The Secretary of Defense may provide financial assistance to an eligible civilian provider of child care services or youth program services that furnishes such services for members of the armed forces and employees of the United States if the Secretary determines that providing such financial assistance—

(1) is in the best interest of the Department of Defense;

(2) enables supplementation or expansion of furnishing of child care services or youth program services for military installations, while not supplanting or replacing such services; and

(3) ensures that the eligible provider is able to comply, and does comply, with the regulations, policies, and standards of the Department of Defense that are applicable to the furnishing of such services.

A provider of child care services or youth program services is eligible for financial assistance under this section if the provider—

(1) is licensed to provide those services under applicable State and local law;

(2) has previously provided such services for members of the armed forces or employees of the United States; and

either—

(A) is a family home day care provider; or

(B) is a provider of family child care services that— (i) otherwise provides federally funded or sponsored child development services; (ii) provides the services in a child development center owned and operated by a private, not-for-profit organization; (iii) provides 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; (v) conducts a school age child care or youth services program that is owned and operated by a not-for-profit organization; or (vi) is a provider of another category of child care services or youth services determined by the Secretary of Defense as appropriate for meeting the needs of members of the armed forces or employees of the Department of Defense.

To provide financial assistance under this subsection, the Secretary of Defense may use any funds appropriated to the Department of Defense for operation and maintenance.

(Added Pub. L. 106–65, div. A, title V, § 584(a)(1)(B), Oct. 5, 1999, 113 Stat. 634; amended Pub. L. 107–314, div. A, title X, § 1041(a)(6), Dec. 2, 2002, 116 Stat. 2645.)