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.
No publicly available information.
No publicly available information.