102 STAT. 2382
PUBLIC LAW 100-485—OCT. 13, 1988
TITLE III—SUPPORTIVE SERVICES FOR FAMILIES SEC. 301. CHILD CARE DURING PARTICIPATION IN EMPLOYMENT, EDUCATION, AND TRAINING.
42 USC 602.
Contracts.
Section 402 of the Social Security Act is amended by adding at the end the following new subsection: "(g)(l)(A) Each State agency must guarantee child care in accordance with subparagraph (B)— "(i) for each family with a dependent child requiring such care, to the extent that such care is determined by the State agency to be necessary for an individual in the family to accept emplo3maent or remain employed; and 'Xii) for each individual participating in an education and training activity (including participation in a program that meets the requirements of subsection (a)(19) and part F) if the State agency approves the activity and determines that the individual is satisfactorily participating in the activity. "(B) The State agency may guarantee child care by— "(i) providing such care directly; "(ii) arranging the care through providers by use of purchase of service contracts, or vouchers; "(iii) providing cash or vouchers in advance to the caretaker relative in the family; "(iv) reimbursing the caretaker relative in the femiily; or "(v) adopting such other arrangements as the agency deems appropriate. When the State agency arranges for child care, the agency shall take into account the individual needs of the child. "(C)(i) Subject to clause (ii), the State sigency shall make payment for the cost of child care provided with respect to a family in an amount that is the lesser of— "(I) the actual cost of such care; and "(II) the dollar amount of the child care disregard for which the family is otherwise eligible under subsection (a)(SXAXiii), or (if higher) an amount established by the State. "(ii) The State agency may not reimburse the cost of child care provided with respect to a family in an amount that is greater than the applicable local market rate (as determined by the State in accordance with regulations issued by the Secretary). "(D) The State may not make any change in its method of reimbursing child care costs which has the effect of disadvantaging families receiving aid under the State plan on the date of the enactment of this section, by reducing their income or otherwise. "(E) The value of any child care provided or arranged (or any amount received as payment for such care or reimbursement for costs incurred for the care) under this paragraph— "(i) shall not be treated as income for purposes of any other Federal or federally-assisted program that bases eligibility for or the amount of benefits upon need, and "(ii) may not be claimed as an employment-related expense for purposes of the credit under section 21 of the Internal Revenue Code of 1986. "(2) In the case of any individual participating in the program under part F, each State agency (in addition to guaranteeing child
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