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MEMO To: Larry Stein From: Janet Murguia Subject: Child Care Event Invites Date: February 11, 1998 The following are the Congressional Members that HHS Legislative Affairs suggested for a bipartisan, bicameral event on child care. All of the Republican co-sponsors for the Chafee child care bill (S. 1577-- Caring for Children Act) are on the suggested list. But not all of the Democratic co-sponsors of the Dodd child care bill (S. 19-- Working Families Child Care Act of 1997) are included in the suggested list. HHS consideres the bolded names the most key attendees. Senate: Leaders: Appropriations: Daschle Specter Lott Harkin Nickles Kohl Labor and Human Resources: Others: Kennedy Kerry Jeffords Bond Dodd Boxer Murray Roberts Wellstone Snowe Reed Reid Collins Landrieu Coats DeWine 1 Finance: Roth JEN Moynihan Chafee Hatch FYI. Attached is Conrad Breaux Moseley-Braun an updated "bipartison" Graham Child (dree list from HHS, Rockefeller plus, Dodd Chaffee bill cosponsors. - Janet Larry Stein I Page 2 February 11, 1998 House: Leaders: Appropriations: Gephardt Obey Bonior Porter Gingrich Hoyer Armey DeLauro Pelosi Ways and Means: Lowey Archer Shaw Other: Rangel Norton (women's caucus) Levin Morella Kennelly Waters (CBC) Stark Becerra (Hispanic) Tanner Tauscher Johnson Pryce (Deborah) Houghton Allen Dunn McGovern Moran Education and Workforce: Stenholm Goodling Riggs Clay Martinez Woosley Miller, George Roemer Roukema Castle Bill Summary & Status http://thomas.loc.gov/cgi-bin/bdquery/D7./emp/-bdnmf4.@@@T/hbss/d10Squery.htl Bill Summary & Status for the 105th Congress Item 4 of 46 PREVIOUS BILL I NEXT BILL PREVIOUS BILL:TITLE I NEXT BILL:TITLE NEW SEARCH I HOME I HELP I ABOUT TITLE S.19 (Major Legislation) SPONSOR: Sen Dodd (introduced 01/21/97) TITLE(S): POPULAR TITLE(S): Child Care bill SHORT TITLE(S) AS INTRODUCED: Working Families Child Care Act of 1997 OFFICIAL TITLE AS INTRODUCED: A bill to provide funds for child care for low-income working families, and for other purposes. Bill Summary & Status for the 105th Congress Item 4 of 46 PREVIOUS BILL I NEXT BILL PREVIOUS BILL:COSPONSORS I NEXT BILL:COSPONSORS NEW SEARCH I HOME I HELP I ABOUT COSPONSORS S.19 (Major Legislation) SPONSOR: Sen Dodd (introduced 01/21/97) 10 COSPONSORS: Sen Daschle - 01/21/97 Sen Kennedy - 01/21/97 Sen Mikulski - 01/21/97 Sen Rockefeller - 01/21/97 Sen Murray - 01/21/97 Sen Torricelli - 01/21/97 Sen Boxer - 01/21/97 Sen Kerrey - 01/30/97 Sen Kerry - 02/12/97 Sen Landrieu - 10/22/97 1 of 1 Bill Summary & Status http://thomas.loc.gov/cgi-bin/bdquery/D7../temp/-bdGzSm@@@Tl/bss/d105query.html Bill Summary & Status for the 105th Congress Item 1 of 1 PREVIOUS BILL:TITLE I NEXT BILL:TITLE NEW SEARCH I HOME I HELP 1 ABOUT TITLE S.1577 SPONSOR: Sen Chafee (introduced 01/28/98) TITLE(S): SHORT TITLE(S) AS INTRODUCED: Caring for Children Act OFFICIAL TITLE AS INTRODUCED: A bill to amend the Internal Revenue Code of 1986 to provide additional tax relief to families to increase the affordability of child care, and for other purposes. Bill Summary & Status for the 105th Congress Item 1 of 1 PREVIOUS BILL:COSPONSORS I NEXT BILL:COSPONSORS NEW SEARCH I HOME I HELP I ABOUT COSPONSORS S.1577 SPONSOR: Sen Chafee (introduced 01/28/98) 6 COSPONSORS: Sen Hatch - 01/28/98 Sen Snowe - 01/28/98 Sen Roberts - 01/28/98 Sen Specter - 01/28/98 Sen Collins - 01/28/98 Sen Helms - 02/02/98 I of I 02/11/98 14:32:18 HUMAN SERVICES USA DATE: 2-11-98 & HEALTH U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 200 INDEPENDENCE AVE. , SW WASHINGTON, D.C. 20201 OF DEPARTMENT PHONE: (202) 690-6311 FAX: (202) 690-8425 OFFICE OF THE ASSISTANT SECRETARY FOR LEGISLATION HUMAN SERVICES LEGISLATION ROOM 413 H HUMPHREY BUILDING FROM: TO : Jen Klein, Nicole Rabner, [ ] MARY M. BOURDETTE Neera Tandem - OFFICE : [ ] BARBARA P. CLARK please share [ ] GREG JONES ROOM NO : [ ] PATRICIA BRAVO PHONE NO : [ X AMY LOCKHART for M.B. FAX NO : 456-2878 [ ] LAUREN GRIFFIN 456-5542 [ ] LULA BARNES TOTAL PAGES INCLUDING COVER) : 9 REMARKS: RERVICES BHUMAN DEPARTMENT OF HEALTH & HUMAN SERVICES Office of the Secretary METVER 3 Washington, D.C. 20201 TO: Child Care Group FROM: Margaret A. Hamburg, M.D. DATE: February 10, 1998 RE: Child care legislation Attached are several documents related to child care legislation. They include: An update to the 1998 Side-by-Side Summary of Child Care Legislation - new version dated February 10, 1998(9:23 am). A comparison between the President's Initiative and the Chafee bill (S. 1577). A comparison between the President's Initiative and the Dodd bill (S. 1610). An update to page 14 of the 1997 Side-by-Side Summary of Child Care Legislation (previously distributed -- dated February 4, 1998(12:53pm)). Jennifer Appleton is handling regular updates to these and other documents related to child care legislation. She can be reached at 401-6127. CHILD CARE LEGISLATION - 10Sth CONGRESS, Second Session 1998 BILL Funding Subsidies Quality Activities Other Targeted Child Dependent Care Tax Employer Incentives Other Features Amount Care Activities Credits (DCTC) President's Child $21.7 billion over Provides an additional Establishes a new Early Expands the 21st Century Invests $5.2 billion over 5 Includes approximately Includes research on child Care Initiative 5 years. $7.5 billion in Learning Fund -- $3 billion Community Learning years in the DCTC, $500 million over 5 years care issues that could benefit announced 1/7/98 mandatory funding over 5 years -- which Center program by $800 increasing tax credits for for tax credits to low income families, over 5 years