Caring for America's Children Act

Caring for America's Children Act - Title I: Tax Benefits for Families with Children - Amends the Internal Revenue Code to increase the Dependent Care Tax Credit (DCTC) by: (1) increasing the amount of allowable expenses from $2,400 to $3,600 for one dependent, and from $4,800 to $6,000 for two or more; (2) increasing the maximum percentage of the allowable employment-related expenses to 40 percent; (3) raising the adjusted gross income level receiving the maximum percentage to $50,000; and (4) permitting educational programs and third party transportation costs to be counted as allowable expenses.

(Sec. 102) Increases the Child Tax Credit from $500 per year to $900 per year.

(Sec. 103) Increases the dollar contribution limit in the Dependent Care Assistance Program (DCAP) to $7,000 a year for two or more dependents. Permits contributions to DCAP accounts during pregnancy, usable for one year after the birth of a child. Permits the use of DCAP funds to pay a spouse or grandparent to care for a pre-school aged child at home. Establishes a DCAP for Federal employees.

(Sec. 104) Permits parents to choose between the DCTC, Child Tax Credit, and the DCAP for each dependent child (each tax benefit mutually exclusive for each child).

(Sec. 105) Revises the Home Office tax deduction to permit parents to care for a dependent child within the home office space and maintain the "exclusive use" designation for the home office tax deduction.

(Sec. 106) Amends title IV part D (Child Support and Establishment of Paternity) the Social Security Act to require States to include the cost of child care in the calculation of child support orders.

Title II: Activities to Improve the Quality of Child Care - Subtitle A: Encouraging Business Involvement in Child Care - Establishes a child care tax credit for employers up to $150,000 a year ($250,000 a year with respect to three or more company child care facilities in different locations) in allowable employee-related child care expenses such as the construction or renovation of facilities and employee subsidies.

(Sec. 202) Extends the charitable tax deduction for contributions of scientific property used for research to include the contribution of scientific and computer equipment, transportation services, qualified employee volunteer time, and the use of facilities and equipment to public schools and child care providers.

Subtitle B: Child Care Quality Improvement Incentive Program - Directs the Secretary of Health and Human Services to establish a State grant program to fund activities designed to improve the quality of child care.

(Sec. 213) Allocates funds to the States (based on the Child Care and Development formula).

(Sec. 214) Requires States, in order to receive grant funds, to: (1) certify that the State has not reduced the scope of State child care requirements since 1995; (2) be in compliance with the Child Care and Development Block Grant; and (3) have expended at least 80 percent of the funds allocated to the State for child care matching funds under SSA title IV part A (Temporary Assistance to Needy Families) (TANF). Sets the Federal share of the cost of State activities at 90 percent.

(Sec. 215) Authorizes a State to use grant funds for specified activities designed to improve the quality of child care, including: (1) supplements to child care provider salaries; (2) assistance to small businesses desiring to provide child care assistance to employees; (3) expansion of resource and referral services, educational and training scholarship for child care providers; (4) increased subsidies for Child Care and Development Block Grant recipients; (5) subsidies for child care for special needs children; and (6) background checks and increasing the monitoring of child care providers. Authorizes appropriations.

Subtitle C: Increased Enforcement of State Health and Safety Standards - Amends the Child Care and Development Block Grant Act of 1990 (CCDBGA) to provide for: (1) a bonus for States which effectively enforce existing state law and regulations regarding the inspection of child care facilities; and (2) a decrease in CCDBG administrative funds for States which do not adequately enforce State child care inspection requirements.

Subtitle D: Distribution of Information About Quality Child Care - Directs the Secretary, through the award of competitive contracts, to: (1) provide technical assistance and disseminate information on high quality child care to parents, local governments, child care organizations, and child care providers; and (2) conduct a public awareness campaign promoting quality child care.

(Sec. 231) Requires the Secretary to: (1) develop a mechanism for the collection and dissemination of information on the supply and demand for child care services; and (4) award competitive grants to existing child care credentialing or accreditation entities to assist them in improving their procedures and methods. Authorizes appropriations.

Title III: Expanding Professional Development Opportunities - Directs the Secretary to make grants to eligible organizations to develop and operate technology-based child care training infrastructures utilizing the Internet and existing distance learning resources to provide high quality, interactive skills training for child care providers. Authorizes appropriations.

(Sec. 302) Directs the Chief Executive Project Officer to use at least ten percent of the authorized funds, within the child care training infrastructure, to establish and operate a revolving fund to make no-interest loans to enable child care providers to purchase computers and other equipment to access the child care training infrastructure.

