II
109th CONGRESS
1st Session
S. 526
IN THE SENATE OF THE UNITED STATES
March 3, 2005
Mr. Reed (for himself, Mr. Dodd, Mr. Kennedy, and Mrs. Murray) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions
A BILL
To amend the Child Care and Development Block Grant Act of 1990 to provide incentive grants to improve the quality of child care.
Short title
This Act may be cited as the
Child Care Quality Incentive Act of
2005
.
Findings and purposes
Findings
Congress makes the following findings:
Recent research on early brain development reveals that much of a child’s growth is determined by early learning and nurturing care. Research also shows that quality early care and education leads to increased cognitive abilities, positive classroom learning behavior, increased likelihood of long-term school success, and greater likelihood of long-term economic and social self-sufficiency.
Each day an estimated 13,000,000 children, including 6,000,000 infants and toddlers, spend some part of their day in child care. However, a study in 4 States found that only 1 in 7 child care centers provide care that promotes healthy development, while 1 in 8 child care centers provide care that threatens the safety and health of children.
Full-day child care can cost $4,000 to $12,000 per year.
Although Federal assistance is available for child care, funding is severely limited. Even with Federal subsidies, many families cannot afford child care. For families with young children and a monthly income under $1,200, the cost of child care typically consumes 25 percent of their income.
Payment (or reimbursement) rates, which determine the maximum the State will reimburse a child care provider for the care of a child who receives a subsidy, are too low to ensure that quality care is accessible to all families.
Low payment rates directly affect the kind of care children get and whether families can find quality child care in their communities. In many instances, low payment rates force child care providers serving low-income children to cut corners in ways that impact the quality of care for the children, including reducing the number of staff, eliminating professional development opportunities, and cutting enriching educational activities and services.
Children in low-quality child care are more likely to have delayed reading and language skills, and display more aggression toward other children and adults.
Increased payment rates lead to higher quality child care as child care providers are able to attract and retain qualified staff, provide salary increases and professional training, maintain a safe and healthy environment, and purchase basic supplies, children’s literature, and developmentally appropriate educational materials.
Purpose
The purpose of this Act is to improve the quality of, and access to, child care by increasing child care payment rates.
Payment rates
Section 658E(c)(4) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(4)) is amended—
by redesignating subparagraph (B) as subparagraph (C);
in subparagraph
(A), by striking to comparable child care services
and inserting
to child care services that are comparable (in terms of quality and
types of services provided) to child care services
; and
by inserting after subparagraph (A) the following:
Payment rates
Surveys
In order to provide the certification described in subparagraph (A), the State shall conduct statistically valid and reliable market rate surveys (that reflect variations in the cost of child care services by locality), in accordance with such methodology standards as the Secretary shall issue. The State shall conduct the surveys not less often than at 2-year intervals, and use the results of such surveys to implement, not later than 1 year after conducting each survey, payment rates described in subparagraph (A) that ensure equal access to comparable services as required by subparagraph (A).
Cost of living adjustments
The State shall adjust the payment rates at intervals between such surveys to reflect increases in the cost of living, in such manner as the Secretary may specify.
Rates for different ages and types of care
The State shall ensure that the payment rates reflect variations in the cost of providing child care services for children of different ages and providing different types of care.
Public dissemination
The State shall, not later than 30 days after the completion of each survey described in clause (i), make the results of the survey widely available through public means, including posting the results on the Internet.
.
Incentive grants to improve the quality of child care
Funding
Section 658B of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is amended—
by striking
There
and inserting the following:
Authorization of appropriations
There
;
in subsection
(a), by inserting (other than section 658H)
after this
subchapter
; and
by adding at the end the following:
Appropriation of funds for grants to improve the quality of child care
Out of any funds in the Treasury that are not otherwise appropriated, there is authorized to be appropriated and there is appropriated $500,000,000 for each of fiscal years 2006 through 2010, for the purpose of making grants under section 658H.
.
Use of block grant funds
Section 658E(c)(3) of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(3)) is amended—
in subparagraph
(B), by striking under this subchapter
and inserting
under this subchapter (other than section 658B(b))
; and
in subparagraph
(D), by inserting (other than section 658H)
after under
this subchapter
.
Establishment of program
Section 658G of the
Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858e) is amended by
inserting (other than section 658H)
after this
subchapter
.
Grants to improve the quality of child care
The Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) is amended by inserting after section 658G the following:
Grants to improve the quality of child care
Authority
In general
The Secretary shall use the amount appropriated under section 658B(b) for a fiscal year to make grants to eligible States, and Indian tribes and tribal organizations, in accordance with this section.
