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Child Care Subsidies: Who's Eligible Varies by State

Author: Sarah Minton and Christin Durham

| Posted: November 29th, 2012

The first in a three-part series about state child care subsidy policies from the CCDF Policies Database. Tomorrow: Assistance for Unemployed Parents Searching for Jobs

The high cost of child care can be a significant obstacle to finding and keeping a job, especially for low-income parents. Child care subsidies can help low-wage parents pay for high-quality care, allowing them to continue working or looking for work, but whether subsidies are available and how much support they provide depends in part on which state families call home.

The Child Care and Development Fund (CCDF) provides federal block grant money to the states, territories, and tribes to subsidize child care costs for low-income families. In 2010, 1.7 million children received child care subsidized through CCDF, according to the most recent preliminary data from the Administration for Children and Families. CCDF is federally funded, but a family’s eligibility depends largely on state-specific rules. These state rules can have a significant impact on families, determining whether they qualify for any assistance, and if so, how much assistance they receive.

The federal guidelines for CCDF require that families have income below 85 percent of the state median income, have children who are under age 13 or who have special needs, and meet one of the defined reasons for needing care. Within these guidelines, states have substantial leeway to establish their own policies for determining eligibility, and state policies vary widely.

A key example is the wide range of state income eligibility limits, or the maximum amount of income a family can have and qualify for child care assistance. In 2011, the maximum allowable income for a family of three to qualify initially for CCDF subsidies ranged from $1,854 to $4,524 per month (35 to 81 percent of state median income). In 17 states, families already receiving a subsidy could have somewhat higher income and still retain subsidies. These “continuing eligibility” thresholds ranged from $185 to $2,451 higher than the initial eligibility thresholds for a family of three.

It is important to look at income limits in relation to a state’s other policies. A state with higher income limits is not necessarily serving a larger proportion of families. For example, the state could have stricter work requirements or limited funds that affect the number of families that can be served. Alternatively, the state may be serving more families, but requiring those families to pay a greater portion of child care costs. In the next two posts, we’ll look at how other childcare subsidy policies vary across states.

Filed under: Child care, Children, Income and Benefits Policy Center, Poverty, Vulnerability, and the Safety Net, State, Welfare and safety net programs
4 Comments »

4 Comments on “Child Care Subsidies: Who's Eligible Varies by State”

  1. 1 Child Care said at 8:47 am on November 30th, 2012:

    [...] The second in a three-part blog series about state child care subsidy policies from the CCDF Policies Database. Tomorrow: Family Copayments Vary Widely Across States. Yesterday: Who's eligible for child care subsidies. [...]

  2. 2 Sharon Gregdon said at 2:05 am on December 3rd, 2012:

    Subsidies are just a voucher system. It is preferable to have child care spaces availabkme and affordable for all families based on entitlement for children much the same way as we think of education for older children. Other countries deliver chikd care far more successfully than the US or Canada, such as Denmark.

  3. 3 Child Care said at 8:51 am on December 3rd, 2012:

    [...] The third in a three-part blog series about state child care subsidy policies from the CCDF Policies Database. Friday: Child care assistance during the job search. Thursday: Who's eligible for child care subsidies. [...]

  4. 4 elisabete said at 5:12 am on February 25th, 2014:

    I need to know if I can get some help with child care I have twins 6 months old, and I will start part time study.


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