Child Care Reauthorization: A Side-by-Side Comparison of Child Care Provisions in House and Senate Versions of H.R. 4, S. 880, and Current Law

CRS Report for Congress
Child Care Reauthorization: A Side-by-Side
Comparison of Child Care Provisions in H.R. 4,
th
S. 880 (108 Congress), and Current Law
Updated January 3, 2005
Melinda Gish
Specialist in Social Legislation
Domestic Social Policy Division


Congressional Research Service ˜ The Library of Congress

Child Care Reauthorization: A Side-by-Side
Comparison of Child Care Provisions in H.R. 4,
S. 880 (108th Congress), and Current Law
Summary
The 108th Congress did not complete action to reauthorize child care legislation
that expired at the end of FY2002, but funding has continued via a series of
temporary measures, and annual appropriations. “Child care reauthorization” is
composed of two parts: legislation to reauthorize the Child Care and Development
Block Grant (CCDBG) Act and legislation to extend mandatory funding appropriated
under Section 418 of the Social Security Act.
In February 2003, the House passed a consolidated bill, H.R. 4, which
encompassed both parts of reauthorization by including provisions that would have
addressed mandatory appropriations, discretionary funding authorization levels, and
other amendments to the CCDBG Act. The Senate Finance Committee reported its
own version of H.R. 4, which included mandatory child care funding, and the Senate
Health, Education, Labor, and Pensions (HELP) Committee reported a separate bill,
S. 880, which included all provisions pertaining to discretionary funding
authorization, and amended the CCDBG Act itself. The full Senate began
consideration of H.R. 4 on March 29, 2004, passing one amendment to it (to increase
child care funding), but then failed to resume consideration of the bill.
Both versions of H.R. 4 originally proposed to appropriate $2.917 billion in
mandatory CCDBG funding for each of fiscal years 2004 through 2008, which would
have reflected an increase of $1 billion over five years above current (FY2002)
funding. (The amendment approved on the Senate floor would have provided an
additional $6 billion, on top of the $1 billion.) Discretionary funding levels are
authorized within the CCDBG Act, and both the House version of H.R. 4 and S. 880
proposed to authorize $2.3 billion in FY2004, rising up to $3.1 billion in FY2008.
Also of note, H.R. 4 (House) would have allowed states to transfer up to 50% of their
TANF block grants to the CCDBG (rather than current law’s limit of 30%).
Both H.R. 4 (House) and S. 880 would have revised and expanded the CCDBG
program goals to include and emphasize school readiness. Of the two bills, S. 880
provided the greater detail in terms of defining the skills and development to be
fostered in efforts to prepare children for school. Both bills included provisions to
increase the minimum quality set-aside from 4% to 6%, and to define “quality
activities” in more detail.
Both bills proposed to eliminate the federal eligibility ceiling (85% of state
median income); and to place new requirements on state plans to emphasize
coordination, consumer education, and program quality. S. 880 would have also
strengthened requirements (currently only in regulation) that states set provider
payment rates in accordance with a recent market rate survey. Other provisions in S.

880 included amending the list of data elements collected on a monthly basis;


enhancing security at federal child care facilities, and establishing a small business
child care grant program. This report provides a side-by-side comparison of the
proposed bills, and will not be updated.



Contents
In troduction ......................................................1
Summary of Provisions.............................................2
Funding .....................................................2
Discretionary Authorization..................................2
Mandatory Appropriation...................................2
Authority to Transfer TANF Funds............................3
Use of Funds for Direct Services..............................3
Option to Use Excess Funds for Increasing Payment Rates.........3
Quality Activities..............................................3
Quality Set-Aside..........................................3
Definition of “Quality Activities”.............................3
Eligibility ....................................................4
State Plan Requirements........................................4
Data Collection and Reporting Requirements........................4
Other Provisions ..............................................5
Detailed Comparison of Child Care Provisions of both House and Senate
Versions of H.R. 4, S. 880, and Current Law........................5
Short title ........................................................6
Goals ...........................................................6
Authorization of appropriations ......................................7
Application and plan ...............................................8
Consumer education information .................................8
Payment rates ................................................8
Coordination .................................................9
Certification of compliance with quality set-aside percentage ..........10
Strategy for addressing quality of child care available ................10
Addressing special needs child care ..............................10
Meeting the needs of TANF population ...........................11
Redetermination procedures; protection for working parents ...........11
Description of requirements for training in early childhood
development ............................................11
Use of funds for a resource and referral system .....................12
Use of funds for direct services ..................................12
Activities to improve the quality of child care ..........................13
Funding ....................................................13



