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Child Care Small Business Insight and Improvement Act Report

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Congressional materials
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Crpt 118Hrpt382
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Crpt 118Hrpt382

Summary

House Report 118–382 of the 118th Congress, 2d Session, dated February 13, 2024, submitted by Mr. Williams of Texas from the Committee on Small Business to accompany H.R. 6156, the Child Care Small Business Insight and Improvement Act of 2023, together with minority views. The Committee reports the bill favorably with an amendment that requires the Administrator of the Small Business Administration to submit a study and report on for-profit child care providers within 120 days of enactment. The report states the bill was introduced November 1, 2023, describes a December 12, 2023 hearing, and records that the Committee ordered it reported on January 31, 2024 after adopting an amendment in the nature of a substitute by voice vote. The minority views, signed by Ranking Member Nydia M. Velázquez, discuss childcare costs and supply, citing a $122 billion annual cost.

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Full text

                                                                                118TH CONGRESS                                                                                           REPORT
                                                                                               " HOUSE OF REPRESENTATIVES                                                        !
                                                                                   2d Session                                                                                            118–382




                                                                                              CHILD CARE SMALL BUSINESS INSIGHT AND
                                                                                                     IMPROVEMENT ACT OF 2023


                                                                                FEBRUARY 13, 2024.—Committed to the Committee of the Whole House on the State
                                                                                                   of the Union and ordered to be printed



                                                                                     Mr. WILLIAMS of Texas, from the Committee on Small Business,
                                                                                                       submitted the following


                                                                                                                                R E P O R T
                                                                                                                                   together with

                                                                                                                             MINORITY VIEWS

                                                                                                                            [To accompany H.R. 6156]

                                                                                  The Committee on Small Business, to whom was referred the bill
                                                                                (H.R. 6156) to require the Administrator of the Small Business Ad-
                                                                                ministration to designate a point of contact for for-profit child care
                                                                                providers, submit a report to Congress, and for other purposes,
                                                                                having considered the same, reports favorably thereon with an
                                                                                amendment and recommends that the bill as amended do pass.
                                                                                                                                       CONTENTS
                                                                                                                                                                                                           Page
                                                                                     I. Purpose and Bill Summary ........................................................................                    2
                                                                                    II. Need for Legislation ....................................................................................            2
                                                                                   III. Hearings .......................................................................................................     2
                                                                                   IV. Committee Consideration ...........................................................................                   3
                                                                                    V. Committee Votes .........................................................................................             3
                                                                                   VI. Section-by-Section of H.R. 6156 .................................................................                     6
                                                                                  VII. Congressional Budget Office Cost Estimate .............................................                               6
                                                                                 VIII. New Budget Authority, Entitlement Authority, and Tax Expenditures                                                     6
                                                                                   IX. Oversight Findings & Recommendations ..................................................                               6
                                                                                    X. Performance Goals and Objectives ............................................................                         6
                                                                                   XI. Statement of Duplication of Federal Programs ........................................                                 7
                                                                                  XII. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff
                                                                                          Benefits .....................................................................................................     7
                                                                                 XIII. Federal Mandates Statement .....................................................................                      7
                                                                                  XIV. Federal Advisory Committee Statement ...................................................                              7
                                                                                   XV. Applicability to Legislative Branch ...........................................................                       7




