A bill to facilitate and encourage the implementation by States of child day care services programs conducted pursuant to title XX of the Social Security Act, and to promote the employment of welfare recipients in the provision of child day care services.

States that the purpose of this Act is to provide the additional funding which will make possible the implementation of the new child care standards under title XX of the Social Security Act without severely curtailing the availability of child care services.

Provides additional Federal funds to States to be employed in such a way as to increase the employment of welfare recipients and other low-income persons in jobs related to the provision of child care services.

Limits the tax credit under the Internal Revenue Code with respect to Federal welfare recipient employment incentive expenses paid or incurred by the taxpayer to an eligible employee whose services are performed in connection with a child day care services program to $1000.

Authorizes direct payments by the Secretary of Health, Education, and Welfare in lieu of the income tax credit to tax exempt organizations.