Child Care Development Act of 1988

Child Care Development Act of 1988 - Authorizes appropriations for FY 1989 through 1991 for a child care block grant program.

Directs the Secretary of Health and Human Services (the Secretary) to reserve a portion of such funds for payments to specified U.S. territories and possessions and the Commonwealth of Puerto Rico. Directs the Secretary to allot the remainder to each State on the basis of a formula that takes into account the number of individuals under age 16 and of women in the workforce. Sets forth requirements for minimum allotments, data and information, carryovers, and additional allotments.

Requires State Governors to designate a lead State agency to administer the funds provided to the State under this Act.

Requires States to use their allotments to make grants or loans to eligible providers or other eligible entities for capital expenditures, furnishings, operating expenses, and training. (Defines an eligible provider as a child care center, family day care provider, or other facility which meets requirements as determined by the Secretary or lead agency. Defines an eligible entity as any public or nonprofit private organization.)

Permits States to use allotment funds to provide child care training to adult recipients of benefits under the Aid to Families with Dependent Children (AFDC) program under the Social Security Act.

Limits the portion of the allotment which a State may use to administer the State plan. Permits a State to use non-Federal funds to carry out its duties under this Act.

Sets forth requirements for State applications and State plans.

Sets forth provisions for payment of allotments to States.

Authorizes a State to require any provider of services that is funded or seeking funds made available under this Act to furnish, in cash or in kind, contributions.

Allows a State to transfer to the lead agency for use in accordance with this Act amounts paid to it for child care services programs under the Social Security Act, the State Dependent Care Development Grants Act, and the Community Services Block Grant Act.

Requires annual State reports on their use of funds under this Act.

Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to exclude child care services earnings from the limitation on wages or self-employment income for purposes of determining benefits for certain individuals.

Amends the Internal Revenue Code to exclude child care providers from the definition of private business use and from coverage by specified private activity bond provisions.

Authorizes the Secretary to issue regulations to ensure compliance with this Act. Provides for a negotiated rulemaking process.

Requires a study to improve the coordination of child care funding or services programs which are administered by or through the Department of Health and Human Services. Directs the Secretary to report on such study, with recommendations, to specified congressional committees within one year after enactment of this Act.

Repeals provisions for certain public works and development facility loans and grants under the Public Works and Economic Development Act of 1965.

Repeals provisions for urban development action grants (and historic preservation requirements relating to such grants) under the Housing and Community Development Act of 1974.