Use of funds

(a) In general An eligible child care provider that receives a subgrant under this title— (1) shall use at least 70 percent of subgrant funds for child care personnel costs, including— (A) wages (including salaries), or similar compensation for a person who is a staff member or any sole proprietor or independent contractor, aligned with wage standards; and (B) (i) annual cost-of-living adjustments for staff; and (ii) graduated pay increases based on a staff member’s credentials, experience, and job responsibilities, including, for a provider with 15 or more staff, a wage ladder based on the credentials, experience, and responsibilities; and (2) may use the subgrant funds for costs of activities related to the provider's program, consisting of— (A) professional development and instructional coaching for staff involved in the direct education and care of children, and providing support for planning and instruction; (B) providing recruitment and retention bonuses for staff; (C) providing staff benefits, such as health insurance, paid leave (including parental, family, medical, sick, and bereavement leave, and including personal leave or vacation), and funds for retirement accounts; (D) hiring staff, including conducting background checks, and including hiring staff to reduce staff-to-child ratios or substitute staff to support use of paid leave; (E) paying for occupancy, including making payments for— (i) rent (including rent under a lease), or on any mortgage obligation; and (ii) insurance, utilities, and maintenance; (F) obtaining equipment, repairs, supplies, services, and training necessary to ensure compliance with applicable health, safety, educational, and quality requirements and to support high-quality, developmentally appropriate child care services, and achieving licensure as a child care provider; (G) providing comprehensive services to support the health, including mental health, and well-being, of children and families from underserved populations, as described in section 101(f)(3)(I); (H) improving the quality of child care services in a way that is appropriate for child development by provider type involved, and for the age group of the children served; and (I) providing inclusive and developmentally appropriate care for children with disabilities, including implementing reasonable accommodations, making space more accessible, and providing additional staffing and coordinating early intervention services provided through the provider's program with early intervention services provided through other early childhood programs. (b) Special rule for States participating in title I program Notwithstanding subsection (a) and subject to the approval of the Secretary, a lead agency of a State participating in the program established in title I may make alternative uses of the funds received through a grant made under section 204, if such funds support— (1) the provision of high-quality, affordable child care services, in accordance with title I; (2) compensation for early childhood educators and staff of child care programs, of eligible child care providers, that meet the requirements of title I; or (3) initiatives to expand the supply of eligible child care providers or improve the quality of child care services provided by eligible child care providers. (c) Rule For purposes of subsection (a), the terms staff and staff member include a person described in subsection (a)(1)(A).