{ "id": "RL31605", "type": "CRS Report", "typeId": "REPORTS", "number": "RL31605", "active": false, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 101407, "date": "2002-10-08", "retrieved": "2016-05-24T20:03:39.044941", "title": "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 ,\nPRWORA) restructured the major federal-state child care programs. It repealed three welfare-related\nchild care programs and initiated a new set of federal rules referred to as the Child Care and\nDevelopment Fund (CCDF). The CCDF combines funds provided under Section 418 of the Social\nSecurity Act established by PRWORA with funds provided under the Child Care and Development\nBlock Grant (CCDBG). Both streams of funding are authorized through FY2002. Funds are\ndistributed as grants to states for their use in subsidizing child care services to low-income families\nwith children. \n Federal law defines eligible children as those under age 13 residing with a family whose income\ndoes not exceed 85% of the State Median Income (SMI), taking into account family size. The\nfederal eligibility rules are maximum income limits for states in designing their CCDF programs. \nStates may adopt income eligibility limits below that maximum, and currently, all but nine states\nhave indeed set a lower eligibility limit. Regardless of the established limits, because CCDF is not\nan entitlement for individuals, states are not required to aid families even if their incomes fall below\nstate-determined eligibility thresholds. \n Although states are not required to guarantee child care for welfare families, states may give\nspecial treatment to families receiving assistance from the Temporary Assistance for Needy Families\n(TANF) program, recognizing that under TANF, both states and individuals are now subject to work\nrequirements. Generally, TANF families continue to have some special status in states' CCDF\nprograms. In some states, TANF families are categorically eligible for services, although they may\nnot actually receive service because funding may not always be available. TANF families are not\nresponsible for a co-payment for child care services in 22 states. \n Federal law requires states to assure that payment rates to child care providers ensure that\nCCDF-eligible children receive equal access to care comparable to that available to children not\neligible for subsidies. States generally set payment rates based on prevailing market rates for child\ncare. The most recent state plans indicate that 45 states (or territories) based their current payment\nrates on market rate surveys conducted in 2000 or 2001; and rates of the remaining seven states were\nbased on surveys conducted in or prior to 1999. \n Federal law also requires that states use not less than 4% of federal child care funds made\navailable for each fiscal year to administer activities designed to improve the quality of child care. \nPrior to 1996, the CCDBG Act included a list of activities for which the quality improvement funds\nwere to be spent; however, those categories are no longer itemized in law. Nevertheless, as part of\nthe CCDF plan, states indicate whether they will spend any of their child care quality funds on\nactivities that fall into those categories authorized under prior law (and any others).", "type": "CRS Report", "typeId": "REPORTS", "active": false, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/RL31605", "sha1": "f26354845673a61dc3fac8e1fb35280df48f3fd1", "filename": "files/20021008_RL31605_f26354845673a61dc3fac8e1fb35280df48f3fd1.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/RL31605", "sha1": "ffb1227a53543197b5ef674d3044fd48765ff5b2", "filename": "files/20021008_RL31605_ffb1227a53543197b5ef674d3044fd48765ff5b2.pdf", "images": null } ], "topics": [] } ], "topics": [ "Domestic Social Policy" ] }