This bill amends the Child Care Revitalization Act to limit the availability of grants from the Child Care Facilities Improvement Program to licensed child care centers only, removing the previous provision that allowed funding for registered family child care homes. Specifically, it appropriates $54.5 million in federal funds from the Coronavirus State Fiscal Recovery Fund to the New Jersey Economic Development Authority for the purpose of providing technical assistance and grants for facilities improvements exclusively to licensed child care providers. The grants will be allocated on a rolling basis, and the Economic Development Authority will manage the program while ensuring compliance with federal regulations.

The bill reflects a strategic shift in funding, as the Economic Development Authority is also developing a separate grant program funded by state resources for family child care providers, which is expected to offer a more streamlined application and compliance process. The initial phase of the Child Care Facilities Improvement Act provides grants ranging from $50,000 to $200,000 for qualifying projects undertaken by licensed child care centers, while family child care providers will not be eligible for this phase of the program.