementing the health, safety, licensing, early 
learning and development, professional, and oversight standards 
established in this subchapter and in State law (including 
State regulations);
``(6) to assist States--
``(A) in supporting the educational and 
professional development of child care staff; and
``(B) in supporting child care providers in the 
recruitment of, professional development for, and 
retention of a qualified child care workforce; and
``(7) to increase the number and percentage of low-income 
children in high-quality child care settings.''.

SEC. 3. DEFINITIONS.

(a) In General.--Section 658P of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--
(1) by redesignating paragraphs (5) through (7), (8) and 
(9), and (10) through (15), as paragraphs (6) through (8), (10) 
and (11), and (13) through (18), respectively;
(2) in paragraph (3)--
(A) in subparagraph (B), by inserting ``and'' at 
the end;
(B) in subparagraph (C), by striking ``; and'' at 
the end and inserting a period; and
(C) by striking subparagraph (D);
(3) by striking paragraph (4) and inserting the following:
``(4) Eligible activity.--The term `eligible activity', 
means an activity consisting of--
``(A) full-time or part-time employment;
``(B) self-employment;
``(C) job search activities;
``(D) job training;
``(E) 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;
``(F) health treatment (including mental health and 
substance use treatment) for a condition that prevents 
the parent involved from participating in other 
eligible activities;
``(G) activities to prevent child abuse or neglect, 
or family violence prevention or intervention 
activities;
``(H) employment and training activities under the 
employment and training program, of the supplemental 
nutrition assistance program, established under section 
6(d)(4) of the Food and Nutrition Act of 2008 (7 U.S.C. 
2015(d)(4));
``(I) employment and training activities under the 
Workforce Innovation and Opportunity Act (29 U.S.C. 
3101 et seq.);
``(J) a work activity described in subsection (d) 
of section 407 of the Social Security Act (42 U.S.C. 
607) for which, consistent with clauses (ii) and (iii) 
of section 402(a)(1)(A) of such Act (42 U.S.C. 
602(a)(1)(A)), a parent is treated as being engaged in 
work for a month in a fiscal year for purposes of 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.); or
``(K) 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.--The term `eligible child' means an 
individual--
``(A) who is less than 13 years of age;
``(B)(i) whose family income does not exceed--
``(I) 85 percent of the State median income 
for a family of the same size; or
``(II) a higher percentage of that income 
in a State with a waiver under section 
658I(c)(1)(B); and
``(ii) whose family assets do not exceed $1,000,000 
(as certified by a member of such family); and
``(C) who--
``(i) resides with a parent or parents who 
are participating in an eligible activity;
``(ii) is a child experiencing 
homelessness, a child in kinship care, or a 
child who is receiving, or needs to receive, 
child protective services; or
``(iii) resides with a parent who is more 
than 65 years of age.'';
(4) in paragraph (7), as so redesignated--
(A) in subparagraph (A), by striking ``or'' at the 
end;
(B) in subparagraph (B), by striking the period at 
the end and inserting ``; or'';
(C) by added at the end the following:
``(C) notwithstanding section 645(a)(1)(B) of the 
Head Start Act (42 U.S.C. 9840(a)(1)(B)), a Head Start 
agency.''; and
(D) by adding at the end the following flush 
sentence:
``Notwithstanding subparagraph (B), a licensed, regulated, or 
registered child care provider (or a staff member of the child 
care provider) who is otherwise eligible for assistance under 
this Act shall continue to be eligible for such assistance for 
the care of children for whom the provider is the legal parent 
if other eligible children with respect to whom such provider 
is not the legal parent are also being cared for by that 
provider.'';
(5) by striking paragraph (8), as so redesignated, and 
inserting the following:
``(8) Family child care provider.--The term `family child 
care provider' means an individual who provides child care 
services in a private residence--
``(A) for fewer than 24 hours per day per child; or
``(B) for 24 hours per day per child due to the 
nature of the work of the parent involved.
``(9) Homeless child.--The term `homeless child' means an 
individual described in section 725(2) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11434a(2)).'';
(6) in paragraph (10), as so redesignated, by striking 
``(10)'' and all that follows through ``meaning'' and inserting 
the following:
``(10) Indian tribe; indian tribe.--The term `Indian Tribe' 
or `Indian tribe' has the meaning'';
(7) by inserting after paragraph (11), as so redesignated, 
the following:
``(12) Mixed delivery system.--The term `mixed delivery 
system' means a system of child care services that--
``(A) promotes parental choice to empower working 
parents to make their own decisions regarding the child 
care services that best suit their family's needs;
``(B) delivers services through a combination of 
programs offered by eligible child care providers 
(including faith-based and community-based child care 
providers) in a variety of settings (including family 
child care homes, child care centers, Head Start 
centers, and public and private schools); and
``(C) may be supported with a combination of public 
and private funds.'';
(8) in paragraph (15), as so redesignated, by striking 
``unless the context specifies otherwise'' and inserting 
``except as otherwise specified''; and
(9) in paragraph (18), as so redesignated, by striking 
``(18)'' and all that follows through ``has the meaning'' and 
inserting the following:
``(18) Tribal organization; tribal organization.--
``(A) In general.--The term `Tribal organization' 
or `tribal organization' has the meaning''.
(b) Redesignation.--The Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9857 et seq.) is amended--
(1) by redesignating section 658P as section 658A; and
(2) by moving section 658A, as so redesignated, to follow 
section 658, as redesignated by section 2.

