Child Care: State Programs Under the Child Care and Development Fund

Report for Congress
Child Care: State Programs Under the
Child Care and Development Fund
October 8, 2002
Melinda Gish and Shannon Harper
Domestic Social Policy Division

Congressional Research Service ˜ The Library of Congress

Child Care: State Programs Under the
Child Care and Development Fund
Summary
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(P.L. 104-193, PRWORA) restructured the major federal-state child care programs.
It repealed three welfare-related child care programs and initiated a new set of federal
rules referred to as the Child Care and Development Fund (CCDF). The CCDF
combines funds provided under Section 418 of the Social Security Act established
by PRWORA with funds provided under the Child Care and Development Block
Grant (CCDBG). Both streams of funding are authorized through FY2002. Funds
are distributed as grants to states for their use in subsidizing child care services to
low-income families with children.
Federal law defines eligible children as those under age 13 residing with a
family whose income does not exceed 85% of the State Median Income (SMI), taking
into account family size. The federal eligibility rules are maximum income limits for
states in designing their CCDF programs. States may adopt income eligibility limits
below that maximum, and currently, all but nine states have indeed set a lower
eligibility limit. Regardless of the established limits, because CCDF is not an
entitlement for individuals, states are not required to aid families even if their
incomes fall below state-determined eligibility thresholds.
Although states are not required to guarantee child care for welfare families,
states may give special treatment to families receiving assistance from the Temporary
Assistance for Needy Families (TANF) program, recognizing that under TANF, both
states and individuals are now subject to work requirements. Generally, TANF
families continue to have some special status in states’ CCDF programs. In some
states, TANF families are categorically eligible for services, although they may not
actually receive service because funding may not always be available. TANF
families are not responsible for a co-payment for child care services in 22 states.
Federal law requires states to assure that payment rates to child care providers
ensure that CCDF-eligible children receive equal access to care comparable to that
available to children not eligible for subsidies. States generally set payment rates
based on prevailing market rates for child care. The most recent state plans indicate
that 45 states (or territories) based their current payment rates on market rate surveys
conducted in 2000 or 2001; and rates of the remaining seven states were based on
surveys conducted in or prior to 1999.
Federal law also requires that states use not less than 4% of federal child care
funds made available for each fiscal year to administer activities designed to improve
the quality of child care. Prior to 1996, the CCDBG Act included a list of activities
for which the quality improvement funds were to be spent; however, those categories
are no longer itemized in law. Nevertheless, as part of the CCDF plan, states indicate
whether they will spend any of their child care quality funds on activities that fall into
those categories authorized under prior law (and any others).

Contents
In troduction ..................................................1
Eligibility for CCDF-Subsidized Care..............................3
Income Eligibility.........................................3
Changes in Eligibility Limits over Time........................9
TANF Families and Transitioning Families.....................9
Families “At Risk” of Welfare Dependence....................11
Eligibility for Special Populations............................12
Equal Access Requirements.....................................16
Payments to Child Care Providers............................16
Cost-Sharing ............................................26
Quality Improvement Activities..................................32
Health and Safety Standards....................................37
Appendix A.....................................................44
List of Figures
Figure 1. Child Care Time Line: Pre- and Post-1996 Welfare Law...........2
List of Tables
Table 1. CCDF Income Eligibility Limits for a Family of Three ............5
Table 2. CCDF Eligibility for Special Populations of Children.............13
Table 3. CCDF Rules for Determining Payment Rates to Child Care Providers19
Table 4. Waiver of Cost-Sharing for Families with Incomes
Below State-Defined Poverty Level...............................27
Table 5. CCDF Quality Improvement Activities........................34
Table 6. Requirements Regarding Licensing and Health and Safety Standards
for CCDF Providers, by Type of Setting...........................39
Appendix A1. State Descriptions of Treatment of TANF-related Groups
Under CCDF................................................45
Acknowledgment
Thanks to Gene Falk and Tom Gabe of the Domestic Social Policy Division of
the Congressional Research Service for their valuable comments and contributions
to this report.

Child Care: State Programs Under the
Child Care and Development Fund
Introduction
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996
(P.L. 104-193) restructured federal child care programs, as part of a larger initiative
to reform the nation’s welfare system. The 1996 welfare reform law repealed three
welfare-related child care programs that had been authorized under Title IV-A of the
Social Security Act. To replace them, the law directly authorized and appropriated
mandatory funds for child care through FY2002, under Section 418 of the Social
Security Act. The law also amended and extended a fourth source of child care
funds, the Child Care and Development Block Grant (CCDBG) Act, which
authorizes discretionary child care funds, also through FY2002.¹
In addition to consolidating the various child care assistance programs, the
welfare reform law established a single set of rules applicable to child care. Both
mandatory and discretionary child care funds must be spent in accordance with the
provisions of the reconstituted CCDBG. Because these rules apply to child care
supported by multiple funding streams (i.e., the CCDBG and Section 418 of the
Social Security Act), the Department of Health and Human Services (HHS) refers to
the unified program as the Child Care and Development Fund (CCDF). Figure 1
depicts the aforementioned changes to child care programs made in 1996 by the
Personal Responsibility and Work Opportunity Reconciliation Act.
Under the CCDF, states receive a combination of discretionary and mandatory
grants (totaling $4.817 billion in FY2002 CCDF appropriated funds), part of which
is subject to state matching requirements.² States have flexibility, within federal
parameters, to determine the population they will serve. However, the law does not
entitle any individual family or category of recipient to child care assistance. The
intent of the CCDF is to support state-administered child care programs for both
welfare families and low-income, non-welfare, working families, by providing
subsidies to cover some or all of the families’ cost of assistance. (States establish
sliding fee schedules which determine the share of child care costs that eligible
families are expected to pay out of their own pocket.)

¹ For information on reauthorization activity in the 107^th Congress, See CRS Report
RL30944, Child Care Issues in the 107^th Congress, by Melinda Gish. For general
background information on the CCDBG, see CRS Report RL30785, The Child Care and
Development Block Grant: Background and Funding, by Melinda Gish.
² For a detailed discussion of the funding streams that comprise the CCDF and the trends in
spending from them, see CRS Report RL31274 Child Care: Funding and Spending under
Federal Block Grants, by Melinda Gish.

Figure 1. Child Care Time Line: Pre- and Post-1996 Welfare Law
^P
^Chi^l^{d Car}^e^Po^s^t^-¹⁹⁹⁶^C^hⁱ^l^d^Car^e^Sy^s^t^em^P^rⁱ^o^r^t^o¹⁹⁹^{6 W}^e^l^f^a^r^{e L}^a^w^:^R
^Aⁿ^E^x^p^aⁿ^d^e^d^{, U}ⁿ^ifie^d^C^C^D^B^G^F^o^u^r^S^e^p^a^ra^t^e^P^r^o^g^ra^m^s^W^O
^R
^A
¹⁹⁹⁶^!^R^e^pea^l^{ed t}^h^{e 3}^A^F^D^C^-^r^el^at^ed^c^hⁱ^l^d
^!^A^F^DC^C^hⁱ^l^d^Ca^r^e^–^F^a^m^ilie^s^oⁿ^w^e^lf^a^r^e^c^a^re^p^r^o^g^ra^m^s^.
^eⁿ^tⁱ^tle^d^to^fr^e^e^c^h^ild^c^a^r^e^.^!³^pr^o^g^r^a^m^s^,^!^C^r^eat^ed¹^uⁿ^ifie^d^c^h^ild^c^a^r^e^p^r^o^g^r^a^m^,^wi^t^h¹^s^e^t^o^f^p^r^o^g^ra^m^ru^l^e^s^,^s^e^rvⁱⁿ^g^l^o^w^-
^!^T^r^aⁿ^sⁱ^tⁱ^ona^l^C^hⁱ^l^d^C^a^r^e^–^F^a^m^ilie^s^w^h^o^!³^s^e^ts^o^f^r^u^le^s^,ⁱⁿ^c^o^m^e^fa^mⁱ^lⁱ^e^s^,^r^e^g^a^r^d^le^s^s^o^f^w^e^lf^a^r^e
^l^e^f^t^t^h^{e w}^e^l^f^ar^e^r^o^l^l^{s w}ⁱ^t^h^em^p^l^o^y^m^eⁿ^t^!³^t^a^r^g^et^po^pu^l^a^tⁱ^oⁿ^s^st^a^t^u^s^.
^entⁱ^t^l^e^{d t}^o¹²^m^ont^hs^of^s^u^bsⁱ^dⁱ^z^ed^c^hⁱ^l^d^c^a^r^e^.^!^M^and^at^or^y^F^uⁿ^d^s^!^C^r^eat^ed^a^c^o^ns^olⁱ^d^at^e^d^bl^oc^k^of^m^and^at^or^y^f^undⁱⁿ^g^un^der^t^h^e^S^o^cⁱ^al
^!^A^t^-^Rⁱ^{sk C}^hⁱ^l^d^C^a^r^e^–^L^o^w^-ⁱⁿ^c^o^m^e^fa^m^ilie^s^!^C^o^m^mⁱ^t^t^{ee J}^u^rⁱ^s^dⁱ^c^tⁱ^on^S^e^c^u^rⁱ^ty^A^c^t.
ⁿ^o^t^oⁿ^w^e^lf^a^r^e^b^u^t^a^t^-^r^is^k^o^f^b^eⁱⁿ^g^e^l^ig^ib^l^e^-^W^ay^s^an^{d M}^e^aⁿ^s^!^M^and^at^or^y^f^u^nds^r^e^m^aⁱⁿ^u^nde^r
^wⁱ^t^h^out^s^ubsⁱ^dⁱ^z^ed^c^a^r^e^.⁽^“^c^a^ppe^d^entⁱ^t^l^e^m^eⁿ^t^”⁾^-Fⁱⁿ^aⁿ^c^e^W^&^M^/^Fⁱ^na^nc^e^j^u^rⁱ^s^dⁱ^c^tⁱ^oⁿ^,^bu^t^ar^e^a^d^mⁱⁿⁱ^s^t^er^{ed und}^er^C^C^D^B^G^r^u^l^e^s
^!^C^C^D^B^G^r^eau^t^h^orⁱ^z^e^d^aⁿ^d^a^m^e^nde^d:
^!^CC^DB^G^o^f¹⁹⁹⁰^--^C^hⁱ^l^d^car^e^sub^sⁱ^d^y^pr^o^g^r^a^m^!^Dⁱ^s^c^r^e^tⁱ^on^ar^y^F^und^s^,^!^Dⁱ^s^c^r^e^tⁱ^ona^r^y^f^undⁱ^ng^au^t^h^o^rⁱ^z^ed^a^t^$¹^b^illioⁿ^.
^fo^r^lo^w^-ⁱⁿ^c^o^m^e^w^o^r^kⁱⁿ^g^p^a^r^eⁿ^t^s^a^t^o^r^b^e^l^o^w^s^u^bj^ec^t^t^o^app^r^o^p^rⁱ^a^tⁱ^ons^!^Iⁿ^c^o^m^e^e^lig^ib^ility^li^mⁱ^{t in}^c^r^e^a^s^e^d
^75%^o^f^S^t^a^t^e^M^e^dⁱ^an^Iⁿ^co^m^e^!^C^o^m^mⁱ^t^t^e^e^Ju^rⁱ^sdⁱ^c^tⁱ^oⁿ^t^o⁸⁵^%^of^S^t^at^{e M}^e^dⁱ^an^Iⁿ^c^o^m^e^.
^-^E^d^u^c^a^ti^oⁿ^&^W^o^r^k^f^o^r^c^e^!^Dⁱ^s^c^r^e^tⁱ^ona^r^y^f^undⁱ^ng^an^{d C}^C^D^B^G
^-^L^ab^or^/^H^um^an^R^e^s^our^c^e^s^p^r^o^g^r^a^m^r^u^le^s^m^aⁱⁿ^t^aⁱⁿ^s^e^p^a^r^a^te
⁽^l^at^er^r^e^na^m^e^d^H^E^L^P⁾^c^o^m^mⁱ^t^t^e^e^j^u^rⁱ^s^dⁱ^c^ti^oⁿ^f^r^o^m^th^e
^m^and^at^or^y^f^undⁱⁿ^g^.
^Fⁱ^gu^r^e^pr^epa^r^e^d^b^y^t^he^C^oⁿ^g^r^e^s^sⁱ^ona^l^R^e^s^ear^c^h^S^e^r^vⁱ^c^e
Final rules and regulations for the CCDF require states to submit comprehensive
child care plans, which cover a time period of 2 years, to the Department of Health
and Human Services (HHS) for its approval.³ According to regulations, public
hearings and a public comment period are required. This report describes CCDF
programs for fiscal years 2002-2003 for the 50 states, the District of Columbia, the
Northern Mariana Islands, American Samoa, Guam, Puerto Rico, and the Virgin
Islands based on information from the state plans in the following areas:⁴
^!eligibility for child care assistance;
^!treatment of families receiving, transitioning from, or at risk of
becoming dependent on, public assistance;
^!establishment of payment rates for child care providers;
^!cost-sharing required of parents of children receiving subsidized
care;

³ Final rules and regulations for the unified system went into effect August 28, 1998. These
regulations amended the previous CCDBG rules (45 CFR 98 and 99). The final rule
implemented the child care provisions of the Personal Responsibility and Work Opportunity
Reconciliation Act (PRWORA) of 1996 (P. L. 104-193) and incorporated technical
corrections to PRWORA made by the Balanced Budget Act of 1997 (P. L. 105-33).
⁴ Throughout this report, the term “state” refers to all 56 jurisdictions participating in the
CCDF program.

^!quality improvement activities undertaken by the state; and
^!health and safety rules.
Eligibility for CCDF-Subsidized Care
Federal law defines children eligible for CCDF-subsidized care as those under
age 13 residing with a family whose income does not exceed 85% of the SMI for a
family of equal size.⁵ Eligibility is further limited to children whose parents are
working or attending a job training or educational program, or children who are
receiving protective services. Regulations permit states to waive, on a case-by-case
basis, income eligibility requirements for children in protective care (including foster
care if the state chooses to define foster care as a part of its protective services).
States also have the option to aid children aged 13 to 19 who have special needs, are
in protective care (including foster care), or are under court supervision.
Income Eligibility. The federal income eligibility rules are maximum income
limits for states to use in designing their individual CCDF programs; states may
adopt income eligibility limits below those in federal law. Because CCDF is not an
entitlement for individuals, states are not required to aid families even if their
incomes fall below the eligibility threshold established by the state. However, federal
law does require states to give priority to families with “very low incomes,” as
defined by the state in their CCDF plan. While states clearly define “very low
incomes” (usually in relation to either the state median income (SMI) or the federal
poverty level (FPL)) in their state plans, it is not clear that “very low income”
families are necessarily the top priority for receiving services. For instance, several
states explicitly prioritize TANF families above “other eligible families with very
low incomes” in their list of priority rules.
Table 1 illustrates the CCDF income eligibility limits across the 50 states and⁶
territories for a family of three. Because median incomes vary by state, the income
eligibility as a percentage of the state’s median income is useful for comparing
relative eligibility levels across the states and territories. As shown in Table 1, there⁷
is considerable variation among states with respect to eligibility limits. Eight states
use the maximum allowable limit under federal law, or 85% of SMI, as their
eligibility threshold for families applying for CCDF subsidies. Twenty-six states

⁵ A state’s median income is not the average income, but rather the income at which half of
the families in the state have incomes above, and half below. The federal eligibility ceiling
for each state is 85% of that amount, which varies by state. The percentage of families
whose incomes fall under 85% of SMI will also vary (although it will be somewhere below

50% of all the state’s families), depending on the distribution of income in the state.

⁶ Data are not available on the average size of families served by CCDF funds, but the
average family size for families receiving welfare, one of the target populations for CCDF
funds, is three (a single-mother with two children).
⁷ In some cases, there is variation within states, based on locality or whether the individual
is a new applicant as opposed to a current recipient. For example, New Jersey has an
eligibility limit of 49% of SMI (200% of FPL) for entering the CCDF system. Upon
receiving a subsidy, families may reach a higher limit of 61% of SMI (250% of FPL) before
having to exit the system. The following states also have different eligibility limits for new
applicants and current recipients: Alabama, Hawaii, Indiana, Massachusetts, South Carolina,
and Wisconsin.

chose eligibility limits between 39% and 59% of the State Median Income (SMI).
Twenty-two states chose income eligibility limits between 60% and 84% of the SMI.
Table 1 also shows the general income eligibility limit for each state as a
percent of the 2001 federal poverty level (scaled to a monthly amount). In 2001, the
Federal Poverty Guideline for a family of three was $14,630 in the continental United
States, $18,290 in Alaska, and $16,830 in Hawaii. (There is not an applicable
Federal Poverty Guideline for the territories.) The corresponding monthly amounts
are $1,219; $1,524; and $1,403.
The last column of Table 1 shows the “very low income” eligibility limits as
defined by each state and territory for a family of three. As noted, federal law
requires states to give priority to families with very low incomes, however those
families may compete for services with other priority categories such as TANF
recipients, children in protective services, or children with special needs. As with the
general income eligibility levels, there is considerable variation among states in the
setting of “very low income” limits. Several states (14) designate 100% of the
federal poverty level as their very low income limit, while others base their limit on
a percentage of the state median income. In a few cases, states indicate that they
determine the very low income limit with respect to the sliding fee scales established
to determine families’ co-payments.

Table 1. CCDF Income Eligibility Limits for a Family of Three
(monthly income)
^Actua^l^{CCDF g}^e^nera^l
^85%^{of S}^t^ate^Actua^l^{CCDF g}^e^nera^l^inco^m^e^elig^ibilit^y^a^s^a^%
^Me^dⁱ^aⁿ^inco^m^e^elig^ibilit^y^lim^it^{of 2001 fed}^eral^p^overty^{CCDF v}^ery^lo^w^inco^m^e^lim^it
^St^a^t^e^Inc^o^m^e⁽^S^M^I⁾^(as^{a percent of SM}^I⁾^g^u^ideline^a^s^defⁱ^{ned by}^st^a^t^e
^A^l^abam^a^{$3,118 $1,585}^(43%^{) en}^t^r^y^130%^(en^t^ry⁾^30%^F^P^L
^2,438^(66%^{) ex}ⁱ^t^200%^(exⁱ^t⁾
^A^l^as^k^a^4,481^3,244^(62%)^213%^Fam^ilies^qu^alif^yⁱⁿ^g^f^o^{r th}^{e h}ⁱ^g^h^e^s^t^s^u^bs^idy
^on^s^lidin^g^f^{ee s}^{cale (dependin}^g^on^th^e
^co^uⁿ^ty^{, th}^{is in}^co^m^e^lim^{it r}^aⁿ^g^e^{s f}^r^o^m^a
^l^o^w^of^{$1,423 t}^o^{a hi}^g^h^of^{$2,020 f}^o^{r a}
^f^a^mⁱ^l^y^of^3).
^A^m^eri^can^S^a^m^o^a⁹²⁵⁹²⁵^(85%⁾ⁿ^ot^applⁱ^cabl^e^50%^S^M^I
^A^rⁱ^z^on^a³^,156^2,013^(54%⁾^165%^100%^F^P^L
ⁱ^{ki/CRS-RL31605}^A^r^k^aⁿ^s^as^2,777^1,960^(60%⁾^161%^40%^S^M^I
^g/w
^s^.or^C^a^lⁱ^f^ornⁱ^a³^,315^2,925^(75%⁾^240%^50%^S^M^I
^le^ak^Co^lo^r^a^d^o^a^3,774^2,743^(62%⁾^225%^130%^F^P^L
^(u^{p t}^o^225%^F^P^L^at^couⁿ^t^y^optⁱ^oⁿ⁾
^://wiki^C^oⁿⁿ^ectⁱ^c^u^t^4,495^3,966^(75%⁾^325%^25%^S^M^I
^h^ttp
^D^e^l^a^w^a^re^3,902^2,440^(53%⁾^200%^75%^F^P^L
^Dⁱ^s^t^ri^ct^of^C^o^l^u^m^bⁱ^a^3,706^3,470^(80%⁾^285%^100%^F^P^L
^F^l^ori^d^{a 3,307}^2,439^(63%⁾^200%^100%^F^P^L
^G^e^orgⁱ^a³^,569^3,569^(85%⁾^293%^168%^F^P^L
^G^u^am^1,829^1,829^(85%⁾ⁿ^ot^applⁱ^cabl^e^100%^F^P^L
^Haw^aⁱⁱ^b^3,479^3,069^(75%^{) en}^t^r^y^219%^(en^t^ry⁾^100%^F^P^L
^3,274^(80%^{) ex}ⁱ^t^233%^(exⁱ^t⁾
^Idah^o²^,838^1,706^(51%⁾^140%^150%^F^P^L
^Illin^ois³^,948^1,818^(39%)^149%^{30% SMI}
^In^di^an^a³^,289^1,743^(45%^{) en}^t^r^y^143%^(en^t^ry⁾^143%^F^P^L

^2,207^(57%^{) ex}ⁱ^t^181%^(exⁱ^t⁾

^Actua^l^{CCDF g}^e^nera^l
^85%^{of S}^t^ate^Actua^l^{CCDF g}^e^nera^l^inco^m^e^elig^ibilit^y^a^s^a^%
^Me^dⁱ^aⁿ^inco^m^e^elig^ibilit^y^lim^it^{of 2001 fed}^eral^p^overty^{CCDF v}^ery^lo^w^inco^m^e^lim^it
^St^a^t^e^Inc^o^m^e⁽^S^M^I⁾^(as^{a percent of SM}^I⁾^g^u^ideline^a^s^defⁱ^{ned by}^st^a^t^e
^Iow^a^3,455^1,890^(46%⁾^155%^F^a^mⁱ^lⁱ^e^s^w^o^rkⁱⁿ^g^at^l^eas^t^{28 h}^o^u^r^s^per
^w^eek^w^h^o^h^a^v^eⁱⁿ^com^e^s^bet^w^een^100%
^an^{d 140%}^F^P^L^(u^{p t}^o^175%^f^o^{r s}^p^eci^a^l
ⁿ^eeds^ch^ild)
^K^aⁿ^s^as^3,874^2,255^(49%⁾^185%^100%^F^P^L
^K^eⁿ^t^u^c^k^y^3,105^2,012^(55%⁾^165%^165%^F^P^L
^L^o^uⁱ^sⁱ^an^a²^,942^2,077^(60%⁾^170%^100%^F^P^L
^Maiⁿ^e³^,038^3,038^(85%⁾^249%^100%^F^P^L
^Mary^l^aⁿ^d^4,249^2,499^(50%⁾^205%^45%^S^M^I
^M^a^ssa^c^huse^t^t^s^c^4,104^2,414^(50%^)en^t^ry^198%^(en^t^ry⁾^50%^S^M^I
^4,104^(85%^)exⁱ^t^337%^(exⁱ^t⁾
ⁱ^{ki/CRS-RL31605}^Mi^chⁱ^g^an^3,895^2,172^(47%⁾^178%^T^h^e^m^a^xⁱ^m^u^mⁱⁿ^c^o^m^e^t^o^be^elⁱ^gⁱ^b^l^e^f^o^r
^g/w^T^A^N^F^{or F}^{ood S}^t^am^ps
^s^.or^Miⁿⁿ^e^s^o^t^a^3,967^3,501^(75%⁾^287%^75%^S^M^I
^le^ak
^Mi^s^sⁱ^s^sⁱ^ppi^2,513^2,513^(85%⁾^206%^50%^S^M^I
^://wiki^Mis^s^o^u^rⁱ³^,010^1,482^(42%)^122%^Fam^ilie^s^w^h^{o pay}^{$1 per y}^{ear on}^s^lidin^g
^h^ttp^f^{ee s}^cal^{e ($674/}^m^oⁿ^t^hⁱⁿ^com^e^f^o^{r f}^a^mⁱ^l^y
^of^th^ree)
^Mon^t^an^a³^,032^1,829^(51%⁾^150%^Iⁿ^c^o^m^e^b^e^l^o^w^T^A^N^F^s^t^aⁿ^d^a^r^d^s
^($494/^m^oⁿ^t^h^f^o^{r f}^a^mⁱ^l^y^of^t^h^ree)
^N^e^bras^k^a^3,373^2,105^(53%⁾^173%^In^com^e^bel^o^w^f^{ee s}^c^h^e^du^l^e^($1,219/^m^oⁿ^t^h
^f^o^r^f^a^m^ily^o^f^th^r^ee)
^N^e^v^a^da^3,539^3,123^(75%⁾^256%^185%^T^A^N^Fⁿ^{eed s}^t^an^dard
^N^e^w^H^a^m^p^s^hⁱ^r^e³^,630^2,648^(62%⁾^217%^100%^F^P^L
^New^J^e^rsey^d^4,224^2,438^(49%^)en^t^ry^200%^(en^t^ry⁾^150%^F^P^L
^3,048^(61%^)exⁱ^t^250%^(exⁱ^t⁾
^N^e^w^Mexⁱ^co^2,658^2,438^(78%⁾^200%^100%^F^P^L
^N^e^w^Y^o^rk^3,400^2,438^(61%⁾^200%^D^e^fⁱⁿ^e^{d by}^s^o^ci^al^s^e^rvⁱ^ces^di^st^rⁱ^c^t^s^;ⁿ^o^t^t^o
^{be g}^r^eat^{er t}^h^an^200%^of^“St^a^t^e^In^com^e
^Stand^a^r^d^”

^Actua^l^{CCDF g}^e^nera^l
^85%^{of S}^t^ate^Actua^l^{CCDF g}^e^nera^l^inco^m^e^elig^ibilit^y^a^s^a^%
^Me^dⁱ^aⁿ^inco^m^e^elig^ibilit^y^lim^it^{of 2001 fed}^eral^p^overty^{CCDF v}^ery^lo^w^inco^m^e^lim^it
^St^a^t^e^Inc^o^m^e⁽^S^M^I⁾^(as^{a percent of SM}^I⁾^g^u^ideline^a^s^defⁱ^{ned by}^st^a^t^e
^N^o^rt^h^C^a^rolⁱⁿ^a³^,232^2,852^(75%⁾^234%^75%^S^M^I
^N^o^rt^h^D^a^k^o^t^a^3,035^2,463^(69%⁾^202%^40%^F^P^L
^N^o^rt^h^e^rn^Mari^an^as^1,273^1,219^(81%⁾ⁿ^ot^applⁱ^cabl^e^100%^F^P^L
^O^hⁱ^o^3,346^2,255^(57%⁾^185%^15%^F^P^L
^O^k^l^a^h^o^m^a^3,110^1,936^(53%⁾^159%^$1,936
^O^r^eg^on^3,208^2,255^(60%⁾^185%^185%^F^P^L
^Penⁿ^s^y^l^v^aⁿⁱ^a³^,543^2,438^(58%⁾^200%^185%^F^P^L
^Pu^ert^o^Rⁱ^co^1,279^1,279^(85%⁾ⁿ^ot^applⁱ^cabl^e^50%^S^M^I
^R^h^{ode Is}^l^aⁿ^d^3,845^2,743^(61%⁾^225%^100%^F^P^L
ⁱ^{ki/CRS-RL31605}^S^o^u^t^h^C^a^rolⁱⁿ^a³^,330^1,829^2,134^(47%^{) en}^t^r^y^(54%^{) ex}ⁱ^t^150%^(en^t^ry⁾^175%^(exⁱ^t⁾^175%^F^P^L
^g/w
^s^.or^S^o^u^t^h^D^a^k^o^t^a^3,504^1,829^(44%⁾^150%^100%^F^P^L
^le^ak^T^eⁿⁿ^e^s^s^e^e³^,093^2,027^(56%⁾^166%^Elⁱ^gⁱ^b^l^e^f^o^{r T}^A^N^F
^://wiki^T^e^x^a^s³^,171^3,171^(85%⁾^e^260%^100%^F^P^L
^h^ttp^U^t^ah^3,406^2,244^(56%⁾^184%^“^T^A^N^F^-^e^lⁱ^gⁱ^b^l^e^an^{d al}^l^ot^h^e^{r i}ⁿ^com^e^-
^elig^ib^{le ch}^ild^r^eⁿ^ar^{e co}ⁿ^s^id^er^ed^lo^w
ⁱⁿ^co^m^e^”
^Verm^on^t²^,867^2,586^(77%)^212%^Fam^ilies^elig^{ible f}^o^r^90-^{100% s}^u^bs^idy^on
^s^lⁱ^dⁱⁿ^g^f^{ee s}^cal^{e (u}^p^t^o^{$1,419 f}^o^{r a f}^a^mⁱ^l^y
^of^th^ree)
^Vir^gⁱⁿ^ia^f^{3,829 1,829}^(41%⁾^146%^On^o^r^tr^an^sitioⁿⁱⁿ^g^f^r^o^m^T^A^{NF, o}^r
^1,950^(43%⁾^156%ⁱⁿ^co^m^e^-^e^lig^ib^{le in}^th^{e f}^{ee sy}^s^t^em^p^r^o^g^r^a^m
^2,255^(50%⁾^180%
^Vⁱ^rgⁱⁿ^Is^l^aⁿ^d^s¹^,385^1,385^(85%⁾ⁿ^ot^applⁱ^cabl^e^85%^S^M^I
^Was^hⁱⁿ^g^t^on^3,670^2,743^(64%⁾^225%^82%^F^P^L^an^{d receiv}ⁱⁿ^g^T^A^NF
^Wes^t^Vⁱ^rgⁱⁿⁱ^a^2,689^2,358^(75%⁾^193%^40%^F^P^L
^Wi^s^c^on^sⁱⁿ³^{,774 2,255}^(51%^{) en}^t^r^y^185%^(en^t^ry⁾^115%^F^P^L
^2,438^(55%^{) ex}ⁱ^t^200%^(exⁱ^t⁾
^Wy^omⁱⁿ^g³^{,310 2,255}^(58%⁾^185%^115%^F^P^L

^So^urce^:^T^a^bl^{e prepared by}^t^h^{e C}^oⁿ^g^r^es^sⁱ^on^al^R^e^s^earch^S^e^rvⁱ^{ce, bas}^e^{d on}ⁱⁿ^f^o^rm^atⁱ^oⁿ^f^r^om^t^h^{e m}^o^s^t^recen^t^C^C^D^F^s^t^at^e^pl^aⁿ^{s sub}^m^itte^d^b^{y t}^h^e
^s^t^ates^{to th}^{e Departm}^eⁿ^t^of^Health^an^{d Hu}^m^aⁿ^Serv^ices^(HHS).
^a^In^C^o^lorado,^elig^ibility^lim^its^v^a^ry^by^couⁿ^t^y^,^f^r^om^a^low^of^{137% of}^{2001 FP}^L^{to a h}ⁱ^g^h^of^{225% (62% SMI). A}^s^of^A^p^{ril 2002,}^tw^o^co^uⁿ^ties’
^lⁱ^mⁱ^t^s^w^e^{re bel}^o^w^149%^of^F^P^L^,^sⁱ^x^w^e^{re bet}^w^een^150%^an^{d 169%}^{, 35 w}^e^{re bet}^w^een^170%^an^{d 185%}^{, an}^{d 17 w}^e^{re ov}^{er 185%}^.^b
^Iⁿ^Haw^a^{ii, th}^{e in}^co^m^e^elig^ib^ility^lim^{it f}^o^r^ap^p^lican^{ts is lo}^w^e^r^th^an^th^{e lim}^{it f}^o^r^r^ecipⁱ^en^{ts an}^d^th^o^s^{e w}^ithⁱⁿ¹²^m^oⁿ^t^h^s^o^f^le^a^vⁱ^{ng T}^A^N^F^.^c
^In^Mas^s^ach^u^s^etts^{, f}^o^{r a f}^a^m^ily^cu^rren^tly^w^ith^ou^{t a con}^t^{racted s}^l^ot^or^v^o^u^c^h^e^r,^t^h^ei^{r i}ⁿ^com^e^m^u^s^t^{be at}^{or bel}^o^w^50%^of^t^h^{e S}^M^Iⁱⁿ^{order to acces}^s
^th^{e CCDF sy}^stem^{. On}^{ce a f}^a^m^ily^h^a^{s a su}^b^s^id^y^,^{it w}^{ill rem}^aⁱⁿⁱⁿ^co^m^e^-^e^lig^ib^{le u}ⁿ^{til its in}^co^m^e^reach^{es 8}⁵^%^o^f^SMI.^d
^In^New^J^e^rs^ey^{, th}^{e in}^com^e^elig^ibility^lim^{it f}^o^{r f}^a^m^ilies^en^teriⁿ^g^th^{e C}^C^D^{F s}^y^s^t^em^is^bas^e^{d on}^{200% of}^th^e²⁰⁰¹^FP^L^an^d^th^e^uⁿⁱ^v^e^r^s^{al ex}^it^lev^e^l
^f^o^{r f}^a^m^ilies^is^bas^e^{d on}^{250% of}^th^{e 2001 FP}^L^.^e
^Iⁿ^T^e^x^a^{s, lo}^{cal w}^o^r^k^f^o^r^{ce d}^e^v^e^lo^p^m^en^{t b}^o^a^r^d^{s set th}^eir^o^wⁿⁱⁿ^co^m^e^elig^ib^ility^lim^{its, an}^d^m^o^st⁽^b^u^tⁿ^o^t^all)^B^o^ar^d^s^h^a^v^e^estab^lish^e^d^lim^{its th}^at
^{are below}^{85% of}^{SMI (e.g}^{. 55% of}^SMI;^{150% of}^FP^L⁾^{. For ex}^am^{ple, in}^Dallas^t^h^e^ge^{neral m}^oⁿ^t^h^l^yⁱⁿ^com^e^elig^ibility^lim^{it is}¹^50%^of
^F^P^L^(w^hⁱ^ch^f^o^{r a f}^a^mⁱ^l^y^of^t^h^{ree i}^s^{$1,829 (58%}^of^S^M^I)).^f
^Virgⁱⁿ^{ia u}^s^es^th^{ree dif}^f^e^ren^tⁱⁿ^com^e^elig^ibility^lev^e^ls^{, depen}^dⁱⁿ^g^on^th^{e reg}ⁱ^on^’^s^m^e^tropolitan^s^t^atis^{tical area an}^{d cos}^t^of^l^ivⁱⁿ^g^f^acto^r^s.

ⁱ^{ki/CRS-RL31605}
^g/w
^s^.or
^le^ak
^://wiki
^h^ttp

Changes in Eligibility Limits over Time. Table 1 reveals the variation
among states’ eligibility limits, based on information from the most recent state
plans. A comparison of the current plans with the previous plans from FY2000-
FY2001 (not shown), indicates that most states and territories increased the dollar
amount of their general income eligibility limits for FY2002-2003.
In many cases, states’ median incomes have increased, and the dollar limits set
for eligibility have been set to correspond to those increases. For example,
Connecticut’s monthly eligibility limit (for a family of three) increased from $3,264
to $3,966, but both amounts reflect 75% of the SMI as measured at the time the
respective plans were submitted. However, it should be noted that an increase in the
dollar amount does not necessarily translate into an increase in the limit as a
percentage of SMI.
Nine states made no change to their general income limit dollar amounts
between the current and the previous plans. In each of those cases, the state median
incomes had increased, resulting in lower limits when measured as a percentage of
SMI. Only a handful of states decreased the dollar amount of their income eligibility
limits, and in none of the cases does the decrease appear to reflect a change due to
a decrease in the state median income.
TANF Families and Transitioning Families. In addition to making
changes to child care programs, PRWORA also ended the program of AFDC, which
provided an entitlement to cash assistance for families that met a state’s standard of
need. PRWORA replaced AFDC with a program of Temporary Assistance for Needy
Families (TANF). Under TANF, cash assistance is no longer an entitlement, and
both states and individual recipients face new work requirements: states must have
a specified percentage of their TANF caseload engaged in work activities each year,
and TANF recipients are required to engage in work within 2 years of receiving
benefits.⁸ Unlike under AFDC, child care is no longer guaranteed to welfare families
who need child care to engage in work, education, or training.
Under pre-1996 law, families who lost eligibility for welfare due to increased
earnings were entitled to transitional child care for up to 1 year if they met the state’s
eligibility requirements, though some states provided transitional child care for
longer periods under welfare reform “waivers.” Under current law, no federal rules
exist requiring or limiting transitional child care, so states may establish their own
rules and time limits for providing transitional care.
However, a portion of federal child care funds continues to be targeted at
welfare families and families leaving welfare. Under the CCDF program, states are
required to spend at least 70% of their mandatory child care funds (the funds

⁸ States may exempt single adult recipients (who comprise the bulk of TANF adults) with
children under 1 year old from work requirements (12-month lifetime limit). TANF also
forbids states to reduce or deny benefits to single parents with children under age 6 if they
are unable to work due to a demonstrated lack of child care. For a more detailed discussion
of TANF work participation standards, see CRS Report RL30767, Welfare Reform: Work
Activities and Sanctions in State TANF Programs, by Vee Burke.

provided under Section 418 of the Social Security Act) on the families historically
served by the programs replaced under PRWORA: families receiving cash welfare
(TANF) assistance, families attempting to transition from TANF to work, or those
“at risk” of welfare dependency.
Box 1. CCDF and TANF funds
In addition to CCDF funds, states may spend TANF funds for child care in
two separate ways. First, states are permitted to transfer a combined total of 30%
of their annual TANF allotments (except TANF contingency funds) to the CCDF
and the Social Services Block Grant (SSBG), with a maximum limit of 10% to the
SSBG. Transferred funds are treated like CCDF discretionary funds, and services
provided using such funds are subject to all CCDF program requirements,
including applicable state and local health and safety requirements - which include
prevention and control of infectious diseases (including immunizations), building
and premises safety, and minimum health and safety training appropriate to the
provider setting. Second, a state may use TANF funds to pay for child care
services for TANF-eligible families without transferring funds to CCDF. In this
case, the child care is not subject to CCDF rules (including health and safety
requirements); instead, funds must be spent in accordance with TANF rules.
Note: For more information on states’ use of TANF funds for child care, see CRS
report RL31274, Child Care: Funding and Spending under Federal Block Grants.
As part of their CCDF plan, states are required to describe their treatment of
TANF families, families attempting to transition off of TANF through work, and
families at risk of welfare dependence. Following is a summary discussion of
treatment of these three groups. (For state-by-state information see Appendix A of
this report.)
Although the federal entitlement to child care no longer exists, low-income
working families (including TANF families) continue to have entitlement status in
a few states. In most of the remaining states, TANF families retain some special⁹
status in states’ CCDF programs.
In addition, TANF families are not responsible for a co-payment for child care
services in 22 states (See Table 4). A small number of states do require co-payments
from working families on TANF, although most define work to include only paid
activities, and exclude unpaid TANF work activities such as internships or education.

⁹ In some states, TANF families are categorically eligible for services, although they may
not actually receive service because funding may not always be available. For example,
according to Arkansas’ FY2002-2003 CCDF plan, TANF families who need child care to
participate in work activities “will be” provided with child care; however, the plan also
states that due to a lack of funding, new families have not been added to the child care rolls
in Arkansas since late 1999.

As noted in Box 1, some states use TANF funds to pay for child care services for
TANF families, while in others, child care services for these families are provided
with CCDF funds (or TANF funds transferred to the CCDF).
Some states have chosen not to treat TANF families differently than other low-
income families with respect to CCDF subsidies. In several states, priority for child
care subsidies is based solely on income (or would be if a waiting list were
necessary), without regard to TANF status.
Many states also continue to offer some form of transitional child care, although
states vary in how long families are eligible for transitional child care and on whether
or not these families are required to make a co-payment. Of states that reported a
time limit for transitional child care services, the length of eligibility ranged from 3
months to 3 years. Among states offering transitional child care, minimal co-
payments were often required of former TANF families.
There are also differences among states in how families are treated when they
reach the time limit on transitional child care. In some states, these families are
automatically transferred to low-income/at-risk child care subsidy status, while in
others, former TANF families who reach their time limit on transitional child care
must then compete for available child care subsidies with other low-income working
families.¹⁰ In some states, this can mean being put on a waiting list for services. In
Alabama, families who leave TANF for employment are guaranteed a child care slot.
However, once they have exhausted their transitional child care eligibility, they are
served as funds are available on a first-come, first-served basis. In Nevada, on the
other hand, if a family is already on the child care subsidy program (i.e., a TANF
family or transitioning family), they would be continued without interruption. For
other low income families not already in the subsidy program, the priority for
receiving a subsidy would be determined by income.
Families “At Risk” of Welfare Dependence. States may define “at-risk”
as they choose, and many states define this group to encompass the same population
as is eligible for CCDF subsidies generally. In these states, the requirement (in
Section 418 of the Social Security Act) that 70% of mandatory child care funds be
spent on TANF families, families transitioning from TANF, and families at risk of
TANF dependence may not be useful for targeting funds to the first two groups (i.e.,
the requirement could be met by spending all of those earmarked funds on “at-risk
families”). However, as discussed, most states continue to assign some priority to
TANF families and transitioning families, and families at risk of welfare dependence
are often mentioned as lower priority for services relative to the TANF populations.
Currently, data on CCDF subsidy receipt by TANF status is not available, so it is

¹⁰ A recent Urban Institute report found that maintaining child care was not often
“automatic” for families transitioning off welfare, and that the process required
redetermination, administrative hassles, and other barriers which might keep former
recipients from accessing subsidies for which they are eligible. For more information, see
Adams, Gina, Kathleen Snyder, and Jodi Sandfort. 2002. Navigating the Child Care Subsidy
System: Policies and Practices that Affect Access and Retention. Washington, D.C.: The
Urban Institute. The report can be accessed on the internet at [http://www.urban.org].

unclear what proportion of these funds actually serve TANF recipients or former
recipients.
Eligibility for Special Populations. Federal law defines a child as eligible
for CCDF services if they are under 13 years of age and their family’s income does
not exceed 85% of the SMI for a family of the same size. Regulations, however,
allow states to use CCDF funds to provide child care services to children up to age
19 who are physically or mentally incapacitated (and incapable of self-care) or who
are under court supervision. States that elect to extend eligibility in this way must
also assign an age limit in their CCDF plans, and must provide their definition of
physical or mental incapacity. Additionally, states may extend CCDF eligibility to
children in protective services (including foster care, even if the foster parents are not
in work or training). Regulations also permit states to waive income eligibility and
cost-sharing requirements for child care services on a case-by-case basis for children
who receive, or need to receive, protective services.
Table 2 shows whether states have extended CCDF eligibility to children in
these specific categories. All jurisdictions except Ohio and the Northern Mariana
Islands have granted eligibility to at least one of these groups. Of the 43 jurisdictions
that provide CCDF-funded child care in protective services cases, the majority waive
fee and income eligibility requirements for children who receive, or need to receive,
protective services. In the other 13 jurisdictions, CCDF funds are not used for child
care in protective services cases.
Column three in this table indicates which states elected to provide child care
for children age 13 or over who are under court supervision, and the age up to which
the state provides care for these children. Thirty-six states or territories extend
eligibility to this group, with all but one setting the age limit at 17, 18, or 19.¹¹ That
state, New Hampshire, sets its limit at age 21 for this type of care.
Column four indicates whether a state allows CCDF funds to be used for foster
children if states consider foster care a part of their protective services system. As
noted, receipt of CCDF-funded child care is generally conditioned upon participation
in work, education, or training activities by the parent. State plans show that 18
states allow funds to be used for this group, regardless of the work or training status
of the foster parents.
The last column of Table 2 shows which states extend child care eligibility to
children age 13 or older who are physically or mentally incapable of self-care under
the state’s definition, and the age limit those states chose. Final rules set 19 as the
upper age limit of children with special needs who may be served with CCDF funds.
Fifty-two states provide CCDF-funded child care for this group. As with children
under court supervision, all but one of the states extending eligibility in this way
allow care for children up to ages 17, 18, or 19. Minnesota, the exception, extends
eligibility for children with special needs to age 14.

¹¹ In Tennessee, Social Services Block Grant (SSBG) funds (not CCDF funds) are used for
this category of children.

CRS-13
Table 2. CCDF Eligibility for Special Populations of Children
Does the state waive feeDoes the state allow CCDFDoes state allow CCDF childDoes the state allow CCDF child
and eligibilitychild care for children age 13care for foster children whosecare for children age 13 or above
requirements for children^aand above under courtfoster parents are not^bwho are physically or mentally
in protective services? supervision?working or in training?incapable of self-care?
abamaYesNoNoYes, up to age 18
aYesYes, up to age 18NoYes, up to age 19
erican SamoaYesNoYesNo
izonaYesNoYesNo
ansasN/ANoNoYes, up to age 18
YesNoNoYes, up to age 18
N/ANoNoYes, up to age 19
ⁱ^{ki/CRS-RL31605}NoYes, up to age 19NoYes, up to age 19
^g/wYesYes, up to age 18YesYes, up to age 18
^s^.orbiaYesNoNoYes, up to age 18
^le^akYesNoYesYes, up to age 17
^://wikiiaYesYes, up to age 18NoYes, up to age 18YesYes, up to age 19NoYes, up to age 19
^h^ttp
YesYes, up to age 17 (and through^thNoYes, up to age 17 (and through the^th
the 18 birthday month)18 birthday month)
ahoNoYes, up to age 19NoYes, up to age 18 if inability to
provide self-care is verified or if a
court order, probation contract, or
mental health case plan requires
constant supervision. These children
may receive child care until the^th
month of their 19 birthday if they
are full-time students expected to^th
graduate no later than month of 19
birthday.
N/AYes, up to age 18NoYes, up to age 18
YesYes, up to age 18NoYes, up to age 18

CRS-14
Does the state waive feeDoes the state allow CCDFDoes state allow CCDF childDoes the state allow CCDF child
and eligibilitychild care for children age 13care for foster children whosecare for children age 13 or above
requirements for children^aand above under courtfoster parents are not^bwho are physically or mentally
in protective services? supervision?working or in training?incapable of self-care?
waYesNoNoYes, up to age 19
nsasYesYes, up to age 18NoYes, up to age 18
ntuckyYesYes, up to age 19YesYes, up to age 19
YesYes, up to age 17YesYes, up to age 17
YesNoYesYes, up to age 19
landNoNoNoYes, up to age 18
YesNoYesYes, up to age 18
anYesYes, up to age 18 (if a full-timeNoYes, up to age 18 (if a full-time
high school student expected tohigh school student expected to
ⁱ^{ki/CRS-RL31605}graduate before age 19). graduate before age 19).
^g/wN/ANoNoYes, up to age 14
^s^.orYesYes, up to age 18YesYes, up to age 18
^le^akYesYes, up to age 19YesYes, up to age 19
YesYes, up to age 18YesYes, up to age 19
^://wikiaYesYes, up to age 18YesYes, up to age 18
^h^ttpadaYesYes, up to age 19YesYes, up to age 19
pshireYesYes, up to age 21NoYes, up to age 17
JerseyYesYes, up to age 18 if the child isYesYes, up to age 18
identified as a “special needs
child.”
N/ANoNoYes, up to age 18
YesYes, up to age 19 if in school.NoYes, up to age 19 if in school.
(Otherwise, up to age 18)(otherwise, up to age 18)
N/AYes, up to age 17NoYes, up to age 17
otaN/AYes, up to age 19NoYes, up to age 19
thern MarianasNoNoNoNo
oN/ANoNoNo
lahomaYesYes, up to age 18NoYes, up to age 18

CRS-15
Does the state waive feeDoes the state allow CCDFDoes state allow CCDF childDoes the state allow CCDF child
and eligibilitychild care for children age 13care for foster children whosecare for children age 13 or above
requirements for children^aand above under courtfoster parents are not^bwho are physically or mentally
in protective services? supervision?working or in training?incapable of self-care?
onN/ANoNoYes, up to age 17
lvaniaNoNoNoYes, up to age 18
YesYes, up to age 18NoYes, up to age 18
slandN/ANoNoYes, up to age 19
YesYes, up to age 19NoYes, up to age 19
otaYesYes, up to age 19YesYes, up to age 19
nnesseeN/AYes, up to age 19 if still inNoYes, up to age 19
school^c
YesYes, up to age 17 (limited toNoYes, up to age 19
ⁱ^{ki/CRS-RL31605}children in protective services(in 26 of the 28 local workforce
^g/wcases)development areas)
^s^.orN/AYes, up to age 18NoYes, up to age 18
^le^akrmontYesYes, up to age 19YesYes, up to age 19
rgin IslandsYesYes, up to age 18YesYes, up to age 19
^://wikirginiaNoYes, up to age 17NoYes, up to age 17
^h^ttptonYesYes, up to age 19NoYes, up to age 19
irginiaYesYes, up to age 18NoYes, up to age 18
YesNoYesYes, up to age 18
omingN/AYes, up to age 18NoYes, up to age 18
^:^T^a^b^l^e^p^r^ep^ar^ed^b^y^th^e^Coⁿ^g^r^essioⁿ^al^Resear^ch^Ser^v^{ice (}^CRS)^b^a^sed^oⁿⁱⁿ^f^o^r^m^atioⁿ^f^r^o^m^{CCDF state p}^l^an^{s su}^b^m^itted^b^y^th^{e states}^to^th^{e Dep}^a^r^t^m^eⁿ^t^o^f^Health^an^d^Hu^m^aⁿ
ⁱ^ces^(HHS^).
^den^o^tes^th^{at C}^C^DF-^f^uⁿ^d^{ed ch}^{ild care is}ⁿ^o^{t pr}^ov^{ided f}^o^{r ch}^ildrenⁱⁿ^protectiv^{e s}^e^rv^ices^cas^es^.
^s^w^erin^g^y^e^s^m^ean^s^th^{at f}^o^{r C}^C^D^{F pu}^rpos^es^th^{e s}^t^ate^con^s^iders^th^es^{e ch}^ildren^to^{be in}^protectiv^{e s}^e^rv^ices^.
ⁿⁿ^e^s^s^{ee u}^s^es^{Social Serv}^ices^B^l^ock^Gran^{t (SSB}^{G), n}^o^{t C}^C^D^{F f}^uⁿ^d^s^,^{to pay}^f^o^{r ch}^{ild care f}^o^{r protectiv}^{e s}^e^rv^ices^(C^P^S^{) ch}^ildre^n.

Equal Access Requirements
Federal law requires states to assure that their payment rates for child care
services ensure that CCDF-eligible children receive equal access to care comparable
to that available to children not eligible for federal child care subsidies. CCDF final
rules require states to certify to that effect in their state plans.
The final regulations require a state to consider three elements to determine if
its child care program adequately fulfills the statutory requirements for equal access.
The state must (1) assure that it offers parents a choice in categories¹² and types¹³ of
providers; (2) define adequate payment rates based on a sufficient market rate survey
conducted no more than 2 years prior to the effective date of the currently approved
plan; and (3) guarantee affordable co-payments for child care based on a sliding fee
scale. The state is required to provide a summary of facts used to determine that its
payment rates ensure equal access.
Payments to Child Care Providers. Table 3 outlines the information
states relied upon (at the time of submitting their most recent state plans or
amendments) for determining maximum payment rates for child care providers. Note
that these rates reflect the maximum amounts that could be paid by the state to
providers – they do not include parents’ out-of-pocket payments to providers. Final
CCDF regulations require states to conduct a survey biennially to ensure that their
payments sufficiently reflect current market conditions; however, as Table 3
indicates, not all states’ rates are based on surveys conducted in the past 2 years.
Under prior law for welfare-related programs, child care payment rates were set
at the 75^th percentile, which meant that at least 75% of all child care providers
surveyed by the state charged rates at or below this level. In issuing its final
regulations, HHS suggested that states continue to use the 75^th percentile as a
“benchmark” for assessing whether the CCDF payment assures equal access to child
care for families assisted by the CCDF. However, neither federal law nor regulations
set minimum payment standards.
The second column of Table 3 provides information on the rules used by each
state to establish maximum payment rates for child care providers. The table also
reports the date of the survey upon which the current rates are based, and any state

¹² Categories of providers include: (1) center-based providers, licensed or otherwise
authorized to provide child care services for fewer than 24 hours per day in a non-residential
setting, unless the care in excess of 24 hours is due to the nature of the parent(s)’ work; (2)
group home child care providers, two or more individuals who provide child care services
for fewer than 24 hours per day per child, in a private residence other than the child’s
residence, unless the care in excess of 24 hours is due to the nature of the parent(s)’ work;
(3) family child care providers, individuals who provide child care services for fewer than
24 hours per day per child, as the sole care giver, in a private residence that is other than the
child’s residence, unless the care in excess of 24 hours is due to the nature of the parent(s)’
work; (4) and in-home care providers, defined as individuals who provide child care services
in the child’s own home.
¹³ Types of providers include for-profit, non-profit, sectarian, and relative providers.

plan information regarding future market rate changes or surveys. The table reflects
the information included in the current plans, which were prepared in 2001. In cases
where plan language indicated an impending change, we have contacted states in an
effort to provide more current information in the table. If a scheduled change could
not be confirmed, the plan language has been quoted verbatim.
Twenty-five of the 56 states and territories chose the 75^th percentile rule to set
their payment rates for child care.¹⁴ Thirteen states did not describe the rule they
used to determine their payment rates. A number of states used a different percentile
(not the 75^th percentile) or fixed percentage of the payment rates reflected in the
survey. For example, California uses 1.5 standard deviations from the regional
market mean. In Colorado, counties set their own rates, by varying methods, for
different types of care. Kansas distinguishes between licensed homes and child care
centers, and registered homes, setting the rate for licensed homes and centers at the
65^th percentile, and at the 60^th percentile for registered homes. Florida is an example
of a state that provides “tiered reimbursement” or enhanced rates (above the normal
maximum) to providers who have met accreditation standards.
Remaining states described various other methods for determining their rates.
Among states that described different rate-setting methods, several indicated that they
chose to differentiate their payment rates based upon the following:
^!type of provider;
^!differences in age or special needs of the child;
^!geographic area;
^!full or part-time care;
^!care provided during non-traditional hours;
^!number of children in the family for whom care is provided;
^!care provided to children of teen parents;
^!child care provided to families receiving protective services or court-
based care; and
^!provider accreditation status.
In the case of special needs children or other unique care settings, federal law
allows for, but does not require, reimbursement rates to be increased to offset the
additional costs that may result from specially trained staff or specialized facilities.
Some states indicated that the 75^th percentile payment rate allowed providers room
for growth and flexibility in the kinds of care they provided, as many providers
currently charge rates below the maximum child care payment rate.
According to the state plans submitted for the period covering FY2002-FY2003,
45 states based their current provider payment rates on market rate surveys conducted
in the years 2000 or 2001. Four states based their rates on market surveys conducted
in 1999. The remaining seven states or territories based their rates on market surveys
conducted prior to 1999. In Iowa’s case, the most recent survey was conducted in

¹⁴ Note that states that use the 75^th percentile rule do not necessarily apply that rule to a
current market rate survey. In those cases, if market rates have increased, the rates reflected^th^th
by the “75 percentile” may be lower than the 75 percentile based on current market rates.

2000, but the legislature did not implement new rates based on that survey.

Likewise, New Hampshire last conducted a market survey in 2000. However, their
payment rates are based on a 1994 survey, with several increases having been made
to the rates since 1998. Note that states may design their market rate surveys in any
way they so choose; there is not a uniform standard.
Some CCDF plans provide information on when states plan to update their
market rate surveys. In some cases, those dates may have passed. As mentioned
earlier, where possible we have contacted states in order to update the table to reflect
the current status. The information included in the fourth column of Table 3
therefore represents the information provided in the state plans, supplemented by
information acquired by contacting select states, whose plans indicated anticipated
changes.

CRS-19
Table 3. CCDF Rules for Determining Payment Rates to Child Care Providers
^a^t^e^M^a^r^k^e^t^ra^t^e^rule^Ra^t^e^{s ba}^{sed o}ⁿ^m^a^rk^et^surv^ey^co^nduct^e^{d in}^Ra^t^e^{s scheduled t}^o^{be upda}^t^e^{d next}
^abam^a^Dⁱ^dⁿ^o^t^s^a^y^M^ay^{2001 (rat}^e^s^ef^f^ectⁱ^v^{e O}^c^t^{ober 1, 2001)}
^as^k^a^75th^percen^tile^Sprin^g^of^{2001 (rates}^ef^f^ectiv^{e J}^u^ly^{1, 2001)}
^eri^can^S^a^m^o^a^F^l^a^t^rat^e^of^{$160 per m}^oⁿ^t^h^{per ch}ⁱ^l^d^May^{2001 (rat}^e^s^h^a^v^eⁿ^o^t^ch^an^g^e^{d s}ⁱⁿ^{ce 1995)}^In^t^h^{e l}^a^t^t^e^{r part}^of^F^Y²⁰⁰¹^-^F^Y²⁰^02,^H^H^S^wⁱ^l^l
^{be re-}^e^x^a^mⁱⁿⁱⁿ^g^th^{e pay}^m^en^{t rate an}^d^m^a^rk^{et rate}
^{to as}^s^e^s^s^th^{e im}^{pact of}^t^h^e^r^e^cen^{t m}ⁱⁿⁱ^m^u^m^w^a^g^e
ⁱⁿ^creas^{e in}^th^{e territory}^on^th^{e cos}^t^of^ch^{ild care}
^s^e^rv^ices^.
^izon^a^75th^percen^tile^Decem^{ber 1998 (r}^ates^ef^f^ectiv^{e October 1, 2001)}
^k^aⁿ^s^as^75th^percen^tile^Febru^a^ry^{2001 (rates}^ef^f^ectiv^{e J}^u^ly^{1, 2001)}
^o^rⁿⁱ^a^W^ithⁱⁿ¹^.⁵^stan^d^a^r^d^d^e^vⁱ^atioⁿ^s^f^r^o^m^th^e^May²⁰⁰⁰
^m^ean
ⁱ^{ki/CRS-RL31605}^lo^r^a^d^o^Co^uⁿ^{ties set th}^eir^r^e^im^b^u^r^s^em^en^{t r}^a^tes.^M^a^ny^c^o^untⁱ^e^{s ha}^ve^c^o^nd^uc^t^e^d^l^o^c^a^l^m^a^r^k^e^t^A^ugust²⁰⁰¹
^g/w^r^a^{te su}^r^v^ey^{s to}^estab^lish^th^eir^r^a^{te ceilin}^g^s^.
^s^.or^Oth^e^r^co^uⁿ^ties^h^a^v^e^o^p^t^ed^to^p^a^y^th^{e p}^r^iv^ate
^le^ak^{rate prov}^iders^ch^arg^e^.
^://wikiⁿⁿ^ectⁱ^c^u^t^Dⁱ^{d n}^o^t^s^a^y^M^ay^{2001 (rat}^e^s^ef^f^ectⁱ^v^{e Jan}^u^a^ry^{1, 2002)}^l^a^w^a^r^e^Dⁱ^d^no^t^sa^y^A^ugust²⁰⁰⁰
^h^ttp^t^{rict of}^C^o^lu^m^b^ia^75th^percen^tile^J^u^ly¹⁹⁹⁸^A^ne^w^s^u^r^v^e^y^w^a^s^c^o^m^p^l^e^t^e^dⁱⁿ^Dec^e^m^b^e^r²⁰⁰⁰
^an^{d a}^fⁱⁿ^a^l^com^mⁱ^t^t^ee^report^bas^e^{d on}^t^h^{e n}^e^w^dat^a
ⁱ^s^ex^pect^{ed t}^o^{be f}ⁱⁿ^a^lⁱ^{zed i}ⁿ^t^h^{e s}^u^m^m^e^{r of}^2002.
^r^id^a^L^o^{cal sch}^o^o^l^r^eadⁱⁿ^{ess co}^alitioⁿ^s^ar^e^O^c^t^{ober 2000 (rat}^es^ef^f^ectⁱ^v^{e O}^c^t^{ober 2001)}^A^m^a^rk^et^rat^e^s^u^rv^eyⁱ^s^con^d^u^c^t^e^{d a}^nnua^l^l^y^.

^r^e^sp^oⁿ^sib^l^{e f}^o^r^estab^lishⁱⁿ^g^p^a^y^m^en^{t r}^a^tes
^bas^e^d^on^th^e^m^o^s^t^recen^{t m}^a^rk^{et rate s}^u^rv^ey
^an^{d in}^com^p^lian^{ce w}^ith^s^t^atu^t^ory
^requ^irem^en^ts^(s^u^b^j^{ect to s}^t^ate^approv^al).
^Provⁱ^d^ers^w^h^{o h}^a^v^e^achⁱ^e^v^e^{d F}^l^ori^d^a’^s
^“^G^o^l^d^{Seal” q}^u^ality^statu^s^th^r^o^u^g^h
^{accreditation}^can^receiv^e^{a rate dif}^f^e^ren^tial
^{or s}^tⁱ^p^en^d.

CRS-20
^a^t^e^M^a^r^k^e^t^ra^t^e^rule^Ra^t^e^{s ba}^{sed o}ⁿ^m^a^rk^et^surv^ey^co^nduct^e^{d in}^Ra^t^e^{s scheduled t}^o^{be upda}^t^e^{d next}
^orgⁱ^a^A^l^l^provⁱ^d^ers^are^rei^m^bu^rs^{ed at}^{or abov}^{e t}^h^e^O^c^t^{ober 2000 (rat}^es^ef^f^ectⁱ^v^{e Ju}^l^y²⁰⁰¹⁾
³⁰^t^h^p^e^r^c^eⁿ^{tile. (}^T^h^e^{state is d}ⁱ^vⁱ^d^e^dⁱⁿ^to
^th^{ree pay}^m^en^{t zon}^e^s^.^C^h^{ild ca}^r^e^is
^r^e^im^b^u^r^s^ed^{at th}^{e h}ⁱ^g^h^e^{st r}^a^{te in}^th^{e zo}ⁿ^e
^w^h^ere^th^e^m^a^rk^{et rate h}^a^s^dem^oⁿ^s^trated^th^at
^ch^{ild care is}^m^o^{re ex}^pen^s^iv^e.)
^m⁷⁵^t^{h p}^e^r^c^eⁿ^tile^J^u^ly^-A^ugust²⁰⁰⁰
^aⁱⁱ^Didⁿ^o^{t say}⁽^D^oⁿ^o^{t u}^s^{e a p}^e^r^cen^{tile to}^set^Febru^a^ry^{2001 (rates}^ef^f^ectiv^{e J}^uⁿ^e^{1, 2002)}^Haw^aⁱⁱ^w^ill^c^o^nd^uc^t^a^m^a^r^k^e^t^r^a^t^e^s^u^r^v^e^y^e^v^e^r^y²
^rat^e^s⁾^y^ears^.
^o^75th^percen^tile^Nov^e^m^b^{er 2000}
^ois^D^{id n}^o^{t s}^a^y^D^ecem^{ber 2000 (rates}^ef^f^ectiv^{e A}^p^{ril 1, 2002)}
^a^75th^percen^tile^March²⁰⁰⁰
^a^75th^percen^tile^Decem^{ber 1998 (rates}^ef^f^ectiv^{e betw}^een^Septem^ber^T^h^{e m}^o^s^t^recen^t^m^a^rk^et^rate^s^u^rv^ey^w^a^s^con^d^u^c^ted
^an^{d O}^c^t^{ober 2000).}ⁱⁿ^S^e^pt^em^{ber 2000. H}^o^w^e^v^e^{r, t}^h^{e l}^e^gⁱ^s^l^at^u^r^{e di}^d
ⁱ^{ki/CRS-RL31605}ⁿ^o^{t im}^p^l^em^en^{t n}^e^w^p^r^o^v^id^er^r^a^{tes b}^a^sed^oⁿ^th^is
^g/w^sur^v^e^y^.
^s^.orⁿ^s^as^Ef^f^ectⁱ^v^{e F}^e^br^ua^r^y^{1, 2002, rat}^e^s^w^e^re^th^A^ugust²⁰⁰⁰^N^e^w^m^a^r^k^e^t^r^a^t^e^s^u^r^v^e^y^b^eⁱⁿ^g^c^oⁿ^d^u^c^t^e^dⁱⁿ
^le^ak^adj^u^s^t^{ed to th}^{e 65}^p^e^r^cen^{tile f}^o^r^Lⁱ^cen^sed^th^S^u^m^m^e^{r 2002.}
^Hom^e^s^an^{d C}^h^{ild C}^a^{re C}^eⁿ^t^ers^,^an^{d th}^{e 60}
^://wiki^p^e^r^cen^{tile f}^o^r^Regⁱ^ster^ed^Ho^m^e^s.
^h^ttp^t^u^c^k^y^75th^percen^tile^A^p^ril-^May²⁰⁰¹
^uⁱ^sⁱ^an^a^Dⁱ^dⁿ^o^t^s^a^y^N^ov^em^{ber 1999}
^e^75th^percen^tile^March²⁰⁰⁰
^lan^d^75th^percen^tile^J^aⁿ^u^a^ry^{2001 (rates}^ef^f^ectiv^{e J}^aⁿ^u^a^ry²⁰⁰²⁾
^u^s^etts^A^t^{least 4}⁵^t^h^p^e^r^cen^{tile (}^d^ep^en^dⁱⁿ^g^oⁿ^ty^p^e^F^e^bru^a^ry²⁰⁰⁰^W^h^eⁿ^t^h^e^FY²⁰⁰²^bu^dgetⁱ^s^fⁱⁿ^a^lⁱ^{zed, t}^h^{e s}^t^at^e
^of^{care an}^{d reg}ⁱ^on⁾^h^o^p^e^{s to}^u^p^d^a^{te r}^a^{tes to}^r^e^f^l^e^c^t^a^t^{least th}^{e 5}⁵^t^h
^percen^{tile bas}^e^{d on}^th^{e 2000 s}^u^rv^ey^.

CRS-21
^a^t^e^M^a^r^k^e^t^ra^t^e^rule^Ra^t^e^{s ba}^{sed o}ⁿ^m^a^rk^et^surv^ey^co^nduct^e^{d in}^Ra^t^e^{s scheduled t}^o^{be upda}^t^e^{d next}
^chⁱ^g^an^F^o^{r i}ⁿ^f^aⁿ^t^an^{d t}^oddl^er^{care prov}ⁱ^d^ers^A^p^ri^l¹⁹⁹⁹^Aⁿ^e^w^s^u^r^v^e^y^w^a^s^com^p^l^e^t^e^{d i}ⁿ^March^2002,^bu^t
⁽ⁱⁿ^c^l^u^diⁿ^gⁱⁿ^cen^tⁱ^v^es^des^c^ri^{bed bel}^o^w⁾^:^75t^h^t^h^{e rat}^e^s^des^c^ri^{bed ref}^e^{r t}^o^t^h^{e 1999 s}^u^rv^ey^.
^p^e^r^cen^tile
^Oth^e^r^ag^{e g}^r^o^u^p^s^{: No}ⁱⁿ^f^o^r^m^atioⁿ
^*^E^f^f^ectⁱ^v^e^O^c^t^{ober 8, 2000, an}ⁱⁿ^cen^tⁱ^v^e^w^a^s
^approv^{ed to brin}^g^d^a^y^{care cen}^ters^{, f}^a^m^ily^,
^aⁿ^d^gr^o^u^p^ho^m^e^{s c}^a^rⁱ^{ng fo}^r^c^hⁱ^l^d^r^e^{n u}ⁿ^d^e^r
^ag^e^2½^u^p^t^o^75%^of^t^h^{e A}^p^ri^l^{1999 m}^a^rk^et
^r^a^{te su}^r^v^ey^{. I}ⁿ^a^d^d^itioⁿ^,²⁵^cen^{ts p}^e^r^h^o^u^r
^w^a^s^aw^{arded to relativ}^{e care prov}^iders^aⁿ^d
^day^{care aides}^carin^g^f^o^{r ch}ⁱ^l^d^r^eⁿ^uⁿ^d^{er th}^e
^ag^{e of}^{2½ if}^th^ey^receiv^e^{d at leas}^t¹⁵^h^o^u^r^s
^o^f^c^h^{ild care train}ⁱⁿ^g^.^T^h^{e leg}ⁱ^s^l^atu^r^{e ha}^s
ⁱ^{ki/CRS-RL31605}^e^x^t^eⁿ^d^e^d^t^h^eⁱⁿ^f^aⁿ^t^/^t^oddl^erⁱⁿ^ceⁿ^tⁱ^v^e
^g/w^p^a^y^m^eⁿ^t^s^t^h^r^o^{ugh FY}^2002.
^s^.orⁿ^e^s^o^ta^75th^percen^tile^J^u^ly^-^D^ecem^ber²⁰⁰⁰^P^a^y^m^eⁿ^t^r^a^t^e^s^a^r^e^a^d^j^u^s^t^ed^at^leas^t^on^ce^ev^e^r^y²
^le^ak^y^ears
^sⁱ^s^sⁱ^ppi^{Did n}^o^{t s}^a^y^A^{pril 1999}^T^h^{e rates}^es^tablis^h^e^dⁱⁿ^th^e^las^t^s^u^rv^ey^are^s^till^u^s^ed
^://wiki^du^{e t}^o^{poor res}^pon^s^eⁱⁿ^t^h^{e A}^p^ri^l^{2001 s}^u^rv^ey^.
^h^ttp^u^rⁱ^R^{ates in}^c^r^eased^u^p^to⁵⁰^t^h^p^e^r^cen^{tile f}^o^r¹⁹⁹⁶^Aⁿ^e^w^s^u^rv^ey^w^a^s^con^d^u^c^t^e^{d i}ⁿ^Jan^u^a^ry^2001,^bu^t
ⁱⁿ^f^aⁿ^t^an^d^t^oddl^{er care i}ⁿ^O^c^t^{ober 1998}^t^h^{e rat}^e^s^{are bas}^e^{d on}^t^h^{e 1996 s}^u^rv^ey^.

⁽^b^as^{ed on}^{1996 s}^u^rv^ey^{). A}^l^s^oⁱⁿ^cl^u^d^e^d^a
¹⁵^%ⁱⁿ^cr^ea^s^eⁱⁿ^b^a^{se r}^e^im^b^u^r^s^em^en^{t to}
^provⁱ^d^ers^w^h^{o s}^e^rv^{e f}^a^mⁱ^lⁱ^e^s^du^riⁿ^gⁿ^oⁿ^-
^tr^ad^itioⁿ^a^{l h}^o^u^r^s.
^E^f^f^ectⁱ^v^{e S}^e^pt^em^{ber 1999, rat}^e^sⁱⁿ^cl^u^d^e^aⁿ
ⁱⁿ^creas^e^o^f^{30% abov}^{e th}^{e bas}^e^{rate f}^o^r
^p^r^o^v^id^er^s^w^h^o^coⁿ^s^isten^tly^ser^v^{e a m}ⁱⁿⁱ^m^u^m
^of^50%^of^chⁱ^l^d^ren^f^r^om^s^u^bsⁱ^d^y^-^e^lⁱ^gⁱ^b^l^e
^f^a^m^{ilies; 2}⁰^%^ab^o^v^{e f}^o^{r p}^r^o^v^id^{ers accred}^ited
^b^y^{a reco}^gⁿⁱ^zed^accred^itin^g^o^r^g^aⁿⁱ^zatioⁿ^;
^an^{d 25% f}^o^{r prov}^iders^carin^g^f^o^{r s}^p^ecial
ⁿ^eeds^ch^ildren^.

CRS-22
^a^t^e^M^a^r^k^e^t^ra^t^e^rule^Ra^t^e^{s ba}^{sed o}ⁿ^m^a^rk^et^surv^ey^co^nduct^e^{d in}^Ra^t^e^{s scheduled t}^o^{be upda}^t^e^{d next}
ⁿ^t^an^a⁷⁵^t^h^p^e^r^cen^tile^S^e^pt^e^m^be^{r 2000 (ra}^t^e^s^e^f^f^e^c^tⁱ^v^e^O^c^t^obe^{r 2000)}^T^h^e^ne^xt^m^a^r^k^e^t^r^a^te^sur^v^e^y^w^{ill be}^c^oⁿ^d^u^c^t^e^{d i}ⁿ
^t^h^{e s}^u^m^m^e^{r of}^2002.
^Ef^f^ectⁱ^v^{e F}^e^bru^a^ry^{2002, Mon}^t^an^a
^im^p^l^em^en^ted^{a tw}^o^-^star^tier^e^d
^r^e^im^b^u^r^s^e^m^eⁿ^{t sy}^stem^{, in}^w^h^ich^star^{s ar}^e
^earn^e^{d bas}^e^{d on}^com^p^lian^{ce w}^ith^s^t^ate
^r^e^g^u^l^atioⁿ^s^{, ef}^f^o^r^t^{s to}^im^p^r^o^v^{e w}ⁱ^t^h^r^e^sp^ect
^to^q^u^alityⁱⁿ^dⁱ^cato^r^{s, an}^d^a^c^c^r^e^d^itatioⁿ^statu^s^.
^Provⁱ^d^ers^wⁱ^t^h^on^{e s}^t^{ar are pai}^d^10%^abov^e
^th^{e b}^a^{se r}^a^{te. P}^r^o^v^id^er^{s w}^ith^tw^o^sta^r^s
⁽ⁿ^atioⁿ^a^lly^acc^r^e^d^ited⁾^ar^{e p}^a^id^{at 1}⁵^%
^abov^{e th}^{e bas}^e^rate.
^k^a^B^e^tw^een^th^{e 60th}^an^{d 75th}^percen^tiles^M^arch^{2001 (rates}^ef^f^ectiv^{e J}^u^ly²⁰⁰¹⁾^S^t^a^t^e^s^t^a^t^u^t^e^s^r^e^q^uⁱ^r^e^t^h^e^H^H^S^t^o^c^oⁿ^d^u^c^t^t^h^e
^s^u^rv^ey^ev^ery²^y^ears^an^{d es}^tablis^h^rates^betw^een
ⁱ^{ki/CRS-RL31605}^th^{e 6}⁰^t^h^an^d⁷⁵^t^h^p^e^r^cen^tiles.^a^da^75th^percen^tile^{October 2000}
^g/w^w^H^a^m^p^s^hⁱ^r^e^Dⁱ^dⁿ^o^t^s^a^y^P^ay^m^eⁿ^t^r^a^t^e^s^b^a^s^e^d^on^a^Decem^ber¹⁹⁹⁴^m^a^rk^et^Aⁿ^e^w^s^u^rv^ey^w^a^s^com^p^l^e^t^e^{d i}ⁿ^S^e^pt^em^{ber 2000,}
^s^.or^s^u^rv^ey^h^a^v^e^beenⁱⁿ^creas^{ed th}^ree^tⁱ^m^e^s^sⁱⁿ^{ce October}^bu^{t rates}^h^a^v^eⁿ^o^{t been}^ch^an^g^e^{d to ref}^l^{ect th}^at
^le^ak^1998.^T^h^e^rat^e^s^w^e^{re rai}^s^{ed 10%}^on^O^c^t^{ober 1,}^1998,^su^r^v^ey^{. No}^m^eⁿ^tioⁿ^o^f^f^u^tu^r^e^r^a^{te u}^p^d^a^tes.
^://wiki^an^ot^h^e^{r 5%}^on^J^a^nuary^{1, 2000 (ret}^r^oactⁱ^v^{e t}^o^A^ugust^1,^1999),^an^{d m}^o^s^t^recen^tly^{, an}^oth^e^{r 5%}^on^S^e^ptem^ber
^h^ttp^{1, 2000.}
^J^e^rs^ey^{Did n}^o^{t s}^a^y^D^ecem^ber^{1997, an}^{d rat}^e^s^bas^e^d^oⁿ^t^h^a^t^s^u^r^v^e^y^,^p^l^u^s^Mos^t^recen^{t s}^u^rv^ey^con^d^u^c^{ted in}^D^e^cem^{ber 2000.}
^th^{e f}^o^llowⁱⁿ^gⁱⁿ^creas^es^:
^In^{1998 s}^t^at^e^b^u^d^g^e^t^:^{a 2%}ⁱⁿ^creas^{e f}^o^{r al}^l^provⁱ^d^ers^;
^In^Janua^r^y^1998:^{a 5%}^pay^m^en^t^rat^eⁱⁿ^creas^{e f}^o^r
ⁿ^a^tion^a^lly^{accredited c}^eⁿ^ters^an^{d f}^a^m^ily^day^care
^h^o^m^e^{s; in}^J^u^ly¹⁹⁹⁸^:^aⁿ^ad^d^itioⁿ^a^{l 8}^%ⁱⁿ^cr^{ease; in}
^Jan^u^a^ry^2000:^a^1.8%ⁱⁿ^creas^{e f}^o^{r al}^l^provⁱ^d^ers^;^In^Ju^l^y
^2000:^an^addition^a^{l acros}^s^th^{e board in}^creas^{e of}^3.6%;
^an^{d i}ⁿ^Ju^l^y^2001,^a^3.6%^cos^t^-^o^f^lⁱ^vⁱⁿ^gⁱⁿ^creas^{e f}^o^{r al}^l
^provⁱ^d^ers^.
^w^Mexⁱ^co^Dⁱ^{d n}^o^t^s^a^y^A^pri^l^{2001 (rat}^es^ef^f^ectⁱ^v^{e A}^ugust¹^,²⁰⁰¹⁾
^York^75th^percen^tile^March^-^J^uⁿ^e^{2001 (ef}^f^ectiv^{e October 1, 2001)}

CRS-23
^a^t^e^M^a^r^k^e^t^ra^t^e^rule^Ra^t^e^{s ba}^{sed o}ⁿ^m^a^rk^et^surv^ey^co^nduct^e^{d in}^Ra^t^e^{s scheduled t}^o^{be upda}^t^e^{d next}
^r^t^h^Car^o^lin^a⁷⁵^t^h^p^e^r^cen^{tile (}^w^ith^hⁱ^g^h^e^r^m^a^r^k^et^r^a^{tes f}^o^r^O^c^t^ober¹⁹⁹⁷^T^h^e^r^e^w^a^{s a}^sur^v^e^y^c^o^m^p^l^e^t^e^d^N^o^v^e^m^b^er^2000-
^hi^ghe^r^st^a^r^r^a^tⁱ^ngs)^March^{2001, bu}^t^du^{e t}^o^b^udg^et^ary^con^sⁱ^d^eratⁱ^oⁿ^s^,
^r^a^{tes h}^a^v^eⁿ^o^{t b}^een^u^p^d^a^ted^.^Ho^w^e^v^e^r^,^w^ith^th^e
^tier^e^d^star^sy^stem^{, r}^a^{tes co}ⁿ^tin^u^e^to^b^eⁿ^e^a^r^th^e
^m^a^rk^{et or priv}^{ate pay}^rates^.
^Dak^o^ta^75th^percen^tile^A^p^{ril 2001}
^e^rn^Marian^as^R^a^tes^v^a^r^y^b^y^ty^{pe of}^{care an}^{d ag}^{e of}^ch^ild^March²⁰⁰¹
^an^{d are bas}^e^d^u^pon^th^{e av}^erag^{e rate ch}^arg^e^d
^by^p^rⁱ^v^{ate s}^{ector day}^{care prov}^iders^,^w^h^ich
^{is ab}^o^v^{e th}^{e 7}⁵^t^h^p^e^r^cen^tile.
^io^75th^percen^tile^May²⁰⁰⁰^T^h^{e s}^t^{ate com}^p^letes^{a m}^a^rk^e^t^r^a^t^e^s^u^r^v^e^y^ev^ery²
^y^ears^.
^lah^o^m^a^{Rates v}^a^r^y^b^a^sed^u^p^oⁿ^th^{e ag}^{e o}^f^th^e^ch^ild^,^{2001 (rat}^es^ef^f^ectⁱ^v^{e Jan}^u^a^ry^{1, 2002)}
^th^{e ch}^{ild care s}^e^ttin^g^,^th^{e g}^e^og^r^a^p^h^{ic area,}
ⁱ^{ki/CRS-RL31605}^an^{d the}^{“Star s}^t^atu^s^{” of}^th^{e prov}^{ider. Stars}
^g/w^ar^{e ear}ⁿ^e^d^b^a^sed^oⁿ^q^u^ality^cr^iterⁱ^{a. I}ⁿ^so^m^e^{cases, rates ex}^ceed^th^{e 7}⁵^t^h^p^e^rcen^tile.
^s^.or
^le^ak^on^A^pprox^im^ately^th^{e 50th}^percen^tile.^Septem^{ber 2000}^P^a^y^m^eⁿ^t^r^a^t^e^s^a^r^e^s^e^t^b^y^t^h^e^O^r^e^g^oⁿ^Le^gi^s^l^a^t^ur^e^t^h^r^o^{ugh t}^h^e^b^u^d^g^e^t^p^r^o^c^e^s^s.^H^H^S^c^o^ntⁱ^nue^{s t}^o
^://wiki^su^b^m^it^b^u^d^g^{et r}^e^q^u^{ests to}^ad^d^r^{ess af}^f^o^r^d^ab^ility^an^d^equ^a^{l acces}^s^f^o^{r paren}^t^s^receivⁱⁿ^g^th^{e s}^u^bs^idy^.
^h^ttpⁿ^s^y^l^v^aⁿⁱ^a^Dⁱ^dⁿ^o^t^s^a^y^J^uⁿ^e^-^J^u^l^y^{2000 (rat}^es^ef^f^ectⁱ^v^{e O}^c^t^{ober 1, 2001)}
^ert^o^Rⁱ^co^Pay^m^en^t^rat^e^s^{are g}^eⁿ^e^ral^l^y^s^e^t^at^100%^of^Juⁿ^e^{2001 (rat}^e^s^ef^f^ectⁱ^v^{e O}^c^t^{ober 1, 2001)}
^th^{e m}^a^rk^{et rates}^.
^{ode Is}^lan^d^75th^percen^tile^J^u^ly^{2000 (rates}^ef^f^ectiv^{e J}^aⁿ^u^a^ry²⁰⁰¹⁾^Bⁱ^enⁿⁱ^ally
^t^h^C^a^rolin^a^75th^percen^tile^Septem^{ber 2000}
^{uth Da}^ko^ta⁷⁵^t^{h p}^e^r^c^eⁿ^tile^A^ugust^{2001 (rat}^e^s^ef^f^ectⁱ^v^{e O}^c^t^{ober 1, 2001)}

CRS-24
^a^t^e^M^a^r^k^e^t^ra^t^e^rule^Ra^t^e^{s ba}^{sed o}ⁿ^m^a^rk^et^surv^ey^co^nduct^e^{d in}^Ra^t^e^{s scheduled t}^o^{be upda}^t^e^{d next}
ⁿⁿ^e^s^s^e^e^R^ates^{are s}^e^{t at th}^{e 70th}^percen^til^e^fo^r^A^s^u^rv^ey^w^a^s^con^d^u^c^t^e^{d i}ⁿ^O^c^t^{ober 2000 (rat}^e^s^T^h^e^Le^a^d^A^g^eⁿ^c^y^p^e^r^f^o^r^m^s^aⁿ^a^nnua^l^m^a^r^k^e^t^r^a^t^e
^lⁱ^cen^s^e^d^c^a^r^e^(di^f^f^e^ren^t^rat^e^s^f^o^{r “}^T^{op 15"}^ef^f^ectⁱ^v^{e Ju}^l^y^{1, 2001)}^an^aly^s^is^.
^couⁿ^ties^an^{d balan}^{ce of}^s^t^{ate). A}^s^of^J^u^ly^1,
^{2001, reg}ⁱ^s^t^ere^d^h^o^m^e^s^receiv^e^90%^of^th^e
^licen^sed^f^a^m^ily^ch^ild^c^a^r^{e h}^o^m^e^{s r}^a^te.
^Un^reg^u^l^{ated h}^o^m^e^s^an^{d in}^-^h^om^{e care are}
^p^aⁱ^d^70%^of^t^h^{e rat}^e^f^o^{r l}ⁱ^cen^s^e^{d f}^a^mⁱ^l^y
^ch^ild^car^{e h}^o^m^e^{s. Du}^rⁱⁿ^g^th^{is r}^e^p^o^r^tin^g
^p^e^rⁱ^o^d^,^th^{e state w}^{ill im}^p^l^em^en^{t a ti}^e^r^ed
^r^eⁱ^m^bu^rs^em^en^t^s^y^s^t^em^{, bas}^e^{d on}^t^h^{e T}^h^ree^th
^Star^Qu^ality^Sy^stem^{: 7}⁰^p^e^r^cen^{tile p}^l^u^s⁵^%
^f^o^r^on^e^s^t^ar;^pl^u^s^15%^f^o^{r t}^w^{o s}^t^ars^;^an^{d pl}^u^s
^{20% f}^o^{r th}^{ree s}^t^ars^.
^x^a^s^Dⁱ^dⁿ^o^t^s^a^y^S^urv^e^y^con^d^u^c^t^e^{d O}^c^t^{ober 1999}^t^o^A^ugust^2000.
ⁱ^{ki/CRS-RL31605}^S^h^a^r^e^d^wⁱ^t^h^l^o^c^a^l^B^o^a^r^d^sⁱⁿ^A^p^rⁱ^l²⁰⁰¹^.^B^o^a^r^d^s^s^e^t^t^h^ei^{r ow}ⁿ^rat^e^s^.
^g/w^75th^percen^tile^Septem^{ber 2000}^Su^rv^ey^s^{are com}^p^{leted ev}^ery^{2 y}^ears^.
^s^.or^on^t^75th^percentⁱ^l^{e (m}^eets^{or ex}^ceeds^th^{e 75}^th^March^{2000 (rat}^es^ef^f^ectⁱ^v^{e Ju}^l^y^{1, 2001)}
^le^ak^p^e^r^cen^{tile f}^o^r^car^eⁱⁿ^m^o^{st ar}^{eas o}^f^th^{e state)}
^://wiki^r^gⁱⁿ^I^s^l^aⁿ^d^s^100%^of^t^h^e^a^v^e^r^a^g^{e m}^a^rk^et^rat^e^per^categ^ory^of^care.^March²⁰⁰¹^T^h^{e s}^u^rv^eyⁱ^s^con^d^u^c^t^e^{d bi}^-^a^nnua^l^l^y^.
^h^ttp^rgⁱⁿⁱ^a^Dⁱ^{d n}^o^t^s^a^y^F^ebru^ary²⁰⁰⁰
^a^shⁱⁿ^g^t^oⁿ⁵⁸^t^h^p^e^r^cen^tile^F^e^bru^a^ry^{– May}^{2000 (rat}^es^ph^as^{ed i}ⁿ^bet^w^een
^T^h^{e s}^t^{ate pay}^s^{a m}^oⁿ^t^h^l^y^bon^u^s^t^o^Jan^u^a^ry^{1 an}^{d Ju}ⁿ^e^{30, 2002)}

^licen^s^e^d/certif^{ied prov}^iders^f^o^{r n}^oⁿ^-^s^t^an^dard
^h^o^u^r^s^,^an^{d a on}^e-^tⁱ^m^{e $250 bon}^u^s^f^o^r
^acceptin^g^{a ch}^{ild u}ⁿ^d^{er 1 y}^{ear old.}

CRS-25
^a^t^e^M^a^r^k^e^t^ra^t^e^rule^Ra^t^e^{s ba}^{sed o}ⁿ^m^a^rk^et^surv^ey^co^nduct^e^{d in}^Ra^t^e^{s scheduled t}^o^{be upda}^t^e^{d next}
^e^s^t^Vⁱ^r^gⁱⁿⁱ^a^R^a^t^e^s^w^e^{re i}ⁿ^c^r^e^a^s^e^dⁱⁿ^O^c^t^o^ber²⁰⁰⁰^t^o^Juⁿ^e¹⁹⁹⁹^A^ne^w^sur^v^e^y^w^a^{s c}^o^nd^uc^t^e^dⁱⁿ^M^a^y^{2001, bu}^t
^approxⁱ^m^at^el^y^t^h^{e 85t}^h^percen^tⁱ^l^e^of¹⁹⁹⁹^ba^s^e^r^a^t^e^s^h^a^v^eⁿ^o^{t been}ⁱⁿ^creas^{ed to ref}^l^{ect th}^e
^m^a^r^k^{et r}^a^{te (}⁹⁰^t^h^p^e^r^cen^{tile f}^o^rⁱⁿ^f^aⁿ^t^car^e)^.ⁿ^e^w^s^u^rv^ey^(s^{ee in}^cen^tiv^es^).
^Aⁿ^e^w^s^u^r^v^e^y^w^a^s^c^oⁿ^d^u^c^t^e^dⁱⁿ^M^a^y²⁰⁰¹^.
^B^a^s^e^pay^m^en^{t rates}^{are n}^o^{t at th}^{e 75th}
^p^e^r^cen^{tile o}^f²⁰⁰¹^r^a^{tes, b}^u^{t th}^{e state’}^s
ⁱⁿ^cen^tiv^{e s}^t^ru^ctu^r^e^canⁱⁿ^creas^{e prov}^{ider pay}^th
^to^th^{e 7}⁵^p^e^r^cen^{tile o}^r^a^b^o^v^{e. I}ⁿ^cen^tiv^es
^provⁱ^d^ed:^{$4 per day}^f^o^{r prov}ⁱ^d^ers^w^h^o
^becom^e^accredited;^{$4 per day}^f^o^{r n}^oⁿ^-
^tr^ad^itioⁿ^a^{l w}^o^r^k^h^o^u^r^s;^$²^p^e^r^d^a^y^f^o^rⁱⁿ^f^aⁿ^t
^{care prov}^iders^w^{ho becom}^e^certif^{ied in}
ⁱⁿ^f^aⁿ^t^/^t^oddl^{er care.}
ⁱ^{ki/CRS-RL31605}ⁱ^sc^oⁿ^sin⁷⁵^t^{h p}^e^r^c^eⁿ^tile^A^ugust²⁰⁰⁰^Iⁿ^Wⁱ^sc^oⁿ^si^n,^l^o^cal^ag^en^ci^es^com^p^l^e^t^e^s^u^rv^ey^s^of^licen^s^e^{d g}^r^ou^{p an}^{d licen}^s^e^{d f}^a^m^ily^ch^{ild care}
^g/w^p^r^o^vⁱ^d^e^r^{s o}ⁿ^aⁿ^a^nnua^l^b^a^si^s.^N^e^w^m^a^xi^m^u^m
^s^.or^r^eⁱ^m^b^u^r^s^e^m^eⁿ^t^r^a^t^e^{s a}^r^e^d^e^t^e^r^mⁱⁿ^e^d^a^nnua^l^l^y^,^aⁿ^d
^le^ak^becom^e^ef^f^ectiv^{e at th}^{e beg}ⁱⁿⁿⁱⁿ^g^of^th^e^f^o^llowⁱⁿ^g
^y^ear.
^://wiki
^h^ttp^y^omⁱⁿ^g^75th^percen^tile^Febru^a^ry^{2001. (It is}^uⁿ^c^lear^wh^eⁿ^rates^w^e^re^ch^an^g^e^d,
^bu^{t th}^ey^{are cu}^rren^tly^bas^e^{d on}^th^is^s^u^rv^ey^.)
^{: T}^a^b^l^{e p}^r^ep^ar^ed^b^y^th^{e Co}ⁿ^g^r^essioⁿ^{al Resear}^ch^Ser^v^{ice (}^CRS)^b^a^sed^oⁿⁱⁿ^f^o^r^m^atioⁿ^f^r^o^m^{CCDF state p}^l^an^{s su}^b^m^itted^b^y^th^{e state}^{s to}^th^{e HHS.}

Cost-Sharing. CCDF requires parents receiving child care assistance to
pay a share of the costs of their child care services. Each state must establish and
periodically revise a sliding fee scale for cost-sharing by families receiving
subsidized child care.¹⁵ By statute, cost-sharing payments must be based on income
and family size, so payments will generally increase as the family’s size and income
i n crease.¹⁶
As noted, the sliding fee scale is the third element in equal access to child
care. Although federal law and regulations do not set limits on the amount of the
cost of care a state may require the family to pay, HHS did provide a reference point
for states to use in creating their sliding fee scales. In issuing its final regulations,
HHS suggested that established fees not require the CCDF-subsidized family to pay
more than 10% of its income for child care. This benchmark is not meant to limit
states, but is offered as a reference point for states to consider when determining if
their cost-sharing policy is consistent with the CCDF equal access requirement.
States vary in how they structure their sliding fee scales, with some states
requiring that families pay a percentage of the cost of care (such as Hawaii), but the
majority basing the required co-payment on family income. Most states do not
require co-payments significantly above 10% of income; however, several states do
require percentages as high as 20% of gross income from families at higher income
levels, and Oregon requires up to 29% of family income for families with income
above 120% FPL.
Although co-payments must generally be required for CCDF-funded services,
regulations allow states to waive copayments for those whose income is at or below
the poverty level (as defined by the state in their state plan) and for children in
protective services on a case-by-case basis, as described in Table 2. Table 4
indicates which states automatically exempt families from the cost-sharing
requirements because of income below the state-defined poverty level or other
factors. In cases where states exempt only some of their low-income populations
from child care fees, the final column of the table outlines the characteristics of
families exempted.
Twenty-seven states chose to set the poverty level in their state at $14,630 per
year ($1,219/month), the 2001 federal poverty level for a family of three. Several
states continued to use the 1999 level ($1,157/month) for purposes of waiving cost-
sharing requirements. In the remaining states, most set their state poverty definition
near 100% of the 2001 federal poverty level. Among those with different levels,
New Mexico and Florida define poverty for the purpose of waiving co-payments at
200% of the 2001 federal poverty level. Ohio, on the other hand, defines poverty at
only 15% FPL.

¹⁵ The TANF High Performance Bonus criteria for FY2002 awards (which will be based on
child care rules in effect during FY2001) will include a measure of the affordability of child
care, determined by comparing required co-payments to family income.
¹⁶ Several states cap this amount after a certain number of children or reduce the required
co-payment for additional children.

CRS-27
Table 4. Waiver of Cost-Sharing for Families with Incomes Below State-Defined Poverty Level
State-
DefinedFee waived for families with
Povertyincomes below poverty?
Guideline
(for aNoAllSome
family of 3)If some families have fee waived, what types of families have cost-sharing waived?familiesfamiliesfamilies
Families with no earned income.
Families who would be required to make a $5 co-payment.
a$1,585XFoster Care children in the legal custody of the Department.
a$1,577X
erican
oa$1,089X
ⁱ^{ki/CRS-RL31605}izona$1,219XFamilies who have an open TANF case and whose income is at or below the poverty level.
^g/wa nsas $1,960 X
^s^.or
^le^ak$1,950 X
TANF families who are in training and educational activities.
^://wikiLow-income (non-TANF) teen parents attending high school.
^h^ttpFamilies served under the Consolidated Child Care Pilot program, which provides
comprehensive child care services to Head Start, Colorado Preschool Program, and Colorado
$1,219XChild Care Assistance Program families.
$1,180X
$915X
lumbia$1,157XFamilies with incomes at fifty percent (50%) of the poverty level or lower.
Sliding fee scales are set by local School Readiness Coalitions. Under these scales, some
families with income at or below the FPL are not required to pay a fee. Also, some families with
$2,439Xchildren in care due to abuse and neglect may not be required to pay a fee.
TANF applicants and recipients.
Food Stamp Employment and Training participants.
Persons needing care on a part-time hourly basis.
ia$2,023XChildren in state custody.

CRS-28
State-
DefinedFee waived for families with
Povertyincomes below poverty?
Guideline
(for aNoAllSome
family of 3)If some families have fee waived, what types of families have cost-sharing waived?familiesfamiliesfamilies
Families who are receiving TANF and in work activities or who are terminated from TANF
due to employment and/or child support payments (for 12 months after exit).
$1,219XFamilies with children receiving protective services.
$1,330X
aho$1,138XTANF families in non-income-producing activities.
(no amount
specified)X
$1,219X
ⁱ^{ki/CRS-RL31605}wa $1,219 X
^g/wTANF families.
^s^.orFamilies below 70% FPL.
^le^akFamilies receiving Social Services.
^://wikinsas$1,219XFood Stamps Education and Training participants.
^h^ttpy$900XFamilies with monthly income below $900.
$1,219XFamilies who are FIND Work participants.
On a case-by-case basis a Department or Tribal caseworker may waive or reduce a parent’s
assessed fee for Child Protective Services clients, post-protective clients, or children in the
$1,157Xcustody of federally-recognized Tribes.
Families receiving TANF or SSI.
Two pilot programs, one in an urban area and one in a suburban/rural jurisdiction waive co-
payments for families with incomes below the FPL who are transitioning from TANF to work
land$1,219Xfor one year.
$1,157X
TANF recipients, applicants, former recipients (for 3 months), and SSI recipients.
an$1,253XProtective and preventive services recipients.
$1,179XFamilies with income below 75% FPL.

CRS-29
State-
DefinedFee waived for families with
Povertyincomes below poverty?
Guideline
(for aNoAllSome
family of 3)If some families have fee waived, what types of families have cost-sharing waived?familiesfamiliesfamilies
$1,179XTANF families.
Protective services children.
Families whose parents are incapacitated.
$1,220XSpecial needs children.
$1,219XSome Child Protective Services families (determined on a case-by-case basis).
(no amount
braskaspecified)XFamilies with incomes below 97% of poverty.
ada$1,219X
ⁱ^{ki/CRS-RL31605}w
^g/wmpshire$1,331XFamilies receiving TANF, protective or preventive assistance.
^s^.orTANF families receiving a full assistance grant.
^le^akProtective services families (reduced or waived on a case-by-case basis).
^://wikiFamilies with 3- and 4-year-old children who reside in an Abbott School District and who are
^h^ttpenrolled in a pre-kindergarten program operated by a licensed child care center.
If more than two children in a family are in a full-time subsidized child care arrangement, no
ersey$1,219Xadditional co-payment is assessed for the third or subsequent children.
Employment and Training clients.
Child Protective Services clients.
Grandparents who are otherwise eligible and who have taken custody or guardianship of their
$2,438Xgrandchildren due to the death or permanent incapacity of the parent.
Families receiving public assistance.
Families with income below the state income standards.
$1,219XChildren served through the migrant worker child care network.
Families whose only sources of income are not countable in accordance with the child care
services policy (e.g., Work First benefits, Supplemental Security Income (SSI), etc.).
(no amountChildren with no income who live with someone other than a biological or adoptive parent or
rth Carolinaspecified)Xwith someone who does not have court-ordered financial responsibility.

CRS-30
State-
DefinedFee waived for families with
Povertyincomes below poverty?
Guideline
(for aNoAllSome
family of 3)If some families have fee waived, what types of families have cost-sharing waived?familiesfamiliesfamilies
Families receiving TANF and whose income is at or below FPL, and who are involved in work
and/or training activities.
Families transitioning off TANF (for the first 6 consecutive months).
Teenage parents, who met the eligibility requirements for the Crossroads Program and are at
ota$1,219Xor below poverty level (if and when the Crossroads Program runs out of funding).
rthern
$1,220X
io$167XFamilies whose income is at or below 15% of the FPL.
ⁱ^{ki/CRS-RL31605}TANF recipients.
^g/wChildren receiving SSI.
^s^.orFamilies in need of protective child care services (all or part of their co-payment waived).
^le^akChildren in foster care who are eligible for child care services.
^://wikilahoma(no amountspecified)XFor non-TANF recipients to be eligible for a waiver of the co-payment, their maximumadjusted monthly income (for all family sizes) must be at or below $713.
^h^ttpHigh-risk targeted populations, families receiving TANF benefits, participating in the TANF
on$1,219Xwork program, and families receiving child care as part of Head Start services.
TANF recipients in approved unpaid work activities.
lvania$1,219XEmployed TANF recipients who have not received their first paycheck.
$753X
sland$1,219X
$1,157X
ota$1,219X
nnessee$1,219XFamilies participating in the TANF program.
Parents who receive TANF or SSI.
Families who participate in the Food Stamp Employment and Training program.
Parents of children who receive protective services (unless the Texas Department of
xas$1,219XProtective and Regulatory Services assesses a fee to the parent).

CRS-31
State-
DefinedFee waived for families with
Povertyincomes below poverty?
Guideline
(for aNoAllSome
family of 3)If some families have fee waived, what types of families have cost-sharing waived?familiesfamiliesfamilies
Families in the TANF program.
$1,219XTransitioning families (for up to 2 consecutive months).
rmont$1,179X
rgin Islands$1,219X
TANF recipients.
Families in the Head Start to Work wraparound program if their income is at or below the
federal poverty level. (If siblings of the Head Start child are also receiving subsidy, the fee
rginia $1,219 X applies.)
ⁱ^{ki/CRS-RL31605}Children in foster care.
^g/wton$1,219XProtective services and child welfare cases (on a case-by-case basis).
^s^.orFamilies who have monthly gross incomes of less than 40% of FY 2000 FPL.
^le^akirginia$1,219XFees may also be waived by the children’s protective service worker.
^://wikiFamilies who are eligible for Food Stamp Employment and Training (FSET) child care and
^h^ttpLearnfare child care.
$1,219XFamilies who request child care for foster children and court-ordered kinship care children.
oming$1,402X
^{: T}^a^b^l^e^p^r^ep^ar^ed^b^y^th^e^Coⁿ^g^r^essioⁿ^al^Resear^ch^Ser^v^ice⁽^CRS)^b^a^sed^oⁿⁱⁿ^f^o^r^m^atioⁿ^f^r^o^m^{CCDF state p}^l^an^{s su}^b^m^itted^b^y^th^{e state}^{s to}^th^{e Dep}^a^r^t^m^eⁿ^t^o^f^Health^an^d^Hu^m^aⁿ
ⁱ^ces^(HHS^).
^{r pu}^rpos^es^of^w^aⁱ^vⁱⁿ^g^cos^t^-^s^h^a^riⁿ^g^requⁱ^r^em^en^t^s^{, pov}^ert^yⁱ^s^defⁱⁿ^e^{d by}^t^h^{e s}^t^at^{e, an}^{d m}^a^yⁿ^o^t^corres^pon^{d t}^o^t^h^{e f}^e^deral^pov^e^r^t^y^gui^d^e^lⁱⁿ^e^s^.

In six states, all families, including those with incomes at or below the state-
defined poverty level, are required to pay a fee according to the state’s sliding fee
scale. Fourteen states or territories waive fees for all families with incomes at or
below the poverty level. The remaining 36 states and territories waive fees for some
families with income below the poverty line. The fifth column of Table 4 shows the
types of families each state exempts from making a co-payment for child care.
As noted earlier, 22 states explicitly waive the co-payment for TANF
families. Many additional states set a threshold of a certain percentage of poverty for
waiver of the co-payment, which will include TANF families in many cases. Other
families that receive waivers of the co-payment include: SSI recipients, children in
protective services cases, and participants in the Food Stamp Employment and
Training program.
Quality Improvement Activities
Federal law requires that states use not less than 4% of federal child care
funds made available for each fiscal year to administer activities designed to improve
the quality of child care.¹⁷ Regulations clarify this to mean that of aggregate¹⁸
expenditures made with CCDF funds, no less than 4% is to be spent on quality
improvement activities. Readers should be aware that states’ time limits for spending
CCDF funds vary by the type of funding (e.g., a 3 year limit for discretionary CCDF
funds), and therefore the percentage of funds spent on quality (with respect to the 4%
minimum) cannot be fully assessed until 3 years following the year of
appropriation.¹⁹
Appropriations legislation has included additional provisions with respect to
quality. For FY2001 and FY2002, CCDF discretionary funding included earmarks
– funding set-aside for a particular purpose – for specific quality activities in the
following areas: improving the quality of care for infants and toddlers ($100
million), and improving school-age care and child care resource and referral services
($19 million). Of the $19 million for school-age care and resource and referral
activities, $1 million was designated for the Child Care Aware toll-free hotline,
which provides consumer information and links families to their local resource and
referral agency.²⁰ (Spending from these earmarked funds are included in aggregate

¹⁷ Almost half of the states reported that they plan to spend more than 4% of their CCDF
funds for quality activities (not shown). Of these, four reported that they would spend over
20% of their CCDF funds for such activities: the District of Columbia (25%), North Dakota
(27%), Oklahoma (23%), and Wisconsin (26%).
¹⁸ This includes expenditures made from funds transferred from TANF and state CCDF
matching funds, but not state maintenance-of-effort (MOE) spending.
¹⁹ For more information on CCDF spending rules, see CRS Report RL31274 Child Care:
Funding and Spending Under Federal Block Grants, by Melinda Gish. p.7-9.
²⁰ The resource and referral services link state child care agencies, child care providers, and
parents. They assist in the process of locating appropriate child care settings, and maintain
lists of all legal child care providers. The resource and referral agencies also play a role in
(continued...)

expenditure totals used to measure whether states have met the 4% spending limit on
quality.)
Under the Child Care and Development Block Grant Act (CCDBG) prior to
the 1996 welfare reform amendments, the funding used for quality improvement had
to be spent on one or more of the following categories:
^!resource and referral programs for the development, establishment,
expansion, operation, and coordination of child care services;
^!consumer education to improve the availability and quality of child
care;
^!grants and loans to assist in meeting state and local child care
standards;
^!monitoring of compliance with licensing and regulatory
requirements;
^!training and technical assistance in appropriate areas, such as health
and safety, nutrition, first aid, the recognition of communicable
diseases, child abuse detection and prevention, and the care of
children with special needs;
^!compensation to improve salaries of staff who provide child care
services; or
^!other quality activities that increase parental choice, and improve the
quality and availability of child care.
Under current law, these specific categories are no longer itemized, but are
nevertheless still authorized as optional uses of quality funds by regulation. In the
CCDF state plan, states were asked whether they will spend their child care quality
funds on activities that fall into any of the categories authorized under prior law, with
the exception of resource and referral activities, for which funds have been
specifically earmarked as part of annual appropriations.²¹ Table 5 illustrates the
provisions each state opted to fund with funds it has reserved for improving child
care quality.

²⁰ (...continued)
consumer education for parents, providers, employers, as well as social service
organizations. In many states, the resource and referral agency is responsible for
determining eligibility of families for child care and monitoring child care providers
throughout the state.
²¹ Because quality funds are now specifically allocated for resource and referral activities,
the list of quality activities in the current state plans no longer includes a category for
“resource and referral programs.” Therefore, this provision is not included in the table.
However, in a separate section of the state plan, states now report activity to support
resource and referral programs.

CRS-34
Table 5. CCDF Quality Improvement Activities
ConsumerMonitoring ofTraining andCompensation for
ateeducationGrants or loanscompliancetechnical assistanceProvidersOther
abamaXXXXX
askaXXXXX
erican SamoaXXX
onaXXXX
kansXXXXX
XXXXXX
ld
XXXXXX
lawareXXXXXX
biaXXXXXX
ⁱ^{ki/CRS-RL31605}oid XX XX
^g/wrga
^s^.orm X X X
^le^ak
waiiXXXX
^://wikiaho XX XX
^h^ttp X X X X X
XXXXX
waXXXX
ns
ntuckyXXXXXX
uiaXXXX
n
ryldXXXXXX
XXXXXX
anXXXXXX
XXXXXX
XXXXX
XXXXXX

CRS-35
ConsumerMonitoring ofTraining andCompensation for
ateeducationGrants or loanscompliancetechnical assistanceProvidersOther
ontaXXXXXX
brskXXXXX
vd
w HampshireXXXXXX
w JerseyXXXXXX
w MexicoXXXXXX
w YorkXXXXXX
rth CarolinaXXXXXX
th DakotaXXXX
rthern MarianaX
oXXXXX
ⁱ^{ki/CRS-RL31605}lahm XX XX
^g/wegn XXXX
^s^.orl va nia X X X X X
^le^aki co X X X X X X
^://wikis land X X X X X X
^h^ttp X X X X X X
otaXXXXXX
nnesseeXXXXX
xasXXXXX
hXXXX
rmon
rgin IslandsXXXXX
iniaXXXXX
tonXXXXXX
iniaXXXXXX
isconXXXX
ymgXXXX
tal554554554554
^{: T}^a^b^l^{e p}^r^ep^ar^ed^b^y^th^{e Co}ⁿ^g^r^essioⁿ^{al Resear}^ch^Ser^v^{ice (}^CRS)^b^a^sed^oⁿⁱⁿ^f^o^r^m^atioⁿ^f^r^o^m^{CCDF state p}^l^an^{s su}^b^m^itted^b^y^th^{e states}^to^th^{e HHS.}

Even though spending in these specific categories is no longer required under
federal law, most states continue to make quality expenditures in these categories.
Almost every jurisdiction (55) says that it will spend quality funds for consumer
education. As noted, consumer education, which includes helping parents identify
and locate quality child care, is also a part of resource and referral activities.
Forty-five states expend CCDF funds on grants or loans to providers as a part
of their quality activities. Grant and loan programs are intended to assist child care
programs in meeting state and local standards. They may also be designed to achieve
other goals in improving the quality and availability of child care services. Grants
and loans may also be allotted to help program start-up efforts for populations with
difficult-to-serve needs. Care for special-needs children, care during non-traditional
hours, and infant and toddler care all fall into this category. Grants and loans are
also available for program expansion and program collaboration with Head Start,
school-based programs, and public and private partnerships. Other areas where states
focus these monies include equipment purchases or assistance to providers for quality
improvement.²²
Fifty-four states expend funds on monitoring compliance with licensing and
regulatory requirements. Some of the funds in this category were set aside to hire
staff to license and monitor child care providers at the state and local level. This
quality category also aids in the training of licensing agency staff, and technical
assistance providers. Funds are also used to implement and improve the efficiency
of new monitoring systems.
Fifty-five states and territories participate in training and technical assistance
quality improvement strategies. Some of the targeted priorities include the
following:
^!credentialing and career development organized both at the state and
local level;
^!disseminating information on developments in brain research;
^!training in recognizing domestic violence and child abuse and
neglect;
^!training in the use of environmental rating scales to evaluate
program quality;
^!health and safety training for parents and providers;
^!the care of children with special needs; and
^!multi-cultural and anti-bias issues.
Forty-five states indicate in their plans for 1999-2001 that they intend to use
quality funds to improve compensation for child care providers – an increase from
the 34 states in the 1999-2001 plans, and the 19 states whose initial state plans

²² Final program rules are more restrictive for sectarian providers than for state and local
agencies and nonsectarian organizations involving funding of grants and loans for
construction projects. Grants and loans are allowed for sectarian agencies or organizations
only for the purpose of bringing the facility into compliance with the health and safety
requirements.

indicated an intent to use quality funds for this purpose. In many states, this quality
initiative provides financial, educational, retirement, or health benefit incentives for
child care workers in exchange for child care training and certifications. Many states
are implementing the Teacher Education and Compensation Helps (TEACH)
program to provide training scholarships and to increase the number of qualified
teachers.
Fifty-four states also intended to use quality funds for other purposes. Other
quality activities mentioned in the state plans include: public awareness campaigns,
targeting child care services to under-served communities, services for children with
special needs, and greater flexibility for child care services in year-round programs
or non-traditional hours. An emphasis has been placed on expanding child care
among all age categories of children. Activities also include coordination between
early childhood education programs and child care, as well as efforts to strengthen
private and public partnerships in the local communities.
Health and Safety Standards
Federal law requires the states to certify that requirements designed to protect
the health and safety of children are in effect and applicable to all child care
providers who receive CCDF funds.²³ Health and safety requirements must include:
the prevention and control of infectious diseases (including immunization); building
and physical premises safety; and minimum health and safety training appropriate to
the provider setting. Federal law also requires states to certify that child care
providers receiving CCDF funds comply with all of the applicable state or local
health and safety requirements.
Regulations do not establish a federal standard for immunization. Instead,
federal rules require that states and territories assure that the state’s existing
immunization standards apply to all children receiving services under the CCDF.
Regulations limit exemptions from the immunization requirements to the following
groups:
^!children who are cared for by relatives (defined as grandparents,
great grandparents, siblings — if living in a separate residence, aunts
and uncles);
^!children who receive care in their own homes;
^!children whose parents object on religious grounds; and
^!children whose medical condition contraindicates immunization.
The final rules also require the states to establish a grace period so children
in families attempting to comply with immunization requirements can continue to
receive child care services. States are encouraged, but not required, to consider the
development of a system to track children’s immunization records. Coordination
between public health agencies and child care agencies is strongly recommended to
achieve these goals.

²³ As noted in Box 1, CCDF rules regarding health and safety standards apply to providers
who receive funds transferred from TANF to the CCDF, but do not apply to child care
funded directly with TANF dollars.

States are required to describe the health and safety requirements applicable
to all licensed and unlicensed child care providers receiving CCDF assistance. Some
of these standards are reflected in a compilation of voluntary licensing and regulatory
guidelines for child care providers maintained at the National Resource Center for
Health and Safety in Child Care (NRCHSCC). The NRCHSCC compilation and a
set of each state’s regulations are available on the World Wide Web at
[http://nrc.uchsc.edu.] HHS required states to include in their plans only those health
and safety guidelines not contained in the NRCHSCC compilation. Health and safety
information from CCDF state plans generally is limited to rules applicable to non-
licensed care.
Table 6 shows which types of providers paid with CCDF funds in each state
are subject to licensing under state law as reflected in the NRCHSCC compilation of
requirements. The table also indicates whether relative providers are subject to
health and safety standards.
Centers not subject to licensing under the NRCHSCC compilation are
typically subject to alternative requirements, which are detailed in the state CCDF
plans (but not shown here). For example, as the table shows, in 24 states, all or some
providers of center-based child care are not subject to licensing under state laws as²⁴
reflected in the information maintained by NRCHSCC. In several of those states,
the exempted providers are school-based child care programs that are instead subject
to health and safety requirements and regulations under the authority of a public or
private school system. Other states exempt centers that are connected with churches
or parochial schools. In most cases, only a subset of center-based providers are
exempt. For example, in Michigan, all center-based providers receiving CCDF funds
are subject to state licensing laws as reflected by NRCHSCC, except for centers on
federal land (i.e., military installations or tribal land) and facilities where the parents
are onsite (i.e., school-based care for teen parents).
Group homes, in contrast, are more regulated. Only five states report that
they do not subject all providers to NRCHSCC licensing under state law. Family
homes and in-home providers in the majority of states are not subject to licensing.
Thirty-seven states do not require licensing of all family homes, and forty-eight states
do not require licensing for all in-home care providers.
States have the option to exempt from health and safety requirements
relatives (grandparents, great grandparents, aunts, uncles, or siblings) who live in a
separate residence from the child in care. The CCDF plans indicate whether a state
exempts relatives from all or none of the requirements, or, alternatively, if they
subject relatives to a different set of requirements. Table 6 shows that 13 states
subject relative providers to different requirements; however, no additional
information regarding those requirements is included in the plans. Nine states
exempt all relative providers from all health and safety requirements. In the
remaining 34 states, all relative providers are subject to health and safety
requirements.

²⁴ Not all states recognize all four types of care.

CRS-39
Table 6. Requirements Regarding Licensing and Health and Safety Standards
for CCDF Providers, by Type of Setting
^{Are a}^{ll CCDF pro}^vⁱ^{ders in the fo}^llo^wⁱ^ng^setting^{s subject}
^{to licens}ⁱ^{ng under s}^t^{ate la}^w^as^{reflected in the}
^{NRCHSCC co}^m^p^ila^tioⁿ^o^f^requirem^ents?
^T^reatm^{ent of relative pr}^oviders^wⁱ^{th res}^{pect to}^Cent^er-^ba^sed^Gr^o^u^p^Fa^m^ily
^St^a^t^e^hea^l^t^h^a^{nd sa}^f^e^t^y^st^a^nda^rds^care^ho^m^e^s^ho^m^e^s^I^n-^ho^m^e
^A^{ll relat}ⁱ^v^e^prov^iders^{are ex}^em^{pt f}^r^om^{all h}^ealth^an^d
^A^l^abam^a^N^o^Y^es^Yes^N^o^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^e^r^s^ar^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^,^w^ithⁿ^o^ex^em^ption^s
^A^l^ask^a^Yes^Y^es^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
ⁱ^{ki/CRS-RL31605}^A^m^erican^Sam^o^a^a^NA^NA^NA^NA^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^g/w^So^m^e^o^r^{all r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^e^c^t^t^o^dⁱ^f^f^e^r^eⁿ^t
^s^.or^A^r^izon^a^Y^es^Yes^Y^es^Yes^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^le^ak^A^{ll r}^e^lati^v^e^p^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^://wiki^A^r^k^aⁿ^s^as^Yes^Y^es^No^No^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^h^ttp^So^m^e^o^r^{all r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^e^c^t^to^dⁱ^f^f^e^r^eⁿ^t
^C^a^lif^o^rⁿⁱ^a^N^o^Y^es^No^No^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^Som^e^{or all rela}^tⁱ^v^e^p^r^ov^iders^{are s}^u^bj^{ect to dif}^f^e^ren^t
^C^o^lo^rad^o^No^Yes^N^o^N^o^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^e^r^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^,^w^ithⁿ^o^ex^em^ption^s
^C^oⁿⁿ^ecticu^t^No^No^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^Som^e^{or all rel}^a^tⁱ^v^e^prov^iders^{are s}^u^bj^{ect to dif}^f^e^ren^t
^Delaw^a^re^No^Yes^Y^es^No^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^Al^{l r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to th}^{e s}^a^m^e^applicabl^e
^{District o}^f^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Co^lu^m^b^ia^Yes^N^A^Y^es^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^Som^e^{or all r}^e^l^a^tⁱ^v^{e prov}^iders^{are s}^u^bj^{ect to dif}^f^e^ren^t
^Flo^r^id^a^N^o^N^o^N^o^N^o^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.

CRS-40
^{Are a}^{ll CCDF pro}^vⁱ^{ders in the fo}^llo^wⁱ^ng^setting^{s subject}
^{to licens}ⁱ^{ng under s}^t^{ate la}^w^as^{reflected in the}
^{NRCHSCC co}^m^p^ila^tioⁿ^o^f^requirem^ents?
^T^reatm^{ent of relative pr}^oviders^wⁱ^{th res}^{pect to}^Cent^er-^ba^sed^Gr^o^u^p^Fa^m^ily
^St^a^t^e^hea^l^t^h^a^{nd sa}^f^e^t^y^st^a^nda^rds^care^ho^m^e^s^ho^m^e^s^I^n-^ho^m^e
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^e^c^{t to}^th^{e sam}^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^,^w^ithⁿ^o^ex^em^ption^s
^Geo^r^gⁱ^a^Y^es^Yes^Y^es^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^t^h^e^sam^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Gu^am^a^NA^NA^NA^NA^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s a}^r^e^e^x^em^p^t^f^r^o^m^{all h}^ealth^an^d
^Haw^aⁱⁱ^No^Yes^N^o^N^o^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll r}^e^lativ^e^p^r^o^v^id^er^{s ar}^{e ex}^em^p^t^f^r^o^m^{all h}^ealth^an^d
^Idah^o^Y^es^Yes^N^o^N^o^saf^e^ty^r^e^q^u^ir^em^en^ts.
ⁱ^{ki/CRS-RL31605}^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^a^p^p^licab^le
^g/w^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^s^.or^I^llin^oⁱ^s^N^o^Y^es^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^le^ak^Al^{l r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to th}^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^://wiki^In^dian^a^Y^es^Yes^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^h^ttp^A^{ll relat}ⁱ^v^{e prov}^iders^{are s}^u^bj^{ect to th}^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^e^plan^{, w}^ithⁿ^o^ex^em^ption^s
^Io^w^a^Yes^Y^es^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^Som^e^{or all relativ}^{e prov}^iders^{are s}^u^bj^{ect t}^o^dⁱ^fferen^t
^Kan^s^as^Yes^Y^es^Yes^N^o^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^a^p^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Ken^t^u^c^k^y^Yes^Y^es^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^Al^l^relativ^{e prov}^iders^{are s}^u^bj^{ect to th}^{e s}^a^m^e^A^pplicabl^e
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Lo^ui^sⁱ^aⁿ^a^N^o^N^A^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^e^e^x^e^m^p^t^f^r^o^m^{all h}^ealth^an^d
^Main^e^Y^es^No^Yes^N^o^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll relativ}^{e prov}^iders^{are s}^u^bj^{ect t}^o^th^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^,^w^ithⁿ^o^ex^em^ption^s
^Mary^lan^d^Yes^N^A^Y^es^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.

CRS-41
^{Are a}^{ll CCDF pro}^vⁱ^{ders in the fo}^llo^wⁱ^ng^setting^{s subject}
^{to licens}ⁱ^{ng under s}^t^{ate la}^w^as^{reflected in the}
^{NRCHSCC co}^m^p^ila^tioⁿ^o^f^requirem^ents?
^T^reatm^{ent of relative pr}^oviders^wⁱ^{th res}^{pect to}^Cent^er-^ba^sed^Gr^o^u^p^Fa^m^ily
^St^a^t^e^hea^l^t^h^a^{nd sa}^f^e^t^y^st^a^nda^rds^care^ho^m^e^s^ho^m^e^s^I^n-^ho^m^e
^Som^e^{or all relativ}^{e prov}^iders^{are s}^u^bj^{ect to}^dⁱ^ffe^ren^t
^Mas^s^ach^u^s^etts^Yes^Y^es^Yes^N^o^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll rel}^a^tⁱ^v^{e prov}^iders^{are ex}^em^{pt f}^r^om^{all h}^ealth^an^d
^Mich^ig^an^No^No^No^No^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^e^c^{t to}^th^{e sam}^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^e^plan^{, w}^ithⁿ^o^ex^em^ption^s
^Minⁿ^e^so^ta^No^NA^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^t^h^e^sam^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^ribedⁱⁿ^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Mⁱ^ssissip^pⁱ^Ye^s^Y^e^s^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
ⁱ^{ki/CRS-RL31605}^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^a^p^p^licab^le
^g/w^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^s^.or^Misso^u^rⁱ^N^o^Y^es^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^le^ak^Al^{l r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to th}^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^://wiki^Mon^t^an^a^Y^es^Yes^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^h^ttp^A^{ll relat}ⁱ^v^{e prov}^iders^{are s}^u^bj^{ect to th}^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^e^plan^{, w}^ithⁿ^o^ex^em^ption^s
^Neb^r^ask^a^Yes^Y^es^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll relativ}^{e prov}^iders^{are ex}^em^pt^fr^o^m^{all h}^ealth^an^d
^Nev^a^d^a^No^Yes^N^o^N^o^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^a^p^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^New^Ham^p^sh^ire^N^o^Y^es^No^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^Al^{l r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to th}^{e s}^a^m^e^applicabl^e
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^New^J^e^rsey^Yes^N^A^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^e^e^x^e^m^p^t^f^r^o^m^{all h}^ealth^an^d
^New^Mexⁱ^co^Yes^Y^es^No^No^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll relativ}^{e prov}^iders^{are s}^u^bj^{ect t}^o^th^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^,^w^ithⁿ^o^ex^em^ption^s
^New^Yo^rk^No^Yes^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.

CRS-42
^{Are a}^{ll CCDF pro}^vⁱ^{ders in the fo}^llo^wⁱ^ng^setting^{s subject}
^{to licens}ⁱ^{ng under s}^t^{ate la}^w^as^{reflected in the}
^{NRCHSCC co}^m^p^ila^tioⁿ^o^f^requirem^ents?
^T^reatm^{ent of relative pr}^oviders^wⁱ^{th res}^{pect to}^Cent^er-^ba^sed^Gr^o^u^p^Fa^m^ily
^St^a^t^e^hea^l^t^h^a^{nd sa}^f^e^t^y^st^a^nda^rds^care^ho^m^e^s^ho^m^e^s^I^n-^ho^m^e
^Som^e^{or all relativ}^{e prov}^iders^{are s}^u^bj^{ect to}^dⁱ^ffe^ren^t
^No^rth^C^a^ro^lin^a^Y^es^Yes^Y^es^No^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll rel}^a^tⁱ^v^{e prov}^iders^{are ex}^em^{pt f}^r^om^{all h}^ealth^an^d
^No^rth^Dak^o^ta^No^Yes^N^o^N^o^saf^e^ty^r^e^q^u^ir^em^en^ts.
^Nort^h^e^rn^Mari^an^a^a^NA^NA^NA^NA^Som^e^o^r^a^l^{l relativ}^{e prov}^iders^{are s}^u^bj^{ect to dif}^f^e^ren^t^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^l^l^relativ^{e prov}^iders^{are s}^u^bj^{ect to th}^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Oh^io^Yes^Y^es^Yes^Y^es^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^e^p^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
ⁱ^{ki/CRS-RL31605}^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^g/w^Ok^lah^o^m^a^Yes^Y^es^Yes^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^s^.or^A^{ll r}^e^lativ^{e p}^r^o^v^id^e^r^s^ar^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^le^ak^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Oreg^oⁿ^No^Yes^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^://wiki^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^h^ttp^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^,^w^ithⁿ^o^ex^em^ption^s
^P^e^nnsy^l^vaⁿⁱ^a^Y^e^s^Y^e^s^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^t^h^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^P^u^{erto R}ⁱ^co^a^NA^NA^NA^NA^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^Som^e^{or all relativ}^{e pro}^vⁱ^d^e^r^s^{are s}^u^bj^{ect to dif}^f^e^ren^t
^R^h^o^d^e^Islan^d^No^Yes^N^o^N^o^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^{ll r}^e^lativ^{e p}^r^o^vⁱ^d^e^r^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^So^ut^{h Ca}^r^o^lⁱⁿ^a^Y^e^s^Y^e^s^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^Som^e^{or all relativ}^{e p}^r^o^vⁱ^d^e^r^s^{are s}^u^bj^{ect to dif}^f^e^ren^t
^So^u^t^h^Dak^o^ta^Yes^Y^es^No^No^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^So^m^e^o^r^{all relativ}^{e prov}^iders^{are s}^u^bj^{ect to dif}^f^e^ren^t
^T^e^nne^sse^e^Y^e^s^Y^e^s^N^o^N^o^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.