through provides challenge grants to million over 5 years to three million working businesses that provide innovations in the use of the CCDBG to increase communities (distributed to provide funds to school- families with incomes child care services for technology to promote the amount of child states) to support programs community partnerships to below $60,000. their employees, building distance learning and care subsidies available to improve early learning establish or expand or expanding child care interactive computer to working families, and the quality and safety of programs for school-age facilities, operating programs in provider doubling the number of child care for children ages children, providing after- existing facilities, training education and training, and children served by the zero to five. Funds may be school care for 500,000 child care workers, demonstration projects to test grant by FY 2003. used for a variety of children per year. The reserving slots for new approaches to help new activities. Also supports President's Initiative also employees at child care parents who choose to stay enforcement of state child includes a collaborative facilities, or providing home to care for newborns or care health and safety effort involving numerous child care resource and newly adopted children. standards, provides federal agencies to referral services to Also includes a national scholarships to up to 50,000 eliminate duplication and employees. The credit center for child care statistics child care providers per better coordinate federal covers 25% of the and a child care hotline. year, facilitates background funding for after-school qualified costs (maximum checks on child care programs in three to five credit -* $150,000/year). providers, and invests in pilot cities. research and consumer education. Invests $3.8 billion over 5 years in order to meet the goal of serving one million children in Head Start and doubling the number of children served by Early Head Start by 2002. February 10, 1998 (9:23am) - HHS-ASPE BILL Funding Subsidies Quality Activities Other Targeted Child Dependent Care Tax Employer Incentives Other Features Amount Care Activities Credits (DCTC) S. 1577 Provides an additional Authorizes $50 million per Incomes of less than Similar to President's Chafee (R-RI) $5 billion in year to increase parents' $30,000 -- credit increased Initiative, but credit covers introduced 1/28/98 discretionary funding access to information and to to 50% Credit reduced by 20% of expenses up to over 5 years, doubling provide technological 1% for each $1,500 earned $500,000. the discretionary assistance to child care Co-Sponsors over $30,000. Eligibility is authorization for Hatch (R-UT) providers and workers to capped at $105,000. Includes a demonstration CCDBG. Snowe (R-ME) improve quality of child Extends eligibility of DCTC project which authorizes care. Funds could be used to stay-at-home parents $60 million over 3 years in Roberts (R-KS) to collect and disseminate with children under 3 and competitive grants to Specter (R-PA) information, and for grants Collins (R-ME) others who do not pay for encourage small to organizations to develop child care. businesses to develop and operate training child care programs for H.R. 3144 infrastructure. their employees. Johnson (R-CT) introduced 2/3/98 Requires states to improve Promotes greater FROM inspections and enforce availability of the existing state health and Dependent Care safety standards. Provides Assistance Program incentives to states that (DCAP). inspect facilities, as required under state law, and penalizes states that fail to meet inspection minimums. H.R. 3129 Authorizes funds through Roukema (R-NJ) the Department of introduced 1/28/98 Education for grants to local educational agencies in order to work with the private sector to provide care to pre-Kindergarten children. February 10, 1998 (9:23am) - HHS-ASPE 2 BILL Funding Subsidies Quality Activities Other Targeted Child Dependent Care Tax Employer Incentives Other Features Amount Care Activities Credits (DCTC) H.R. 3135 Makes the DCTC Wygand (D-RI) refundable. introduced 1/28/98 Incomes of up to $18,000 eligible for 30% credit. Above $20,000 -- credit reduced by one percentage point for each $3,000 above 2-11-1998 34PM $18,000 (but not below 12%). Increases limit of employment-related expenses to: $4,000 for one qualifying individual; $8,000 for two or more. FROM BOURDETTE 96905750 February 10, 1998 (9:23am) .. HHS--ASPE 3 BILL Funding Subsidies Quality Activities Other Targeted Child Dependent Care Tax Employer Incentives Other Features Amount Care Activities Credits (DCTC) S. 1610 Approximately Provides an additional Provides $3 billion in Expands the 21st Century Makes the DCTC Authorizes $1 billion over Expands the Family and Dodd (D-CT) $30 billion over 5 $7.5 billion in mandatory funding over 5 Community Learning refundable. 