SEC. 4. AUTHORIZATION OF APPROPRIATIONS.

(a) Part.--The Child Care and Development Block Grant Act of 1990 
is amended by inserting before section 658B the following:

``PART I--CHILD CARE SERVICES''.

(b) In General.--Section 658B of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858) is amended to read as follows:

``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.

``There is authorized to be appropriated to carry out this 
subchapter (other than section 658T) such sums as may be necessary for 
each of fiscal years 2027 through 2031.''.

SEC. 5. LEAD AGENCY.

Section 658D(b) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858b(b)) is amended by striking paragraph (2) and 
inserting the following:
``(2) Development of plan.--The lead agency shall develop 
the State plan described in paragraph (1)(B) in meaningful 
consultation with--
``(A) parents of children eligible for services 
under this subchapter, which shall include parents of 
children in a priority population described in section 
658E(c)(2)(M);
``(B) eligible child care providers that represent 
the various geographic areas and types of providers in 
the State;
``(C) employers of various sizes and with various 
hours and days of operations whose employees rely on 
reliable and accessible child care to work; and
``(D) appropriate representatives of units of 
general purpose local government and, as appropriate, 
of Indian Tribes and Tribal organizations.''.

SEC. 6. APPLICATION AND PLAN.

Section 658E(c) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858c(c)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)(i)(I), by striking ``a 
child'' and inserting ``an eligible child'';
(B) in subparagraph (D), by striking ``, not 
later'' and all that follows through ``subparagraph 
(K)(i),'';
(C) in subparagraph (E)(i)--
(i) in the matter preceding subclause (I), 
by inserting ``, offered through a mixed 
delivery system,'' after ``full diversity of 
child care services'';
(ii) in subclause (I), by inserting 
``(including information on the hours and days 
of operation and ages served)'' after ``of 
child care services''; and
(iii) in subclause (IV)--
(I) by striking ``and'' before 
``the Medicaid''; and
(II) by inserting before the 
semicolon the following: ``, and the 
Maternal, Infant, and Early Childhood 
Home Visiting Programs under section 
511 of the Social Security Act (42 
U.S.C. 711)'';
(D) in subparagraph (G)--
(i) in the subparagraph heading, by 
striking ``Training and professional'' and 
inserting ``Professional'';
(ii) in clause (i) and clause (ii) (in the 
matter preceding subclause (I)), by striking 
``training and'' before ``professional 
development'';
(iii) in clause (ii)(II), by striking ``, 
and may engage'' and all that follows through 
``training framework''; and
(iv) in clause (iii), by striking 
``training'' and inserting ``professional 
development'';
(E) in subparagraph (I)(i)(IX), by striking ``if 
applicable,'';
(F) in subparagraph (J)--
(i) by striking ``that procedures'' and 
inserting the following: ``that--
``(i) procedures'';
(ii) by striking the period at the end and 
inserting ``; and''; and
(iii) by adding at the end the following:
``(ii) the State will undertake a review of 
State and local health and safety requirements 
(including requirements for inspections under 
this subchapter and 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)) to determine redundancies 
and oversights that may exist, to ensure--
``(I) children receive child care 
services in healthy and safe 
environments; and
``(II) child care providers can 
easily identify, understand, and comply 
with applicable health and safety 
requirements.'';
(G) in subparagraph (K)(i)--
(i) in the matter preceding subclause (I), 
by striking ``, not later'' and all that 
follows through ``2014,''; and
(ii) in subclause (IV), by striking 
``section 658P(6)(B)'' and inserting ``section 
658A(7)(B)'';
(H) in subparagraph (M)--
(i) by redesignating clauses (ii) through 
(iv) as clauses (iv) through (vi), 
respectively;
(ii) by striking clause (i) and inserting 
the following:
``(i) children in underserved areas, 
including areas that have significant 
concentrations of poverty or unemployment and 
that do not have a sufficient supply of 
eligible child care providers;
``(ii) children experiencing homelessness, 
children in foster care, children in kinship 
care, and children who are receiving, or need 
to receive, child protective services; and
``(iii) children in rural areas;''; and
(iii) in clause (v), as so redesignated, by 
striking ``, as defined by the State'';
(I) in subparagraph (N)(iii), by striking ``At the 
option of the State, the'' and inserting ``The'';
(J) in subparagraph (O)(i), by striking ``full-day 
services'' and inserting ``full workday and full work 
year services'';
(K) in subparagraph (S)(ii), by striking ``, to the 
extent'' and all that follows through ``fixed costs'' 
and inserting ``implement enrollment and eligibility 
policies that support the fixed and operational 
costs'';
(L) in subparagraph (T)(i), by striking ``or 
implement'' and all that follows through ``of 2014)'' 
and inserting ``and implement developmental 
guidelines'';
(M) in subparagraph (U)--
(i) in clause (ii), by inserting ``State 
and local health agencies,'' after ``licensing 
of child care providers,''; and
(ii) in clause (iii)(II), by striking 
