42 USC 9874 - Use of allotments

(a) Referral systems; information; contents 

(1) Subject to the provisions of subsections (c) and (d) of this section, amounts paid to a State under section 9873 of this title from its allotment under section 9872 of this title may be used for the planning, development, establishment, operation, expansion, or improvement by the States, directly or by grant or contract with public or private entities, of State and local resource and referral systems to provide information concerning the availability, types, costs, and locations of dependent care services. The information provided by any such system may include
(A) the types of dependent care services available, including services provided by individual homes, religious organizations, community organizations, employers, private industry, and public and private institutions;
(B) the costs of available dependent care services;

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(C) the locations in which dependent care services are provided;
(D) the forms of transportation available to such locations;
(E) the hours during which such dependent care services are available;
(F) the dependents eligible to enroll for such dependent care services; and
(G) any resource and referral system planned, developed, established, expanded, or improved with amounts paid to a State under this subchapter.
(2) The State, with respect to the uses of funds described in paragraph (1) of this subsection shall
(A) provide assurances that no information will be included with respect to any dependent care services which are not provided in compliance with the laws of the State and localities in which such services are provided; and
(B) provide assurances that the information provided will be the latest information available and will be kept up to date.
(b) School-age child care services; assurances; estimates 

(1) Subject to the provisions of subsections (c) and (d) of this section, amounts paid to a State under section 9873 of this title from its allotment under section 9872 of this title may be used for the planning, development, establishment, operation, expansion, or improvement by the States, directly, or by grant or contract, with public agencies or private nonprofit organizations of programs to furnish school-age child care services before and after school. Amounts so paid to a State and used for the operation of such child care services shall be designed to enable children, whose families lack adequate financial resources, to participate in before or after school child care programs.

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(2) The State, with respect to the uses of funds described in paragraph (1) of this subsection shall
(A) provide assurances, in the case of an applicant that is not a State or local educational agency, that the applicant has or will enter into an agreement with the State or local educational agency, institution of higher education or community center containing provisions for
(i) the use of facilities for the provision of before or after school child care services (including such use during holidays and vacation periods),
(ii) the restrictions, if any, on the use of such space, and
(iii) the times when the space will be available for the use of the applicant;
(B) provide an estimate of the costs of the establishment of the child care service program in the facilities;
(C) provide assurances that the parents of school-age children will be involved in the development and implementation of the program for which assistance is sought under this Act;[1]
(D) provide assurances that the applicant is able and willing to seek to enroll racially, ethnically, and economically diverse school-age children, as well as handicapped school-age children, in the child care service program for which assistance is sought under this Act;[1]
(E) provide assurances that the child care program is in compliance with State and local child care licensing laws and regulations governing day care services for school-age children to the extent that such regulations are appropriate to the age group served; and
(F) provide such other assurances as the chief executive officer of the State may reasonably require to carry out this Act.[1]
(c) Percentage of allotment; waiver 

(1) Except as provided in paragraph (2), of the allotment to each State in each fiscal year
(A) 40 percent shall be available for the activities described in subsection (a) of this section;
(B) 60 percent shall be available for the activities described in subsection (b) of this section.
(2) For any fiscal year the Secretary may waive the percentage requirements specified in paragraph (1) on the request of a State if such State demonstrates to the satisfaction of the Secretary
(A) that the amount of funds available as a result of one of such percentage requirements is not needed in such fiscal year for the activities for which such amount is so made available; and
(B) the adequacy of the alternative percentages, relative to need, the State specifies the State will apply with respect to all of the activities referred to in paragraph (1) if such waiver is granted.
(d) Prohibition; use of amounts 
A State may not use amounts paid to it under this subchapter to
(1) make cash payments to intended recipients of dependent care services including child care services;
(2) pay for construction or renovation; or
(3) satisfy any requirement for the expenditure of non-Federal funds as a condition for the receipt of Federal funds.
(e) Federal share; cost of administration 

(1) The Federal share of any project supported under this subchapter shall be not more than 75 percent.
(2) Not more than 10 percent of the allotment of each State under this subchapter may be available for the cost of administration.
(f) Duplication of services 
Projects supported under this section to plan, develop, establish, expand, operate, or improve a State or local resource and referral system or before or after school child care program shall not duplicate any services which are provided before October 30, 1984, by the State or locality which will be served by such system.
(g) Technical assistance to States; planning and operational activities 
The Secretary may provide technical assistance to States in planning and carrying out activities under this subchapter.
[1] So in original. Probably should be “subchapter”.