(2) “Developmental delays, physical disabilities, or delays in social, emotional, or behavioral functioning” means:

(i) A significant developmental delay or atypical development, as identified by a health professional, in:

1. Cognitive development;

2. Physical development;

3. Language and speech development;

4. Psychosocial development; or

5. Self-help skills;

(ii) Psychological trauma, as identified through an evaluation by a mental health professional; or

(iii) A diagnosed physical, developmental, or mental health condition that impacts daily living and limits participation in typical early childhood education or child care settings.

(3) “Program” means the Therapeutic Child Care Grant Program.

(b) There is a Therapeutic Child Care Grant Program in the State.

(c) (1) The purpose of the Program is to provide grants to providers that specialize in providing child care and early childhood education to children under the age of 6 years who have developmental delays, physical disabilities, or delays in social, emotional, or behavioral functioning.

(2) The Department shall administer the Program.

(3) On or before August 15 each year, the Department shall award grants under this section.

(d) (1) For each of fiscal years 2023 through 2025, the Governor shall include in the annual budget bill an appropriation of $3,700,000 to the Program.

(2) In awarding grants under the Program, the Department shall distribute:

(i) $1,283,000 to existing providers in the same amount as was provided in fiscal year 2022;

(ii) $1,917,000 to existing providers in the same proportion as was provided in fiscal year 2022 to provide additional services; and

(iii) Except as provided in paragraph (3) of this subsection, $500,000 to new providers or existing providers to enroll additional children.

(3) If funds are remaining after the distribution required under paragraph (2)(iii) of this subsection, then the remainder shall be distributed as provided under paragraph (2)(ii) of this subsection.

(e) (1) On or before December 1, 2022, and December 1, 2023, the providers who received a grant under this section shall report to the Department the cost of providing services to a child with developmental delays, physical disabilities, or delays in social, emotional, or behavioral functioning and the sources of funding received by the provider.

(2) On or before December 30, 2022, and December 30, 2023, the Department shall compile the information provided under paragraph (1) of this subsection and shall report the compiled information to the Senate Budget and Taxation Committee and the House Ways and Means Committee, in accordance with § 2-1257 of the State Government Article.

(f) The Department may adopt regulations necessary to carry out this section.