Guidance on Cost-Based Alternative Methodologies and Evaluation Criteria for Establishing Subsidy Payment Rates

Program Instruction

1. Log No: ACF-OCC-CCDF-PI-25-04
2. Issuance Date: January 13, 2025
3. Originating Office: Office of Child Care
4. Key Words: Child Care and Development Fund, CCDF, Cost-Based Methodology, Subsidy Payment Rates

To

State and Territory Lead Agencies administering child care programs under the Child Care and Development Block Grant (CCDBG) Act of 2014 and other interested parties.

Subject

Guidance on cost-based alternative methodologies and evaluation criteria for purposes of establishing subsidy payment rates.

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 Program Instruction builds on a previously issued Program Instruction (see PI CCDF-ACF-PI-2018-01) to provide further guidance to State and Territory Child Care and Development Fund (CCDF) Lead Agencies on Office of Child Care requirements for developing and conducting cost-based alternative methodologies and payment rate setting.