[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2282 Introduced in House (IH)]

<DOC>






119th CONGRESS
  1st Session
                                H. R. 2282

To reauthorize the Child Care and Development Block Grant Act of 1990, 
   to improve access to relative caregivers, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 24, 2025

Mr. Moore of West Virginia (for himself, Mr. Higgins of Louisiana, Mr. 
 Gill of Texas, and Mr. Smith of New Jersey) introduced the following 
 bill; which was referred to the Committee on Education and Workforce, 
and in addition to the Committee on Ways and Means, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL


 
To reauthorize the Child Care and Development Block Grant Act of 1990, 
   to improve access to relative caregivers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Respect Parents' Childcare Choices 
Act''.

SEC. 2. AMENDMENTS TO THE CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT OF 
              1990.

    (a) Authorization of Appropriations.--Section 658B of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858) is 
amended by striking ``this subchapter'' and all that follows and 
inserting the following: ``this subchapter, $14,000,000,000 for each of 
fiscal years 2026 through 2031.''.
    (b) Application and Plan.--Section 658E(c) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)) is amended--
            (1) in paragraph (2)--
                    (A) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Parental choice of providers.--Provide 
                assurances that--
                            ``(i) the parent or parents of each 
                        eligible child within the State, who receives 
                        or is offered child care services for which 
                        financial assistance is provided under this 
                        subchapter, are given the option to receive a 
                        child care certificate as defined in section 
                        658P(2); and
                            ``(ii) all direct services authorized in 
                        this subchapter will be provided via child care 
                        certificates.'';
                    (B) in subparagraph (F)--
                            (i) in clause (i), by inserting ``(not 
                        including in-home child care providers and 
                        relative caregivers)'' after ``within the 
                        State''; and
                            (ii) in clause (ii), by inserting ``(other 
                        than in-home child care providers and relative 
                        caregivers)'' after ``described in clause 
                        (i)'';
                    (C) in subparagraph (G)--
                            (i) in clause (i)--
                                    (I) in the first sentence, by 
                                inserting ``(if any)'' after ``within 
                                the State''; and
                                    (II) in the second sentence, by 
                                inserting ``, except that such 
                                requirements shall not apply to in-home 
                                child care providers and relative 
                                caregivers'' before the period; and
                            (ii) in clause (ii)(I), by striking 
                        ``(which may include encouraging the pursuit of 
                        postsecondary education),'';
                    (D) in subparagraph (K)(i)(II)--
                            (i) in item (aa), by inserting ``(not 
                        including in-home child care providers and 
                        relative caregivers or their facilities)'' 
                        before the semicolon; and
                            (ii) in item (bb), by inserting ``(not 
                        including in-home child care providers and 
                        relative caregivers or their facilities)'' 
                        after ``facility in the State'';
                    (E) in subparagraph (M), by adding at the end the 
                following flush sentence:
                ``Nothing in this subchapter shall be construed to 
                imply that States are required to provide a portion of 
                the delivery of direct services through grants or 
                contracts.'';
                    (F) in subparagraph (N)--
                            (i) by striking ``(N)'' and all that 
                        precedes clause (i) and inserting the 
                        following:
                    ``(N) Protection for working and newly married 
                parents.--'';
                            (ii) in clause (i)(I)--
                                    (I) by striking ``85 percent of''; 
                                and
                                    (II) by striking ``of the same 
                                size'' and inserting ``with the same 
                                number of children and parents as 
                                prescribed in section 658P(4)'';
                            (iii) in clause (iii)--
                                    (I) by inserting before ``At the 
                                option'' the following:
                                    ``(I) Cessation of work, training, 
                                or education.--''; and
                                    (II) by adding at the end the 
                                following:
                                    ``(II) Marriage of an unmarried 
                                parent.--The plan shall certify that 
                                the State will not terminate assistance 
                                provided to carry out this subchapter 
                                based on a factor consisting of an 
                                unmarried parent's marriage which 
                                causes the family income to rise above 
                                the State median income for a family 
                                with the same number of children and 
                                parents as prescribed in section 
                                658P(4), without continuing the 
                                assistance for at least 6 months after 
                                such marriage.'';
                            (iv) in clause (iv)--
                                    (I) by striking ``for children of 
                                parents'' and inserting the following: 