Annual payments
The Secretary shall make an annual payment for such a grant to each eligible State, and for Indian tribes and tribal organizations, out of the corresponding payment or allotment made under subsections (a), (b), and (e) of section 658O from the amount appropriated under section 658B(b).
Eligible States
In general
In this section, the term eligible State means a State that—
has conducted a statistically valid survey of the market rates for child care services in the State within the 2 years preceding the date of the submission of an application under paragraph (2); and
submits an application in accordance with paragraph (2).
Application
In general
To be eligible to receive a grant under this section, a State shall submit an application to the Secretary at such time, in such manner, and accompanied by such information, in addition to the information required under subparagraph (B), as the Secretary may require.
Information required
Each application submitted for a grant under this section shall—
detail the methodology and results of the State market rates survey conducted pursuant to paragraph (1)(A);
describe the State’s plan to increase payment rates from the initial baseline determined under clause (i);
describe how the State will increase payment rates in accordance with the market survey results, for all types of child care providers who provide services for which assistance is made available under this subchapter;
describe how payment rates will be set to reflect the variations in the cost of providing care for children of different ages and different types of care;
describe how the State will prioritize increasing payment rates for—
care of higher-than-average quality, such as care by accredited providers or care that includes the provision of comprehensive services;
care for children with disabilities and children served by child protective services; or
care for children in communities served by local educational agencies that have been identified for improvement under section 1116(c)(3) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6316(c)(3));
describe the State’s plan to assure that the State will make the payments on a timely basis and follow the usual and customary market practices with regard to payment for child absentee days; and
describe the State’s plans for making the results of the survey widely available through public means.
Continuing eligibility requirement
Second and subsequent payments
A State shall be eligible to receive a second or subsequent annual payment under this section only if the Secretary determines that the State has made progress, through the activities assisted under this subchapter, in maintaining increased payment rates.
Third and subsequent payments
A State shall be eligible to receive a third or subsequent annual payment under this section only if the State has conducted, at least once every 2 years, an update of the survey described in paragraph (1)(A).
Requirement of matching funds
In general
To be eligible to receive a grant under this section, the State shall agree to make available State contributions from State sources toward the costs of the activities to be carried out by the State pursuant to subsection (c) in an amount that is not less than 20 percent of such costs.
Determination of State contributions
Such State contributions shall be in cash. Amounts provided by the Federal Government may not be included in determining the amount of such State contributions.
Use of funds
Priority use
An eligible State that receives a grant under this section shall use the funds received to significantly increase the payment rate for the provision of child care assistance in accordance with this subchapter up to the 100th percentile of the market rate determined under the market rate survey described in subsection (b)(1)(A).
Additional uses
An eligible State that demonstrates to the Secretary that the State has achieved a payment rate of the 100th percentile of the market rate determined under the market rate survey described in subsection (b)(1)(A) may use funds received under a grant made under this section for any other activity that the State demonstrates to the Secretary will enhance the quality of child care services provided in the State.
Supplement not supplant
Amounts paid to a State under this section shall be used to supplement and not supplant other Federal, State, or local funds provided to the State under this subchapter or any other provision of law.
Evaluations and reports
State evaluations
Each eligible State shall submit to the Secretary, at such time and in such form and manner as the Secretary may require, information regarding the State’s efforts to increase payment rates and the impact increased payment rates are having on the quality of child care in the State and the access of parents to high-quality child care in the State.
Reports to congress
The Secretary shall submit biennial reports to Congress on the information described in paragraph (1). Such reports shall include data from the applications submitted under subsection (b)(2) as a baseline for determining the progress of each eligible State in maintaining increased payment rates.
Indian tribes and tribal organizations
The Secretary shall determine the manner in which and the extent to which the provisions of this section apply to Indian tribes and tribal organizations.
Payment rate
In this section, the term payment rate means the rate of reimbursement to providers for subsidized child care.
.
Payments
Section
658J(a) of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858h(a)) is amended by inserting from funds
appropriated under section 658B(a)
after section
658O
.
Allotment
Section 658O of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858m) is amended—
in subsection (b)(1), in the matter preceding subparagraph (A)—
by striking
section 658B
and inserting section 658B(a)
;
and
by inserting
and from the amounts appropriated under section 658B(b) for each fiscal
year remaining after reservations under subsection (a),
before
the Secretary shall allot
; and
in subsection (e)—
in paragraph (1),
by striking the allotment under subsection (b)
and inserting
an allotment made under subsection (b)
; and
in paragraph (3),
by inserting corresponding
before
allotment
.