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                                                                                  XVI. Statement of Constitutional Authority ......................................................                          7
                                                                                 XVII. Minority Views ............................................................................................           8
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                                                                                     The amendment is as follows:
                                                                                     Strike all after the enacting clause and insert the following:
                                                                                SECTION 1. SHORT TITLE.
                                                                                 This Act may be cited as the ‘‘Child Care Small Business Insight and Improve-
                                                                                ment Act of 2023’’.
                                                                                SEC. 2. REPORT ON FOR-PROFIT CHILD CARE PROVIDERS.
                                                                                  (a) IN GENERAL.—Not later than 120 days after the date of the enactment of this
                                                                                Act, the Administrator of the Small Business Administration shall submit to Con-
                                                                                gress a study and report on for-profit child care providers that includes—
                                                                                        (1) an assessment of the challenges and needs of such providers;
                                                                                        (2) a description of the resources and support that the Small Business Admin-
                                                                                     istration provides to such providers;
                                                                                        (3) any deficiencies in the resources and support described under paragraph
                                                                                     (2);
                                                                                        (4) any recommendations for legislative actions necessary to address any chal-
                                                                                     lenges or needs faced by such providers that are identified by the report re-
                                                                                     quired in this subsection; and
                                                                                        (5) an identification of the leadership needs in order to successfully imple-
                                                                                     ment such recommendations.
                                                                                  (b) FOR-PROFIT CHILD CARE PROVIDER DEFINED.—The term ‘‘for-profit child care
                                                                                provider’’ has the meaning given the term ‘‘eligible child care provider’’ in section
                                                                                658P of the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858n)
                                                                                and is a provider that operates—
                                                                                        (1) on a for-profit basis; and
                                                                                        (2) in one or more of the several States, territory or possession of the United
                                                                                     States, or the District of Columbia.
                                                                                  (c) COMPLIANCE WITH CUTGO.—No additional amounts are authorized to be ap-
                                                                                propriated to carry out this Act.

                                                                                                             I. PURPOSE AND BILL SUMMARY

                                                                                  On November 1, 2023, Rep. Landsman, along with Rep. Letlow,
                                                                                introduced H.R. 6156. The purpose of H.R. 6156, the ‘‘Child Care
                                                                                Small Business Insight and Improvement Act of 2023,’’ is to require
                                                                                the Administrator of the Small Business Administration (SBA) to
                                                                                issue a report on the needs and challenges of for-profit childcare
                                                                                providers.
                                                                                                                II. NEED FOR LEGISLATION

                                                                                  Workforce issues are among the greatest concerns facing small
                                                                                business owners. The high cost of childcare can make it difficult for
                                                                                entrepreneurs to juggle growing families and the demands of own-
                                                                                ing a small business. This can also make it harder for small busi-
                                                                                ness employers to offer competitive salaries to employees who have
                                                                                to pay out of pocket for childcare. America’s childcare providers
                                                                                supply vital resources to local communities, and we must under-
                                                                                stand the challenges that small businesses face in this field to en-
                                                                                sure the vitality of our local economies.
                                                                                                                         III. HEARINGS

                                                                                  In the 118th Congress, the Committee held one hearing exam-
                                                                                ining the issues covered in H.R. 6156. On December 12, 2023, the
                                                                                Committee held a hearing titled ‘‘A Year in Review: The State of
                                                                                Small Business in America.’’ Witnesses at the hearing discussed
                                                                                challenges related to recruiting and retaining qualified workers,




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                                                                                many of whom depend on affordable childcare.




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                                                                                                             IV. COMMITTEE CONSIDERATION

                                                                                   The Committee on Small Business met in open session, with a
                                                                                quorum being present, on January 31, 2024, and ordered H.R. 6156
                                                                                reported to the House of Representatives. During the markup, one
                                                                                amendment in the nature of a substitute (ANS) was offered and
                                                                                adopted by voice vote. In addition to ensuring that the legislation
                                                                                complies with CUTGO, the ANS streamlines the legislation by
                                                                                eliminating a requirement that the SBA hire a new employee who
                                                                                focuses on childcare issues. This will help ensure that the cost of
                                                                                the bill remains negligible while meeting the intent of the bill’s au-
                                                                                thors.
                                                                                                                   V. COMMITTEE VOTES

                                                                                   Clause 3(b) of rule XIII of the Rules of the House of Representa-
                                                                                tives requires the Committee to list the recorded votes on the mo-
                                                                                tion to report legislation and amendments thereto. The Committee
                                                                                voted to favorably report H.R. 6156 as amended to the House of
                                                                                Representatives at 12:02 p.m.