Definitions ..................................................13
Training and professional development .......................13
School readiness activities .................................13
Provider retention and compensation .........................14
Other ..................................................14
Certification requirements .....................................14
Report by Secretary ...............................................15
Frequency ..................................................15
Content ....................................................15
Submission deadline and other requirements .......................16
Use of resource and referral organizations for data collection ..........16
Definition of income eligibility ......................................16
Entitlement funding ..............................................17
Puerto Rico......................................................17
Transfer of TANF funds to CCDBG..................................17
Lead agency designation ...........................................18
Optional priority use of additional funds ..............................18
Reports and audits ................................................18
Quarterly reports .............................................18
Annual reports ...............................................19
Amounts reserved ................................................20
Territories and tribes ..........................................20
Infants and toddlers; telephone hotline ............................20
Rule of construction ..............................................20
Enhancing security at child care centers in federal facilities ...............21
Small business child care grant program ..............................21
List of Tables
Table 1. Comparison of Current Law with Child Care Provisions in H.R. 4
as Passed by the House, as Reported by the Senate Finance Committee,
and S. 880....................................................6



Child Care Reauthorization:
A Side-by-Side Comparison of Child Care
Provisions in H.R. 4, S. 880
th
(108 Congress), and Current Law
Introduction
“Child care reauthorization” is composed of two parts: legislation to reauthorize
the Child Care and Development Block Grant (CCDBG) Act and legislation to
extend mandatory funding appropriated under Section 418 of the Social Security Act.
The CCDBG Act authorizes discretionary funds and contains all provisions
pertaining to the administration of CCDBG programs. Section 418 of the Social
Security Act appropriates mandatory money to be administered under provisions
included in the CCDBG Act.
The 108th Congress did not complete action to reauthorize either the CCDBG
Act itself, or the mandatory child care funding appropriated under the Social Security
Act (along with the Temporary Assistance for Needy Families block grant). Both
expired at the end of FY2002. However, funding for the CCDBG has been continued
via a series of temporary extensions (in the case of the mandatory funding) and
annual appropriations law (for the discretionary funding portion).
In terms of reauthorization legislation, the House passed a consolidated bill,
H.R. 4 (Personal Responsibility, Work, and Family Promotion Act of 2003), which
included discretionary funding authorization, a mandatory appropriation, and
amendments to the CCDBG Act (alongside provisions to amend and extend funding
for Temporary Assistance for Needy Families [TANF]1).
In the Senate, two separate bills were reported from their respective committees,
but ultimately failed to reach a final vote on the full Senate floor. The Senate
Finance Committee’s reported substitute version of H.R. 4 (Personal Responsibility
and Individual Development for Everyone Act [PRIDE]) included mandatory funding
for child care, while the Senate Health, Education, Labor, and Pensions Committee’s
reported bill, S. 880 (The Caring for Children Act of 2003), included all provisions
pertaining to discretionary funding authorization, and would have amended the


1 For a discussion of TANF provisions in the House and Senate versions of H.R. 4, see CRS
Report RL32210, TANF Reauthorization: Side-by-Side Comparison of Current Law and
Two Versions of H.R. 4, by Vee Burke and Gene Falk.

CCDBG Act itself. Although the Senate bills never made it to a final floor vote, it
should be noted that when the legislation was brought to the floor, one amendment,
offered by Senator Snowe, was accepted (78-20). That amendment proposed to
increase mandatory child care funding above the amounts proposed in the House-
passed, and Senate committee bill. Below is a summary of key provisions in all three
bills (and the Snowe amendment, as passed on the floor), followed by Table 1, a2
detailed side-by-side comparison of each bill’s provisions with current law.
Summary of Provisions
Funding
Discretionary Authorization. The discretionary portion of child care
funding is authorized by the Child Care and Development Block Grant Act (as
amended in 1996). Under current law, discretionary CCDBG funding is authorized
at $1 billion annually. However, actual appropriation levels, determined during the
annual appropriations process, have exceeded the authorized level (e.g., FY2004 =
$2.1 billion). Both the House version of H.R. 4 (The Personal Responsibility, Work,
and Family Promotion Act of 2003), and S. 880 (The Caring for Children Act of
2003) proposed to authorize discretionary funding at $2.3 billion in FY2004, rising
by $200 million each year, up to $3.1 billion in FY2008. (The discretionary funding
authorization does not fall under the Senate Finance Committee’s jurisdiction, and
therefore was not addressed in the Senate committee-reported version of H.R. 4.)
Mandatory Appropriation. Mandatory funding for the CCDBG was
preappropriated in Section 418 of the Social Security Act for FY1997-2002, as part
of the welfare law of 1996 (P.L. 104-193). A series of temporary extensions have
continued that funding since the close of FY2002. Funding has been maintained at
the FY2002 annual rate of $2.717 billion.
The House-passed version of H.R. 4 would have set mandatory child care
funding at $2.917 billion for each of FY2004-2008 (for an increase of $1 billion over
five years above current funding). The version of H.R. 4 reported by the Senate
Finance Committee contained the same $1 billion increase in mandatory child care
funding over five years; however, Senator Snowe expressed plans at the time of
voting for the committee bill to offer an amendment for a greater child care increase
when the bill was brought to the Senate floor. (The mandatory funding does not fall
under Senate HELP Committee jurisdiction, and therefore was not addressed in S.