                                ``for children of--
                                    ``(I) parents''; and
                                    (II) by striking ``85 percent of 
                                the State median income for a family of 
                                the same size'' and inserting the 
                                following: ``the State median income 
                                for a family with the same number of 
                                children and parents as prescribed in 
                                section 658P(4); or
                                    ``(II) parents who married 
                                following the initial determination or 
                                most recent redetermination whose 
                                family income now exceeds the State's 
                                income limit to qualify for such 
                                assistance due to the addition of their 
                                spouse's income.''; and
                    (G) by adding at the end the following:
                    ``(W) Notification of program coverage for relative 
                caregivers.--The plan shall certify that the State 
                will--
                            ``(i) clearly post on the State's website 
                        described in subparagraph (E)(III); and
                            ``(ii) annually notify the parents of each 
                        eligible child receiving a child care 
                        certificate under this subchapter that such 
                        certificates may be used--
                                    ``(I) as a payment to a relative 
                                caregiver including the child's 
                                grandparent, great grandparent, adult 
                                sibling, aunt, or uncle; or
                                    ``(II) as a disbursement to married 
                                parents in which at least one parent is 
                                acting as a relative caregiver to the 
                                parent's own eligible child, so long as 
                                such families are in compliance with 
                                the income and work requirements 
                                described in section 658P(4)(C)(iii).
                    ``(X) Review of requirements on relative 
                caregivers.--The plan shall include certification that 
                the State will (at least once every 5 years) review 
                State and local regulations, requirements, and 
                licensing standards applicable to relative caregivers 
                to identify burdensome or redundant requirements that 
                are unnecessary to protect the health and safety of 
                children and that--
                            ``(i) limit or lower the number of relative 
                        caregivers who care for eligible children under 
                        this subchapter; or
                            ``(ii) prevent parents from choosing to 
                        have a relative caregiver provide childcare for 
                        their eligible child.'';
            (2) in paragraph (3)(E)(ii), by striking ``70 percent to 
        fund direct services (provided by the State) in accordance with 
        paragraph (2)(A)'' and inserting ``90 percent to fund direct 
        services (provided by the State) via child care certificates''; 
        and
            (3) in paragraph (4)--
                    (A) by redesignating subparagraph (C) as 
                subparagraph (D); and
                    (B) by inserting after subparagraph (B), the 
                following:
                    ``(C) Payment rate.--The State plan shall certify 
                that the payment rate to relative caregivers is not 
                less than 75 percent of the rate for family child care 
                providers for children of the same age and in the same 
                geographic location.''.
    (c) Limitations.--Section 658F(b)(2) of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858d(b)(2)) is 
amended--
            (1) in the paragraph heading, by striking ``Sectarian'' and 
        inserting ``Religious''; and
            (2) by striking ``sectarian'' and inserting ``religious''.
    (d) Improving the Quality of Child Care.--Section 658G of the Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9858e) is 
amended--
            (1) in subsection (a), by striking paragraphs (2) and (3) 
        and inserting the following:
            ``(2) Amount of reservations.--Such State shall reserve and 
        use--
                    ``(A) not more than 9 percent of the funds 
                described in paragraph (1) each year to carry out the 
                activities described in paragraph (1); and
                    ``(B) in addition to the funds reserved under 
                subparagraph (A), 3 percent of the funds described in 
                paragraph (1) to carry out the activities described in 
                paragraph (1) and subsection (b)(4), as such activities 
                relate to the quality of care for infants and 
                toddlers.''; and
            (2) in subsection (b)(1)--
                    (A) in subparagraph (F), by adding ``and'' at the 
                end;
                    (B) in subparagraph (G), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (H).
    (e) Reports.--Section 658K(a) of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858i(a)) is amended--
            (1) in paragraph (1)(B)(vii), by striking ``home care'' and 
        inserting ``in-home care''; and
            (2) in paragraph (2)(C), by striking ``contracts,''.
    (f) Hotline and Website.--Section 658L(b)(2)(B) of the Child Care 
and Development Block Grant Act of 1990 (42 U.S.C. 9858j(b)(2)(B)) is 
amended--
            (1) in clause (iv), by striking ``and'' at the end;
            (2) in clause (v), by striking the period and inserting ``; 
        and''; and
            (3) by adding at the end the following:
                            ``(vi) notice that the parents of eligible 
                        children may use child care certificates--
                                    ``(I) as a payment to a relative 
                                caregiver including the child's 
                                grandparent, great grandparent, adult 
                                sibling, aunt, or uncle; or
                                    ``(II) as a disbursement to married 
