Tribal CCDF Lead Agency Flexibilities for CCDF Parental Activity Requirements

INFORMATION MEMORANDUM

1. Log No: ACF-OCC-CCDF-IM-25-01
2. Issuance Date: January 7, 2025
3. Originating Office:  Office of Child Care
4. Key Words: Child Care and Development Fund, CCDF, Tribal CCDF, Eligibility, Categorical Eligibility

To

Federally Recognized Tribes and Tribal lead agencies administering the Child Care and Development Fund (CCDF) program, as amended, and other interested parties.

Subject

Guidance on CCDF Requirements and Flexibilities for Tribal Lead Agencies in Implementing Parental Activity Requirements for CCDF

References

The Child Care and Development Block Grant (CCDBG) Act (42 U.S.C. 9857 et seq.); section 418 of the Social Security Act (42 U.S.C. § 618), 45 CFR Parts 98 and 99.

Purpose

This Information Memorandum (IM) provides guidance to Federally Recognized Tribes, Tribal Organizations, and CCDF Tribal lead agencies on the CCDF requirements and flexibilities for the implementation of CCDF eligibility policies regarding parental activity requirements.

Background

Tribal CCDF lead agencies must ensure that CCDF funds expended on direct child care services are provided to children who are determined to be eligible for the program. This IM outlines certain requirements related to child eligibility for Tribal CCDF lead agencies and provides approved examples of eligibility policies from CCDF Tribal lead agencies that may be adopted or adapted for use by other Tribal CCDF programs. The items described below do not provide an exhaustive list of what Tribes may consider when determining their eligibility policies. Tribal lead agencies may propose eligibility definitions that are not described below and are encouraged to tailor each eligibility definition to best meet the needs within their individual Tribe.

This IM describes the CCDF requirements that apply to all Tribal lead agencies receiving a medium or large CCDF allocation using standard eligibility rules, including those that have consolidated their CCDF program into an approved Public Law 102-477 Plan, unless otherwise waived¹. Tribal lead agencies receiving a small CCDF allocation may utilize this guidance as an example of sample policies and eligibility definitions, but the requirements described below do not apply to lead agencies receiving a small CCDF allocation (45 CFR §98.81(b)(1)).

Guidance

CCDF provides two pathways for Tribal lead agencies receiving a medium or large CCDF allocation to determine a child’s eligibility to receive CCDF child care services. This guidance is intended for Tribal lead agencies that determine child eligibility through standard eligibility rules. Tribes implementing standard eligibility must ensure that the child meets the Tribal lead agency’s definition of Indian Child, permanently resides within the service area, and has parent(s) engaged in an eligible work, education, or job training activity or that the child is receiving or at risk of receiving protective services. Neither the statute nor regulations governing CCDF define “work,” “education,” “job training,” or “protective services,” and Tribal lead agencies have significant flexibility in defining each of these terms and establishing requirements related to eligible activities. Tribal lead agencies are encouraged to tailor these requirements in ways best suited to meet the needs of children and families in their communities.

The second path a Tribal lead agency may take to determine a child eligible to receive CCDF direct services is referred to as categorical eligibility, which is not the focus of this guidance. To implement categorical eligibility, Tribal lead agencies must demonstrate through their CCDF Plan or an amendment to their Plan that the Tribal Median Income in their service area is less than 85 percent of the relevant State Median Income. If so, any child under age 13 who meets the Tribal lead agency’s definition of Indian Child and resides in the Tribal service area may receive child care assistance, regardless of a family’s work, education, or job training status or the family’s income. For more information on categorical eligibility, please see the 2016 CCDF Final Rule (81 FR 67538). Tribal lead agencies interested in learning more about categorical eligibility should contact their Regional Office for assistance.

Tribal lead agencies receiving a medium or large CCDF allocation using standard eligibility rules must ensure that any child who is determined or redetermined as eligible for CCDF (45 CFR § 98.20 & 98.81(b)):

• Meets the Tribal lead agency’s definition of Indian child and be under 13 years of age (or at Tribal Lead Agency option, under 19 if they are incapable of self-care or are under court supervision)
• Permanently resides within the Tribal lead agency’s approved service area
• Has a parent(s) meeting the Tribal lead agency’s definition of qualifying activities or is a child categorized as receiving or at risk of receiving protective services.

