Title 42The Public Health and WelfareRelease 119-73

§9874 Use of allotments

Title 42 › Chapter CHAPTER 105— - COMMUNITY SERVICES PROGRAMS › Subchapter SUBCHAPTER IV— - GRANTS TO STATES FOR PLANNING AND DEVELOPMENT OF DEPENDENT CARE PROGRAMS AND FOR OTHER PURPOSES › § 9874

Last updated Apr 6, 2026|Official source

Summary

States can use their federal allotment to set up or improve two things. One is state and local resource centers that give people clear information about dependent care — what kinds of care exist, how much they cost, where they are, how to get there, when they are open, who can use them, and any systems paid for with these funds. The other is before‑and‑after‑school child care programs for school‑age children, aimed at families with limited money. States may run these services themselves or pay public or private groups to run them. States must promise that the listed providers follow state and local laws and that the information stays current. For before‑and‑after programs, applicants who are not school agencies must have an agreement with the school or community site about using space, give cost estimates, involve parents, try to enroll kids of different backgrounds and children with disabilities, follow child care licensing rules, and meet any other reasonable state requirements. Each year, at least 40% of a State’s allotment must go to the resource and referral work and 60% to before‑and‑after school programs, unless a federal official approves a different split when a State shows why it is needed and proposes new percentages. The money cannot be given as cash to families, used to build or remodel buildings, or used to meet required nonfederal spending. Federal funds can pay no more than 75% of any project, and up to 10% of a State’s allotment can be used for administration. Projects must not duplicate services the State or locality already provided before October 30, 1984. The federal official may also give technical help to States.

Full Legal Text

Title 42, §9874

The Public Health and Welfare — Source: USLM XML via OLRC

(a)(1)Subject to the provisions of subsections (c) and (d), 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;
(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)(1)Subject to the provisions of subsections (c) and (d), 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.
(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; 11 So in original. Probably should be “subchapter”.
(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)(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);
(B)60 percent shall be available for the activities described in subsection (b).
(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)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)(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)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)The Secretary may provide technical assistance to States in planning and carrying out activities under this subchapter.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This Act, referred to in subsec. (b)(2)(C), (D), (F), is Pub. L. 97–35, known as the Omnibus Budget Reconciliation Act of 1981, but probably should have been “this subchapter”, meaning subchapter E of chapter 8 of subtitle A of title VI of Pub. L. 97–35, known as the State Dependent Care Development Grants Act, which is classified to this subchapter.

Amendments

1990—Subsec. (a)(1). Pub. L. 101–501, §§ 303(a)(1), 305(a)(1), inserted “operation,” after “establishment,” and struck out “for fiscal year 1985 and fiscal year 1986” before “may be used”. Subsec. (b)(1). Pub. L. 101–501, §§ 303(a)(2), (3), 305(a)(2), struck out “for fiscal year 1985 and fiscal year 1986” before “may be used”, inserted “operation,” after “establishment,”, struck out “in public or private school facilities or in community centers in communities” after “before and after school”, and inserted at end “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.” Subsec. (b)(2)(D). Pub. L. 101–501, § 305(a)(3)(A), inserted “school-age children,” after “diverse” and inserted comma after last reference to “children”. Subsec. (b)(2)(F). Pub. L. 101–501, § 305(a)(3)(B), substituted “chief executive officer of the State” for “Governor” and struck out “the provisions of” before “this Act”. Subsec. (c). Pub. L. 101–501, § 302, designated existing provision as par. (1), redesignated pars. (1) and (2) as subpars. (A) and (B), respectively, substituted “Except as provided in paragraph (2), of” for “Of”, and added par. (2). Subsec. (d). Pub. L. 101–501, § 303(b), redesignated pars. (2), (4), and (5) as (1), (2), and (3), respectively, and struck out former pars. (1) and (3) which read as follows: “(1) pay the costs of operation of any resource and referral system or before or after school child care program established, expanded, or improved under subsection (a) of this section; “(3) subsidize the direct provision of dependent care services including child care services;”. Subsec. (d)(1). Pub. L. 101–501, § 305(a)(4), which directed the substitution of “subsections (a) and (b) of this section” for “subsection (a) of this section”, could not be executed because of the intervening amendment by Pub. L. 101–501, § 303(b), see above. Subsec. (f). Pub. L. 101–501, §§ 303(a)(4), 305(a)(5), inserted “operate,” after “expand,” and substituted “which are provided before
October 30, 1984,” for “, which prior to
October 30, 1984, are provided”. Subsec. (g). Pub. L. 101–501, § 305(a)(6), substituted “carrying out activities” for “operating activities to be carried out”. 1986—Subsec. (a). Pub. L. 99–425, § 302(a), designated existing provisions as par. (1), substituted “system may include” for “system shall include”, redesignated cls. (1) to (7) as (A) to (G), respectively, struck out last sentence which read as follows: “In carrying out clause (7) of the previous sentence, no information shall 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 added par. (2). Subsec. (b)(1). Pub. L. 99–425, § 302(b)(1), struck out “where school facilities are not available” after “centers in communities”. Subsec. (b)(2)(E). Pub. L. 99–425, § 302(b)(2), inserted “child care” before “licensing laws”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1990 AmendmentAmendment by Pub. L. 101–501 effective Oct. 1, 1990, see section 1001(a) of Pub. L. 101–501, set out as a note under section 8621 of this title.

Effective Date

of 1986 AmendmentAmendment by Pub. L. 99–425 effective Oct. 1, 1986, see section 1001 of Pub. L. 99–425, set out as a note under section 8621 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 9874

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73