``following the emergency or disaster, which 
may include'' and inserting ``during and 
following the emergency or disaster, which 
shall include guidelines for'';
(N) in subparagraph (V), by striking ``develop'' 
and all that follow through ``services.'' and inserting 
``support child care business technical assistance 
including supporting--
``(i) provision of strategies to support 
management coaching and the use of core best 
business practices;
``(ii) development and use of shared 
services initiatives including initiatives 
involving provider networks such as child care 
center alliances and family child care provider 
networks; and
``(iii) coordination of activities with 
programs of the Small Business Administration, 
programs of the Department of Agriculture, and 
other Federal, State, and local programs 
supporting child care businesses.''; and
(O) by adding at the end the following:
``(W) Benchmarks.--The plan shall include 
benchmarks for the indicators described in the clauses 
of section 658K(a)(3)(B).'';
(2) in paragraph (3)--
(A) in subparagraph (B)(ii), by striking ``Not 
later'' and all that follows through ``shall prepare'' 
and inserting ``Not later than September 30 of each 
fiscal year, the Secretary shall prepare''; and
(B) in subparagraph (D)--
(i) by striking ``with respect to'' and all 
that follows through ``2020'' and inserting 
``with respect to each fiscal year)''; and
(ii) by striking ``described in clause (i), 
(ii), (iii), or (iv) of'' and inserting ``in 
priority populations described in'';
(3) in paragraph (4)--
(A) by striking subparagraphs (A) and (B) and 
inserting the following:
``(A) In general.--The State plan shall certify 
that, not later than the later of the date that is 5 
years after the date of submission of the application, 
and September 30, 2032, payment rates for the provision 
of child care services for which assistance is provided 
in accordance with this subchapter--
``(i) will be sufficient to meet the cost 
of providing the child care services, including 
the fixed and operational costs of providing 
the child care services; and
``(ii) will be set and paid in accordance 
with a cost estimation model described in 
subparagraph (B).
``(B) Cost estimation model.--The State plan 
shall--
``(i) demonstrate that the State, after 
consulting with eligible child care providers 
that represent the various geographic areas of 
the State and types of providers within the 
State's mixed delivery system, State and local 
child care program administrators, local child 
care resource and referral agencies, and other 
appropriate entities, has developed and uses 
(or if the State has not used such a model 
certify that the State, after such consultation 
but not later than the later of the date that 
is 5 years after the date of submission of the 
application described in subsection (a), and 
September 30, 2032, will develop and use) a 
statistically valid and reliable cost 
estimation model for the direct payment rates 
for providers of child care services in the 
State, that--
``(I) reflects the costs of service 
delivery, including fixed costs and 
operating expenses;
``(II) reflects the cost of staff 
salaries and benefits necessary to 
sufficiently recruit, train, and retain 
a qualified child care workforce;
``(III) reflects variations in the 
costs of service delivery by submarket, 
type of provider, and children served, 
including by--
``(aa) geographic area 
(such as location in an urban 
or rural area);
``(bb) ages of children;
``(cc) whether the children 
have particular needs (such as 
needs of children with 
disabilities and children 
served by child protective 
services);
``(dd) whether the 
providers provide services 
during weekend and other 
nontraditional hours; and
``(ee) quality of child 
care provider as determined by 
the State; and
``(IV) is reviewed once every 2 
years and adjusted to--
``(aa) ensure payment rates 
remain sufficient to meet the 
requirements of this 
subchapter; and
``(bb) provide a cost of 
living increase to maintain the 
level of services provided 
during the year prior to the 
review; and
``(ii) describe how the State will provide 
for timely payments, set in accordance with the 
model described in clause (i), for child care 
services provided under this subchapter.'';
(B) in subparagraph (C)--
(i) by striking clause (ii); and
(ii) by striking ``(C)'' and all that 
follows through ``Nothing'' and inserting the 
following:
``(C) Construction.--Nothing''; and
(C) by adding at the end the following:
``(D) No federal control.--The Secretary may offer 
guidance to States on cost estimation models described 
in subparagraph (B), but shall not require a State to 
adopt a particular cost estimation model or an element 
of a particular cost estimation model (except that the 
model shall meet the requirements of subparagraph 
(B)(i)).''; and
(4) by striking paragraph (5) and inserting the following:
``(5) Sliding fee scale.--The State plan shall provide that 
the State will establish and periodically revise by rule a 
sliding fee scale to determine a full copayment for a family 
receiving assistance under this subchapter (or, for a family 
receiving part-time care, a reduced copayment that is an 
appropriate amount of the full copayment) and that is not a 
barrier that restricts families from accessing child care 
services under this subchapter.''.