880.)


When the bill was considered on the floor (March 30, 2004), S.Amdt. 2937
(Snowe) was offered and approved by a vote of 78-20. The amendment would have
provided an additional $6 billion (over five years) in mandatory child care funding,
above the $1 billion ($200 million in each of five years) provided in the underlying
bill, H.R. 4 (as passed by the House, and as passed by the Senate Finance


2 For a general discussion of child care legislation in the 108th Congress, see CRS Report
RL31817, Child Care Issues in the 108th Congress, by Melinda Gish.

Committee). The additional $6 billion would have been allotted among the years as
follows: $700 million in FY2005; $1 billion in FY2006; $1.2 billion in FY2007; $1.4
billion in FY2008; and $1.7 billion in FY2009.
Authority to Transfer TANF Funds. Under current law, states have the
authority to transfer up to 30% of their annual TANF block grant to the CCDBG
(only 20% if they choose to transfer 10% to the Social Services Block Grant). The
House-passed version of H.R. 4 would have allowed states to transfer up to 50% of
their annual TANF grants to the CCDBG. The Senate version of H.R. 4 proposed to
maintain current law.
Use of Funds for Direct Services. Current law includes no provision
requiring a given percentage of funds appropriated under the CCDBG Act to be spent
on direct services. S. 880 would have required that after the reservation of set-asides,
at least 70% of the funds remaining be used to fund direct services (as defined by the
state). The House bill had no comparable provision.
Option to Use Excess Funds for Increasing Payment Rates. S. 880
would have allowed states that receive funding above their FY2003 levels to use a
portion of the excess to support payment rate increases for providers and to establish
tiered payment rates. Under S. 880, stricter requirements to set payment rates in
accordance with biennial market rate surveys would have been added to the statute.
Quality Activities
Quality Set-Aside. Current law requires that at least 4% of each state’s total
CCDBG expenditures (from all sources — e.g., mandatory, discretionary, matching
funds) be used for quality activities, described as: providing comprehensive
consumer education to parents and the public, activities that increase parental choice,
and activities designed to improve the quality and availability of child care in the
state.
Both the House-passed version of H.R. 4 and the HELP Committee’s S. 880
would have raised the percentage of CCDBG funds that must be spent for quality
activities to a minimum of 6%.
Definition of “Quality Activities”. Both bills provided greater detail than
current law in terms of defining what classifies as a “quality activity.” In each,
categories of activities were outlined to include school readiness activities (including
activities to enhance early literacy); training and professional development for staff;
and initiatives or programs to promote or increase retention of qualified staff. The
categories reflected a new emphasis on school readiness as a goal of the CCDBG.
The Senate bill (S. 880) also specified that quality funds could have been spent on
evaluating and assessing the quality of programs, and their effectiveness in improving
overall school preparedness. While S. 880 clearly stated that quality funds must be
spent for any of the six listed purposes, H.R. 4 (House) provided three broad
categories, similar in topic to those in S. 880, with a fourth, more general category
of “other activities as approved by the state.”



Eligibility
Federal law currently requires that children eligible for services under the
CCDBG must have family income that does not exceed 85% of the state median (for
a family of that size). However, states have the discretion to adopt income eligibility
limits below this federal maximum. Both the House-passed version of H.R. 4 and
S. 880 proposed to eliminate the federal maximum of 85% of state median income
(SMI) from the CCDBG law, replacing it with a provision allowing states to set
income eligibility levels (with no federal ceiling), with priorities based on need.
State Plan Requirements
Under current CCDBG law, states are required to submit plans every two years,
certifying that their CCDBG programs include specified elements addressing areas
such as parental choice, parental access, consumer education, licensing, and health
and safety requirements.
Both the House version of H.R. 4 and the HELP Committee’s S. 880 would
have amended current law to require that additional elements be certified in their
state plans. Areas that would have been modified or added related to providing
consumer education information; describing or demonstrating state coordination of
child care services with other early childhood education programs; certifying
compliance with the quality set-aside percentage requirement; and addressing special
needs child care.
Unlike the House version of H.R. 4, S. 880 included provisions requiring that
in their state plans, states demonstrate that the process for redetermining eligibility
occur no more frequently than every six months (with limited exceptions), and also
that the state plan describe any training requirements in effect for child care
providers. The Senate bill would also have put into statute the requirement that the
provider payment rates, described in the state plan, be set in accordance with a
statistically valid and reliable biennial survey of market rates (without reducing the
number of families served). State plans would also have been required to include the
results of those surveys and to contain a description of how the state will provide for
timely payment to providers. Results of the survey would also have been required
to be made available to the public no later than 30 days after the survey’s completion.
Data Collection and Reporting Requirements
Current law specifies a set of data reporting requirements for states to collect in
the administration of their CCDBG programs. States collect data on a monthly basis
and submit to the Department of Health and Human Services (HHS) disaggregated
data on a quarterly basis. An aggregate report is required to be submitted to HHS on
an annual basis.
S. 880 would have retained the quarterly reporting in current law, but would
have amended the list of data elements that states would be required to collect on a
monthly basis. (See Table 1 for details.) It would also have eliminated the separate
annual report, instead requiring that the fourth quarterly report include information



