; and (ii) is not receiving assistance. . 12. Increasing funding for child care (a) In general Section 403 ( 42 U.S.C. 603 ) is amended by striking all of subsection (b) except paragraph (5). (b) Conforming amendments (1) Transfer of needy State definition (A) In general Paragraph (5) of section 403(b) ( 42 U.S.C. 603(b)(5) ) is— (i) amended— (I) in the matter preceding subparagraph (A), by striking paragraph (4) and inserting subparagraph (C) ; (II) in each of subparagraphs (A) and (B), by redesignating clauses (i) and (ii) as subclauses (I) and (II), respectively; (III) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; (IV) by redesignating such paragraph as subparagraph (D); and (V) by moving each provision 2 ems to the right; and (ii) as so amended, hereby transferred into section 409(a)(3) ( 42 U.S.C. 609(a)(3) ) and added to the end of such section. (B) Conforming amendment Section 409(a)(3)(C) ( 42 U.S.C. 609(a)(3)(C) ) is amended by striking (as defined in section 403(b)(5)) . (2) Elimination of penalty for failure of state receiving amounts from contingency fund to maintain 100 percent of historic effort Section 409(a) ( 42 U.S.C. 609(a) ) is amended by striking paragraph (10) and inserting the following: (10) Repealed . . 13. Effective date The amendments made by this Act shall take effect as if enacted on October 1, 2018.