SEC. 7. ACTIVITIES TO IMPROVE THE QUALITY OF CHILD CARE.

Section 658G(a) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858e(a))--
(1) in paragraph (1), by adding at the end the following: 
``The State shall include, in the State's activities, 
developing and expanding initiatives to assist child care 
providers in their efforts to recruit, train, and retain a 
qualified child care workforce.''; and
(2) in paragraph (2)--
(A) by striking subparagraph (A) and inserting the 
following:
``(A) to carry out the activities described in 
paragraph (1), not less than 9 percent of the funds 
described in paragraph (1) for each fiscal year; and''; 
and
(B) in subparagraph (B), by striking ``received not 
later'' and all that follows through ``succeeding full 
fiscal year'' and inserting ``received for each fiscal 
year''.

SEC. 8. WAIVERS OF INCOME REQUIREMENT.

Section 658I(c) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858g(c)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by 
striking ``of not more than three years'' and inserting 
``described in paragraph (5)'';
(B) in subparagraph (A), by striking ``(A)'' and 
inserting ``(A)(i)'';
(C) in subparagraph (B), by striking ``(B)'' and 
inserting the following:
``(ii)'';
(D) in subparagraph (C), by striking ``(C)'' and 
inserting the following:
``(iii)'';
(E) in subparagraph (D)--
(i) by striking ``(D)'' and inserting the 
following:
``(iv)''; and
(ii) in clause (iv), as so redesignated, by 
striking the period and inserting ``; or''; and
(F) by adding at the end the following:
``(B) the State, on the date of the request, has a 
maximum income standard that meets section 
658A(5)(B)(i), and requests the waiver to raise that 
standard.'';
(2) in paragraph (2)--
(A) in subparagraph (B), by striking ``and'' at the 
end;
(B) in subparagraph (C), by striking the period and 
inserting ``; and''; and
(C) by adding at the end the following:
``(D) if the State seeks a waiver of section 
658A(5)(B)(i)(I) under paragraph (1)(B) include--
``(i) the maximum income standard that the 
State wishes to use;
``(ii) such information as determined 
necessary by the Secretary to demonstrate that 
the State is serving all eligible children to 
the best of the State's ability below the 
maximum income standard in that section, and 
will continue to prioritize and serve all 
eligible children below the maximum income 
standard if a waiver under paragraph (1)(B) 
should be approved;
``(iii) information demonstrating that the 
State is meeting the requirements of the State 
plan under section 658E(c), particularly the 
requirements of subparagraphs (M) and (Q) of 
paragraph (2) of that section; and
``(iv) information demonstrating that the 
payment rates described in that section are set 
and paid in accordance with a cost estimation 
model described in section 658E(c)(4)(B).'';
(3) in paragraph (7)--
(A) by striking ``The Secretary may'' and inserting 
the following:
``(A) General renewals.--The Secretary may'';
(B) in the first sentence, by inserting before the 
period the following: ``, in the case of a request for 
a waiver of a provision other than section 
658A(5)(B)(i)(I)'';
(C) in the second sentence, by striking ``seeking 
to renew their waiver approval'' and inserting 
``seeking that renewal'';
(D) in the third sentence, by striking ``extension 
request'' and inserting ``renewal request''; and
(E) by adding at the end the following:
``(B) Renewals of income requirement waivers.--A 
State may seek a renewal, of an existing waiver of 
section 658A(5)(B)(i)(I) under paragraph (1)(B) 
(including a previously renewed waiver), for a period 
no longer than 3 years. A State seeking that renewal 
shall inform the Secretary of this intent no later than 
30 days prior to the expiration date of the waiver. The 
State shall re-certify in its renewal request the 
provisions in paragraph (2). On determining that the 
State has accurately re-certified those provision, the 
Secretary shall grant the renewal.''; and
(4) in paragraph (8)--
(A) by inserting ``, other than paragraph (1)(B),'' 
after ``this subchapter'' each place the term appears; 
and
(B) by adding at the end the following: ``Nothing 
in this subsection, including paragraph (1)(B), shall 
be construed to permit a State to deny or limit access 
to, or increase copayments, as a direct result of 
obtaining this waiver, for child care services under 
this subchapter to any eligible child whose family 
income is below the maximum income standard described 
in paragraph (1)(B) and whose family assets are less 
than the asset limit described in section 
658A(5)(B)(ii).''.

SEC. 9. REPORTS AND AUDITS.