on the annual number and type of child care providers and the method of payment
they receive. The House version of H.R. 4 would have retained current law,
containing none of these provisions.
Other Provisions
Titles II and III of S. 880 proposed provisions that stood apart from CCDBG law
or Section 418 of the Social Security Act. Title II of the bill contained provisions to
enhance security at child care centers in federal facilities, and Title III would have
established a small business child care grant program, through which competitive
grants would have been awarded to states for establishment and operation of
employer-operated child care programs.
Detailed Comparison of Child Care Provisions
of both House and Senate Versions of
H.R. 4, S. 880, and Current Law
Table 1 provides a detailed comparison of the child care provisions included in
the House-passed and Senate Finance Committee-reported versions of H.R. 4, the
Senate HELP Committee-reported S. 880, with current law. In some cases, current
law refers to the Child Care and Development Block Grant Act, while current law
provisions pertaining to the mandatory child care funding are included in Section 418
of the Social Security Act. The bracketed references in each of the cells refer to the
section of the applicable law or proposed bill. In the section regarding the
mandatory (entitlement) funding, the Snowe amendment, as passed during the short-
lived Senate floor consideration is noted.



CRS-6
Table 1. Comparison of Current Law with Child Care Provisions in H.R. 4 as Passed by the House,
as Reported by the Senate Finance Committee, and S. 880
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
ort titleSocial Security Act includesPersonal Responsibility, Work, andThe Personal Responsibility andThe Caring for Children Act of
provisions for mandatory funding.Family Promotion Act of 2003.Individual Development for2003. [Section 1]
[Section 418]Title II of this bill is entitled theEveryone Act. No separate title for
Child Care and Development BlockCaring for Children Act of 2003.child care. (Child care provisions
Grant Act of 1990, as amended,[Section 201]are included in Section 116 of Title
includes discretionary fundingI.)
authorization, and program
provisio ns.
iki/CRS-RL32241sThe five goals of the CCDBG are:Amends the third goal of theNo provisions.Same as House bill.


g/w(1) to allow states the maximumCCDBG toassist” states to provide
s.orflexibility in developing child careconsumer education information
leakprograms; (2) to promote parental(rather than to “encourage” states).
choice for working parents makingModifies fourth goal, eliminating
://wikichild care decisions; (3) tospecific reference to providing child
httpencourage states to provideconsumer education information tocare for parents trying to achieveindependence from public
help parents make informed childassistance, and replacing with
care choices; (4) to assist states toproviding child care to low-income
provide child care to parents tryingparents.
to achieve independence from
public assistance; and (5) to assist
states in implementing the health,
safety, licensing, and registration
standards established in state
regulations. [Section 658A of
CCDBG Act]

CRS-7
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
Adds two new goals for theAdds three new goals to the
CCDBG: (1) to encourage states toCCDBG: (1) to assist states in
improve the quality of child careimproving the quality of child care
available to families; and (2) toavailable to families (same as House
promote school readiness. [Sectionbill); (2) to promote school
202]preparedness by encouraging
children, families, and caregivers to
engage in developmentally
appropriate and age-appropriate
activities in child care settings that
will — (a) improve the childrens
social, emotional, and behavioral
iki/CRS-RL32241skills; and (b) foster their earlycognitive, pre-reading, and language
g/wdevelopment (more detailed than
s.orHouse bill); and (3) to promote
leakparental and family involvement in
the education of young children in
://wikichild care settings. [Section 101]
http
thorization ofThe CCDBG Act authorized $1Authorizes discretionary funding forNo provision.Same as House bill (although Senate
propriationsbillion in discretionary CCDBGthe CCDBG at the following levels:bill does not include a funding level
funding for each of fiscal yearsFY2003 = $2.1 billionfor FY2003). [Section 102]


1996-2002. (Actual appropriationsFY2004 = $2.3 billion
in recent years have surpassedFY2005 = $2.5 billion
authorized levels. Most recently,FY2006 = $2.7 billion
for FY2004, with an expiredFY2007 = $2.9 billion
authorization, $2.1 billion wasFY2008 = $3.1 billion
appropriated.) [Section 658B of[Section 203]
CCDBG Act]