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                                                                                                        VI. SECTION-BY-SECTION OF H.R. 6156

                                                                                Section 1—Short title
                                                                                  This section cites the bill as the ‘‘Child Care Small Business In-
                                                                                sight and Improvement Act of 2023.’’
                                                                                Section 2—Report on for-profit child care providers
                                                                                  This section requires the SBA to issue a report within 120 days
                                                                                of the bill’s enactment to the House and Senate Committees on
                                                                                Small Business on challenges faced by for-profit childcare pro-
                                                                                viders.
                                                                                             VII. CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

                                                                                  Pursuant to clause 3(d)(1) of House rule XIII, the Committee
                                                                                adopts as its own the cost estimate prepared by the Director of the
                                                                                Congressional Budget Office pursuant to section 402 of the Con-
                                                                                gressional Budget Act of 1974. The Committee has requested but
                                                                                not received from the Director of the Congressional Budget Office
                                                                                a cost estimate for the Committee’s provisions. Once available, the
                                                                                cost estimate will be published in the Congressional Record.
                                                                                     VIII. NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX
                                                                                                           EXPENDITURES

                                                                                   Pursuant to clause 3(c)(2) of rule XIII of the Rules of the House
                                                                                of Representatives and section 308(a)(I) of the Congressional Budg-
                                                                                et Act of 1974, the Committee provides the following opinion and
                                                                                estimate with respect to new budget authority, entitlement author-
                                                                                ity, and tax expenditures. While the Committee has not received an
                                                                                estimate of new budget authority contained in the cost estimate
                                                                                prepared by the Director of the Congressional Budget Office pursu-
                                                                                ant to Sec. 402 of the Congressional Budget Act of 1974, the Com-
                                                                                mittee does not believe that there will be any additional costs at-
                                                                                tributable to this legislation. H.R. 6156 does not direct new spend-
                                                                                ing, but instead reallocates funding independently authorized and
                                                                                appropriated.
                                                                                                  IX. OVERSIGHT FINDINGS & RECOMMENDATIONS

                                                                                  In accordance with clause 3(c)(1) of rule XIII and clause 2(b)(1)
                                                                                of rule X of the Rules of the House of Representatives, the over-
                                                                                sight findings and recommendations of the Committee on Small
                                                                                Business with respect to the subject matter contained in the H.R.
                                                                                6156 are incorporated into the descriptive portions of this report.
                                                                                                     X. PERFORMANCE GOALS AND OBJECTIVES

                                                                                  With respect to the requirements of clause 3(c)(1) of rule XIII of
                                                                                the Rules of the House of Representatives, the performance goals
                                                                                and objectives of H.R. 6156 are to require a report from the SBA
                                                                                to Congress within 120 days of enactment on the needs and chal-
                                                                                lenges of for-profit child care providers, identify what resources the
                                                                                SBA currently provides to for-profit child care providers, and rec-




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                                                                                ommendations to address the challenges faced by for-profit child
                                                                                care providers.




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                                                                                           XI. STATEMENT OF DUPLICATION OF FEDERAL PROGRAMS

                                                                                  Pursuant to clause 3(c)(5) of rule XIII of the Rules of the House
                                                                                of Representatives, no provision of H.R. 6156 is known to be dupli-
                                                                                cative of another Federal program, including any program that was
                                                                                included in a report to Congress pursuant to section 21 of Public
                                                                                Law 111–139 or the most recent Catalog of Federal Domestic As-
                                                                                sistance.
                                                                                XII. CONGRESSIONAL EARMARKS, LIMITED TAX BENEFITS, AND LIMITED
                                                                                                       TARIFF BENEFITS

                                                                                  With respect to clause 9 of rule XXI of the Rules of the House
                                                                                of Representatives, the Committee finds that the bill does not con-
                                                                                tain any congressional earmarks, limited tax benefits, or limited
                                                                                tariff benefits as defined in clause 9(e), 9(f), or 9(g) of rule XXI of
                                                                                the Rules of the House of Representatives.
                                                                                                        XIII. FEDERAL MANDATES STATEMENT

                                                                                  The Committee adopts as its own the estimate of Federal man-
                                                                                dates prepared by the Director of the Congressional Budget Office
                                                                                pursuant to section 423 of the Unfunded Mandates Reform Act.
                                                                                                  XIV. FEDERAL ADVISORY COMMITTEE STATEMENT

                                                                                  No advisory committees within the meaning of section 5(b) of the
                                                                                Federal Advisory Committee Act were created by this legislation.
                                                                                                    XV. APPLICABILITY TO LEGISLATIVE BRANCH

                                                                                  The Committee finds that the legislation does not relate to the
                                                                                terms and conditions of employment or access to public services or
                                                                                accommodations within the meaning of section 102(b)(3) of the Con-
                                                                                gressional Accountability Act.
                                                                                                  XVI. STATEMENT OF CONSTITUTIONAL AUTHORITY

                                                                                  Pursuant to clause 7 of rule XII of the Rules of the House of Rep-
                                                                                resentatives, the Committee finds that the authority for this legis-
                                                                                lation in Art. I, § 8, cl. 1 of the Constitution of the United States.