Title IV: Expanding Youth Development Opportunities During the Non-School Hours - Directs the Assistant Secretary for Children and Families of the Department of HHS to award grants to States for the Federal share (80 percent) of the cost of establishing programs that provide care for school-aged children during the non-school hours.

(Sec. 408) Requires the use of grant funds for activities that: (1) meet the child care needs of working parents during the non-school hours, including before- and after-school, weekends, school holidays, and vacation periods; (2) will promote at least two youth development competencies (social, physical, emotional, moral or cognitive); (3) are designed to increase youth protective factors and reduce risk factors; and (4) include leadership development, delinquency prevention, sports and recreation, arts and cultural activities, character development, tutoring and academic enrichment, mentoring, and other locally determined programs.

Requires that at least 50 percent of the funds made available to an entity be used to subsidize the cost of participation in the non-school hours program for low-income youth.

(Sec. 409) Directs the Assistant Secretary to: (1) establish mechanisms for monitoring and evaluating the effectiveness of funded activities; (2) coordinate the grant program with similar activities in other Federal agencies; (3) provide appropriate training and technical assistance to States and local entities; and (4) terminate funding for States or entities which fail to comply with the requirements of this Act.

(Sec. 410) Requires the Governor of each State to designate an entity to administer the grant activities.

(Sec. 412) Authorizes appropriations.

Title V: Child Care in Federal Facilities - Federal Employees Child Care Act - Requires any Federal agency operating, or entity contracting with a Federal agency to operate, a child care facility primarily for the use of Federal employees (including executive and judicial branch employees) to comply with child care standards no less stringent than those required of other child care facilities in the same geographical area within six months, and within three years with those established by a child care accreditation entity.

(Sec. 503) Requires the Administrator of General Services to establish an interagency council to facilitate cooperation and sharing of best practices, and develop and coordinate policy, regarding the provision of child care, including the provision of areas for nursing mothers and other lactation support facilities and services, in the Federal Government.

(Sec. 504) Directs the Administrator and the Director of the Office of Personnel Management to evaluate jointly for Congress of child care services in executive, legislative, or judicial facilities.

(Sec. 505) Authorizes Federal agencies to use appropriated funds to subsidize or otherwise assist lower income Federal employees meet the costs of child care provided through contract or on-site.

(Sec. 506) Amends Federal law to re-authorize the Trible Amendment which permits federal facilities to provide on-site child care services.

Authorizes Federal agencies to conduct pilot projects on innovative approaches to providing employee child care services.

Requires criminal background checks for employees of child care facilities located in Federal facilities.

Title VI: Expanding Child Care Subsidy for Low-Income Families - Amends the CCDBGA to increase the authorization of appropriations.

(Sec. 602) Requires a State CCDBG plan to assure that the use of automated payment systems will not limit parental choice and will facilitate the prompt, accurate payment of child care providers.

Requires a State to ensure that 70 percent (currently, a substantial portion) of CCDBG funds are used for low-income families who are not TANF-qualified recipients of child care subsidies.

Requires States to ensure maximum parental choice of child care providers by establishing separate subsidy rates dependent upon the age of the child, the setting of the child care services (home, center, group), special needs, and geographic location.

Requires States to reduce any required parental co-payment by the amount of the difference between the market rate and any State child care subsidy that is less than 85 percent of such market rate.

Title VII: Construction and Renovation of Child Care Facilities - Subtitle A: Community Development Block Grants - Amends the Housing and Community Development Act of 1974 to authorize the use of Community Development Block Grant funds to renovate or construct child care facilities.

Subtitle B: Mortgage Insurance For Child Care Facilities - Amends title II of the National Housing Act to authorize the Secretary of Housing and Urban Development (HUD) to insure mortgages on new and rehabilitated child care facilities, as well as fire safety equipment loans to such facilities. Authorizes appropriations.

(Sec. 712) Authorizes the Secretary of HUD to insure mortgages for the purchase or refinancing of existing child care facilities.

(Sec. 713) Directs the Secretary of the Treasury to study and report to Congress on the secondary mortgage markets to determine: (1) whether markets exist for purchase of mortgages eligible for insurance under the National Housing Act; (2) whether the market will affect the availability of credit for development of child care facilities; and (3) the extent to which the market will provide credit enhancement for loans for such facilities.

(Sec. 714) Authorizes the Secretary of HUD to award competitive grants to eligible private, nonprofit intermediary organizations to provide technical and financial assistance to child care providers for the renovation, construction, and purchase of child care facilities. Authorizes appropriations.