
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC618]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
 SUBCHAPTER IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES 
              WITH CHILDREN AND FOR CHILD-WELFARE SERVICES
 
   Part A--Block Grants to States for Temporary Assistance for Needy 
                                Families
 
Sec. 618. Funding for child care


(a) General child care entitlement

                       (1) General entitlement

        Subject to the amount appropriated under paragraph (3), each 
    State shall, for the purpose of providing child care assistance, be 
    entitled to payments under a grant under this subsection for a 
    fiscal year in an amount equal to the greater of--
            (A) the total amount required to be paid to the State under 
        section 603 of this title for fiscal year 1994 or 1995 
        (whichever is greater) with respect to expenditures for child 
        care under subsections (g) and (i) of section 602 of this title 
        (as in effect before October 1, 1995); or
            (B) the average of the total amounts required to be paid to 
        the State for fiscal years 1992 through 1994 under the 
        subsections referred to in subparagraph (A).

                            (2) Remainder

        (A) Grants

            The Secretary shall use any amounts appropriated for a 
        fiscal year under paragraph (3), and remaining after the 
        reservation described in paragraph (4) and after grants are 
        awarded under paragraph (1), to make grants to States under this 
        paragraph.

        (B) Allotments to States

            The total amount available for payments to States under this 
        paragraph, as determined under subparagraph (A), shall be 
        allotted among the States based on the formula used for 
        determining the amount of Federal payments to each State under 
        section 603(n) of this title (as in effect before October 1, 
        1995).

        (C) Federal matching of State expenditures exceeding historical 
                expenditures

            The Secretary shall pay to each eligible State for a fiscal 
        year an amount equal to the lesser of the State's allotment 
        under subparagraph (B) or the Federal medical assistance 
        percentage for the State for the fiscal year (as defined in 
        section 1396d(b) of this title, as such section was in effect on 
        September 30, 1995) of so much of the State's expenditures for 
        child care in that fiscal year as exceed the total amount of 
        expenditures by the State (including expenditures from amounts 
        made available from Federal funds) in fiscal year 1994 or 1995 
        (whichever is greater) for the programs described in paragraph 
        (1)(A).

        (D) Redistribution

            (i) In general

                With respect to any fiscal year, if the Secretary 
            determines (in accordance with clause (ii)) that any amounts 
            allotted to a State under this paragraph for such fiscal 
            year will not be used by such State during such fiscal year 
            for carrying out the purpose for which such amounts are 
            allotted, the Secretary shall make such amounts available in 
            the subsequent fiscal year for carrying out such purpose to 
            one or more States which apply for such funds to the extent 
            the Secretary determines that such States will be able to 
            use such additional amounts for carrying out such purpose. 
            Such available amounts shall be redistributed to a State 
            pursuant to section 603(n) of this title (as such section 
            was in effect before October 1, 1995) by substituting ``the 
            number of children residing in all States applying for such 
            funds'' for ``the number of children residing in the United 
            States in the second preceding fiscal year''.
            (ii) Time of determination and distribution

                The determination of the Secretary under clause (i) for 
            a fiscal year shall be made not later than the end of the 
            first quarter of the subsequent fiscal year. The 
            redistribution of amounts under clause (i) shall be made as 
            close as practicable to the date on which such determination 
            is made. Any amount made available to a State from an 
            appropriation for a fiscal year in accordance with this 
            subparagraph shall, for purposes of this part, be regarded 
            as part of such State's payment (as determined under this 
            subsection) for the fiscal year in which the redistribution 
            is made.

                          (3) Appropriation

        For grants under this section, there are appropriated--
            (A) $1,967,000,000 for fiscal year 1997;
            (B) $2,067,000,000 for fiscal year 1998;
            (C) $2,167,000,000 for fiscal year 1999;
            (D) $2,367,000,000 for fiscal year 2000;
            (E) $2,567,000,000 for fiscal year 2001; and
            (F) $2,717,000,000 for fiscal year 2002.

                          (4) Indian tribes

        The Secretary shall reserve not less than 1 percent, and not 
    more than 2 percent, of the aggregate amount appropriated to carry 
    out this section in each fiscal year for payments to Indian tribes 
    and tribal organizations.

       (5) Data used to determine State and Federal shares of 
                                expenditures

        In making the determinations concerning expenditures required 
    under paragraphs (1) and (2)(C), the Secretary shall use information 
    that was reported by the State on ACF Form 231 and available as of 
    the applicable dates specified in clauses (i)(I), (ii), and 
    (iii)(III) of section 603(a)(1)(D) of this title.

(b) Use of funds

                           (1) In general

        Amounts received by a State under this section shall only be 
    used to provide child care assistance. Amounts received by a State 
    under a grant under subsection (a)(1) of this section shall be 
    available for use by the State without fiscal year limitation.

                   (2) Use for certain populations

        A State shall ensure that not less than 70 percent of the total 
    amount of funds received by the State in a fiscal year under this 
    section are used to provide child care assistance to families who 
    are receiving assistance under a State program under this part, 
    families who are attempting through work activities to transition 
    off of such assistance program, and families who are at risk of 
    becoming dependent on such assistance program.

