Increased Federal matching payments for child care

Section 418(a)(2)(C) of the Social Security Act (42 U.S.C. 618(a)(2)(C)) is amended to read as follows: (C) Federal matching of state expenditures The Secretary shall pay to each eligible State for a fiscal year an amount equal to the lesser of— (i) the State's allotment under subparagraph (B); or (ii) the sum of— (I) in the case of a State that provides payments for child care assistance for infants and toddlers (within the meaning of section 658G of the Child Care and Development Block Grant Act of 1990) at not less than 75 percent of the market rates, based on the most recent market rate survey conducted under section 658E(c)(4)(B) of that Act or using an alternative methodology, such as a cost estimation model, that has been developed by the State lead agency and approved by the Administration for Children and Families, taking into account the geographic area, type of child care, and age of the child, 90 percent of the State's expenditures for such assistance; and (II) the amount equal to the Federal medical assistance percentage that applies to the State for the fiscal year under section 1905(b) (without regard to any adjustments to such percentage applicable under that section or any other provision of law) of so much of the State's expenditures for child care in that fiscal year for children other than infants and toddlers..