CRS-8
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
tion and plan
nsumer educationIn order for a state to be eligible toAmends current law to specify thatNo provision.Same as House bill, with an
ormationreceive CCDBG funds, it mustresource and referral services andadditional requirement that the state
submit an application and plan thatother means be used for thereport to the Secretary (of HHS)
meet with approval from HHS.collection and dissemination ofboth the manner in which the
Among other things, the state planconsumer education information, andconsumer information was provided,
certifies that the state will collectthat child care providers beand the number of parents to whom
and disseminate to parents ofrecipients of this information (init was provided during the period of
eligible children and the generaladdition to parents and the generalthe previous state plan. [Section
public, consumer educationpublic). Information is outlined to104]
information that will promoteinclude: information about quality
iki/CRS-RL32241informed child care choices.[Section 658E(c)(2)(D) of CCDBGand availability of child care;research and best practices on
g/wAct]childrens development; and other
s.orassistance programs for which
leakfamilies receiving child care services
may be eligible. [Section 204]
://wiki
httpent ratesStates must certify in their stateNo provision (retains current law).No provision.Requires state plan to demonstrate
plans that CCDBG providerthat the state has developed and
payment rates are sufficient toconducted a statistically valid and
ensure families receiving subsidiesreliable market rate survey for child
have equal access to comparablecare services within the two years
child care services in the stateprior to its submission. The state
provided to non-CCDBG-eligiblewill also detail the results of the
children. States are also required tomarket rate survey; describe how the
provide a summary of the facts theystate will provide for timely
relied upon to determine that the setpayment for child care services, and
rates are sufficient to ensure equalset payment rates for child care
access. [Section 658E(c)(4)]services in accordance with the
survey results, without reducing the
(Note: Regulations require that thenumber of families in the state
above-mentioned summary of factsreceiving assistance. Eliminates the
be based on a local market raterequirement that the state submit a
survey conducted no more than twosummary of the facts relied upon to
years prior to the effective date ofdetermine that the set rates are



CRS-9
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
the currently approved plan.)sufficient to ensure equal access.
Results are to be made available to
the public no later than 30 days after
surveys completion. [Section 104]
No provision.No provision.No provision.Includes a rule of construction
stating that nothing shall prevent a
state from differentiating the
payment rates to providers on the
basis of geographic location, the age
or particular needs of children, and
whether the providers provide child
iki/CRS-RL32241care during weekend and other
g/wnontraditional hours.
s.or[Section 104]
leak
dination(While not required to be addressedAdds provision requiring the stateNo provision.Same as House bill, except
://wikiin the state plan under current law,plan to demonstrate how the statecoordination is to bedescribed
httpone the four stated duties of theCCDBG lead agency is towill coordinate child care serviceswith other early childhoodrather thandemonstrated,” andadditional programs specified to be
coordinate the provision of CCDBGeducation programs, to expandcoordinated with include Title I
services with other federal, state,accessibility to and continuity ofpreschool programs and programs
and local child care and earlycare and early education withoutunder IDEA Section 619 and Part C.
childhood development program.)displacing services provided by the[Section 104]
[Section 658D(b)(1)(D)]current system. [Section 204]
Adds provision requiring the stateNo provision.Same as House bill, except the state
plan to demonstrate how the stateplan is to “describe” rather than
encourages partnerships withdemonstrate,” and this bill specifies
private and other public entities tothat the child care services provided
leverage existing service deliverybe for children age 13 and under.
systems and increase the supply and[Section 104]


quality of child care. [Section 204]

CRS-10
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
ication ofRegulations require that the stateAdds provision requiring state planNo provision.Certification is not required as part
mpliance withplan describe activities a stateto certify (every two years) itsof state plan, however, states are
ality set-asideintends to fund withquality set-compliance with the quality set-required annually to provide the
centageaside” money, but neither law noraside percentage requirement,Secretary with certification
regulation requires certification ofincluding a description of the use ofregarding compliance with quality
compliance.funds, beginning in FY2004 (for theactivity requirements. (See “quality
preceding fiscal year). [Sectionactivities” provision below.)
204]
tegy forNo provision.Adds provision requiring state planNo provision.Requires same information as House
essing quality ofto outline the strategy the state willbill, but as an annual submission to
ild care availableimplement to address the quality ofthe Secretary, rather than in the state
iki/CRS-RL32241child care services available to low-income families from eligibleplan. [Section 105]
g/wproviders. The strategy is to include
s.ora description of quantifiable,
leakobjective measures for evaluating
progress in quality improvement,
://wikiand a list of state-developed targets
httpfor the plans fiscal year. For each
year after FY2004, the plan shall
include a progress report with
respect to achieving the targets.
[Section 204]
dressing specialNo provision.Adds provision requiring state planNo provision.Same as House bill. [Section 104]


child careto demonstrate how the state is
addressing the needs of eligible
parents who have children with
special needs; work non-traditional
hours; or require child care for
infants or toddlers. [Section 204]

CRS-11
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
ofIn their state plans, states mustNo provision.No provision.The state plan must also describe
NF populationdemonstrate the manner in whichhow the state will inform parents
the specific child care needs ofreceiving TANF, and other low-
families on, leaving, or at-risk ofincome parents, about eligibility for
receiving TANF will be met. CCDBG assistance. [Section 104]
[Section 658E(c)(2)(H)]
eterminationNo provision.No provision.No provision.State plan must demonstrate that
ocedures;redetermination of eligibility for
otection forassistance is not to be conducted any
rking parentsmore frequently than every six
months, except in the case of a
iki/CRS-RL32241parents loss of employment. Statesare given the option of
g/wdemonstrating that they will not
s.orterminate child care assistance based
leakon a parents loss of work without
first continuing assistance for at
://wikileast one month while the parent
httplooks for work.
Also requires the state plan to show
that procedures and policies are in
place to ensure that working parents
are not required to unduly disrupt
their employment in order to comply
with the state’s requirements for
eligibility and re-determination.
[Section 104]
scription of No provision.No provision.No provision.Requires state plan to describe any
quirements fortraining requirements in effect that
ining in earlyare applicable to CCDBG providers
hoodand that are designed to enable child
entcare providers to promote the social,
emotional, physical, and cognitive
development of children. [Section



CRS-12
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
104]
of funds for aCurrent law broadly states thatNo provision.No provision.Adds specific language to current
source and referralCCDBG funds are to be used forlaw regarding use of funds: allows
stemchild care services, activities thata state to use CCDBG funds to
improve the quality or availabilityestablish or support a system of
of such services, and any otherlocal child care resource and referral
activity that the state deemsorganizations coordinated by a
appropriate to realize the goals ofstatewide private, non-profit,
the program. [Sectioncommunity-based lead child care
658E(c)(3)(B)]resource and referral organization.
The resource and referral
iki/CRS-RL32241organizations will provide parentswith information on child care
g/woptions; and collect and analyze data
s.oron supply and demand for child care
leakin political subdivisions within the
state, and submit reports to the state.
://wiki[Section 104]
http
f funds forNo provision.No provision.No provision.Requires that after reservation of
ect servicesset-asides, at least 70% of funds
remaining must be used to fund
direct services (as defined by the
state). [Section 104]



CRS-13
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
tivities to improve
e quality of child
ingNot less than 4% of a states annualIncreases the “quality set-aside” toNo provision.Same as House bill. [Section 105]
funding for the CCDBG is to benot less than 6%. [Section 205]
used for quality activities (described
below). [Section 658G of CCDBG
Ac t ]
initionsThe law describes funded activitiesProvides more detail than currentNo provision.Similar to House bill with respect to
as those designed to providelaw, specifying four categories ofsome categories of activities, but
comprehensive consumer educationquality activities (see below).greater detail in others (see below).
iki/CRS-RL32241to parents and the public, activitiesSenate bill specifies that quality
g/wthat increase parental choice, andfunds be used only for the listed
s.oractivities designed to improve thepurposes (see below).
leakquality and availability of child care
(such as resource and referral
://wikiservices). [Section 658G of
httpCCDBG Act]
raining and(1) programs providing training,(1) Same as House bill.
ofessionaleducation and other professional
ent)development for child care workers;
chool readiness(2) activities within child care(2) develop and implement
tivities)settings to enhance early learning,voluntary guidelines on pre-reading
early literacy, and school readiness;and language skills and activities
that are aligned with state goals for
school preparedness;
(3) support activities and provide
technical assistance in child care
settings to enhance early learning
for young children, to promote
literacy, and to foster school
preparedness;



CRS-14
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
rovider retention(3) initiatives to increase the(4) engage in programs designed to
d compensation)retention and compensation of childincrease the retention and improve
care providers, including tieredthe competencies of child care
reimbursement rates for providers;providers, including wage incentive
andprograms and initiatives that
establish tiered payment rates for
providers that meet or exceed child
care services guidelines, as defined
by the state;
her)(4) other activities as approved by(5) evaluate and assess the quality
the state.and effectiveness of child care
iki/CRS-RL32241programs and services on improvingoverall school preparedness; and
g/w
s.or(6) carry out other activities
leakdetermined by the state to improve
the quality of child care services for
://wikiwhich measurement of outcomes
httprelating to improved child safety,
child well-being, or school
preparedness is possible.
icationRegulations require that the stateAs stated above, adds provisionNo provision.Requires that beginning with
quirementsplan describe activities a staterequiring state plan to certify (everyFY2004, the state will certify
intends to fund withquality set-two years) its compliance with theannually to the Secretary its
aside” money, but neither law norquality set-aside percentagecompliance with the quality activity
regulation requires certification ofrequirement, including a descriptionrequirements; will describe how the
compliance.of the use of funds, beginning instate used quality funds during the
FY2004 (for the preceding fiscalpreceding year; will outline the
year). [Section 204]states strategy for addressing the
quality of child care in the state,
including a description of
quantifiable, objective measures,
that the state will use to evaluate the
state’s progress in improving child