5 years to create new Medical Leave Act to include introduced 2/4/98 years. mandatory funding years through CCDBG to Center program by $1 program of competitive businesses with 25-50 over 5 years through encourage states to invest in billion over 5 years to Increases tax credit to 50% "challenge grants" in employees. the CCDBG to increase child care and early provide funds to encourage for families with incomes which communities which Co-Spensors the amount of child childhood development schools to create before- Akaka (D-HI) of$30,000. Above $30,000 generate funds from the care subsidies available quality activities. Funds Biden (D-DE) and after-school programs. -- credit reduced by one private sector would be to working families, may be used for a variety of Bingaman (D-NM) percentage point for each eligible for matched doubling the number of activities. Provides $3 billion over 5 Boxer (D-CA) $1,000 above $30,000 (but federal grants to improve children served by the Bumpers (D-AR) years through the CCDBG not below 20%). Limit of availability and quality of Daschle (D-SD) grant by FY 2003. Mandates that Federal child to increase the supply and employment-related child care. care centers obtain Dorgan (D-ND) quality of school-age care. expenses adjusted for appropriate state and local Durbin (D-IL) Increases the age of inflation. Eligibility limited $500 million over 5 years licenses and comply with Feinstein (D-CA) children eligible to be to $60,000. to provide 25% tax credit child care licensing Graham (D-FL) served with block grant to employers for operating requirements. funds from 13 to 15. Allows stay-at-home on-site child care centers, RUM Harkin (D-IA) Inouye (D-HI) parents with children under contracting for off-site Kennedy (D-MA) age one to claim a portion child care, contributing to Kerrey (D-NE) of the DCTC, based upon the costs of accreditation, Kerry (D-MA) imputed expenses of or operating resource and Landrieu (D-LA) $90/month (maximum referral systems. Lautenberg (D-NJ) credit $540). Incomes of up Levin (D-MI) to $30,000 eligible for 50% Moseley-Braun (D-IL) credit. Above $30,000 -- Mikulski (D-MD) credit reduced by one Murray (D-WA) percentage point for each Reed (D-RI) $800 above $30,000 (but Reid (D-NV) not below zero). Eligibility limited to $70,000. Rockefeller (D-WV) Wellstone (D-MN) February 10. 1998 (9:23am) HHS--ASPE 4 0 COMPARISON BETWEEN THE PRESIDENT'S CHILD CARE INITIATIVE AND THE CHAFEE BILL (S. 1577) Child Care Subsidies for Working Families The President's Initiative provides an additional $7.5 billion in mandatory funding over 5 years through the CCDBG; the Chafee bill provides an additional $5 billion in discretionary funding. Quality activities The President's Initiative establishes a new Early Learning Fund - $3 billion over 5 years -- which provides funds to states for challenge grants to communities to support programs to improve early learning and the quality and safety of child care for children under six. Funds may be used for a variety of activities. The Initiative also supports enforcement of state child care health and safety standards, provides scholarships to up to 50,000 child care providers per year, facilitates background checks on child care providers, and invests in research and consumer education. The Chafee bill authorizes $50 million per year to increase parental access to information and provide technological assistance to child care providers and workers. Funds could be used to collect and disseminate information and for grants to organizations to develop and operate training infrastructure. This bill also requires states to improve inspections and enforce existing state health and safety standards. It provides incentives to states that inspect facilities, as required under state law, and penalizes states that fail to meet inspection minimums. Other Targeted Child Care Activities The President's Initiative expands the 21st Century Community Learning Center program by $800 million over 5 years to provide funds to school-community partnerships to establish or expand programs for school-age children, providing after-school care for 500,000 children per year. Dependent Care Tax Credits (DCTC) The President's Initiative invests $5.2 billion over 5 years in the DCTC, increasing tax credits for three million working families with incomes below $60,000. The Chafee bill increases the tax credit to 50% for families with incomes of less than $30,000. Eligibility is capped at $105,000. Also extends eligibility of DCTC to stay-at-home parents with children under 3 and others who do not pay for child care. Employer Incentives The President's Initiative includes approximately $500 million over 5 years for tax credits to businesses that provide child care services for their employees. The credit covers 25% of the qualified costs (maximum credit - $150,000/year). The Chafee bill is similar to President's Initiative, but credit covers 20% of expenses up to $500,000. The Chafee bill also includes a demonstration project which authorizes $60 million over 3 years in competitive grants to encourage small businesses to develop child care programs for their employees, and promotes greater availability of the Dependent Care Assistance Program (DCAP). Research and Evaluation The President's Initiative includes provisions for research on child care issues that could benefit low income families, innovations in the use of technology to promote distance learning, interactive computer programs in provider education and training, and demonstration projects to test new approaches to help new parents who choose to stay home to care for newborns or newly adopted children. It also includes a national center for child care statistics and a child care hotline. February 10. 