Section 658K(a) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858i(a)) is amended--
(1) in paragraph (2)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ``Not later than'' and all 
that follows through ``a State'' and inserting 
``A State''; and
(ii) by inserting ``annually'' before 
``prepare'';
(B) in subparagraph (A), by striking ``section 
658P(6)'' and inserting ``section 658A(7)''; and
(C) in subparagraph (F), by striking ``section 
658P(6)(B)'' and inserting ``section 658A(7)(B)''; and
(2) by adding at the end the following:
``(3) Additional state reports.--
``(A) Information on percentage of income families 
are spending on child care.--In addition to the report 
described in paragraph (2), a State described in 
paragraph (1)(A) shall, not later than the date that 
the State submits a State plan under section 658E, 
prepare and submit to the Secretary a report that 
includes--
``(i) information on--
``(I) the percentage of income 
spent on child care for families that--
``(aa) have children that 
are eligible to receive but are 
not receiving assistance under 
this subchapter; and
``(bb) are residing in the 
State; and
``(II) the child care options that 
are available to such families at an 
affordable rate; and
``(ii) the results of a feasibility study 
on how, over the next 5 years, the State 
could--
``(I) lower the percentage of the 
family income, of families described in 
clause (i), that the families spend on 
child care copayments; and
``(II) increase access to child 
care so that all eligible children in 
the State receive child care.
``(B) Progress report.--The State shall, not later 
than the date that the State submits a State plan under 
section 658E, prepare and submit to the Secretary a 
report that includes an analysis of the progress the 
State has made over the preceding 10 years, on 
benchmarks described in the State plan under section 
658E(c)(2)(W), in the child care program carried out 
under this subchapter, relating to indicators 
consisting of--
``(i) child and family eligibility and 
enrollment;
``(ii) affordability of child care for 
families with an eligible child;
``(iii) expansion of parental choice and 
equal access;
``(iv) payment rates and payment practices;
``(v) recruiting and retaining a skilled, 
qualified, and appropriately compensated child 
care workforce;
``(vi) quality improvement activities;
``(vii) lead agency coordination and 
partnership;
``(viii) family outreach and consumer 
education; and
``(ix) program integrity and 
accountability.
``(C) Reports to congress.--The Secretary shall 
submit a report to the Committee on Health, Education, 
Labor, and Pensions of the Senate and the Committee on 
Education and Workforce of the House of Representatives 
on the information reported to the Secretary by States 
as described in subparagraphs (A) and (B).''.

SEC. 10. REPORTS, HOTLINE, AND WEBSITE.

Section 658L(a) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858j(a)) is amended by striking ``Not later'' and 
all that follows through ``the Secretary shall'' and inserting ``The 
Secretary shall biennially''.

SEC. 11. TECHNICAL AMENDMENTS.

Section 658O(a) of the Child Care and Development Block Grant Act 
of 1990 (42 U.S.C. 9858m(a)) is amended--
(1) in paragraphs (1), (3), and (4) by striking ``this 
subchapter'' and inserting ``section 658B''; and
(2) in paragraph (5) by striking ``this subchapter'' the 
first place it appears and inserting ``section 658B''.

SEC. 12. CHILD CARE SUPPLY AND FACILITIES GRANTS.

The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 
9857 et seq.) is amended by adding at the end the following:

``PART II--CHILD CARE SUPPLY AND FACILITIES

``SEC. 658T. CHILD CARE SUPPLY AND FACILITIES GRANTS.

