HR3273-119

2. Early childhood educator loan assistance program The Secretary of Health and Human Services may carry out a program of entering into contracts with eligible early childhood educators under which such educators agree to serve for a period of 5 years as early childhood educators with a qualified employer, in consideration of the Federal Government agreeing to repay, for each year of such service, not more than $6,000 of the principal and interest of the educational loans of such educators. An eligible early childhood educator seeking to continue to receive payments under this section shall submit on an annual basis to the Secretary such information as the Secretary may require to certify that the educator is continuing to meet the criteria to be considered an eligible early childhood educator. The total amount of payments received by an eligible early childhood educator under this section may not exceed the total amount of the principal and interest of the educational loans of such educator. The following provisions of the National Health Service Corps Loan Repayment Program established under section 338B of the Public Health Service Act (42 U.S.C. 254l) shall apply to the program established under this section in the same manner and to the same extent as such provisions apply to the National Health Service Corps Loan Repayment Program: Paragraphs (1) through (3) of section 338B(c) of such Act (42 U.S.C. 254l–1(c); relating to application information, understandability, and availability). Section 338B(c)(4) of such Act (42 U.S.C. 254l–1(c)(4); relating to recruitment and retention). Section 338B(d) of such Act (42 U.S.C. 254l–1(d); relating to factors considered in providing contracts). Section 338B(e) of such Act (42 U.S.C. 254l–1(e); relating to the approval required for participation). Section 338B(f) of such Act (42 U.S.C. 254l–1(f); relating to contents of contracts). Section 338B(g) of such Act (42 U.S.C. 254l–1(g); relating to payments, including repayment schedule and tax liability). Not later than 5 years after the date of enactment of this section, the Secretary shall submit to the Congress a report on the implementation of this section. In this section: The term eligible early childhood educator means an individual who— as of the date on which the agreement referred to in subsection (a)(1) is entered into— has outstanding Federal direct loans obtained for purposes of pursuing an associate’s degree, including a child development associate credential, a bachelor’s degree, a graduate degree, or a combined bachelor and master’s degree, in early childhood education or a related field from an accredited institution (including any such loan for which the individual is enrolled in an income-based repayment plan); and is in good standing with respect to the loans referred to in clause (i); and agrees to— serve as an early childhood educator with a qualified employer for a period of not less than 5 years; and make timely payments with respect to the loans described in subparagraph (A)(i). The term qualified employer means a childcare provider that receives or is eligible to receive vouchers or assistance under the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9857 et seq.). The term Secretary means the Secretary of Health and Human Services. There is authorized to be appropriated to carry out this section $25,000,000 for each of fiscal years 2026 through 2031.

3. Grants for early childhood educators Beginning not later than 180 days after the date of the enactment of this Act, the Secretary of Education (referred to in this section as the Secretary) shall carry out a program under which the Secretary makes payments to institutions of higher education with a qualified early childhood educator program to enable such institutions to make grants, on a competitive basis, to eligible individuals who file an application and agreement in accordance with subsections (b) and (c). The Secretary shall periodically set dates by which eligible individuals shall file applications for a grant under this section. Each eligible individual desiring a grant under this section shall file with the Secretary an application containing such information and assurances as the Secretary may determine necessary to enable the Secretary to carry out the functions and responsibilities of this section. A grant awarded under this section may be renewed for additional one-year periods if— the recipient submits a renewal application containing such information and assurances as the Secretary may determine necessary; and the grant is renewed not more than three times, for a total of not more than four academic years for each eligible recipient. Each application under subsection (b) shall include, or be accompanied by— an agreement by the applicant that— in the event that the applicant receives a grant under this section, the applicant shall— not later than 4 years after completing the qualified early childhood program for which the applicant will be receiving such grant, serve as a full-time or part-time educator in a licensed early learning program for a total of not less than one academic year, and four additional months for each subsequent grant renewal; and submit a certification of service in a licensed early learning program in such form as the Secretary may determine necessary; and in the event that the applicant is determined to have failed or refused to carry out such service obligation, the sum of the amounts of any grants received by such applicant under this section will be treated as a loan and collected from the applicant in accordance with paragraph (3) and the regulations thereunder; and a plain-language disclosure form developed by the Secretary that clearly describes the nature of the grant award, the service obligation, and the loan repayment requirements that are the consequence of the failure to complete the service obligation. An individual who serves as a full or part-time educator in a licensed early childhood education program concurrently while enrolled in a qualified early childhood educator program may count such service toward the fulfillment of the service obligation in the agreement under paragraph (1). Except as provided in subparagraph (B), in the event that any recipient of a grant under this section fails or refuses to comply with the service obligation in the agreement under paragraph (1), the sum of the amounts of any grants received by such recipient shall, upon a determination of such a failure or refusal in such service obligation, be treated as a Federal Direct Unsubsidized Stafford Loan under part D of title IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) except that— no interest shall accrue on such amounts; and such amounts shall be subject to repayment in accordance with— an income-contingent or income-based repayment plan described in subparagraph (D) or (E) of section 455(d)(1) of the Higher Education Act of 1965 (20 U.S.C. 1087e(d)(1)), respectively, if the individual meets the eligibility requirements for such a repayment plan; and such other terms and conditions as are specified by the Secretary in regulations promulgated under this section. In the case of a recipient who has made a good faith effort to find employment in a licensed early learning program and has been unable to acquire such employment, the Secretary is authorized to provide a hardship extension for a period of not more than one year to grant recipients who fail to complete their service requirement within the 4-year period described in paragraph (1)(A)(i). An eligible individual selected to receive a grant or a grant renewal under this section shall receive a grant in an amount not to exceed $4,000 for each academic year during which the individual is enrolled on a full-time or part-time basis in the qualified early childhood educator program for which the grant was awarded. Payments under this section to an eligible institution shall be made in accordance with regulations promulgated by the Secretary for such purpose and in such manner as will best accomplish the purposes of this section, provided— any disbursement made by crediting a grant recipient’s account shall be limited to tuition and fees and other materials necessary for the completion of coursework in a qualified early childhood educator program as determined by the Secretary; and not less than 85 percent of any funds provided to an eligible institution under subsection (a) shall be advanced to the institution prior to the start of each payment period and shall be based upon an amount requested by the institution as needed to cover the total cost of grants awarded to eligible recipients until such time as the Secretary determines and publishes in the Federal Register with an opportunity for comment, an alternative payment system that provides payments to institutions in an accurate and timely manner, except that this sentence shall not be construed to limit the authority of the Secretary to place an institution on a reimbursement system of payment. Nothing in this section shall be construed to prohibit the Secretary from making a grant directly to an eligible individual in a case in which an institution of higher education with a qualified early childhood educator program does not participate in the program under subsection (a). In this section: The term eligible individual means an individual who is enrolled on a full-time or part-time basis in a qualified early childhood educator program. The term institution of higher education has the meaning given that term in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002). The term qualified early childhood educator program means a course of study leading to an associate’s degree or a certificate in early childhood education or a related field from an institution of higher education. The term licensed early learning program means any State-licensed or State-regulated program or provider, regardless of setting or funding source, that provides early care and education for children from birth to kindergarten entry, including programs operated by child care centers and in family child care homes. There are authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2026 through 2030. Of the amount made available under paragraph (1) in any fiscal year, not more than 3 percent may be used by the Secretary for evaluation, monitoring, salaries, and administrative expenses.