Previously, Tribal lead agencies implementing standard CCDF eligibility policies were required to ensure that a family’s income was less than 85 percent of Grantee Median Income and that the family assets did not exceed $1,000,000; however, CCDF no longer requires a family income or assets eligibility threshold. OCC published a Final Rule on November 18, 2024, effective immediately, removing the requirement for Tribal lead agencies to consider a family’s income or assets when determining if a child is eligible for CCDF (89 FR 90605). Tribal lead agencies may still consider income or assets as an optional eligibility policy, so long as the policy complies with the CCDF requirements explained in the section below on Additional Eligibility Criteria.

Household Composition

Determining who is included in household composition is the initial step in determining a child’s eligibility for CCDF services. A Tribal lead agency’s definition of household composition determines what individuals the Tribal lead agency will consider in determining eligibility, including who the Tribal lead agency will require to be engaged in an eligible activity. Should the Tribal lead agency choose to implement an income or assets requirement for families to access CCDF services, the household composition definition would also determine who the Tribal lead agency considers in the income or assets calculation.

Any parent(s) residing in the child’s home must be included in the household². Therefore, if a household contains two parents, both must be engaged in an eligible activity, or the child must be receiving or at risk of receiving protective services. Tribal lead agencies may, for exceptional circumstances and on a case-by-case basis, determine a family eligible if only one parent in a two-parent household is engaged in an eligible activity. An example of such an exceptional circumstance would be where one parent is working and the second parent is incapacitated or otherwise unable to provide care for the child(ren).

Tribal lead agencies are not required to consider individuals outside of the parent(s) and child(ren) in the family’s household composition, even in multi-generational or multi-family households, unless such individual is a legal guardian or other person standing in loco parentis.

Parents' Qualifying Activities

With limited exceptions as described above, parent(s) identified in the household must be engaged in a qualifying activity, which includes work, education, job training, and/or job search, unless the child is categorized by the Tribal lead agency as receiving or at risk of receiving protective services. Tribal lead agencies are not required to limit authorized child care services strictly based on the work, training, or educational schedule of the parent(s) or the number of hours the parent(s) spend in work, training, or educational activities. OCC encourages Tribal lead agencies to consider additional factors in determining the level of child care services authorized for families including time spent commuting to/from the eligible activity, time to allow for studying or completion of assignments for those engaged in education, or time for sleep if a parent is engaged in an eligible activity during the evening or overnight hours.

When determining allowable eligible activities, Tribal lead agencies must implement internal policies and procedures to ensure appropriate verification of the requirements at the time of eligibility determination and redetermination. Outside of the initial eligibility determination or redetermination, CCDF regulations restrict Tribal lead agencies from requiring additional reporting from families outside of those that impact a family’s eligibility or those that enable the lead agency to contact the family or pay providers (45 CFR § 98.21(e)). CCDF regulations do not allow additional reporting such as the submission of work schedules, as such policies would violate the minimum 12-month eligibility period by requiring frequent and ongoing submission of verification documents throughout the approved eligibility period. Tribal lead agencies may provide child care services to children who meet the Tribal lead agency’s definition of Indian Child and permanently reside within the approved CCDF service area but whose parents are engaged in eligible activities outside of the service area.

Work

Tribal lead agencies may provide child care assistance to children of parent(s) engaged in work. Tribal lead agencies may consider a wide variety of situations in defining work, including situations beyond traditional wage-based employment, such as:

• Participation in subsistence activities
• Self-employment, including the production of traditional items or crafts designed to be sold for income
• Participation in remote, temporary, substitute, or day labor work
• Participation in volunteer activities
• Providing care to elders or individuals with disabilities
• Participation in the military, including the National Guard or Reserve forces
• Parents who are employed but are on medical leave or FMLA from their employment, such as for maternity leave

Education

Tribal lead agencies may provide child care assistance to children of parent(s) engaged in a variety of types of education activities. These activities could include situations such as:

• Part-time or full-time enrollment in college or educational courses, including those delivered virtually
• Enrollment in a trade school or other educational program
• Participation in a professional educational certification program such as a Child Development Associate (CDA)
• Enrollment in Tribal language or cultural classes
• Enrollment in high school classes or General Educational Development (GED) programs

Job Training

Tribal lead agencies may provide child care assistance to children of parent(s) engaged in job training activities. Job training activities are programs designed to develop an individual’s skills to further the likelihood of their participation in the workforce and may include activities such as:

• Participation in a paid or unpaid internship, apprenticeship, or other hands-on training program designed to train individuals in a particular skill or field, including Native language, culture, and traditions
• Participating in job training programs through federal, state, Tribal, or local programs designed to increase employment opportunities such as Temporary Assistance for Needy Families (TANF), Workforce Innovation and Opportunity Act (WIOA), or Native Employment Works (NEW)
• Participation in rehabilitative services that focus on developing skills necessary for workforce participation, such as vocational rehabilitation programs.

Job Search

Tribal lead agencies may provide child care to children where the parent(s) is not engaged in a work, education, or job training but is engaged in job search activities at the time of eligibility determination or redetermination, however there is no requirement to do so. If the Tribal lead agency chooses to offer job search activities as an eligible activity, child care assistance must be provided for a minimum of three months. However, lead agencies may provide for a longer period for a family to engage in job search activities. Should the parent(s) become employed or engage in a separate eligible activity (such as education or job training) during the three-month job search period, the child’s services must be continued for the full minimum 12-month eligibility period.

Activity Hours

Tribal lead agencies are not required to determine a specific number of hours per week or month that a family must engage in an eligible activity to receive child care services, but may choose to do so. If a Tribal lead agency chooses to require a specific number of hours for an activity, they may vary across categories as long as they are applied consistently across all individuals. For example, a Tribal lead agency may choose to require full-time participation in educational activities but allow for part-time work participation.

Tribal lead agencies are reminded that, during the minimum 12-month eligibility period, lead agencies may not require a parent to submit validation documentation of ongoing participation in an eligible activity as this places undue burden on families and creates unnecessary paperwork requirements. Such documentation can only be collected at the time of initial determination or redetermination for child care assistance.

Temporary Changes in Eligible Activities

Once a child has been determined eligible for CCDF services, there are specific circumstances that are considered temporary changes for which Tribal lead agencies cannot terminate or reduce a child’s child care services (45 CFR § 98.21(a)(1)). Tribal lead agencies cannot implement a limit or restriction on the number or length of temporary changes during the minimum 12-month eligibility period, except where explicitly noted. The CCDF regulations do not safeguard the eligibility of children experiencing temporary changes beyond the minimum 12-month eligibility period; however, Tribal lead agencies may, at their option, continue services by considering any of these circumstances as falling under other qualifying activities described above (e.g., may consider an employed parent on medical leave to be working).

Child eligibility cannot be terminated or reduced during the minimum 12-month eligibility period for any of the following temporary changes to a parent’s work, education, or training status:

• Any time-limited absence from work for an employed parent due to reasons such as need to care for a family member or an illness;
• Any interruption in work for a seasonal worker who is not working between regular industry work seasons;
• Any student holiday or break for a parent participating in training or education;
• Any reduction in work, training or education hours, as long as the parent is still working or attending training or education;
• Any other cessation of work or attendance at a training or education program that does not exceed three months or a longer period of time established by the Lead Agency; and
• Any change in residency within the Tribal service area.

Tribal lead agencies may provide additional flexibility to families by allowing for additional temporary changes other than those listed.

In addition, Tribal lead agencies cannot end assistance during the minimum 12-month eligibility period if a child turns 13 years old during the eligibility period and cannot require families to report temporary changes, as this creates an undue burden for families and could destabilize the child’s care and disrupt work for parents.

Non-Temporary Changes in Eligible Activities 

In the event of a non-temporary change in eligible activity by a parent(s), such as loss of employment without engaging in a new job or other eligible activity, Tribal lead agencies must either provide the child with the same level of child care services for the remainder of the previously authorized eligibility period or, at the Tribal lead agency’s option, continue to provide CCDF assistance for a minimum of three months following the loss of eligible activity (45 CFR § 98.21(a)(2)). This minimum three month eligibility period is called the “continued assistance period.”

If the parent(s) reengages in an eligible activity within the continued assistance period, the child’s benefits are required to continue through the remainder of the previously authorized eligibility period, even if the parent is not engaged in the same eligible activity (such as a parent who initially qualified under education, graduated, and became employed two months later).

Termination of Child Care During the Minimum 12-month Eligibility Period

Tribal lead agencies may terminate child care benefits within the minimum 12-month eligibility period only in extremely limited circumstances outlined in the CCDF regulations (98.21(a)(5)). Tribal lead agencies may terminate child care assistance during the 12-month eligibility period due to:

• Excessive, unexplained absences. Tribal lead agencies must define the number of absences considered excessive and must make multiple attempts to contact the family prior to terminating services. If the Tribal lead agency can contact the family and there is an explanation for the absences (such as a vacation or illness), the lead agency may not terminate services.
• A change in residency outside of the Tribal service area.
• Substantiated fraud or intentional program violations that invalidate the previous determination that the child was eligible for CCDF services.
• Family income exceeds 85 percent of GMI if a Tribal lead agency utilizes income as an optional eligibility criteria.

It is important to note that with the exception of fraud or an intentional program violation that invalidates the previous determination of eligibility the circumstances described above allow a Tribal lead agency to terminate child care services during the minimum 12-month eligibility period; however, Tribal lead agencies are not mandated to terminate child care services for these purposes and may continue to provide child care for the remainder of the child’s eligibility period. The Tribal lead agency must terminate child care services in instances where the family has been found to commit fraud or an intentional program violation that invalidates the child’s eligibility determination and must take steps to recoup funds that were expended as a result of fraud (45 CFR § 98.60(i)).

Protective Services

Tribal lead agencies may determine a child eligible for CCDF services if they are receiving or at risk of receiving protective services (45 CFR § 98.20(a)(3)(ii)). As CCDF requirements do not define which circumstances constitute protective services, Tribal lead agencies may define this in the manner best suited to meet the needs of the Tribe. Protective services definitions must apply to specific subgroups of children and cannot effectively extend to the definition to all children served by the Tribal lead agency. Additionally, Tribal lead agencies with broader Indian Child definitions (e.g., all Native American/Alaska Native children) cannot consider enrolled citizens of their Tribe as a specific subgroup within protective services.

Tribal lead agencies may consider populations outside of children in foster care for inclusion in their protective services definition including children:

• Who have been referred to Tribal or state child welfare but remain in the home
• Of adolescent parents
• Experiencing homelessness
• Of parents with a disability or medical or mental health condition that requires additional support in caring for the child
• With a parent engaging in in-patient or out-patient substance abuse or mental health treatment programs
• Being primarily cared for by grandparents, in kinship care, or through legal guardianship or adoption (including Tribal adoptions)
• Residing within a declared Tribal, federal, or state disaster area or impacted by a natural disaster
• With special needs (as defined by the Tribal lead agency) or those with a medical condition, developmental delay, or behavioral health concern
• Residing in a home where domestic violence has occurred
• Residing in a home where the family income is below the level defined by the Tribal lead agency as being low income
• Children who are descendants of individuals who attended Indian boarding schools
• Children participating in an early childhood or school-aged partnership (e.g., Tribal Early Head Start — Child Care Partnership, CCDF and school-aged care partnerships)

Additional Eligibility Criteria

Tribal lead agencies may adopt additional eligibility criteria beyond the requirements described above. These criteria may include items such as considering family income or assets or requiring the child to be enrolled in Head Start, Early Head Start, or Tribal or State Pre-K programs to receive CCDF.

Any additional eligibility criteria implemented by the Tribal lead agency may not:

• Discriminate against the child on the basis of race, national origin, ethnic background, sex, religious affiliation, or disability;
• Limit parental rights described in Subpart D (45 CFR § 98.30 — 98.34) of the CCDF regulations;
• Violate any of the provisions found in 45 CFR § 98.21 that apply to Tribal lead agencies regarding the eligibility determination and redetermination process;
• Violate the provisions found in 45 CFR § 98.46(a)(2-3) regarding the prioritization of children with special needs and those experiencing homelessness;
• Set conditions for eligibility or prioritization based on the parent’s choice of which category of care to or provider to utilize or choice of a child care certificate, except as authorized for Tribal lead agencies receiving a medium CCDF allocation in 45 CFR § 98.83(e);
• Impact eligibility other than at the time of eligibility determination or redetermination.

Questions

Please direct any inquiries to the Child Care Regional Program Manager in the appropriate OCC Regional Office.  Contact information for Regional Offices can be found at https://www.acf.hhs.gov/occ/contact-information/office-child-care-regional-program-managers.  

/s/

______________________________

Ruth Friedman, Ph.D

Director

Office of Child Care