Editorial Notes
Amendments

2014—Pub. L. 113–186 substituted “subchapter $2,360,000,000 for fiscal year 2015, $2,478,000,000 for fiscal year 2016, $2,539,950,000 for fiscal year 2017, $2,603,448,750 for fiscal year 2018, $2,668,534,969 for fiscal year 2019, and $2,748,591,018 for fiscal year 2020” for “subchapter $1,000,000,000 for each of the fiscal years 1996 through 2002”.

1996—Pub. L. 104–193 reenacted section catchline without change and amended text generally. Prior to amendment, text read as follows: “There are authorized to be appropriated to carry out this subchapter, $750,000,000 for fiscal year 1991, $825,000,000 for fiscal year 1992, $925,000,000 for fiscal year 1993, and such sums as may be necessary for each of the fiscal years 1994 and 1995.”

1992—Pub. L. 102–401 and Pub. L. 102–586 made identical technical corrections to directory language of Pub. L. 101–508, § 5082(2), which added this section.

Statutory Notes and Related Subsidiaries
Effective Date of 1996 Amendment

Pub. L. 104–193, title VI, § 615, Aug. 22, 1996, 110 Stat. 2287, provided that:

“(a)
In General.—
Except as provided in subsection (b), this title [see Short title of 1996 Amendment note set out under section 9801 of this title] and the amendments made by this title shall take effect on October 1, 1996.
“(b)
Exception.—
The amendment made by section 603(a) [amending this section] shall take effect on the date of enactment of this Act [Aug. 22, 1996].”

Child Care Stabilization

Pub. L. 117–2, title II, § 2202, Mar. 11, 2021, 135 Stat. 31, provided that:

“(a)
Definitions.—
In this section:
“(1)
COVID–19 public health emergency.—
The term ‘COVID–19 public health emergency’ means the public health emergency declared by the Secretary of Health and Human Services under section 319 of the Public Health Service Act (42 U.S.C. 247d) on January 31, 2020, with respect to COVID–19, including any renewal of the declaration.
“(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 (42 U.S.C. 9858n); or
“(B)
a child care provider that is licensed, regulated, or registered in the State, territory, or Indian Tribe on the date of enactment of this Act [Mar. 11, 2021] and meets applicable State and local health and safety requirements.
“(b)
Child Care Stabilization Funding.—
In addition to amounts otherwise available, there is appropriated for fiscal year 2021, out of any amounts in the Treasury not otherwise appropriated, $23,975,000,000, to remain available through September 30, 2021, for grants under this section in accordance with the Child Care and Development Block Grant Act of 1990 [42 U.S.C. 9857 et seq.].
“(c)
Grants.—
From the amounts appropriated to carry out this section 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 child care stabilization grant, without regard to the requirements in subparagraphs (C) and (E) of section 658E(c)(3), and in section 658G, of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(3), 9858e). Such grant shall be allotted in accordance with section 658O of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m).
“(d)
State Reservations and Subgrants.—
“(1)
Reservation.—
A lead agency for a State that receives a child care stabilization grant pursuant to subsection (c) shall reserve not more than 10 percent of such grant funds to administer subgrants, provide technical assistance and support for applying for and accessing the subgrant opportunity, publicize the availability of the subgrants, carry out activities to increase the supply of child care, and provide technical assistance to help child care providers implement policies as described in paragraph (2)(D)(i).
“(2)
Subgrants to qualified child care providers.—
“(A)
In general.—
The lead agency shall use the remainder of the grant funds awarded pursuant to subsection (c) to make subgrants to qualified child care providers described in subparagraph (B), regardless of such a provider’s previous receipt of other Federal assistance, to support the stability of the child care sector during and after the COVID–19 public health emergency.
“(B)
Qualified child care provider.—
To be qualified to receive a subgrant under this paragraph, a provider shall be an eligible child care provider that on the date of submission of an application for the subgrant, was either—
“(i)
open and available to provide child care services; or
“(ii)
closed due to public health, financial hardship, or other reasons relating to the COVID–19 public health emergency.
“(C)
Subgrant amount.—
The amount of such a subgrant to a qualified child care provider shall be based on the provider’s stated current operating expenses, including costs associated with providing or preparing to provide child care services during the COVID–19 public health emergency, and to the extent practicable, cover sufficient operating expenses to ensure continuous operations for the intended period of the subgrant.
“(D)
Application.—
The lead agency shall—
“(i)
make available on the lead agency’s website an application for qualified child care providers that includes certifications that, for the duration of the subgrant—
     “(I)
the provider applying will, when open and available to provide child care services, implement policies in line with guidance from the corresponding State, Tribal, and local authorities, and in accordance with State, Tribal, and local orders, and, to the greatest extent possible, implement policies in line with guidance from the Centers for Disease Control and Prevention;
     “(II)
for each employee, the provider will pay not less than the full compensation, including any benefits, that was provided to the employee as of the date of submission of the application for the subgrant (referred to in this subclause as ‘full compensation’), and will not take any action that reduces the weekly amount of the employee’s compensation below the weekly amount of full compensation, or that reduces the employee’s rate of compensation below the rate of full compensation, including the involuntary furloughing of any employee employed on the date of submission of the application for the subgrant; and
     “(III)
the provider will provide relief from copayments and tuition payments for the families enrolled in the provider’s program, to the extent possible, and prioritize such relief for families struggling to make either type of payment; and
“(ii)
accept and process applications submitted under this subparagraph on a rolling basis, and provide subgrant funds in advance of provider expenditures, except as provided in subsection (e)(2).
“(E)
Obligation.—
The lead agency shall notify the Secretary if it is unable to obligate at least 50 percent of the funds received pursuant to subsection (c) that are available for subgrants described in this paragraph within 9 months of the date of enactment of this Act [Mar. 11, 2021].
“(e)
Uses of Funds.—
“(1)
In general.—
A qualified child care provider that receives funds through such a subgrant shall use the funds for at least one of the following:
“(A)
Personnel costs, including payroll and salaries or similar compensation for an employee (including any sole proprietor or independent contractor), employee benefits, premium pay, or costs for employee recruitment and retention.
“(B)
Rent (including rent under a lease agreement) or payment on any mortgage obligation, utilities, facility maintenance or improvements, or insurance.
“(C)
Personal protective equipment, cleaning and sanitization supplies and services, or training and professional development related to health and safety practices.
“(D)
Purchases of or updates to equipment and supplies to respond to the COVID–19 public health emergency.
“(E)
Goods and services necessary to maintain or resume child care services.
“(F)
Mental health supports for children and employees.
“(2)
Reimbursement.—
The qualified child care provider may use the subgrant funds to reimburse the provider for sums obligated or expended before the date of enactment of this Act for the cost of a good or service described in paragraph (1) to respond to the COVID–19 public health emergency.
“(f)
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 provide child care services for eligible individuals.”

