Child Care and Development Fund (CCDF) Flexibilities
Dear Colleagues,
I am writing to you today to provide further clarification to Lead Agencies of the wide options that are Federally allowed for parents in selecting providers and services through the Child Care and Development Fund (CCDF). One of the key purposes of the Child Care and Development Block Grant Act (the Act) that authorized the CCDF is to “promote parental choice to empower working parents to make their own decisions regarding the child care services that best suit their family’s needs.” 42 U.S.C. 9857(b)(2).
The following examples are some existing strategies that can be used by Lead Agencies to help ensure that there is a full range of providers available for eligible families to choose from:
Existing flexibilities for family, friend, and neighbor providers
The Act defines an “eligible child care provider” in Section 658P(6)(B) to include “a child care provider that is 18 years of age or older who provides child care services only to eligible children who are, by affinity or consanguinity, or by court decree, the grandchild, great grandchild, sibling (if such provider lives in a separate residence), niece, or nephew of such provider, if such provider complies with any applicable requirements that govern child care provided by the relative involved.” 42 U.S.C. 9858n(6)(B).
Lead Agencies could allow parents who receive child care certificates the right to use such certificates in care settings that include the child’s own home in addition to other settings where care is provided by family, friends, or neighbors. Allowing family, friend, or neighbor care could expand the supply of home-based child care in the State.
Furthermore, States have the option to define homeschool teaching as a qualifying work activity for CCDF eligibility (45 CFR § 98.20(a)(3)(i)), making homeschooling families potentially eligible for CCDF (as long as there is a need for child care and the family meets CCDF income and eligibility requirements).
Existing flexibilities for licensed-exempt providers
The Act and current regulations provide pathways for both licensed and license-exempt providers to receive CCDF funds.
Section 658E(c)(2)(F)(ii) of the Act, 42 U.S.C. 9858c(c)(2)(F)(ii), provides States the option of using CCDF funds to support a child care provider that is exempt from licensing requirements, so long as the Plan includes “a description stating why such licensing exemption does not endanger the health, safety, or development of children who receive services from child care providers who are exempt from such requirements.”
Thus, Lead Agencies have the authority to choose to extend parental choice by allowing license-exempt providers, beyond those meeting the definition of a relative child care provider, to receive CCDF dollars, with the Lead Agency ensuring the health and safety of all children receiving a CCDF voucher. 45 CFR § 98.42(b)(ii). License-exempt providers offer parents and families a choice that may better align with their preferences for the care of their children, and could help expand home-based child care in the State.
Existing flexibilities for faith-based providers
As part of parent choice, section 658P(2) of the Act and CCDF regulations allow families to use CCDF subsidies for sectarian child care services (42 U.S.C. 9858n(2); 45 CFR § 98.30(c)(4)). This means faith-based providers, including programs sponsored by houses of worship, may be eligible to accept certificates or vouchers from parents of eligible children if they meet the CCDF requirements in their respective state, territory, or tribe.
To support CCDF participation, faith-based providers are allowed to use CCDF funding for sectarian purposes or activities, as long as such activities are provided through a voucher or a certificate (42 U.S.C. 9858n(2)); 45 CFR § 98.30(c)(5)). Further, section 658N(a)(1)(B) of the Act allows flexibility in hiring requirements for faith-based providers, allowing such providers to require their employees to adhere to religious tenets and teachings (42 U.S.C. 9858l(a)(1)(B); 45 CFR § 98.49(b)). This flexibility supports parental choice by allowing faith-based providers to care for children in accordance with their beliefs and values, which may increase the number of faith-based providers willing to participate in CCDF through certificates or vouchers.
In furtherance of the stated purposes of the Act found in Section 658A(b), 42 U.S.C. 9857(b), utilizing existing flexibilities in both the Act and the implementing regulations allows for parental choice and offers an opportunity for States to provide options that best suit the needs and preferences of the families in their communities, and is highly encouraged.
Sincerely,
/s/
Wendy Horman
Director
Office of Child Care
Administration for Children and Families
Department of Health and Human Services