(a) In General.—

(1) Authority.—The Commandant may operate a child care subsidy program to provide financial assistance to eligible providers that provide child care services or youth program services to members of the Coast Guard, members of the Coast Guard with dependents who are participating in the child care subsidy program, and any other individual the Commandant considers appropriate, if—

(A) providing such financial assistance—

(i) is in the best interests of the Coast Guard; and

(ii) enables supplementation or expansion of the provision of Coast Guard child care services, while not supplanting or replacing Coast Guard child care services; and

(B) the Commandant ensures, to the extent practicable, that the eligible provider is able to comply, and does comply, with the regulations, policies, and standards applicable to Coast Guard child care services.

(2) Eligible providers.—A provider of child care services or youth program services is eligible for financial assistance under this section if the provider—

(A) is licensed to provide such services under applicable State and local law or meets all applicable State and local health and safety requirements if licensure is not required;

(B) is either—

(i) is ¹ a family home daycare; or

(ii) is ¹ a provider of family child care services that—

(I) otherwise provides federally funded or federally sponsored child development services;

(II) provides such services in a child development center owned and operated by a private, not-for-profit organization;

(III) provides a before-school or after-school child care program in a public school facility;

(IV) conducts an otherwise federally funded or federally sponsored school-age child care or youth services program; or

(V) conducts a school-age child care or youth services program operated by a not-for-profit organization; or

(C) is a provider of another category of child care services or youth program services the Commandant considers appropriate for meeting the needs of members or civilian employees of the Coast Guard.

(3) Financial assistance for in-home child care.—

(A) In general.—The Commandant may provide financial assistance to members of the Coast Guard who pay for services provided by in-home child care providers.

(B) Requirements.—In carrying out such program, the Commandant shall establish a policy and procedures to—

(i) support the needs of families who request services provided by in-home childcare providers;

(ii) provide the appropriate amount of financial assistance to provide to families described in paragraph, that is at minimum consistent with the program authorized in subsection (a)(1); and

(iii) ensure the appropriate qualifications for such in-home child care provider, which shall at minimum—

(I) take into consideration qualifications for available in-home child care providers in the private sector; and

(II) ensure that the qualifications the Commandant determines appropriate under this paragraph are comparable to the qualifications for a provider of child care services in a Coast Guard child development center or family home day care.

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(b) Direct Payment.—

(1) In general.—In carrying out a child care subsidy program under subsection (a)(1), subject to paragraph (3), the Commandant shall provide financial assistance under the program to an eligible member or individual the Commandant considers appropriate by direct payment to such eligible member or individual through monthly pay, direct deposit, or other direct form of payment.

(2) Policy.—Not later than 180 days after the date of the enactment of this section, the Commandant shall establish a policy to provide direct payment as described in paragraph (1).

(3) Eligible provider funding continuation.—With the approval of an eligible member or an individual the Commandant considers appropriate, which shall include the written consent of such member or individual, the Commandant may continue to provide financial assistance under the child care subsidy program directly to an eligible provider on behalf of such member or individual.

(4) Rule of construction.—Nothing in this subsection may be construed to affect any preexisting reimbursement arrangement between the Coast Guard and a qualified provider.