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Child Care and Development Fund (CCDF) Subsidies


Child Care and Development Fund (CCDF) subsidies are federal-state benefits, the national government sets broad requirements for state CCDF subsidy programs, but states maintain a wide degree of discretion, and income eligibility limits, work requirements, state payment rates, family co-payments, and other key program decisions vary greatly across the states. [More detail and national data...]

Federal decisions are italicized.

Eligibility Criteria

Income eligibility criteria

Federal rules or guidelines1States can set income eligibility limits up to a maximum of 85% of state median income.
Earnings limit for a single-parent family of 32$29,016/year (2007)

Qualifying child criteria

Qualifying child criteria3Under 13 years (except special needs children)

Immigrant eligibility criteria

Federal restrictions on lawful permanent residents' (LPRs) access to benefits4None (2006)

Participant Requirements

Work requirements

Federal rules or guidelines1Parent must work or participate in a work activity as defined by the state.

Benefits

Benefit level

Federal rules or guidelines1Payment rates to child care providers must be "adequate" to provide access to the child care market. Federal guidelines suggest that rates be set no lower than the 75th percentile of the local market rate based on a recent market rate survey.
Provider payment rates at least 75th percentile of market rate5No (2007)

Cost to family

Federal rules or guidelines1Family co-payments must be "affordable." Federal guidelines suggest that co-payments not exceed 10% of family income no matter how many children the family has in care.
Co-payment as percent of income for family of 3 at 150% FPL, 1 child in care68% (2007)
Providers prohibited from charging additional fees7No (2005)

Participants

Number of recipients

Number of recipients (families)822,600 families (FY 2005)
Number of recipients (children)843,200 children (FY 2005)

Benefit coverage

All eligible families who applied were served9No (2007)

Spending

Total spending

Total spending (state and federal)10$198.4 million (FY 2005)

Data Notes and Sources

Data on CCDF Subsidies were compiled by NCCP in September 2007. Some state policy decisions may have changed since these data were collected.

  1. Administration for Children and Families, U.S. Department of Health and Human Services, "Child Care and Development Fund; Final Rule," Federal Register, July 24, 1998: 39935-39998.
  2. Karen Schulman and Helen Blank, State Child Care Assistance Policies 2007: Some Steps Forward, More Progress Needed, National Women's Law Center, September 2007.
  3. Karen Schulman, Helen Blank, and Danielle Ewen, A Fragile Foundation: State Child Care Assistance Policies, Children's Defense Fund, 2001.
  4. National Immigration Law Center, Guide to Immigrant Eligibility for Federal Programs, Fourth Edition, 2002; with updates from Update Page, www.nilc.org/pubs/Guide_update.htm (accessed September 6, 2007).
  5. States were asked to report state reimbursement rates and the 75th percentile of market rates for their state's most populous city, country, or region. Data reflect basic provider payment rates (higher rates may be available for particular types of care). Rates are considered below the 75th percentile if they are based on an out-dated market rate survey (more than 2 years old).
    Karen Schulman and Helen Blank, State Child Care Assistance Policies 2007: Some Steps Forward, More Progress Needed, National Women's Law Center, September 2007.
  6. If the state calculates co-payments based on the cost of care, figure reflects the co-payment for a 4-year-old in licensed, nonaccredited center care at the maximum state payment rate.
    Karen Schulman and Helen Blank, State Child Care Assistance Policies 2007: Some Steps Forward, More Progress Needed, National Women's Law Center, September 2007.
  7. Karen Schulman and Helen Blank, Child Care Assistance Policies 2005: States Fail to Make up Lost Ground, Families Continue to Lack Critical Supports, National Women's Law Center, September 2005.
  8. Data reflect the average monthly number served through CCDF (i.e., figures reported by states have been "adjusted" by the Child Care Bureau to reflect the number funded through CCDF only, including through TANF funds transferred into CCDF). Many states provide additional child care subsidies outside of CCDF, through, for example, direct TANF child care spending.
    U.S. Department of Health and Human Services, Child Care Bureau, Preliminary estimates "Average Monthly Number of Families and Children Served (FFY 2005)" (ACF-800 and ACF-801 data), 2006, http://www.acf.hhs.gov (accessed September 25, 2007).
  9. Note that subsidy eligibility criteria and application policies and procedures vary significantly between states.
    Karen Schulman and Helen Blank, State Child Care Assistance Policies 2007: Some Steps Forward, More Progress Needed, National Women's Law Center, September 2007.
  10. Data reflect CCDF spending only, including spending of TANF funds transferred into CCDF. Many states provide additional child care subsidies outside of CCDF, through, for example, direct TANF child care spending.
    U.S. Department of Health and Human Services, Child Care Bureau, "Child Care Expenditures During FFY 2005" (ACF-696 data), 2006, http://www.acf.hhs.gov (accessed September 25, 2007).