(a) In general

Section 418 of the Social Security Act (42 U.S.C. 618) is amended by adding at the end the following:

(e) Pilot program for cost-Sharing of child care expenses among employers, employees, and governments

(1) Competitive grants to lead agencies

(A) Applications

The lead agency of a State may apply for a grant under this subsection by submitting to the Secretary an application that includes—

(i)

information about which employers will participate, and how employers will be recruited to participate, in the program under this subsection;

(ii)

a certification that funds from the grant will not be provided to any child care provider who does not meet the health and safety requirements referred to in paragraph (10)(B); and

(iii)

a certification that 1/3 of the eligible child care costs with respect to an eligible child that are the subject of an application for benefits approved by the lead agency under this subsection will be paid by each of the following:

(I)

A parent of the child.

(II)

A participating employer of the parent.

(III)

The lead agency.

(B) Approval

The Secretary shall approve applications submitted pursuant to subparagraph (A) on the basis of—

(i)

the relative demonstrated unmet demand for affordable quality child care in States;

(ii)

the relative capacity of States to meet that unmet demand;

(iii)

the relative ability of States to identify specific employers committed to participate in the program under this subsection;

(iv)

the relative ability of States to provide detailed plans to recruit additional employers to so participate; and

(v)

the relative ability of States to ensure equitable statewide geographic access to affordable quality child care.

(C) Amount of grant

(i) In general

The Secretary shall provide to each lead agency whose application is approved under subparagraph (B) of this paragraph, for each calendar quarter in the program period, an amount equal to the Federal medical assistance percentage for the State for the fiscal year (as defined in section 1905(b), as such section was in effect on September 30, 1995) of the total of the amounts paid by the lead agency during the quarter under paragraph (4) of this subsection or for expenses of administering the program, subject to clauses (ii) and (iii) of this subparagraph and subject to the availability of funds to carry out this subsection.

(ii) Limitation on reimbursable administrative expenses

Not more than 10 percent of the amounts payable to a State under this subparagraph may be with respect to administrative expenses.

(iii) Limitation on amount of grant

The total of the amounts payable to a State under this subparagraph shall not exceed $20,000,000.

(2) Employer participation

(A) Application

A person who employs another person in a State may submit to the lead agency of the State an application to participate in the program carried out by the lead agency under this subsection.

(B) Approval

The lead agency may approve an application submitted pursuant to subparagraph (A).

(C) Consolidated applications for multiple States

The Secretary shall ensure that a person who applies to more than 1 lead agency pursuant to subparagraph (A) may submit a single consolidated application to all such lead agencies.

(3) Application for benefits

(A) In general

A parent of an eligible child employed in a State by a participating employer may submit to the lead agency of the State an application for benefits under this subsection, which shall include—

(i)

a joint attestation by the employer and the parent that, if the lead agency approves the application, the employer and the parent will each pay 1/3 of the eligible child care costs charged by an eligible child care provider during a specified period with respect to the child;

(ii)

the name and business address of the employer;

(iii)

the name and residential address of the parent;

(iv)

the name, age, and residential address of the child;

(v)

an attestation from the parent employee that the parent employee is employed by the employer; and

(vi)

sufficient information for the lead agency to verify—

(I)

that the parent is employed by the employer; and

(II)

the family income of the family of the parent and child, in each pay period.

(B) Consideration

In considering applications submitted pursuant to this subsection, a lead agency shall—

(i)

verify the matters described in subparagraph (A)(vi); and

(ii)

take into account the needs of the parents involved and the availability of funds provided to the lead agency under this subsection.

(C) Approval

The lead agency may approve an application submitted pursuant to subparagraph (A).

(4) Payments to child care providers

(A) In general

The lead agency shall pay to an eligible child care provider selected by a parent whose application is approved pursuant to paragraph (3) an amount equal to the charges of the provider for eligible child care costs incurred during the period specified in the application with respect to the eligible child identified in the application.

(B) Reimbursement by employer and employee

With respect to each such payment—

(i)

the parent and the employer of the parent shall jointly pay to the lead agency an amount equal to 2/3 of the charges of the eligible child care provider; and

(ii)

the parent may consent to the employer withholding an amount that is not more than 1/3 of the charges of the provider from the pay of the parent if the employer pays the total amount specified under clause (i) to the lead agency.

(C) Payment schedules

The lead agency shall—

(i)

offer more than 1 payment schedule for payments to eligible child care providers under subparagraph (A); and

(ii)

pay each provider in accordance with the schedule chosen by the provider.