(c) Application of Child Care and Development Block Grant Act of 1990

    Notwithstanding any other provision of law, amounts provided to a 
State under this section shall be transferred to the lead agency under 
the Child Care and Development Block Grant Act of 1990 [42 U.S.C. 9858 
et seq.], integrated by the State into the programs established by the 
State under such Act, and be subject to requirements and limitations of 
such Act.

(d) ``State'' defined

    As used in this section, the term ``State'' means each of the 50 
States and the District of Columbia.

(Aug. 14, 1935, ch. 531, title IV, Sec. 418, as added Pub. L. 104-193, 
title VI, Sec. 603(b), Aug. 22, 1996, 110 Stat. 2279; amended Pub. L. 
105-33, title V, Sec. 5601, Aug. 5, 1997, 111 Stat. 644.)

                       References in Text

    The Child Care and Development Block Grant Act of 1990, referred to 
in subsec. (c), is subchapter C (Sec. 658A et seq.) of chapter 8 of 
subtitle A of title VI of Pub. L. 97-35, as added by Pub. L. 101-508, 
title V, Sec. 5082(2), Nov. 5, 1990, 104 Stat. 1388-236, as amended, 
which is classified generally to subchapter II-B (Sec. 9858 et seq.) of 
chapter 105 of this title. For complete classification of this Act to 
the Code, see Short Title note set out under section 9801 of this title 
and Tables.


                               Amendments

    1997--Subsec. (a)(1). Pub. L. 105-33, Sec. 5601(a)(1)(A), (D), 
inserted ``the greater of'' after ``equal to'' in introductory 
provisions and struck out concluding provisions which read ``whichever 
is greater.''
    Subsec. (a)(1)(A). Pub. L. 105-33, Sec. 5601(a)(1)(B), struck out 
``the sum of'' before ``the total amount'', substituted ``expenditures'' 
for ``amounts expended'' and ``subsections (g) and (i) of section 602 of 
this title (as in effect before October 1, 1995); or'' for ``section--
'', and struck out cls. (i) and (ii) which read as follows:
    ``(i) 602(g) of this title (as such section was in effect before 
October 1, 1995); and
    ``(ii) 602(i) of this title (as so in effect); or''.
    Subsec. (a)(1)(B). Pub. L. 105-33, Sec. 5601(a)(1)(C), substituted 
``subsections'' for ``sections'' and a period for the semicolon at end.
    Subsec. (a)(2)(B). Pub. L. 105-33, Sec. 5601(a)(2)(A), added subpar. 
(B) and struck out heading and text of former subpar. (B). Text read as 
follows: ``Subject to subparagraph (C), the amount of a grant awarded to 
a State for a fiscal year under this paragraph shall be based on the 
formula used for determining the amount of Federal payments to the State 
under section 603(n) of this title (as such section was in effect before 
October 1, 1995).''
    Subsec. (a)(2)(C). Pub. L. 105-33, Sec. 5601(a)(2)(B), added subpar. 
(C) and struck out heading and text of former subpar. (C). Text read as 
follows: ``The Secretary shall pay to each eligible State in a fiscal 
year an amount, under a grant under subparagraph (A), equal to the 
Federal medical assistance percentage for such State for fiscal year 
1995 (as defined in section 1396d(b) of this title) of so much of the 
expenditures by the State for child care in such year as exceed the 
State set-aside for such State under paragraph (1)(A) for such year and 
the amount of State expenditures in fiscal year 1994 or 1995 (whichever 
is greater) that equal the non-Federal share for the programs described 
in subparagraph (A) of paragraph (1).''
    Subsec. (a)(2)(D)(i). Pub. L. 105-33, Sec. 5601(a)(2)(C), 
substituted ``any amounts allotted'' for ``amounts under any grant 
awarded'' and ``such amounts are allotted'' for ``the grant is made''.
    Subsec. (a)(5). Pub. L. 105-33, Sec. 5601(b), added par. (5).
    Subsec. (d). Pub. L. 105-33, Sec. 5601(c), substituted ``and'' for 
``or'' before ``the District''.


                    Effective Date of 1997 Amendment

    Section 5603 of title V of Pub. L. 105-33 provided that:
    ``(a) In General.--Except as provided in subsection (b), this 
chapter [chapter 6 (Secs. 5601-5603) of subtitle F of title V of Pub. L. 
105-33, amending this section and sections 9858c, 9858i, 9858j, 9858m, 
and 9858n of this title] and the amendments made by this chapter shall 
take effect as if included in the enactment of title VI of the Personal 
Responsibility and Work Opportunity Reconciliation Act of 1996 (Public 
Law 104-193; 110 Stat. 2278).
    ``(b) Exceptions.--The amendment made by section 5601(a)(2)(B) 
[amending this section] shall take effect on October 1, 1997.''


                             Effective Date

    Section effective Oct. 1, 1996, see section 615 of Pub. L. 104-193, 
set out as an Effective Date of 1996 Amendment note under section 9858 
of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 603, 609, 9858c of this 
title.