                                parents in which at least one parent is 
                                acting as a relative caregiver to the 
                                parent's own eligible child, so long as 
                                such families are in compliance with 
                                the income and work requirements 
                                described in section 
                                658P(4)(C)(iii).''.
    (g) Sectarian Activities.--Section 658M of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858k) is amended--
            (1) by striking subsection (a); and
            (2) by striking ``(b) Tuition.--With'' and inserting 
        ``With''.
    (h) Nondiscrimination.--Section 658N of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858l) is amended --
            (1) in subsection (a)--
                    (A) in paragraph (1)(B), by striking ``sectarian'' 
                and inserting ``religious'';
                    (B) in paragraph (3)--
                            (i) by striking subparagraph (A); and
                            (ii) by redesignating subparagraphs (B) and 
                        (C) as subparagraphs (A) and (B), respectively; 
                        and
                    (C) by striking paragraph (4) and inserting the 
                following:
            ``(4) Protections for religious child care providers.--
                    ``(A) In general.--A State receiving funds under 
                this subchapter shall ensure that--
                            ``(i) in licensing child care providers, 
                        the State shall not impose any requirement on a 
                        religious organization that results in the 
                        imposition of a greater burden on the religious 
                        organization when compared to the related 
                        burden imposed on any private nonreligious 
                        organization;
                            ``(ii) in licensing child care providers, 
                        the State shall not impose a requirement on a 
                        religious organization to provide or comply 
                        with any document, agreement, covenant, 
                        memorandum of understanding, policy, or 
                        regulation, or to provide an assurance or 
                        notice, unless the State also imposes that 
                        requirement on nonreligious organizations; and
                            ``(iii) a religious organization receiving 
                        funds under this subchapter that provides child 
                        care services shall retain its independence 
                        from State and local governments, including 
                        retaining the autonomy, right of expression, 
                        religious character or affiliation, authority 
                        over internal governance, or other aspects of 
                        the independence of such organization.
                    ``(B) Requirements.--A religious organization 
                receiving funds under this subchapter that provides 
                child care services may--
                            ``(i) retain religious terms in the 
                        organization's name;
                            ``(ii) continue to carry out the 
                        organization's mission, including the 
                        definition, development, practice, and 
                        expression of its religious beliefs;
                            ``(iii) use the organization's facilities 
                        to provide a program without concealing, 
                        removing, or altering religious art, icons, 
                        scriptures, or other symbols from the 
                        facilities;
                            ``(iv) select, promote, or dismiss the 
                        members of the organization's governing body, 
                        and the organization's employees, on the basis 
                        of their acceptance of or adherence to the 
                        religious tenets of the organization; and
                            ``(v) include religious references in the 
                        organization's mission statement and other 
                        chartering or governing documents.
                    ``(C) Religious exemptions.--A religious 
                organization's exemptions, as provided in title VII of 
                the Civil Rights Act of 1964 (42 U.S.C. 2000e et seq.) 
                (including exemptions from prohibitions of employment 
                discrimination in section 702(a) of that Act (42 U.S.C. 
                2000e-1(a))), title VIII of the Civil Rights Act of 
                1968 (42 U.S.C. 3601 et seq.), title IX of the 
                Education Amendments of 1972 (20 U.S.C. 1681 et seq.), 
                the Americans with Disabilities Act of 1990 (42 U.S.C. 
                12101 et seq.), the Religious Freedom Restoration Act 
                of 1993 (42 U.S.C. 2000bb et seq.), the Religious Land 
                Use and Institutionalized Persons Act of 2000 (42 
                U.S.C. 2000cc et seq.), or any other provision in law 
                providing an exemption for a religious organization, 
                shall not be waived because of the religious 
                organization's receipt of funds under this subchapter.
                    ``(D) Private right of action.--Any religious 
                organization that alleges a violation of its rights 
                under this paragraph and seeks to enforce such rights--
                            ``(i) may bring an action in a court of 
                        competent jurisdiction and assert that 
                        violation as a claim, or assert that violation 
                        as a defense in a civil action; and
                            ``(ii) may obtain appropriate relief, 
                        including attorney's fees, against an entity or 
                        agency that committed such violation.''; and
            (2) in subsection (b), by striking ``sectarian'' each place 
        it appears and inserting ``religious''.
    (i) Definitions.--Section 658P of the Child Care and Development 
Block Grant Act of 1990 (42 U.S.C. 9858n) is amended--
            (1) by striking paragraph (2) and inserting the following:
            ``(2) Child care certificate.--
                    ``(A) In general.--The term `child care 