``(a) Purposes.--The purposes of this section are to provide grants 
to States, territories described in section 658O(a)(1) (referred to 
individually in this part as a `territory'), Indian Tribes, and Tribal 
organization to--
``(1) expand the supply and capacity of qualified child 
care providers and staff so that working parents have multiple 
high-quality child care options to choose from in making their 
own decisions regarding the child care services that best suit 
their family's needs; and
``(2) ensure child care facilities are designed and 
equipped to keep children healthy and safe and to enhance 
children's physical, cognitive, and behavioral development.
``(b) Qualified Child Care Provider.--In this section, the term 
`qualified child care provider' means--
``(1) an eligible child care provider as defined in section 
658A(7)(A) that is providing, or seeking to provide, child care 
services to children eligible for services under this 
subchapter; or
``(2) a child care provider that has applied under this 
subchapter to become an eligible child care provider as defined 
in section 658A(7)(A) and that commits to provide child care 
services to children eligible for services under this 
subchapter.
``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of fiscal years 2028 through 2031.
``(d) Grants Authorized; Allotments.--
``(1) In general.--From funds made available under 
subsection (c), the Secretary shall make grants to States, 
territories, Indian Tribes, and Tribal organizations to carry 
out the activities described in subsection (f).
``(2) Reservation.--The Secretary shall reserve not more 
than 1 percent of the amount appropriated under subsection (c) 
for a fiscal year to carry out this section to pay for the 
costs of the Federal administration of this section.
``(3) Allotments.--From the amount appropriated to carry 
out this section for a fiscal year that remains after the 
Secretary makes the reservation under paragraph (2), the 
Secretary shall award to each lead agency with an approved plan 
under subsection (e), a child care supply and facilities grant 
in accordance with paragraphs (1) and (2) of subsection (a), 
and subsection (b), of section 658O, for the grants authorized 
under paragraph (1). A grant made under this paragraph in 
accordance with paragraph (1) or (2) of that subsection shall 
be for the purpose of carrying out the program described in 
this section, consistent, to the extent practicable as 
determined by the Secretary, with the requirements applicable 
to States.
``(e) State Plan.--
``(1) In general.--In order to receive a grant under this 
section, a State shall submit a plan to the Secretary, at such 
time and in such manner as the Secretary may reasonably 
require.
``(2) Contents.--Each plan submitted by a State under this 
section shall include each of the following:
``(A) A description of how the State will use funds 
received under this section for State-level activities 
under subsection (f)(1).
``(B) A description of how the State will ensure 
that qualified child care providers in rural, suburban, 
and urban areas can readily apply for and access 
funding under this section, which shall include 
providing technical assistance either directly or 
through a third party which may include a resource and 
referral agency or a staffed family child care provider 
network.
``(C) A description of how the State will determine 
the prioritization of subgrants to qualified child care 
providers in accordance with subsection (f)(5).
``(D) An assurance that the State will make 
available to the public, which shall include, at a 
minimum, posting to an internet website of the lead 
agency--
``(i) a notice of funding availability 
through subgrants for qualified child care 
providers under this section; and
``(ii) the criteria for awarding subgrants 
for qualified child care providers, including 
the methodology the lead agency will use to 
determine the amounts of such subgrants for 
qualified child care providers.
``(E) A determination by the State of the duration 
