CCDF Expenditures Overview for GY 2019 as of 9/30/2019

CHILD CARE AND DEVELOPMENT FUND (CCDF) STATE AND TERRITORY SPENDING UNDER THE GRANT YEAR 2019 AWARD AS OF 9/30/2019 

GY 2019 Highlights:

This summary provides cumulative information obtained from state and territory ACF-696 financial reports submitted for the Grant Year¹(GY) 2019 CCDF award showing cumulative expenditures through September 30, 2019. The GY 2019 reports detail expenditures from each of the CCDF funding streams (Mandatory, Matching, and Discretionary), as well as funds transferred from the Temporary Assistance for Needy Families (TANF) program to CCDF in GY 2019. Included are expenditures for administration, direct and non-direct services, and congressionally mandated funds for quality activities and infant and toddler quality activities.

As of September 30, 2019, cumulative expenditures from the GY 2019 award totaled approximately $6.7 billion. This total includes approximately $14 million in excess state Match and Maintenance of Effort (MOE) expenditures above the amounts required to draw down the full allotment of federal CCDF funds. Footnotes have been added to Table 5b – Matching State Share Summary and Table 8b – Maintenance of Effort (MOE) Summary identifying excess expenditures reported by states.

Maintenance of Effort. States reported spending the $867 million of state funds necessary to meet the established MOE level for GY 2019 and draw down federal Matching funds. One state reported spending $100,000 over the required MOE.

Non-Federal Match. In addition to meeting the above MOE requirement and obligating their Mandatory funds by September 30, states must match federal expenditures with state funds at the applicable Federal Medical Assistance Percentages (FMAP) rate to be eligible for federal Matching funds. States matched the $1.3 billion in federal Matching funds with $1.1 billion in state expenditures.

TANF Transfers. Section 404(d) of the Social Security Act allows states to transfer portions of their TANF grant to either CCDF or the Social Services Block Grant. In Fiscal Year (FY) 2019, 25 states transferred a total of approximately $1.3 billion in GY 2019 federal TANF funds to CCDF.

Unobligated Matching Balances. In FY 2019, Idaho released $6.9 million; Kansas released $3.9 million; Pennsylvania released $1.5 million; and Tennessee released $33.8 million of GY 2019 federal Matching funds for a total of $46 million to be reallocated to other states in FY 2020.

[1] Fiscal Year (FY) refers to the period from October 1 through September 30, during which states and territories may spend funds awarded in the current and prior years. Grant Year (GY) refers to the year the funds were awarded, although states and territories may liquidate some CCDF funding streams in later fiscal years.