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                                                                                                                XVII. MINORITY VIEWS
                                                                                   Affordable, high-quality childcare is essential for working fami-
                                                                                lies. Today, 60 percent of children have parents in the workforce,1
                                                                                and of the 60 million children under 14 in the United States, (pre-
                                                                                pandemic) 12 million were placed in paid childcare.2 When quality,
                                                                                affordable childcare is readily available, the benefits are felt not
                                                                                only by families, but by small businesses, as well.
                                                                                   Access to affordable and quality childcare has a positive impact
                                                                                on workforce participation, allowing small firms to access a larger
                                                                                pool of workers and maintain a reliable workforce. Employers re-
                                                                                port fewer absences, less turnover, increased stability, and gen-
                                                                                erally greater satisfaction among workers who have access to
                                                                                childcare.
                                                                                   On the other hand, a lack of access to affordable, quality
                                                                                childcare for children under the age of three costs $122 billion each
                                                                                year, resulting in a staggering economic toll on working parents,
                                                                                their employers, and taxpayers. A recent study found nearly two-
                                                                                thirds of parents of infants and toddlers face childcare issues that
                                                                                affect their productivity at work, resulting in $78 billion in forgone
                                                                                earnings and job search expenses for families, $23 billion in work-
                                                                                force shortages for employers, and $21 billion in lower federal,
                                                                                state, and local tax revenues.3
                                                                                   Unfortunately, quality childcare services and programs have
                                                                                been in short supply in the United States, and the COVID–19 pan-
                                                                                demic further exacerbated the shortages within the industry. In
                                                                                2019 there were 675,000 childcare establishments producing $47.2
                                                                                billion in revenue and employing 1.5 million workers.4 However, in
                                                                                2021, there were only 595,366 childcare businesses, producing
                                                                                $58.4 billion in revenue and employing 1.3 million workers.
                                                                                   Expanding access to quality childcare services is critical to fami-
                                                                                lies, small businesses, and local economies. The Small Business Ad-
                                                                                ministration is well-poised to deliver critical assistance, particu-
                                                                                larly through its entrepreneurial development ecosystem. Requiring
                                                                                the SBA to conduct a study on the needs and challenges for for-
                                                                                profit childcare providers is an important first step that will pro-


                                                                                  1 Economic Role of Paid Childcare, COMMITTEE FOR ECONOMIC DEVELOPMENT (Feb.

                                                                                2022), https://www.ced.org/pdf/ Economic_Role_of_Paid_Child_Care._Part_I_-_Final.pdf.
                                                                                  2 Id.
                                                                                  3 $122 Billion: The Growing, Annual Cost of the Infant Toddler Child Care Crisis, READY NA-

                                                                                TION COUNCIL FOR A STRONG AMERICA (February 2023) https://strongnation.s3.
                                                                                amazonaws.com/documents/1598/05d917e2-9618-4648-a0ee-1b35d17e2a4d.pdf?1674854626
                                                                                &inline;%20filename=%22%24122%20Billion:%20The%20Growing,%20Annual%20Cost%20of%
                                                                                20the%20Infant-Toddler%20Child%20Care%20Crisis.pdf.
                                                                                  4 Child Care in State Economies, COMMITTEE FOR ECONOMIC DEVELOPMENT (2019),




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                                                                                https://www.ced.org/assets/reports/childcareimpact/181104%20CCSE%20Report%20Jan30.pdf.
                                                                                                                                    (8)




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                                                                                vide policy makers with the information needed to meet the labor
                                                                                needs of small businesses and working families.
                                                                                      Sincerely,
                                                                                                                       NYDIA M. VELÁQUEZ,
                                                                                                                                Ranking Member.

                                                                                                                                    Æ




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