1998 (11:13am) HHS--ASPE COMPARISON BETWEEN THE PRESIDENT'S CHILD CARE INITIATIVE AND THE DODD BILL (S. 1610) Child Care Subsidies for Working Families Both the President's Initiative and the Dodd bill provide an additional $7.5 billion over 5 years in mandatory funding through the CCDBG to increase the number of child care subsidies available to working families. Quality activities The President's Initiative establishes a new Early Learning Fund - $3 billion over 5 years which provides funds to states for challenge grants to communities to support programs to improve early learning and the quality and safety of child care for children under six. Funds may be used for a variety of activities. The Initiative also supports enforcement of state child care health and safety standards, provides scholarships to up to 50,000 child care providers per year, facilitates background checks on child care providers, and invests in research and consumer education. The Dodd bill provides $3 billion in mandatory funding over 5 years through the CCDBG to encourage states to invest in child care and early childhood development quality activities. Funds may be used for a variety of activities. It also mandates that Federal child care centers obtain appropriate state and local licenses and comply with child care licensing requirements. Other Targeted Child Care Activities The President's Initiative expands the 21st Century Community Learning Center program by $800 million over 5 years to provide funds to school-community partnerships to establish or expand programs for school-age children; the Dodd bill expands the program by $1 billion over 5 years. The Dodd bill also provides $3 billion over 5 years through the CCDBG to increase the supply and quality of school-age care, and increases the age of children eligible to be served with block grant funds from 13 to 15. Dependent Care Tax Credits (DCTC) The President's Initiative invests $5.2 billion over 5 years in the DCTC, increasing tax credits for three million working families with incomes below $60,000. The Dodd bill makes the DCTC refundable, and increases the tax credit to 50% for families with incomes of $30,000. The limit of employment-related expenses is adjusted for inflation. Eligibility is limited to $60,000. The Dodd bill also allows stay-at-home parents with children under age one to claim a portion of the DCTC, for a maximum credit $540. Eligibility is limited to $70,000. Employer Incentives Both the President's Initiative and the Dodd bill include approximately $500 million over 5 years for tax credits to businesses that provide child care services for their employees. The credit covers 25% of the qualified costs (maximum credit -- $150,000/year). The Dodd bill also authorizes $1 billion over 5 years to create new program of competitive challenge grants, in which communities which generate funds from the private sector would be eligible for matched federal grants to improve availability and quality of child care. Research and Evaluation The President's Initiative includes provisions for research on child care issues that could benefit low income families, innovations in the use of technology to promote distance learning, interactive computer programs in provider education and training, and demonstration projects to test new approaches to help new parents who choose to stay home to care for newborns or newly adopted children. It also includes a national center for child care statistics and a child care hotline. Other Features The Dodd bill expands the Family and Medical Leave Act to include businesses with 25-50 employees. February 10, 1998 (11:12am) -- HHS--ASPE BILL Funding Subsidies Quality Activities Other Targeted Child Dependent Care Tax Employer Incentives Other Features Amount Care Activities Credits (DCTC) S. 1492 Funding provided Creates a quality fund Kennedy (D-MA) to these programs within CCDBG, half of introduced 11/8/97 under this Act which is an incentive fund will supplement, 10 reward states that H.R. 3027 not supplant, improve quality of their existing child care programs. H.R. 3028 appropriations. DeLauro (D-CT) 2-11-1998 36PM Out of the $650 Activities would include: introduced 11/12/97 billion (over 25 research into early years) in the childhood development; Co-Sponsors Healthy and demonstration projects, Ackerman (D.NY) Smoke Free including public-private DeGette (D-CO) Children Act, 8 partnerships for paid leave Detahunt (D-MA) substantial to enable mothers with Jackson ( portion is infants to stay at home; Kennedy (D-MA) allocated toward funding for Early Head Lowey (D-NY) child care to Start and expansion of McGovern (D-MA) increase the Head Start; Maloney (D-NY) availability and expansion of CCDBG Matsui (D-CA) affordability of grants to increase Mechan (D-MA) quality before- availability and Miller (D-CA) and after-school affordability of quality Morells (R-MD) care. child care for children or Norton D-DC) working families ages Olver(D-MA) birth to school age; Pellone (D-NJ) incentives to improve the Pelosi (D-CA) quality of child care. Rush (D-IL) FROM MARY BOURDETTE 96905750 Serrano (D-NY) Stark (D-CA) Stokes (D-OH) Waters (D-CA) Weygand (D-RI) Yates (D-IL) February 4, 1998 (12:53 pm) - HHS-ASPE 14 9 DRAFT CHILD CARE LEGISLATION -- 105th CONGRESS, Second Session 1998 BILL Funding Subsidies Quality Activities Other Targeted Child Dependent Care Tax Employer Incentives Other Features Amount Care Activities Credits (DCTC) President's Child $21.7 billion over Provides an additional Establishes a new Early Expands the 21st Century Invests $5.2 billion over Provides a new tax credit Includes research on child Care Initiative five years. $7.5 billion in Learning Fund, as well as Community Learning five years in the DCTC, for businesses that offer care issues that could benefit announced 1/7/98 mandatory funds over 5 supports enforcement of Center program by $800 increasing tax credits for child care services for low income families, years through the state child care health and million over 5 years to three million working their employees. innovations in the use of CCDBG to increase the safety standards, providing provide funds to school- families