Small Business Child Care Grant Program

Pub. L. 110–28, title VIII, § 8303, May 25, 2007, 121 Stat. 206, provided that:

“(a)
Establishment.—
The Secretary of Health and Human Services (referred to in this section as the ‘Secretary’) shall establish a program to award grants to States, on a competitive basis, to assist States in providing funds to encourage the establishment and operation of employer-operated child care programs.
“(b)
Application.—
To be eligible to receive a grant under this section, a State shall prepare and submit to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including an assurance that the funds required under subsection (e) will be provided.
“(c)
Amount and Period of Grant.—
The Secretary shall determine the amount of a grant to a State under this section based on the population of the State as compared to the population of all States receiving grants under this section. The Secretary shall make the grant for a period of 3 years.
“(d)
Use of Funds.—
“(1)
In general.—
A State shall use amounts provided under a grant awarded under this section to provide assistance to small businesses (or consortia formed in accordance with paragraph (3)) located in the State to enable the small businesses (or consortia) to establish and operate child care programs. Such assistance may include—
“(A)
technical assistance in the establishment of a child care program;
“(B)
assistance for the startup costs related to a child care program;
“(C)
assistance for the training of child care providers;
“(D)
scholarships for low-income wage earners;
“(E)
the provision of services to care for sick children or to provide care to school-aged children;
“(F)
the entering into of contracts with local resource and referral organizations or local health departments;
“(G)
assistance for care for children with disabilities;
“(H)
payment of expenses for renovation or operation of a child care facility; or
“(I)
assistance for any other activity determined appropriate by the State.
“(2)
Application.—
In order for a small business or consortium to be eligible to receive assistance from a State under this section, the small business involved shall prepare and submit to the State an application at such time, in such manner, and containing such information as the State may require.
“(3)
Preference.—
“(A)
In general.—
In providing assistance under this section, a State shall give priority to an applicant that desires to form a consortium to provide child care in a geographic area within the State where such care is not generally available or accessible.
“(B)
Consortium.—
For purposes of subparagraph (A), a consortium shall be made up of 2 or more entities that shall include small businesses and that may include large businesses, nonprofit agencies or organizations, local governments, or other appropriate entities.
“(4)
Limitations.—
With respect to grant funds received under this section, a State may not provide in excess of $500,000 in assistance from such funds to any single applicant.
“(e)
Matching Requirement.—
To be eligible to receive a grant under this section, a State shall provide assurances to the Secretary that, with respect to the costs to be incurred by a covered entity receiving assistance in carrying out activities under this section, the covered entity will make available (directly or through donations from public or private entities) non-Federal contributions to such costs in an amount equal to—
“(1)
for the first fiscal year in which the covered entity receives such assistance, not less than 50 percent of such costs ($1 for each $1 of assistance provided to the covered entity under the grant);
“(2)
for the second fiscal year in which the covered entity receives such assistance, not less than 66⅔ percent of such costs ($2 for each $1 of assistance provided to the covered entity under the grant); and
“(3)
for the third fiscal year in which the covered entity receives such assistance, not less than 75 percent of such costs ($3 for each $1 of assistance provided to the covered entity under the grant).
“(f)
Requirements of Providers.—
To be eligible to receive assistance under a grant awarded under this section, a child care provider—
“(1)
who receives assistance from a State shall comply with all applicable State and local licensing and regulatory requirements and all applicable health and safety standards in effect in the State; and
“(2)
who receives assistance from an Indian tribe or tribal organization shall comply with all applicable regulatory standards.
“(g)
State-Level Activities.—
A State may not retain more than 3 percent of the amount described in subsection (c) for State administration and other State-level activities.
“(h)
Administration.—
“(1)
State responsibility.—
A State shall have responsibility for administering a grant awarded for the State under this section and for monitoring covered entities that receive assistance under such grant.
