To require the Secretary (acting through the Assistant Secretary for Children and Families) to prepare an annual report that contains a determination about whether States have complied with a priority requirement, and to require the Secretary to withhold funds from States that fail to comply with such priority requirement.

1. Rewrites page 99, lines 16–20

   ReplacesPrinted page

   Removes page 99, lines 16–20 of the printed bill. See that page

   Inserted: tivity described in clause (iii)).";

   Inserted: (iii) by striking ", with priority" and all that follows through the period and inserting the following: ". In using those amounts for child care services, the State shall give priority for services first to children with disabilities from low-income families (whose family income does not exceed 85 percent of the State median income for a family of the same size), then to children of families with very low family incomes (taking into consideration family size), and then to children with disabilities."; and

   Inserted: (iv) by adding at the end the following:

   Inserted: "(ii) Report by inspector general.--

   Inserted: "(I) In general.--Not later than September 30 of the first full fiscal year after the date of enactment of the Child Care and Development Block Grant Act of 2014, and September 30 of each fiscal year thereafter, the Inspector General of the Department of Health and Human Services shall prepare and submit to the Secretary a report that contains a determination about whether each State uses amounts provided to such State for the fiscal year involved under this subchapter in accordance with the priority for services described in clause (i).

   Inserted: "(II) Penalty for noncompliance.--For any fiscal year that the report of such Inspector General described in subclause (I) indicates that a State has failed to give priority for services in accordance with clause (i), the Secretary shall--

   Inserted: "(aa) inform the State that the State has until the date that is the last day of such fiscal year, or 6 months after the Inspector General has issued such report, whichever is later, to fully comply with clause (i); and

   Inserted: "(bb) if the State does not so comply, by the date described in item (aa), withhold 5 percent of the funds that would otherwise be allocated to that State in accordance with this subchapter for the first full fiscal year after that date.

   Inserted: "(iii) Child care resource and referral system.--"

   Original wording

   On page 99, strike lines 16 through 20 and insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed