CHILD CARE AND DEVELOPMENT FUND (CCDF) STATE AND TERRITORY SPENDING UNDER THE GRANT YEAR 2020 APPROPRIATION
AS OF 9/30/2022
GY 2020 Highlights:
This summary provides cumulative information obtained from state and territory ACF-696 Financial Reports submitted for the Grant Year (GY) 2020 CCDF appropriation showing cumulative state and territory expenditures through September 30, 2022. The GY 2020 state and territory reports detail expenditures from each of the CCDF funding streams as of September 30, 2022 (Mandatory, Matching, and Discretionary), as well as funds transferred from the Temporary Assistance for Needy Families (TANF) program to CCDF. Additionally, Lead Agencies received additional funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Supplemental Appropriations for Disaster Relief Act of 2019. Included are expenditures for administration, direct and non-direct services1, and quality activities
As of September 30, 2022, cumulative expenditures from the GY 2020 appropriation totaled approximately $14.5 billion. The breakdown of expenditures is:
- 74% ($10.7 billion) on direct services;
- 18% ($2.69 billion) on quality (including infant and toddler quality);
- 5% ($752 million) on non-direct services; and
- 3% ($371 million) on administrative activities.
This total includes approximately $60 million in excess state Match and Maintenance of Effort (MOE) expenditures above the amounts required to draw down the full allotment of federal CCDF Matching funds. Excess expenditures reported by states is identified in a footnote for Table 5b — Matching State Share Summary and in Table 8b — Maintenance of Effort (MOE) Summary.
The liquidation period for the GY 2020 CCDF appropriations ended on September 30, 20222. Compliance with expenditure requirements is assessed at the end of the liquidation period. These requirements include a minimum of nine percent of expenditures on quality activities, and additional minimum of three percent on infant and toddler quality activities, and no more than five percent of expenditures on administrative activities. States and territories that do not meet these expenditure requirements may be subject to disallowance of CCDF funds.
[1] Non-direct services are the costs of providing child care subsidies not considered administrative costs under the definition at 45 CFR §98.52 of CCDF regulations. These activities include: establishment and maintenance of computerized child care information systems; establishing and operating a certificate program; eligibility determination and re-determination; Costs associated with conducting error rate reviews and compliance with Error Rate Reporting requirements per Subpart K of CCDF Regulations; preparation/participation in judicial hearings; Recruitment, licensing, inspection, reviews, and supervision of child care placements; training of child care providers on billing and claims processes associated with the subsidy program; reviews and supervision of child care placements; rate setting; resource and referral services; and training of child care staff on CCDF administrative issues.
[2] Several territories were issued fiscal waivers to extend their liquidation periods for one or two years. The Office of Child Care will continue to report on cumulative expenditures for each federal fiscal year until the funds expire or are spent.