Authorizes the Secretary of Health and Human Services to make an annual payment to an eligible State only if: (1) the Secretary determines that the State has made progress, through the assisted activities, in maintaining increased payment rates; and (2) the State updates an initial child care services market rate survey at least once every two years.
Requires an eligible State that receives such a grant to make priority use of its funds to increase significantly (up to the 100th percentile of the market rate survey) the rate of reimbursement to providers for subsidized child care.