CRS-43
^{Are a}^{ll CCDF pro}^vⁱ^{ders in the fo}^llo^wⁱ^ng^setting^{s subject}
^{to licens}ⁱ^{ng under s}^t^{ate la}^w^as^{reflected in the}
^{NRCHSCC co}^m^p^ila^tioⁿ^o^f^requirem^ents?
^T^reatm^{ent of relative pr}^oviders^wⁱ^{th res}^{pect to}^Cent^er-^ba^sed^Gr^o^u^p^Fa^m^ily
^St^a^t^e^hea^l^t^h^a^{nd sa}^f^e^t^y^st^a^nda^rds^care^ho^m^e^s^ho^m^e^s^I^n-^ho^m^e
^A^{ll r}^e^lativ^{e p}^r^o^v^id^e^r^s^ar^{e ex}^em^p^t^f^r^o^m^{all h}^ealth^an^d
^T^e^x^a^s^N^o^Y^es^No^No^saf^e^ty^r^e^q^u^ir^em^en^ts.
^A^l^l^relativ^{e prov}^iders^{are s}^u^bj^{ect to th}^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^e^plan^{, w}^ithⁿ^o^ex^em^ption^s
^Utah^No^Yes^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^e^p^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^ribedⁱⁿ^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Verm^oⁿ^t^Y^es^Yes^Y^es^Yes^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^e^r^s^ar^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
ⁱ^{ki/CRS-RL31605}^Vir^gⁱⁿ^I^s^lan^d^s^a^NA^NA^NA^NA^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^g/w^So^m^e^o^r^{all r}^e^lativ^{e p}^r^o^v^id^e^r^s^a^r^{e su}^b^j^{ect to}^dⁱ^f^f^e^r^eⁿ^t
^s^.or^Virgⁱⁿ^ia^No^Yes^N^o^N^o^h^ealth^an^d^saf^e^ty^r^e^q^u^ir^em^en^ts.
^le^ak^Al^{l r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^{e su}^b^j^{ect to th}^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^://wiki^W^a^shⁱⁿ^g^t^oⁿ^Yes^N^A^Y^es^No^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^h^ttp^A^{ll relat}ⁱ^v^{e prov}^iders^{are s}^u^bj^{ect to th}^{e s}^a^m^e^applicable
^requ^irem^en^ts^as^des^c^{ribed in}^th^e^plan^{, w}^ithⁿ^o^ex^em^ption^s
^W^e^{st Virg}ⁱⁿ^ia^No^Yes^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^vⁱ^d^e^r^{s ar}^{e su}^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^ribedⁱⁿ^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Wⁱ^sc^oⁿ^sin^N^o^N^A^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^A^{ll r}^e^lativ^{e p}^r^o^v^id^er^{s ar}^e^s^u^b^j^{ect to}^th^{e sam}^e^ap^p^licab^le
^requ^irem^en^ts^as^des^c^{ribed in}^th^{e plan}^{, w}^ithⁿ^o^ex^em^ption^s
^Wy^omⁱⁿ^g^N^o^N^o^N^o^N^o^o^r^dⁱ^f^f^e^r^eⁿ^t^r^e^q^u^ir^em^en^{ts f}^o^r^r^e^lativ^es.
^{: T}^a^b^l^{e p}^r^ep^ar^ed^b^y^th^{e Co}ⁿ^g^r^essioⁿ^al^Resear^ch^Ser^v^ice⁽^CRS)^b^a^sed^oⁿⁱⁿ^f^o^r^m^atioⁿ^f^r^o^m^{CCDF state p}^l^an^{s su}^b^m^itted^b^y^th^{e state}^{s to}^th^{e Dep}^a^r^t^m^eⁿ^t^o^f^Health^Hu^m^aⁿ^Ser^v^ices
^{eir C}^C^D^{F plan}^s^,^th^{e territories}^{are as}^k^e^{d to des}^c^{ribe th}^ei^{r h}^ealth^an^{d s}^a^f^e^ty^requ^irem^en^ts^f^o^{r dif}^f^e^ren^t^categ^ories^of^ca^r^e^w^ith^o^u^{t r}^e^f^e^r^eⁿ^{ce to}^{NRCHSCC licen}^sin^g^r^u^les.
^–^No^{t ap}^p^licab^le

Appendix A
In their CCDF state plans, states are required to describe their treatment of
TANF families, transitioning families, and families at risk of welfare dependence
with respect to CCDF subsidy receipt. State responses to this CCDF plan provision
varied in detail and structure. Appendix A reflects the language used by states in
their CCDF plans, with minor editing for consistency and clarity. Although all states
provide responses to this provision, it is unclear for some states whether these three
groups receive priority relative to other families eligible for subsidies, or in what
order these families will be served. For example, in New Hampshire, TANF
families, transitioning families, and at-risk families are described as having priority
over other families (with the exception of families that already have a child receiving
a subsidy and need care for an additional child); however, there is no indication of
how these three groups of families receive priority relative to each other. In addition,
the information provided by a few states did not specifically address how these
groups of families are treated by the state. In these cases, the table entry reads “no
information.”

CRS-45
Appendix A1. State Descriptions of Treatment of TANF-related Groups Under CCDF
ateTANF familiesTransitioning familiesAt-risk families
abamaA client who is participating in approvedA client whose family assistance isClients who are at risk of welfare dependency
TANF work activities is guaranteed a childterminated due to employment isare served as funds are available.
care slot.guaranteed a child care slot.
askaAll TANF parents in work activities areFamilies who leave TANF are eligible forThere is a child care program for low-income
eligible for child care assistance with no co-child care assistance for 12 months.families who are at risk for becoming
payment. The Division may not requiredependent upon TANF.
participation in work activities unless they
agree to pay for the necessary child care.
izonaTANF families will be given first priority forFamilies transitioning off of TANF will beWorking families with very low incomes will
services (along with transitioning families).given first priority for services (along withbe given third priority for services.
TANF families).
ⁱ^{ki/CRS-RL31605}kansasFamilies who are receiving TANF will receiveTransitional child care may be availableLow-income working non-TANF families
^g/wchild care in order to allow them to participatefor up to three years. The first year there iswho are at-risk of becoming dependent on
^s^.orin work activities.no fee; the second and third year theassistance programs are placed on a waiting
^le^aksliding fee scale applies. list.
^://wikiliforniaTANF families are categorically eligible forAfter a TANF recipient leaves cash aid,TANF Stage 3 (low-income) child care
^h^ttpchild care. she may receive child care services for upbegins when the family has exhausted its 24
to 24 months.months of eligibility for transitional child
care.
loradoUnder state law, all families with incomeThere is an automatic transition for TANFFamilies with income under 130% FPL are
under 130% FPL (including TANF families)families with incomes below a county’sthe first priority. In addition, counties may
are the first priority. eligibility ceiling (up to 225% FPL). Childset eligibility limits up to 225% FPL.
care assistance is not time-limited.
The Lead Agency will provide child careNo information.No information.
assistance to all TANF families in approved
work activities.
lawareChild care will be provided as a regularTransitioning families will continue toChild care will be available to low-income
supportive service to families participating inreceive child care as long as they arefamilies who cannot afford to pay for their
the welfare program. eligible. care.
strict of ColumbiaNo information.No information.No information.

CRS-46
ateTANF familiesTransitioning familiesAt-risk families
oridaEligibility for TANF/Workforce DevelopmentEligibility for initial Transitional ChildWorking poor families are eligible for child
child care is authorized based on participationCare is authorized by TANF regionalcare funded through the TANF Block Grant.
in Workforce activities. workforce boards or their designated agent
or the Department of Children and
Families Economic Self-Sufficiency staff.
orgiaWhen needed to participate in a work activity,Families leaving TANF for work-relatedGeorgia allocates funds for families who are
child care is available at no cost to all TANFreasons have access to subsidized childat risk of becoming dependent on TANF. Co-
applicants and recipients. care for up to 1 year with a co-payment.payment is required.
waiiFamilies on TANF who are working orFamilies transitioning from TANF willFamilies with income up to 85% of SMI are
participating in approved work activities andhave priority for child care for 12 months.eligible for child care. For families under
have income under 150% FPL will be able toFor families under 100% of FPL, there is100% of FPL, there is no co-pay.
access child care.no co-pay required. After 12 months,
ⁱ^{ki/CRS-RL31605}families applying for care compete with
^g/wother families from the community.
^s^.orahoTANF families are automatically eligible forNo information.Children of low-income working families
^le^akchild care, and would be the first priority if thewould be the second priority if the need arose
^://wikineed arose for a waiting list. for a waiting list.Working families with incomes below 50% ofWorking families with incomes belowWorking families with incomes below 50%
^h^ttpthe 1997 SMI are eligible, regardless of50% of the 1997 SMI are eligible. of the 1997 SMI are eligible.
welfare status.
TANF families are the number one priority.Families are eligible up to 181% of FPL.Families are eligible up to 181% of FPL.
waTANF recipients in work activities are eligibleFamilies who cease to be eligible forNo information.
for child care subsidies during the activityTANF as a result of increased income will
without co-pay. receive child care, subject to a sliding fee
scale.
Families with income below 185% FPL areFamilies with income below 185% FPLFamilies with income below 185% FPL are
eligible for child care assistance, regardless ofare eligible for child care assistance.eligible for child care assistance.
TANF status.
yTANF participants in work activities are givenFamilies transitioning off of TANF shallBeyond 1 year of transitional assistance,
priority for child care services. be eligible for child care assistance for aeligibility for subsidized child care continues
period of one year if the family’s incomeif family income does not exceed 165% FPL.

does not exceed 85% SMI.

CRS-47
ateTANF familiesTransitioning familiesAt-risk families
TANF recipients in work activities areFamilies transitioning off of TANFAt-risk families are required to contribute
categorically eligible for child care servicesbecause of increased income from work15% of the cost of their child care expenses.
without co-payment.receive up to 3 months of child care
without co-payment, pending eligibility
determination for low income child care.
TANF families are guaranteed child care (paidTransitioning families are guaranteed childNo information.
for from the TANF block grant) if the familycare assistance (paid for through a
meets their employment and trainingcombination of CCDF and TANF transfer
requirements. funds).
landNo information.No information.No information.
No information.No information.No information.
anTANF recipients are categorically eligible forTransitional child care benefits extend forAt-risk child care is provided to families up
child care benefits. six months. After six months, the clientto approximately 185% FPL.
ⁱ^{ki/CRS-RL31605}may move to at-risk child care.
^g/wFamilies receiving TANF are guaranteed childFamilies who have received TANF for 3Very low-income families (under 75% of
^s^.orcare.out of 6 months prior to TANF caseSMI) are eligible for child care assistance.
^le^akclosure are eligible for up to 1 year of
^://wikichild care.
^h^ttpChild care assistance is guaranteed to allChild care assistance is guaranteed to allRemaining child care certificates are issued
TANF recipients (with 100% TANF funds). transitioning families (with 100% TANFon a first-come, first-served basis for the
funds). following priorities: those transitioning off of
Transitional Child Care, certain children of
parents with incomes under 50% SMI,
parents who are working and have income
above 50% SMI but under 85% SMI.
All income-eligible families will be served,All income-eligible families will beAll income-eligible families will be served,
regardless of TANF status. If future programserved, regardless of TANF status. Ifregardless of TANF status. If future program
constraints require waiting lists, priority willfuture program constraints require waitingconstraints require waiting lists, transitioning
be given to TANF recipients. lists, transitioning and at-risk families willand at-risk families will be served equally on
be served equally on a first-come, first-a first-come, first-served basis (after priority
served basis (after priority is given tois given to TANF recipients).

TANF recipients).

CRS-48
ateTANF familiesTransitioning familiesAt-risk families
TANF families are guaranteed child care. Families in transition from TANF receiveAt-risk families receive services subject to a
services subject to a sliding fee scale.sliding fee scale.
braskaAll TANF families have received child careAll transitioning families have receivedAll at-risk families have received child care
services. At no time has Nebraska utilized achild care services. services.
waiting list.
vadaThe state will pay 100% of child care costsTransitional child care is available for upIndividuals with income under 185% of the
during the required initial job search and whileto 1 year. A co-payment is required. TANF need standard could be considered “at
a TANF recipient is in training. When a TANFrisk” of needing TANF. If already on the
recipient gets a job, there is no co-payment forchild care subsidy program, they would be
30 days. After 30 days, a co-payment iscontinued without interruption. If not already
required. in the subsidy program, the priority for
receiving a subsidy is determined by income.
If an applicant finds a job during the initial
ⁱ^{ki/CRS-RL31605}job search, and has income at or below 185%
^g/wof the TANF need standard, they would be
^s^.orconsidered “at risk” and be the highest
^le^akpriority for child care subsidies after special
needs children.
^://wikiw HampshireTANF families will be given priority beforeTransitioning families will be givenAt-risk families will be given priority before
^h^ttpother eligible families whenever there is apriority before other eligible familiesother eligible families whenever there is a
waiting list, except for instances where awhenever there is a waiting list, except forwaiting list, except for instances where a
family already receiving services needs careinstances where a family already receivingfamily already receiving services needs care
for an additional child. services needs care for an additional child.for an additional child.
Twelve-month extended Medicaid
recipients whose TANF is closed due to
increased earnings may be eligible to
receive child care reimbursement.
w JerseyChild care services are provided to TANFTransitional Child Care (TCC) is availableAt-Risk child care is available with a co-
recipients. Employed TANF recipients arefor up to 24 months. Continued eligibilitypayment to families with gross annual
required to make a co-pay. shall be re-determined after 12 months ofincome at or below 200% FPL (or less than
eligibility. 250% FPL for families who have used their

24 months of Transitional Child Care) and

CRS-49
ateTANF familiesTransitioning familiesAt-risk families
who need child care to retain or accept full-
time employment. Families at or below 150%
FPL shall be given highest priority; those at
175% FPL shall be given next highest
priority.
w MexicoTANF families have first priority for childTransitioning families are given priorityAt-risk families are given priority following
care. following TANF families. TANF families.
w YorkFamilies receiving public assistance continueTransitioning families continue to beLocal social services districts establish
to be guaranteed child care subsidies (even ifguaranteed child care subsidies (even ifpriorities for serving families, including
federal and state funds are no longerfederal and state funds are no longerfamilies who are at risk of dependence on
available).available).public assistance.
County departments of social services developNo information.Most counties give priority to families who
ⁱ^{ki/CRS-RL31605}local plans for meeting TANF goals. Mostare working, including those who are
^g/wcounties give priority to families who arereceiving TANF benefits when there are not
^s^.orworking, including those receiving TANF. Inenough funds to serve all families.
^le^akaddition, some counties use local funds (co-
^://wikimingled federal, state and county funds relatedto TANF) to provide services for TANF-
^h^ttpeligible families when county child care
allocations have not been sufficient.
rth DakotaTANF families make no co-payment for childTransitioning families make no co-At-risk families are eligible for services at
care. If there was a waiting list, TANF familiespayment for child care. If there was alow co-pays and family caps. If there was a
would have priority.waiting list, transitioning families wouldwaiting list, at-risk single-parent families
have priority.would have priority.
ioTANF families are guaranteed child care.Transitioning families will be guaranteedAt-risk families will be provided child care to
child care for up to 12 months.the extent funding permits.
lahomaTANF applicants are eligible for 20 days ofNo information.No information.

child care (with no co-payment) to look for
work while they are in application status.
Active TANF recipients are eligible for child
care with no co-payment if they are involved
in TANF work activities.

CRS-50
ateTANF familiesTransitioning familiesAt-risk families
egonChild care is available for TANF families. Child care is available for transitioningChild care is available for at-risk families.
families.
lvaniaTANF families are eligible to receive a childEmployed former TANF families mayNon-TANF families may qualify for a child
care subsidy. Employed TANF clients arecontinue to qualify for a child care subsidycare subsidy as long as family income does
responsible for a co-payment based on thewithout interruption of benefits or service,not exceed 235% FPL and the family meets
sliding fee scale (after 2 months). as long as the family’s income does notall other requirements.
exceed 235% FPL.
icoTANF families are provided child care. No information.No information.
slandChild care assistance is an entitlement for theChild care assistance is an entitlement forChild care assistance is an entitlement for
state’s low-income families. TANF recipientsemployed families with countable incomeemployed families with countable income
in approved activities continue to qualify forunder 225% FPL.under 225% FPL.
subsidized child care until their countable
income exceeds 225% FPL.
ⁱ^{ki/CRS-RL31605}arolinaTANF families are a priority for child care. Transitioning families can receive 2 yearsNo information.
^g/wof child care.
^s^.orDakotaTANF families participating in work activitiesNo information. Families with income below 100% FPL are
^le^akare eligible for child care without co-payment.not required to make a co-payment.
^://wiki
^h^ttpnnesseeTANF families may receive a subsidy for up toTransitioning families will have anNon-TANF, low-income families, including
18 months during their TANF eligibility.additional 18 months of child carethose at risk of becoming dependent on
assistance if they meet the 60% SMITANF, will not have time limits for child
income standard.care assistance as long as they meet the 60%
SMI income standard.
xasTANF recipients (and applicants for TANFTransitioning families have priority forAfter priority groups have been placed in
assistance who find employment prior toservice. These clients, as well as childrencare, at-risk families will be served (or put on
approval for benefits) have priority and willreferred by a child protective servicesa waiting list) in the order of the date the
receive immediate access to services.caseworker, will receive immediate accessrequest for service was received.
to child care.
ahTANF families will receive child care. Transitioning families with incomes at orAt-risk families with incomes at or below
below 56% SMI will receive child care.56% SMI will receive child care.
ontAll income-eligible families receive child care,All income-eligible families receive childAll income-eligible families receive child
regardless of their TANF status. care.care.

CRS-51
ateTANF familiesTransitioning familiesAt-risk families
iniaTANF families may receive child care. Transitioning families may receive childAt-risk families may receive child care.
care.
tonAll eligible families (income at or below 225%All eligible families (income at or belowAll eligible families (income at or below
FPL) are eligible for child care with a co-225% FPL) are eligible for child care with225% FPL) are eligible for child care with a
payment. Preference is not given to familiesa co-payment. co-payment.
due to TANF status.
iniaTANF families are a priority for child care. IfTransitioning families are a priority forAt-risk families are a priority for child care.
a waiting list were established, families withchild care. If a waiting list wereIf a waiting list were established, families
income under 40% of FPL would be exemptestablished, families with income underwith income under 40% of FPL would be
from placement on the list. 40% of FPL would be exempt fromexempt from placement on the list.
placement on the list.
TANF families are eligible for child care. Transitioning families may be eligible forAny person who enters a Job Center or W-2
ⁱ^{ki/CRS-RL31605}child care. Wisconsin Works agency will be assessed
^g/wand referred for child care services.
^s^.oromingTANF families are categorically eligible forTransitioning families are eligible for childNo information.
^le^akchild care. care for 6 months after exit and pay the
^://wikilowest required co-payment.
^h^ttpamTANF families will be provided equal servicesthrough CCDF. Transitioning families will be providedequal services through CCDF. At-risk families will be provided equalservices through CCDF.
in IslandsFamilies receiving TANF are also referred toFamilies exiting TANF are referred to theFamilies who are at risk of becoming
the CCDF program.CCDF program.dependent on TANF are referred to the
CCDF program.
thern MarianasN/A (No TANF program)N/A (No TANF program)N/A (No TANF program)
erican SamoaN/A (No TANF program)N/A (No TANF program)N/A (No TANF program)
^:^T^a^b^l^e^p^r^ep^ar^ed^b^y^th^{e Co}ⁿ^g^r^essioⁿ^{al Resear}^ch^Ser^v^{ice (}^C^RS)^b^a^sed^oⁿⁱⁿ^f^o^r^m^atioⁿ^f^r^o^m^{CCDF state p}^l^an^{s su}^b^m^itted^b^y^th^{e state}^{s to}^th^{e Dep}^a^r^t^m^eⁿ^t^o^f^Health ^an^{d Hu}^m^aⁿ
ⁱ^ces^(HHS^).