of child care services required for qualified child 
care providers to receive subgrants under this 
subchapter.
``(f) State Use of Funds.--
``(1) Reservation.--A lead agency that receives a grant 
under subsection (d) shall reserve not more than 10 percent of 
the grant funds for State-level activities, consisting of 
administering subgrants and providing technical assistance and 
support, for activities supported under this section.
``(2) Subgrants.--The lead agency shall use the remainder 
of the grant funds awarded pursuant to subsection (d) to make 
subgrants as described in paragraphs (3) and (4).
``(3) Startup and supply expansion subgrants.--
``(A) In general.--The lead agency shall make 
startup and supply expansion subgrants to qualified 
child care providers that are providing, or seeking to 
provide, child care services under this subchapter to 
eligible children, to--
``(i) support the providers in paying for 
startup and expansion costs;
``(ii) assist such providers in meeting--
``(I) the health and safety 
requirements (including the 
requirements referred to in section 
658E(c)(2)(I)) of the State, territory, 
Indian Tribe, or local government 
involved, as the case may be;
``(II) the child-to-provider ratio 
standards (including the requirements 
referred to in section 658E(c)(2)(H)) 
applicable to the provider;
``(III) licensing and other 
regulatory standards of the State, 
territory, Indian Tribe, or local 
government involved, as the case may 
be, for child care providers; and
``(IV) as applicable, the 
requirements of a State's tiered 
quality rating system for child care 
providers;
``(iii) establish or expand the operation 
of community- or neighborhood-based family 
child care networks; and
``(iv) support access to child care 
services facing a particular shortage of child 
care options, including child care services 
during nontraditional or extended hours, and 
child care services for children with 
disabilities (including, for purposes of this 
clause, a child who has documentation other 
than an individualized education program (as 
defined in section 602 of the Individuals with 
Disabilities Education Act (20 U.S.C. 1401)) 
establishing the child's disability (as defined 
in section 3 of the Americans with Disabilities 
Act of 1990 (42 U.S.C. 12101))).
``(B) Requirement.--As a condition of receiving a 
startup or supply expansion subgrant under this 
paragraph, a qualified child care provider shall commit 
to meeting the requirements for an eligible child care 
provider under this subchapter and to providing child 
care services under this subchapter to eligible 
children, on an ongoing basis, as determined by the 
State.
``(4) Facilities subgrants.--
``(A) In general.--The lead agency shall make 
facilities subgrants to qualified child care providers 
that are providing, or seeking to provide, child care 
services under this subchapter to eligible children, 
for, notwithstanding section 658F(b)--
``(i) remodeling, renovation, or repair of 
a building or facility used for providing 
direct child care services; and
``(ii) construction, permanent improvement, 
or major renovation of a building or facility 
used for providing direct child care services.
``(B) Requirement.--As a condition of receiving a 
facilities subgrant under this paragraph, a child care 
provider shall commit to meeting the requirements for 
an eligible child care provider under this subchapter 
and to providing child care services under this 
subchapter to eligible children on an ongoing basis, as 
determined by the State.
``(C) Federal interest.--
``(i) Family child care homes.--Federal law 
regarding a Federal interest in real property 
shall not apply to the renovation, remodeling, 
repair, or permanent improvement of privately 
owned family child care homes with funds 
provided under this paragraph, and the 
Secretary shall develop parameters for the use 
of such funds for family child care homes.
``(ii) Retention.--If the Secretary retains 
