(a) No less than four percent of the aggregate funds expended by the Lead Agency for a fiscal year, and including the amounts expended in the State pursuant to Sec. 98.53(b), shall be expended for quality activities.
(1) These activities may include but are not limited to:
(i) Activities designed to provide comprehensive consumer education to parents and the public;
(ii) Activities that increase parental choice; and
(iii) Activities designed to improve the quality and availability of child care, including, but not limited to those described in paragraph (2) of this section.
(2) Activities to improve the quality of child care services may include, but are not limited to:
(i) Operating directly or providing financial assistance to organizations (including private non-profit organizations, public organizations, and units of general purpose local government) for the development, establishment, expansion, operation, and coordination of resource and referral programs specifically related to child care;
(ii) Making grants or providing loans to child care providers to assist such providers in meeting applicable State, local, and tribal child care standards, including applicable health and safety requirements, pursuant to Sec. Sec. 98.40 and 98.41;
(iii) Improving the monitoring of compliance with, and enforcement of, applicable State, local, and tribal requirements pursuant to Sec. Sec. 98.40 and 98.41;
(iv) Providing training and technical assistance in areas appropriate to the provision of child care services, such as training in health and safety, nutrition, first aid, the recognition of communicable diseases, child abuse detection and prevention, and care of children with special needs;
(v) Improving salaries and other compensation (such as fringe benefits) for full-and part-time staff who provide child care services for which assistance is provided under this part; and
(vi) Any other activities that are consistent with the intent of this section.
(b) Pursuant to Sec. 98.16(h), the Lead Agency shall describe in its Plan the activities it will fund under this section.
(c) Non-Federal expenditures required by Sec. 98.53(c) (i.e., the maintenance-of-effort amount) are not subject to the requirement at paragraph (a) of this section.