Increased funding for the Child Care Entitlement to States

(a) In general Section 418(a)(3) of the Social Security Act (42 U.S.C. 618(a)(3)) is amended to read as follows: (3) Appropriation (A) In general For grants under this section, there are appropriated— (i) for fiscal year 2026, $20,000,000,000; and (ii) for each fiscal year after fiscal year 2026, the greater of— (I) the amount appropriated under this subparagraph for the previous fiscal year, increased by the percentage increase (if any) in the consumer price index for all urban consumers (all items; United States city average) for the most recent 12-month period for which data is available; and (II) the amount appropriated under this subparagraph for the previous fiscal year. (B) Amounts reserved Of the amount appropriated under subparagraph (A) for a fiscal year— (i) an amount equal to 5 percent of such amount shall be available for grants to Indian tribes and tribal organizations; (ii) an amount equal to 4 percent of such amount shall be available for grants to territories; (iii) an amount, not to exceed 1/2 of 1 percent of such amount, shall be reserved by the Secretary to support technical assistance and dissemination activities under paragraphs (3) and (4) of section 658I(a) of the Child Care and Development Block Grant Act of 1990; and (iv) an amount equal to 1/2 of 1 percent of such amount appropriated may be reserved by the Secretary to conduct research and demonstration activities, as well as periodic external, independent evaluations of the impact of the Child Care and Development Block Grant program established under subchapter C of chapter 8 of title VI of the Omnibus Budget Reconciliation Act of 1981 (Public Law 97–35), as carried out under this subsection and under such subchapter, on increasing access to child care services and improving the safety and quality of child care services, using scientifically valid research methodologies, and to disseminate the key findings of those evaluations widely and on a timely basis.. (b) Redistribution of funds reserved for tribal grants Section 418(a) of such Act (42 U.S.C. 618(a)) is amended— (1) by redesignating paragraph (5) as paragraph (6); and (2) by inserting after paragraph (4), the following: (5) Redistribution of unused tribal grants (A) In general The Secretary shall determine an appropriate procedure for redistributing the amounts described in subparagraph (B) for each fiscal year to each Indian tribe and tribal organization that applies for such amounts, to the extent the Secretary determines that the Indian tribe or tribal organization will be able to use such additional amounts to provide child care assistance. (B) Amounts described The amounts described in this subparagraph are, with respect to a fiscal year, the unused amounts of any payment made to an Indian tribe or tribal organization under this subsection for the fiscal year which the Secretary determines will not be used by the Indian tribe or tribal organization during the period in which such payments are available to be obligated.. (c) Removal of restriction on application of updated FMAP Section 418(a)(2)(C) of such Act (42 U.S.C. 618(a)(2)(C)) is amended by striking, as such section was in effect on September 30, 1995. (d) Technical and conforming amendments Section 418 of such Act (42 U.S.C. 618(a)) is amended— (1) in subsection (a)— (A) in paragraph (1), in the matter preceding subparagraph (A), by striking paragraph (3) and inserting paragraph (3)(A) and remaining after the application of paragraph (3)(B); (B) in paragraph (2)(A), by striking paragraph (3)(A), and inserting paragraph (3)(A) and remaining after the application of paragraph (3)(B) and; (C) in paragraph (4)— (i) in subparagraph (A), by striking paragraph (3)(C) and inserting paragraph (3)(B)(ii); and (ii) by striking subparagraph (E); and (D) in paragraph (6), (as redesignated by subsection (b)(1)), by inserting (as in effect on June 29, 2003) after section 403(a)(1)(D); (2) in subsection (b)(1), by striking by a State under this section and inserting by a State, a territory, or an Indian tribe or tribal organization under subsection (a); (3) by striking subsection (c) and inserting the following: (c) Application of child care and development block grant act of 1990 Notwithstanding any other provision of law, amounts provided to a State, a territory, or a Indian tribe or tribal organization under subsection (a) shall be transferred to the lead agency under the Child Care and Development Block Grant Act of 1990, integrated by the State, territory, or Indian tribe or tribal organization into the programs established by the State, territory, Indian tribe or tribal organization under such Act, and be subject to requirements and limitations of such Act.; and (4) by striking subsection (d) and inserting the following: (d) Definitions In this section: (1) Indian tribe The term Indian tribe means entities included on the list published pursuant to section 104(a) of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 5131(a)). (2) State The term State means each of the 50 States and the District of Columbia. (3) Territory The term territory means the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands. (4) Tribal organization The term tribal organization means— (A) the recognized governing body of any Indian tribe, and any legally established organization of Indians which is controlled, sanctioned, or chartered by such governing body or which is democratically elected by the adult members of the Indian community to be served by such organization and which includes the maximum participation of Indians in all phases of its activities, except that in any case where a contract is let or grant made to an organization to perform services benefitting more than one Indian tribe, the approval of each such Indian tribe shall be a prerequisite to the letting or making of such contract or grant; and (B) includes a Native Hawaiian organization, as defined in section 6207 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7517) and a private nonprofit organization established for the purpose of serving youth who are Indians or Native Hawaiians.. (e) Effective date The amendments made by this section take effect on October 1, 2025.