with incomes technology to promote amount of child care scholarships to up to 50,000 community partnerships to below $60,000. distance learning and subsidies available to child care providers per establish or expand interactive computer working families, year, and investing in programs for school-age programs in provider doubling the number of research and consumer children, providing after- education and training, and children served by the education. school care for 500,000 demonstration projects to test grant by FY 2003. children per year. new approaches to help new parents who choose to stay home to care for newborns or newly adopted children. Also includes a national center for child care statistics and a child care hotline. February 5, 1998 (12:05pm) -- HHS--ASPE 1 BILL Funding Subsidies Quality Activities Other Targeted Child Dependent Care Tax Employer Incentives Other Features Amount Care Activities Credits (DCTC) S. 1577 Provides an additional Authorizes $50 million per Incomes of less than Provides employers with a Extends eligibility of DCTC Chafee (R-RI) $5 billion in year to increase parents' $30,000 -- credit increased 20% tax credit on to stay-at-home parents with introduced 1/28/98 discretionary funding access to information and to to 50%. Credit reduced by expenses up to $500,000 children under 3. over 5 years, doubling provide technological 1% for each $1,5000 earned for employers who the authorization for assistance to child care Co-Sponsors over $30,000. Eligibility is construct, renovate, or CCDBG. Hatch (R-UT) providers and workers to capped at $105,000. operate on- or near-site Helms (R-NC) improve quality of child facilities for child care for care. Funds could be used Snowe (R-ME) employees (maximum to collect and disseminate credit -- $100,000). Roberts (R-KS) information, and for grants Specter (R-PA) to organizations to develop Includes a demonstration Collins (R-ME) and operate training project which authorizes infrastructure. $60 million over 3 years in H.R. 3144 competitive grants to Johnson (R-CT) Requires states to improve encourage small introduced 2/3/98 inspections and enforce businesses to develop existing state health and child care programs for safety standards. Provides their employees. incentives to states that inspect facilities, as Promotes greater required under state law, availability of the and penalizes states that fail Dependent Care to meet inspection Assistance Program minimums. (DCAP). H.R. 3129 Authorizes funds through Roukema (R-NJ) the Department of introduced 1/28/98 Education for grants to local educational agencies in order to work with the private sector to provide care to pre-Kindergarten children. February 5, 1998 (12:05pm) -- HHS--ASPE 2 BILL Funding Subsidies Quality Activities Other Targeted Child Dependent Care Tax Employer Incentives Other Features Amount Care Activities Credits (DCTC) H.R. 3135 Makes the DCTC Wygand (D-RI) refundable. introduced 1/28/98 Incomes of up to $18,000 eligible for 30% credit. Above $20,000 -- credit reduced by one percentage point for each $3,000 above $18,000 (but not below 12%). Increases limit of employment-related expenses to: $4,000 for one qualifying individual; $8,000 for two or more. February 5. 1998 (12:05pm) -- HHS--ASPE 3 BILL Funding Subsidies Quality Activities Other Targeted Child Dependent Care Tax Employer Incentives Other Features Amount Care Activities Credits (DCTC) Dodd (D-CT) Approximately Provides an additional Provides $3 billion in Expands the 21st Century Makes the DCTC Expands the Family and Allows stay-at-home parents introduced 2/4/98 $30 billion over 5 $7.5 billion in mandatory funding over 5 Community Learning refundable. Medical Leave Act to with children under age one years. mandatory funding years through CCDBG to Center program by $1 include businesses with to claim a portion of the over 5 years through encourage states to invest in billion over 5 years to Incomes of up to $30,000 25-50 employees. DCTC, based upon imputed Co-Sponsors the CCDBG to increase child care and early provide funds to encourage eligible for 50% credit. expenses of $90/month Akaka (D-HI) the amount of child childhood development schools to create before- Above $30,000 -- credit Authorizes $1 billion over (maximum credit $540). Biden (D-DE) care subsidies available quality activities, such as: and after-school programs. reduced by one percentage 5 years to create new Incomes of up to $30,000 Bingaman (D-NM) to working families, bringing provider -child Allows schools to use the point for each $1,000 above program of competitive eligible for 50% credit. Boxer (D-CA) doubling the number of ratios to recommended National School Lunch $30,000 (but not below "challenge grants" in Above $30,000 -- credit Bumpers (D-AR) children served by the standards; improving Program to provide 20%). Limit of which communities which reduced by one percentage Daschle (D-SD) grant by FY 2003. licensing standards; nutritious meals or snacks employment-related generate funds from the point for each $800 above Dorgan (D-ND) conducting background to children in afterschool expenses adjusted for private sector would be $30,000 (but not below Durbin (D-IL) checks on providers; programs. inflation. Eligibility limited eligible for matched zero). Eligibility limited to Feinstein (D-CA) increasing payment rates for to $60,000. federal grants to improve $70,000. Graham (D-FL) services offered by licensed Provides $3 billion over 5 availability and quality of Harkin (D-IA) or accredited providers; years through the CCDBG child care. Inouye (D-HI) improving compensation of to increase