CRS-15
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
care services. Beginning in
FY2005, the state will submit a
report on its progress in achieving
targets for the preceding fiscal year.
[Section 105]
uencyThe Secretary of HHS is required toAmends current law to require thatNo provision.Amends current law to replace
prepare and submit a biennial reportthe biennial report to Congressbiennial report to Congress with an
to Congress.contain additional elements (seeannual report (see below for
belo w) . contents).
iki/CRS-RL32241ntentThe biennial report includes aAdds new required contents to beLike the House bill, adds a new
g/wsummary and analysis of the dataincluded in the biennial report:requirement that aggregated
s.orsubmitted by states (as required byaggregated statistics on the supplystatistics on the supply of, demand
leakSection 658K). The report is also toof, demand for, and quality of childfor, and quality of child care, early
include an assessment, and wherecare, early education, and non-education, and non-school-hours
://wikiappropriate, recommendations forschool-hours programs. [Sectionprograms be included in a report to
httpthe Congress with respect toimproving the access of quality and206]HHS. However, under this bill thereport would be submitted annually
affordable child care. [Sectionrather than biennially.
658L of CCDBG Act]
Also requires that the following
additional information be included:
— a summary and analysis of the
data and information provided to the
Secretary in the state plan (Section
658E), the strategy addressing
quality activities (Section 658G(c)),
and the quarterly reports (Section
658K).
a progress report describing the
progress of the states in streamlining



CRS-16
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
data reporting, the Secretarys plans
and activities to provide technical
assistance to states, and an
explanation of any barriers to
getting data in an accurate and
timely manner. [Section 108]
bmission deadlineCurrent law required first report notReport will continue to be submittedNo provision.Report will be required annually,
d otherlater than July 31, 1998, andbiennially, as under current law, butbeginning with the first submitted
quirementsbiennially thereafter. [Sectionwill be required to include the newno later than April 30, 2004.
658L] aggregated information (described
above) beginning with reportAlso, not later than 30 days after the
iki/CRS-RL32241submitted no later than October 1,2005. [Section 206]date of such submission, the reportis required to be posted on the HHS
g/w we b site.
s.or
leake of resource andNo provisionIn order to collect this newlyNo provision.Same as House bill. [Section 108 -
erral organizationsrequired information, the billNational Activities”]
://wiki data collectionauthorizes the Secretary to use the
httpnational child care data system
available through resource and
referral organizations. [Section
206]
finition of incomeUnder federal law, the maximumEliminates the federal maximumNo provision.Same as House bill. [Section 110]


ibilityfamily income of a CCDBG-eligibleincome limit of 85% of state median
child may not exceed 85% of itsincome, and allows each state to
state median income for a family ofestablish income eligibility levels,
the same size. (States may set theirprioritized by need (as defined by
own eligibility levels below thethe state). [Section 207]
federal maximum.) [Section
658P(4)(B)]

CRS-17
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
itlement fundingEntitles states to a basic block grantAppropriates $2.917 billion inAppropriates $2.917 billion inNo provision.
based on FY1992-FY1995entitlement (mandatory) funds forentitlement (mandatory) funds for
expenditures in welfare-relatedeach of fiscal years 2004 througheach of fiscal years 2004 through
child care. Mandatory funds above2008. [Section 208]2008. [Section 116]
this amount are provided to states
on a matching basis. AppropriatesNote: Although the full Senate did
entitlement (mandatory) funds fornot complete debate of H.R. 4,
FY1997 through FY2002 ($2.717during its consideration, one
billion for FY2002). Funding foramendment (offered by Senator
FY2003 and the first two quarters ofSnowe) did pass (78-20). That
FY2004 has been extended byamendment would have provided an
continuing resolutions on aadditional $6 billion (over five
iki/CRS-RL32241temporary basis, at the FY2002 rate.[Section 418 of the Social Securityyears) in mandatory funds, abovethe $1 billion additional provided in
g/wAct; and most recent extension P.L.the committee-passed bill. The
s.or108-89]additional $6 billion would have
leakbeen allotted among the years as
follows: $700 million in FY2005;
://wiki$1 billion in FY2006; $1.2 billion in
httpFY2007; $1.4 billion in FY2008;
and $1.7 billion in FY2009.
to RicoPuerto Rico receives no entitlementNo provision.Reserves $10 million of each year’sNo provision.
(mandatory) child care fundingentitlement (mandatory)
under current law.appropriation (FY2004-2008) for
Puerto Rico to use in providing
child care assistance.
ansfer of TANFStates may transfer up to 30% ofThe allowable transfer of the TANFNo provision.No provision.