a Federal interest in any facility constructed, 
renovated, remodeled, repaired, or permanently 
improved with funds provided under this 
paragraph, the Secretary shall not retain the 
Federal interest for more than 10 years.
``(5) Priority.--In awarding subgrants under paragraphs (3) 
and (4), the lead agency shall give priority to qualified child 
care providers providing or seeking to provide child care 
services to priority populations of children described in 
section 658E(c)(2)(M).
``(g) Supplement Not Supplant.--Amounts made available to carry out 
this section shall be used to supplement and not supplant other 
Federal, State, and local public funds expended to increase the supply 
of child care and to improve child care facilities.
``(h) Documentation and Reporting Requirements.--
``(1) Documentation.--A State receiving a grant under 
subsection (d) shall provide documentation of any State 
expenditures from grant funds received under subsection (d) in 
accordance with section 658K(b), to the independent entity 
described in that section.
``(2) Reports.--
``(A) Lead agency annual report.--A lead agency 
receiving a grant under subsection (d) shall, not later 
than 12 months after making subgrants from the funds 
made available through such grant, and annually for the 
duration of the grant, submit a report to the Secretary 
that includes, for the State involved, a description of 
each of the lead agency's programs of subgrants carried 
out to meet the objectives of this section, including--
``(i) the number of eligible child care 
providers in operation at the start of the 
grant period, and the number of such providers 
11 months later, disaggregated by age of 
children served, geographic region, and child 
care setting (including whether the provider 
was in a center-based or family child care 
setting);
``(ii) the number of child care slots, in 
the capacity of eligible child care providers 
given applicable group size limits and staff-
to-child ratios, that were open for attendance 
of children at the start of the grant period 
and the number of such slots 11 months later, 
disaggregated by age of children served, 
geographic region, and child care setting 
(including whether the slot was in a center-
based or family child care setting), and each 
priority population of children described in 
section 658E(c)(2)(M);
``(iii)(I) the number and percentage of 
qualified child care providers that received a 
subgrant under subsection (f)(3), disaggregated 
by age of children served, geographic region, 
and child care setting (including whether the 
provider was in a center-based or family child 
care setting), and the average and range of the 
amounts of the subgrants awarded; and
``(II) the number and percentage of 
qualified child care providers that received a 
subgrant under subsection (f)(4), disaggregated 
by age of children served, geographic region, 
and child care setting (including whether the 
provider was in a center-based or family child 
care setting), and the average and range of the 
amounts of the subgrants awarded; and
``(iv) information concerning how qualified 
child care providers receiving subgrants under 
subsection (f)(3) or (f)(4) used the subgrant 
funding received.
``(B) Report to congress.--The Secretary shall 
transmit annually to the Committee on Health, 
Education, Labor, and Pensions of the Senate and the 
Committee on Education and Workforce of the House of 
Representatives a report that provides national and 
State-level data for the information collected under 
subparagraph (A).
``(i) Construction.--No reference in part 1 to `this subchapter' 
shall be considered to refer to a provision of this part.''.

SEC. 13. DEPARTMENT OF AGRICULTURE LOAN RESTRICTIONS.

The Secretary of Agriculture shall revise section 3555.102(c) of 
title 7, Code of Federal Regulations, as in effect on the date of 
enactment of this Act, to exclude a business that is licensed, 
regulated, or registered as a child care provider under State law.
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