the supply and Kennedy (D-MA) providers; assisting quality of school-age care. $500 million over 5 years Kerrey (D-NE) providers become licensed Increases the age of to provide 25% tax credit Kerry (D-MA) or accredited; expanding children eligible to be to employers for operating Landrieu (D-LA) activities to educate parents served with block grant on-site child care centers, Lautenberg (D-NJ) on availability and quality funds from 13 to 15. contracting for off-site Levin (D-MI) of child care; creating child care, contributing to Moseley-Braun (D-IL) support networks for family the costs of accreditation, Mikulski (D-MD) providers; providing family or operating resource and Murray (D-WA) support and parent referral systems. Reed (D-RI) education; ensuring Reid (D-NV) availability and quality of Rockefeller (D-WV) care for children with Wellstone (D-MN) special health needs. Mandates that Federal child care centers obtain appropriate state and local licenses and comply with child care licensing requirements. 4 February 5, 1998 (12:05pm) -- HHS--ASPE 4 National Journal's CongressDaily/A.M. February 11, 1998 GOP Leadership Crafting Alternative Childcare Plan Members of the Senate GOP lead- they need to wait for the budget reso- come splitting" in which the working ership have backed off plans to intro- lution to find out how much money is parent's income level would be divided duce a package of childcare initiatives available for a childcare initiative. between two people on a tax return, re- - mostly tax cuts - Senate Labor and Human Re- HEALTH ducing their overall tax rate. Aides said until they find out sources Children and Families Sub- that option is very expensive. how much money they will have for committee Chairman Dan Coats, R- Chafee's childcare plan, which also those cuts in the context of the budget Ind., also is heading up the leadership's contains some tax breaks, would cost resolution, aides said Tuesday. efforts. $12 billion to $14 billion over five years, Leadership sources earlier this year How much money the budget res- of which $5 billion is to expand child- said they were working to develop a olution allows for childcare will deter- care development block grants. childcare package to counter President mine which tax breaks Craig and Coats Clinton's plan would cost $21.7 bil- Clinton's plan, which they argue relies can choose for the package, aides said. lion over five years, while a plan be- too much on federal programs. At least a dozen tax incentives are ing developed by Sen. Christopher Just after the president announced his under consideration - including a Dodd, D-Conn., would cost even more. plan, Senate Environment and Pub- childcare expense deduction or ex- The GOP leadership has appointed lic Works Chairman Chafee, Judiciary emption, raising the per child tax credit Republican Conference Vice Chair- Chairman Hatch and other GOP sen- for children under ages five or six, de- woman Jennifer Dunn of Washington ators unveiled a package of childcare ini- ductions for those working at offices in and Conference Secretary Deborah tiatives as an alternative to the unan- their home, and tax incentives for busi- Pryce of Ohio to develop a Republican nounced GOP leadership package. nesses to set up on-site child care. childcare plan for the House. But because the leadership - led by Also, conservatives are putting pres- The House today will take up a res- Senate Republican Policy Committee sure on Republicans to give families that olution on the floor stating that part of Chairman Larry Craig of Idaho - care for children at home some type of any new childcare proposal should be wants to focus on childcare tax cuts, de- childcare benefit. directed toward children raised by a ductions and other incentives, aides said One option being considered is "in- stay-at-home parent. "The bible of American polities." -George Will THE ALMANAC OF If You "The ultimate guide for MERI political junkies, like you and me. Care About POLITIC -Tim Russert 1998 "Meet the Press" Politics, You Need MICHAEL BARONE "That Washington bible, GRANT UJIFUSA packed with detail about National Journal national and state politics This Book. is a legendary standby." Published by National Journal -The Economist Order Today: Call 1-800-356-4838 Hardcover $67.95 ISBN 0-89234-081-9 Softcover $52.95 ISBN 0-89234-080-0 THE WHITE HOUSE Office of the Press Secretary For Immediate Release February 5, 1998 STATEMENT BY THE PRESIDENT ON CHILD CARE Earlier this week, I submitted my budget proposal to Congress. I am proud that this budget -- the first balanced budget in a generation -- includes an ambitious initiative to make child care better, safer, and more affordable. Yesterday, we moved closer to achieving meaningful child care legislation because of an important step taken by Senator Chris Dodd and many of his Democratic colleagues in the Senate. Senator Dodd has introduced a comprehensive child care package that, like mine, significantly increases child care subsidies for poor children, provides greater tax relief to help low- and middle-income families pay for child care, creates a tax credit for businesses that provide child care for their employees, increases after-school opportunities for children, promotes early learning, and improves child care quality. In putting forward this proposal, Senator Dodd and his co-sponsors have built on their longstanding commitment to improving child care for our nation's children. I was also pleased that, last week, a group of Republicans introduced a promising child care proposal. I look forward to working with the Congress on a bipartisan basis to enact child care legislation this year that will help Americans fulfill their responsibilities as workers, and, even more importantly, as parents. -30-30-30- 1-1998 2:44PM FROM MARY BOURDETTE 96905750 P.2 Blueprint for Child Care 1. Administration transmittal of initiative to hill SOU and Budget Bill -- Legislative Language ? individual pieces omnibus transmitted or tech assistance Specs? Relatricap President/Secretary letters Secretarial testimony HHS, Treasury - SFC/W-M to Pontics? 