CCDBGtheir annual TANF block grants toblock grant to CCDBG is increased
the CCDBG. (The maximum isfrom 30% to 50%. [Section 107(c)]
20% if a state opts to transfer 10%
of its TANF grant to the Social
Services Block Grant.) [Section
404(d)(1) of Social Security Act]

CRS-18
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
ad agencyThe chief executive officer of a stateNo provision.No provision.Allows a state receiving CCDBG
signationdesignates an appropriate statefunds to designate an agency (which
agency as the lead agency. [Sectionmay be a collaborative agency), or
658D(a) of the CCDBG Act]establish a joint interagency office to
serve as the lead agency for the
state. [Section 103]
tional priority useNo provision.No provision.No provision.Amends the CCDBG Act to add
additional fundsSection 658H, which would allow
states that receive funding of an
amount greater than that received in
FY2003, to use a portion of the
iki/CRS-RL32241excess to support payment rateincreases and to establish tiered
g/wpayment rates. [Section 106]
s.or
leakrts and audits
://wikiarterly reportsStates receiving CCDBG funds areNo provision (retains current law).No provision.Retains quarterly reporting of
httprequired to report to the Secretaryon a quarterly basis the followingcurrent law, but amends the list ofdata elements that states are required
data collected monthly with respectto collect on a monthly basis.
to CCDBG families: family income;Changes include requiring that
county of residence; gender, race,states: show the cost of each
and age of child(ren) receivingfamilys subsidy broken down into
assistance; sources of family incomesubsidy amount and co-payment
(including employment, TANF,amount; report household size;
housing assistance, Food Stamps,identify the reason for any
and other programs); duration oftermination in benefit; and report
benefit receipt; type of child carewhether the child has an
used; cost of child care; and averageindividualized education plan.
number of hours of child care. InStates no longer would report
order to collect data, states may usereceipt of housing assistance or food
sampling methods (approved by thestamps. [Section 107]


Secretary). [Section 658K]

CRS-19
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
l reportsStates must submit annual reports ofNo provision (retains current law).No provision.Eliminates separate annual report,
aggregate data concerning numberbut requires in fourth quarterly
of providers that received CCDBGreport of each year that the state
funding; monthly cost of child caresubmit information on the annual
services, and the portion paidnumber and type of child care
through subsidy; the number ofproviders that received funding
payments made through vouchers;under this subchapter and the annual
the manner in which consumernumber of payments made by the
education information wasstate through vouchers, under
provided, and the number of parentscontracts, or by payment to parents,
receiving it; and the totalby type of child care provider.
unduplicated number of children[Section 107]
iki/CRS-RL32241and families served during thereporting period. [SectionInformation on the number of
g/w658K(a)(2)]children and families receiving
s.orCCDBG assistance is to be posted
leakon the website of each state.
[Section 107]
://wiki
httpStates must comply with the changes
in data collection and reporting
requirements within two years from
the date of this Act’s enactment. A
waiver can be granted (by HHS) to
states with plans to procure data
systems. [Section 107]



CRS-20
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
ounts reserved
ries and tribesCurrent law provides for theNo provision (retains current law).No provision.No provision. (Retains current law
following reservation of funds fromset-asides for territories and tribes.)
the total CCDBG discretionary
appropriatio n:
Up to one half of 1% annually for
payments to Guam, American
Samoa, the Virgin Islands, and
Northern Mariana Islands;
Not less than 1% and not more than
iki/CRS-RL322412% for Indian tribes and tribal
g/worganizations. [Section 658]
s.or
leakfants and toddlers;hone hotlineThe CCDBG Act itself does notcontain any specific provision toNo provision.No provision.Amends Section 658 of the CCDBGAct to require the Secretary to
://wikireserve funds for increasing infantand toddler care, however,reserve an amount not to exceed$100 million each fiscal year for
httpappropriations law (for FY2004,improving quality of and access to
P.L. 108-199) includes $100 millioncare for infants and toddlers. Also
from the discretionary CCDBGrequires an amount not to exceed $1
appropriation for states to increasemillion to be reserved for a national
the supply of quality care for infantstoll-free child care hotline. [Section
and toddlers, as well as $1 million109 — Grants and Hotline]
for the Child Care Aware toll free
ho tline.
f constructionNo provision.No provision.No provision.Amends CCDBG Act to include a
rule of construction stating that
nothing in the act shall be construed
to require a state to impose state
child care licensing requirements on
any type of early childhood
provider, including any such



CRS-21
H.R. 4 (Senate Finance
Current lawH.R. 4 (House-passed)Committee)S. 880 (Senate HELP Committee)
provider who is exempt form state
child care licensing requirements on
the date of enactment of the Caring
for Children Act of 2003. [Section
111]
ncing securityCurrent law does not contain thisNo provision.No provision.This bill includes a separate title
title.with provisions aimed at enhancing
ederal facilitiessecurity at child care centers in
federal facilities. The bill requires
that the Administrator of General
Services, among others, issue
iki/CRS-RL32241regulations relating to emergencyplans and relocation sites. [Title II,
g/wSections 201 and 202]
s.or
leakall business childCurrent law does not contain thisNo provision.No provision.This separate title requires the
t programtitle.Secretary of HHS to establish a
://wikiprogram to award competitive grants
httpto states, which are to be used by
states (or eligible consortia of small
businesses or entities) to encourage
the establishment and operation of
employer-operated child care
programs. The section authorizes
$30 million for the period of
FY2004-2008 to carry out the
program. [Title III, Section 301]