(5) Administration

A lead agency to which a grant is made under this subsection may comply with this subsection through the use of technology platforms that connect employers, child care providers, parents, and the lead agency, and may allow a third party to administer the grant.

(6) Regulations

The Secretary may prescribe such regulations as the Secretary deems necessary and appropriate to carry out this subsection.

(7) No effect on CCDBG benefits

Eligibility for, and the amount of benefits received under, the program under this subsection shall not affect eligibility for, or the amount of benefits provided pursuant to, the Child Care and Development Block Grant Act of 1990.

(8) Termination

The program under this subsection shall terminate at the end of the program period.

(9) Evaluation; report

(A) Evaluation

The Secretary shall conduct an evaluation, developed by the Office of Planning, Research, and Evaluation of the Administration for Children and Families, of—

(i)

the cost-effectiveness of the program; and

(ii)

the effects of the program on—

(I)

hiring, employment, and employee retention; and

(II)

affordability of, and access to, child care;

(B) Report to Congress

Within 1 year after the end of the program period, the Secretary shall submit to the Committee on Ways and Means of the House of Representatives a written report that contains the results of—

(i)

the evaluation conducted under subparagraph (A);

(ii)

a description of the outcomes for the children involved in the program under this subsection; and

(iii)

a description of the metrics used in the evaluation.

(10) Appropriation

Out of any money in the Treasury not otherwise appropriated, there are appropriated to carry out this subsection $250,000,000 for each fiscal year ending in the program period, of which 5 percent shall be expended for the evaluation provided for in paragraph (8)(A) and 5 percent shall be expended to provide technical assistance to lead agencies in carrying out their functions under this subsection.

(11) Definitions

In this subsection:

(A) Eligible child

The term eligible child means an individual—

(i)

who has not attained the minimum age at which a child is required to enter kindergarten or elementary school under the law of the State in which the individual resides;

(ii)

who has a parent employed by a participating employer;

(iii)

with respect to the State in which the parent is employed, whose family income is not less than the State threshold for child care assistance and not more than 300 percent of the State threshold for child care assistance; and

(iv)

who is not being provided child care services for which financial assistance is provided pursuant to the Child Care and Development Block Grant Act of 1990.

(B) Eligible child care costs

The term eligible child care costs means the costs of providing child care services to an eligible child in accordance with all applicable State and local health and safety requirements as described in section 658E(c)(2)(I) of the Child Care and Development Block Grant Act of 1990.

(C) Eligible child care provider

The term eligible child care provider has the meaning given the term in section 658P(6) of the Child Care and Development Block Grant Act of 1990.

(D) Lead agency

The term lead agency means, with respect to a State, the agency designated or established by the State under section 658D(a) of the Child Care and Development Block Grant Act of 1990.

(E) Parent

The term parent, with respect to a child, includes a legal guardian, relative guardian, or foster parent of the child.

(F) Participating employer

The term participating employer means a person whose application to participate in the program under this subsection is approved under paragraph (2).

(G) Program period

The term program period means the 3-year period that begins with the effective date of this subsection.

(H) State threshold for child care assistance

The term State threshold for child care assistance means, with respect to the lead agency of a State, the maximum income limit for assistance funded pursuant to the Child Care and Development Block Grant Act of 1990 provided by the lead agency.

(b) Conforming amendments

Section 418 of such Act (42 U.S.C. 618) is amended—

(c) Transmission to Congress of information on feasibility of imposing child care cost-Sharing obligations of families on a sliding scale

The Secretary of Health and Human Services, acting through the Administration for Children and Families, shall collect and transmit to the Committees on Appropriations and on Ways and Means of the House of Representatives and the Committees on Appropriations and on Finance of the Senate information about the feasibility of imposing the child care cost-sharing obligations of families under section 418(e) of the Social Security Act on a sliding scale.

(d) Transfer of unobligated funds to the Preschool Development Grants Program

The unobligated balances of the amounts made available to carry out section 418(e) of the Social Security Act as of September 30 of each fiscal year shall be transferred to and merged with amounts made available on or after October 1 for the preschool development grants program under section 9212 of the Every Student Succeeds Act (42 U.S.C. 9831 note) for the following fiscal year.

(e) Effective date

The amendments made by this section shall take effect on the 1st day of the 1st Federal fiscal quarter that begins after the date of the enactment of this Act.