2. Legislative Sponsors/Leaders Omnibus? Leadership - Daschle/Gephardt Bipartisan? Individual pieces - parse out CCDBG -- - Mandatory funds under jurisdiction of Finance Committee and Ways and Means Committee sponsors? - Conrad, Moseley-Braun, Rockefeller, Breaux, Jeffords, Chafee, D'Amato plus Kennedy/Dodd/Jeffords Rangel, Levin, Kennelly, Tanner, Johnson, Early Learning Fund - who's jurisdiction? Twice a Labr Kerry, Bond, Kennedy, Dodd, others wimn Roemer, Martinez, Woolsey, DeLauro Other quality pieces - persoduction ? Enforcement Fund Scholarships Research and Evaluation After School - Tax 3. Policy Issues: CCDBG - Mandatory? Match? Targeted to working? Formula - same different? Early Learning Fund mandatory? set aside of mandatory funds, new mandatory pot, set-aside of discretionary pot, what about old set-aside? formula? substate formula? Other Quality activities - part of CCDBG? mandatory/discretionary part? part of Early Learning Fund? After School - relationship to CCDBG Major Child Care Proposals (All dollar figures are over five years) President's CIDCARE Act, Early Childhood Healthy and Smoke Free Caring for America's Children The Child Care A.C.C.E.S.S. Proposal S. 1037 sponsored by Jeffords (R-VT) Development Act of 1997, S. Children Act, S. 1492¹ sponsored Act, S. 1577 sponsored by Chafee (R-RI)/ Act, S. 1610 sponsored by Dodd (D- / Dodd (D-CT) 1309 sponsored by Kerry (D-MA) / by Kennedy (D-MA) Hatch (R-UT) CT)/ Daschle (D-SD) Bond (R-MO) Affordability Increases the child care block This bill uses the tax code to address Increases the child care block grant by Increases the child care block grant by Increases the child care block grant by $5 Increases the child care block grant by grant by $7.5 billion affordability issues. No direct subsidies $3.75 billion (mandatory) to help low- $5.4 billion (mandatory) to help low- billion (discretionary) to help low-income $7.5 billion (mandatory) to help low- (mandatory) to help low-income for child care income families with children under income families pay for child care parents pay for child care income families pay for child care parents pay for child care five pay for child care Provides $180 million (discretionary) for a small business child care grant program to assist employees working for small businesses Quality $3 billion (mandatory) for an $260 million (discretionary) to assist $3.75 billion (discretionary )for states to Increases the child care block grant by A minimum of 4% of child care block grant Increases the child care block grant by $3 Early Learning Fund to improve states in improving the quality of child support local collaboratives to improve $5.4 billion (mandatory) to improve the funds are setaside to improve quality. States billion (mandatory) to improve the quality care. including 20% for improving staff the quality of care for children ages zero quality of child care. Includes an can use funds to improve quality, supporting quality of child care. States can use salaries, and initiation of a national to five incentive fund to reward states who make activities such as teacher training, reducing funds to improve quality by supporting $500 million (discretionary) to public awareness campaign by Dept. of special efforts to improve quality child/staff ratios, parent education and family activities such as: reducing child/staff improve standards and Health and Human Services Sets aside part of the child care block support ratios; enforcement of licensing standards enforcement grant to improve the quality and expand Additional funds provided for training through unannounced inspections; $50 million (discretionary) for the supply of infant care and compensation for child care workers Requires inspections and enforcement for conducting background checks; $250 million (discretionary) for technology-based child care education receipt of full child care block grant money. improving training and compensation for scholarships and improving and training Ten percent bonuses are available for states child care providers; establishing links compensation for child care exceeding a threshold: 10% penalties will between child care services and health workers Expands eligible activities for child care apply to states not meeting a minimum care services; providing consumer block grant to enable localities to threshold. education on the availability and quality $150 million (discretionary) for renovate or upgrade child care facilities of care, including the development and research and development $250 million (discretionary) to assist in the operation of resource and referral Provides larger tax credits to those using development of distance learning child care services; ensuring availability and quality accredited child care training technology infrastructures and to of services for children with special develop model technology-based training health care needs. Allows for loan forgiveness for child care courses for providers and child care workers. workers who earn degrees in early Creates a new $1 billion (discretionary) childhood education or related degrees program of competitive "challenge grants" to