Tri-Share Child Care Pilot Act

Summary#

This bill would create a three-year pilot program to share child care costs among parents, participating employers, and State lead agencies. States (through their lead agencies) would apply for competitive grants to run the pilot. Participating employers would also apply to join. A parent whose employer participates could apply for benefits. If approved, eligible child care costs for the child would be split so that the parent, the participating employer, and the lead agency each pay one-third. The lead agency pays the child care provider and the parent and employer jointly reimburse the lead agency for two-thirds of the charge. Parents may allow an employer to withhold up to one-third of the provider charge from the parent's pay if the employer remits the full joint share to the lead agency.

The Secretary of Health and Human Services would approve State applications using criteria such as unmet demand for affordable child care, State capacity, employer recruitment plans, and equitable geographic access. Grants would generally cover an amount equal to the State’s Federal medical assistance percentage of amounts paid by the lead agency, subject to a $20 million cap per State and other limits. Up to 10 percent of a State’s grant may be used for administrative costs. The Secretary may allow technology platforms and third-party administrators to connect employers, providers, parents, and lead agencies.

Eligibility rules in the bill say an eligible child is younger than the State’s kindergarten age, has a parent employed by a participating employer, has family income at or above the State threshold for child care assistance and at or below 300 percent of that threshold, and is not receiving assistance under the Child Care and Development Block Grant (CCDBG). The program would not affect CCDBG eligibility or amounts. The Secretary, through the Administration for Children and Families, must evaluate the pilot (Office of Planning, Research, and Evaluation to develop the evaluation) for cost-effectiveness and effects on hiring, employment, employee retention, child care affordability, and access. A report to Congress is due within one year after the program ends. The bill also requires the Department to collect information on the feasibility of using a sliding scale for family cost-sharing, and it directs unobligated pilot funds each year to the Preschool Development Grants program.

What it means for you#

  • If your employer joins the pilot and you meet the income and other eligibility rules, eligible child care costs for your child could be paid one-third by you, one-third by your employer, and one-third by the State lead agency.
  • You must use an eligible child care provider that meets State health and safety requirements.
  • You and your employer must sign a joint attestation that you will each pay one-third of eligible charges for the program period you select in the application.
  • The lead agency pays providers directly. You and your employer must jointly reimburse the lead agency for two-thirds of the provider charges. You may allow your employer to withhold up to one-third of the charge from your pay if the employer remits the full joint share.
  • The program runs for three years and is a limited pilot; the lead agency and Secretary will evaluate results and report to Congress.

Expenses#

  • The bill authorizes $250,000,000 for each fiscal year during the three-year program period.
  • Of those annual funds, 5 percent is to be used for the evaluation and 5 percent for technical assistance to lead agencies.
  • The Secretary’s grant to a State generally equals the State’s Federal medical assistance percentage of the amounts the lead agency pays for child care under the pilot or for administering the program, subject to availability of funds.
  • No State may receive more than $20,000,000 in total under this grant provision. Not more than 10 percent of a State’s grant may be used for administrative expenses.
  • Under the cost-sharing model, eligible child care charges are divided into three equal shares: parent, participating employer, and lead agency. The parent and employer jointly reimburse the lead agency for two-thirds of the charges.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.