“(2)
Audits.—
A State shall require each covered entity receiving assistance under the grant awarded under this section to conduct an annual audit with respect to the activities of the covered entity. Such audits shall be submitted to the State.
“(3)
Misuse of funds.—
“(A)
Repayment.—
If the State determines, through an audit or otherwise, that a covered entity receiving assistance under a grant awarded under this section has misused the assistance, the State shall notify the Secretary of the misuse. The Secretary, upon such a notification, may seek from such a covered entity the repayment of an amount equal to the amount of any such misused assistance plus interest.
“(B)
Appeals process.—
The Secretary shall by regulation provide for an appeals process with respect to repayments under this paragraph.
“(i)
Reporting Requirements.—
“(1)
2-year study.—
“(A)
In general.—
Not later than 2 years after the date on which the Secretary first awards grants under this section, the Secretary shall conduct a study to determine—
“(i)
the capacity of covered entities to meet the child care needs of communities within States;
“(ii)
the kinds of consortia that are being formed with respect to child care at the local level to carry out programs funded under this section; and
“(iii)
who is using the programs funded under this section and the income levels of such individuals.
“(B)
Report.—
Not later than 28 months after the date on which the Secretary first awards grants under this section, the Secretary shall prepare and submit to the appropriate committees of Congress a report on the results of the study conducted in accordance with subparagraph (A).
“(2)
Four-year study.—
“(A)
In general.—
Not later than 4 years after the date on which the Secretary first awards grants under this section, the Secretary shall conduct a study to determine the number of child care facilities that are funded through covered entities that received assistance through a grant awarded under this section and that remain in operation, and the extent to which such facilities are meeting the child care needs of the individuals served by such facilities.
“(B)
Report.—
Not later than 52 months after the date on which the Secretary first awards grants under this section, the Secretary shall prepare and submit to the appropriate committees of Congress a report on the results of the study conducted in accordance with subparagraph (A).
“(j)
Definitions.—
In this section:
“(1)
Covered entity.—
The term ‘covered entity’ means a small business or a consortium formed in accordance with subsection (d)(3).
“(2)
Indian community.—
The term ‘Indian community’ means a community served by an Indian tribe or tribal organization.
“(3)
Indian tribe; tribal organization.—
The terms ‘Indian tribe’ and ‘tribal organization’ 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).
“(4)
Small business.—
The term ‘small business’ means an employer who employed an average of at least 2 but not more than 50 employees on the business days during the preceding calendar year.
“(5)
State.—
The term ‘State’ has the meaning given the term in section 658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n).
“(k)
Application to Indian Tribes and Tribal Organizations.—
In this section:
“(1)
In general.—
Except as provided in subsection (f)(1), and in paragraphs (2) and (3), the term ‘State’ includes an Indian tribe or tribal organization.
“(2)
Geographic references.—
The term ‘State’ includes an Indian community in subsections (c) (the second and third place the term appears), (d)(1) (the second place the term appears), (d)(3)(A) (the second place the term appears), and (i)(1)(A)(i).
“(3)
State-level activities.—
The term ‘State-level activities’ includes activities at the tribal level.
“(l)
Authorization of Appropriations.—
“(1)
In general.—
There is authorized to be appropriated to carry out this section, $50,000,000 for the period of fiscal years 2008 through 2012.
“(2)
Studies and administration.—
With respect to the total amount appropriated for such period in accordance with this subsection, not more than $2,500,000 of that amount may be used for expenditures related to conducting studies required under, and the administration of, this section.
“(m)
Termination of Program.—
The program established under subsection (a) shall terminate on September 30, 2012.”

Goals of Subchapter

Pub. L. 97–35, title VI, subtitle A, ch. 8, subch. C, § 658A(b), as added by Pub. L. 104–193, title VI, § 602(3), Aug. 22, 1996, 110 Stat. 2279, and amended by Pub. L. 113–186, § 2, Nov. 19, 2014, 128 Stat. 1971, which provided the goals of this subchapter and was formerly set out as a note under this section, was amended generally by Pub. L. 113–186 and subsequently transferred to section 9857(b) of this title.