improve the availability and Additional tax exemptions for costs quality of care. Communities could related to child care credentialing receive matching federal funds for funds generated in the private sector. Also extends the Family and Medical Leave Act to employers with 25 or more workers. Children's Defense Fund, 2/6/98 (All dollar figures are over five years) President's CIDCARE Act, Early Childhood Healthy and Smoke Free Caring for America's Children The Child Care A.C.C.E.S.S. Proposal S. 1037 sponsored by Jeffords (R-VT) Development Act of 1997, S. Children Act, S. 1492¹ sponsored Act, S. 1577 sponsored by Chafee (R-RI)/ Act, S. 1610 sponsored by Dodd (D- / Dodd (D-CT) 1309 sponsored by Kerry (D-MA) / by Kennedy (D-MA) Hatch (R-UT) CT)/ Daschle (D-SD) Bond (R-MO) School-Age Care Increase 21st Century Learning -0- -0- Increases the child care block grant by School-age care is an option under the child Increases the child care block grant by Centers by $800 million $5.4 billion (mandatory) to start, operate, care block grant and an eligible use of funds $3 billion (mandatory) to increase the (discretionary) to help schools or expand programs for school-age under a new small business child care grant supply and quality of school-age care. provide after-school care children program Also increases the age of children eligible for the block grant funds to 15 from 13 years old. Through the 21st Century Community Learning Centers. provides $1 billion (discretionary) to encourage schools to create before and after-school programs. Head Start $3.8 billion (discretionary) to -0- $3.6 billion to expand Early Head Start $6.75 billion (mandatory) to expand -0- -0- expand Head Start and Early Head Start Head Start $2.7 billion (mandatory) to expand Early Head Start Tax Credits $5.2 billion to expand child care Makes the child care tax credit -0- -0- Expands child care tax credit for families with Adjusts the sliding scale of the child care tax credits for middle-income refundable and includes other income up to $75,000. doubles the size of the tax credit to increase the credit for families earning below $58,000 improvements to the credit maximum credit for families with income families earning under $60,000. Indexes under $30,000. Caps child care credit at the current expense limits for inflation. $500 million for employer tax Tax credit for employers who contribute income of $105,000. Makes the credit refundable for families credits to child care arrangements for their earning under $30,000. employees including start-up costs, Allows a tax credit for stay-at-home mothers professional development, wage with children under 4 years old with family Allows parents who do not work outside subsidies, and operating expenses. Tax incomes up to $105,000. the home with children under the age of credit for 50% of employer's annual one, to claim a portion of the child care child care expenses capped at $150,000. $4 million (discretionary) for the Dept. of tax credit. This credit would be Labor to launch an awareness campaign about refundable for families earning under Charitable deduction for donating the Dependent Care Assistance plan that $30,000. and is phased out for families educational equipment and materials to allows employees to setaside up to $5,000 in earning over $70,000. public schools, accredited or credentialed income for tax free reimbursement of child nonprofit child care providers and public care expenses. $500 million to provides a 25% tax or nonprofit child care support entities. credit to employers for operating on-site Provides a 20% credit on expenses of up to child care centers, contracting for off-site Allows dependent care assistance plan $500,000 for businesses to provide child care child care, contributing to the costs of funds to be used for 12 months by to employees or assist them with the cost of accreditation or operating resource and mother (for at-home or out of home care) child care referral systems. Children's Defense Fund, 2/6/98 (All dollar figures are over five years) President's CIDCARE Act, Early Childhood Healthy and Smoke Free Caring for America's Children The Child Care A.C.C.E.S.S. Proposal S. 1037 sponsored by Jeffords (R-VT) Development Act of 1997, S. Children Act, S. 1492¹ sponsored Act, S. 1577 sponsored by Chafee (R-RI)/ Act, S. 1610 sponsored by Dodd (D- / Dodd (D-CT) 1309 sponsored by Kerry (D-MA) / by Kennedy (D-MA) Hatch (R-UT) CT)/ Daschle (D-SD) Bond (R-MO) Total 3 Spending $21.7 billion including Head Tax provision cost estimates are not yet $11.1 billion including Early Head Start Approximately $30 billion including Estimates are not yet available. Approximately $15 billion not including Start and Early Head Start available. Discretionary grants total Head Start and Early Head Start the tax credits. Tax provision cost $310 million estimates not yet available. I S. 1492 specifically allocates approximately $30 billion for child care related services. States are also offered an additional $20 billion to use for a variety of federal children's programs, including the Child Care and Development Block Grant and Head Start. As part of the $30 billion, $1.35 billion is earmarked for increasing early intervention services for children with disabilities under Part C of the Individuals with Disabilities and Education Act (IDEA). 2 Discretionary money is money that has to be appropriated each year. Therefore, there is no guarantee that Congress will fund a discretionary program at any particular level. 3 All monetary figures are spending amounts over five years, unless otherwise specified. Children's Defense Fund, 2/6/98