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1 1 (September 14, 2021)

handle is hein.crs/goveend0001 and id is 1 raw text is: Congressional *.Research Service informing the legisative debate since 1914____________________ Child Care: House Committee on Education and Labor Committee's FY2022 Reconciliation Recommendations September 14, 2021 On September 10, 2021, the House Committee on Education and Labor voted (28-22) to transmit a committee print, as amended, to the House Committee on the Budget. The committee print contains recommendations responding to the reconciliation directives in the FY2022 budget resolution (S.Con.Res. 14). Section 23001 of Subtitle D includes recommendations for a new Birth Through Five (B-5) Child Care and Early Learning Entitlement. According to the committee's fact sheet, this proposed child care entitlement program (highlights of which are discussed in this Insight) and a proposed universal preschool program (discussed separately in CRS Insight INXXXXX) are expected to cost a combined $450 billion throughout the reconciliation budget window. Appropriations Section 23001 recommends a three-year phase-in for the proposed B-5 Child Care and Early Learning Entitlement. Mandatory appropriations would be set at $20 billion in FY2022, $30 billion in FY2023, and $40 billion in FY2024. Funds would go to states, territories, Indian tribes, tribal organizations, and Urban Indian organizations. In addition, a capped amount of funds in specified years would be set aside for grants to eligible localities in states that have indicated they do not intend to submit an application and plan for funds under this section. For FY2025-FY2027, appropriations would be set at such sums as may be necessary, consistent with a goal of ensuring that funding in these years is sufficient to serve all eligible children whose families seek assistance. States (including the District of Columbia) would be required to match the open-ended funds in FY2025- FY2027; territories and tribal grantees would not be required to match these funds. Federal-state match rates would vary based on whether the expenditure is for child care assistance to eligible families (90% federal); quality investments (matched at the Federal Medical Assistance Percentage, which varies by state based on relative per capita income); or state administrative costs (50% federal). Federal contributions for quality spending would be capped. Separate from match requirements, states would have to meet a maintenance-of-effort requirement in all years based on state spending on child care in FY2021. Congressional Research Service https://crsreports.congress.gov IN11750 CRS INSIGHT Prepared for Members and Committees of Congress

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