                certificate' means a certificate (that may be a check 
                or other disbursement) that is issued by a State or 
                local government under this subchapter directly to a 
                parent who may use such certificate--
                            ``(i) as payment for child care services;
                            ``(ii) as a deposit for child care services 
                        if such a deposit is required of other children 
                        being cared for by the provider; or
                            ``(iii) as a disbursement to married 
                        parents described in paragraph (4)(C)(iii) in 
                        which at least one parent is acting as a 
                        relative caregiver to the parent's own child, 
                        so long as such disbursement is not less than 
                        the payment rate set for other relative 
                        caregivers for children of the same age and in 
                        the same geographic location.
                    ``(B) Rule of construction.--Nothing in this 
                subchapter shall be construed to allow State or Federal 
                agencies to preclude the use of such certificates for 
                child care services provided by a religious child care 
                provider if such services are freely chosen by the 
                parent. Such certificates may be expended by providers 
                for any religious purpose or activity that is a part of 
                the child care services, including religious worship 
                and instruction.
                    ``(C) Not grants or contracts.--For purposes of 
                this subchapter, child care certificates shall not be 
                considered to be grants or contracts.'';
            (2) in paragraph (4), by striking subparagraphs (B) and (C) 
        and inserting the following:
                    ``(B) whose family assets do not exceed $1,000,000 
                (as certified by a member of such family); and
                    ``(C) who--
                            ``(i) resides in a family that is headed by 
                        an unmarried person who is the child's parent, 
                        who is working or attending a job training or 
                        educational program, and that has a family 
                        income that does not exceed 85 percent of the 
                        State median income for a family with the same 
                        number of children headed by an unmarried 
                        person, based on the most recent data that is 
                        published by the Bureau of the Census;
                            ``(ii) resides in a family that is headed 
                        by two married persons who are the child's 
                        parents, who are both working or attending a 
                        job training or educational program, and that 
                        has a family income that does not exceed 70 
                        percent of the State median income for a family 
                        with the same number of children headed by two 
                        married persons, based on the most recent data 
                        that is published by the Bureau of the Census;
                            ``(iii) resides in a family that is headed 
                        by two married persons who are the child's 
                        parents, and who work a combined total of at 
                        least 40 hours per week and that has one or 
                        both parents acting as a relative caregiver for 
                        the child, with a family income that does not 
                        exceed 70 percent of the State median income 
                        for a family with the same number of children 
                        headed by two married persons, based on the 
                        most recent data that is published by the 
                        Bureau of the Census; or
                            ``(iv) is receiving, or needs to receive, 
                        protective services and resides with a parent 
                        or parents not described in clause (i), (ii), 
                        or (iii).'';
            (3) in paragraph (6)--
                    (A) in subparagraph (A), by striking ``a group home 
                child care provider''; and
                    (B) by striking subparagraph (B) and inserting the 
                following:
                    ``(B) a relative caregiver or in-home child care 
                provider, if such caregiver or other provider complies 
                with any applicable requirements that govern child care 
                provided by the type of provider involved.'';
            (4) in paragraph (7)--
                    (A) by striking ``one individual who provides'' and 
                inserting ``one or more individuals who provide''; and
                    (B) by striking ``as the sole caregiver, and'';
            (5) by redesignating paragraphs (8), (9), (10), (11), (12), 
        (13), (14), and (15) as paragraphs (9), (10), (11), (13), (14), 
        (15), (16), and (17), respectively;
            (6) by inserting after paragraph (7), the following:
            ``(8) In-home child care provider.--The term `in-home child 
        care provider' means an individual who provides child care 
        services (excluding services provided by a family child care 
        provider) in the child's own home.''; and
            (7) by inserting after paragraph (11) (as so redesignated), 
        the following:
            ``(12) Relative caregiver.--The term `relative caregiver' 
        means a child care provider that is 18 years of age or older 
        who provides child care services only to eligible children who 
        are, by affinity or consanguinity, or by court decree, the 
        child (if the parent or parents acting as a relative caregiver 
        are married and work a combined total of at least 40 hours per 
        week), grandchild, great grandchild, sibling, niece, or nephew 
        of such provider.''.
    (j) Parental Rights.--Section 658Q of the Child Care and 
Development Block Grant Act of 1990 (42 U.S.C. 9858o) is amended--
            (1) by striking ``(a) In General.--''; and
            (2) by striking subsection (b).
    (k) Fraud Prevention and Increased Relative Caregiving.--The Child 
Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.) 
is amended by adding at the end the following:

``SEC. 658T. PILOT GRANT PROGRAM TO PREVENT FRAUD.

    ``(a) In General.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall establish and implement 
a 2-year pilot program to award grants to States to increase the 
State's ability to--
            ``(1) verify that children receiving assistance under this 
        subchapter meet eligibility criteria at the time of eligibility 
        determination and redetermination;
            ``(2) prevent payments to ineligible children;
            ``(3) verify the relationship of relative caregivers to 
        eligible children;
            ``(4) identify cases of fraud and intentional program 
        violation by child care providers; and
            ``(5) recover payments that are the result of fraud.
    ``(b) Authorization of Appropriations.--There is authorized to be 
appropriated $50,000,000 to carry out this section.

``SEC. 658U. INCREASING RELATIVE CAREGIVING.

    ``(a) In General.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall submit to Congress and 
make publicly available a report on regulations that prevent family 
members from acting as relative caregivers to eligible children under 
this subchapter.
    ``(b) Contents.--The report required under this section shall 
include the following:
            ``(1) A list of the provisions under this subchapter and 
        other Federal laws that decrease the number of relative 
        caregivers.
            ``(2) A description of State or local government policies, 
        regulations, or licensing standards that decrease the number of 
        relative caregivers or that place burdensome requirements upon 
        such caregivers beyond basic health and safety requirements.
            ``(3) Recommendations and legislative proposals for 
        Congress, State legislatures, and State lead agencies to lessen 
        or remove unnecessary, burdensome regulations that prevent 
        family members (including parents, grandparents, adult 
        siblings, aunts, and uncles) from providing child care for 
        eligible children under this subchapter.
    ``(c) Pilot Programs.--Not later than 1 year after the date of the 
enactment of this section, the Secretary shall establish and implement 
a 2-year pilot program to award grants to States to carry out 
innovative State programs to promote child care provided by relative 
caregivers and to increase the number of relative caregivers providing 
child care to eligible children under this subchapter.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated $50,000,000 to carry out this section.''.

SEC. 3. REPEAL OF CREDIT FOR EXPENSES FOR HOUSEHOLD AND DEPENDENT CARE 
              SERVICES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by striking section 21.
    (b) Conforming Amendments.--
            (1) Section 23(f)(1) of the Internal Revenue Code of 1986 
        is amended to read as follows:
            ``(1) Rules for married couples.--
                    ``(A) Married couples must file joint return.--If 
                the taxpayer is married at the close of the taxable 
                year, the credit shall be allowed under subsection (a) 
                only if the taxpayer and his spouse file a joint return 
                for the taxable year.
                    ``(B) Marital status.--An individual legally 
                separated from his spouse under a decree of divorce or 
                of separate maintenance shall not be considered as 
                married.
                    ``(C) Certain married individuals living apart.--
                If--
                            ``(i) an individual who is married and who 
                        files a separate return--
                                    ``(I) maintains as his home a 
                                household which constitutes for more 
                                than one-half of the taxable year the 
                                principal place of abode of a 
                                qualifying individual, and
                                    ``(II) furnishes over half of the 
                                cost of maintaining such household 
                                during the taxable year, and
                            ``(ii) during the last 6 months of such 
                        taxable year such individual's spouse is not a 
                        member of such household,
                such individual shall not be considered as married.''.
            (2) Section 35(g)(6) of such Code is amended to read as 
        follows:
            ``(6) Marital status; certain married individuals living 
        apart.--Rules similar to the rules of subparagraphs (B) and (C) 
        of section 23(f)(1) shall apply for purposes of this 
        section.''.
            (3) Section 129(a)(2)(C) of such Code is amended to read as 
        follows:
                    ``(C) Marital status.--For purposes of this 
                paragraph, marital status shall be determined under the 
                rules of subparagraphs (B) and (C) of section 
                23(f)(1).''.
            (4) Section 129(b)(2) of such Code is amended to read as 
        follows:
            ``(2) Special rules for spouse who is a student or 
        incapable of caring for self.--In the case of a spouse who is a 
        student or an individual described in subsection 
        (e)(1)(B)(ii)(III) (determined without regard to the amount of 
        time spent in the taxpayer's household), for purposes of 
        paragraph (1), such spouse shall be deemed for each month 
        during which such spouse is a full-time student at an 
        educational institution, or is an individual so described in 
        subsection (e)(1)(B)(ii)(III), to be gainfully employed and to 
        have earned income of not less than--
                    ``(A) $250 if there is 1 individual described in 
                subclauses (I) through (III) of subsection (e)(1)(B) 
                with respect to the taxpayer for the taxable year, or
                    ``(B) $500 if there are 2 or more such individuals 
                with respect to the taxpayer for the taxable year.
        In the case of any husband and wife, this paragraph shall apply 
        with respect to only one spouse for any month.''.
            (5) Section 129(e)(1) of such Code is amended--
                    (A) by striking ``The term'' and inserting the 
                following:
                    ``(A) In general.--The term'',
                    (B) by striking ``under section 21(b)(2) (relating 
                to expenses for household and dependent care services 
                necessary for gainful employment)'', and
                    (C) by adding at the end the following:
                    ``(B) Employment-related expenses.--
                            ``(i) In general.--The term `employment-
                        related expenses' means amounts paid for the 
                        following expenses, but only if such expenses 
                        are incurred to enable the taxpayer to be 
                        gainfully employed for any period for which 
                        there are 1 or more qualifying individuals with 
                        respect to the taxpayer:
                                    ``(I) Expenses for household 
                                services, and
                                    ``(II) Expenses for the care of a 
                                qualifying individual.
                        Such term shall not include any amount paid for 
                        services outside the taxpayer's household at a 
                        camp where the qualifying individual stays 
                        overnight.
                            ``(ii) Exception.--Employment-related 
                        expenses described in clause (i) which are 
                        incurred for services outside the taxpayer's 
                        household shall be taken into account only if 
                        incurred for the care of--
                                    ``(I) a dependent of the taxpayer 
                                (as defined in section 152(a)(1)) who 
                                has not attained age 13,
                                    ``(II) a dependent of the taxpayer 
                                (as defined in section 152, determined 
                                without regard to subsections (b)(1), 
                                (b)(2), and (d)(1)(B)) who is 
                                physically or mentally incapable of 
                                caring for himself or herself, who has 
                                the same principal place of abode as 
                                the taxpayer for more than one-half of 
                                such taxable year, and who regularly 
                                spends at least 8 hours each day in the 
                                taxpayer's household, or
                                    ``(III) the spouse of the taxpayer, 
                                if the spouse is physically or mentally 
                                incapable of caring for himself or 
                                herself, has the same principal place 
                                of abode as the taxpayer for more than 
                                one-half of such taxable year, and 
                                regularly spends at least 8 hours each 
                                day in the taxpayer's household.
                            ``(iii) Dependent care centers.--
                        Employment-related expenses described in clause 
                        (i) which are incurred for services provided 
                        outside the taxpayer's household by a dependent 
                        care center shall be taken into account only 
                        if--
                                    ``(I) such center complies with all 
                                applicable laws and regulations of a 
                                State or unit of local government, and
                                    ``(II) The requirements of clause 
                                (ii) are met.
                            ``(iv) Dependent care center defined.--For 
                        purposes of this paragraph, the term `dependent 
                        care center' means any facility which--
                                    ``(I) provides care for more than 
                                six individuals (other than individuals 
                                who reside at the facility), and
                                    ``(II) receives a fee, payment, or 
                                grant for providing services for any of 
                                the individuals (regardless of whether 
                                such facility is operated for 
                                profit).''.
            (6) Section 213 of such Code is amended by striking 
        subsection (e).
            (7) Section 6213(g)(2) of such Code is amended--
                    (A) in subparagraph (H), by striking ``section 21 
                (relating to expenses for household and dependent care 
                services necessary for gainful employment) or'', and
                    (B) in subparagraph (L), by striking ``21,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>