FY 2025-2027 Child Care and Development Fund (CCDF) Plan for States and Territories

CCDF-ACF-PI-2024-01

Publication Date: March 18, 2024
Current as of:

Program Instructions

  1. Log No: CCDF-ACF-PI-2024-01
  2. Issuance Date: March, 19, 2024
  3. Originating Office: Office of Child Care
  4. Key Words: Child Care and Development Fund (CCDF) Plan Preprint, ACF-118

To

State and Territory Lead Agencies administering the Child Care and Development Fund (CCDF) program, as amended, and other interested parties.

Subject

This Program Instruction (PI) transmits the revised state/territory Plan Preprint (ACF-118) for the Child Care and Development Fund (CCDF) program for the Fiscal Year 2025-2027 triennium and provides guidance for submitting the Plan. This Plan is required by section 658E of the CCDBG Act.

References

The Child Care and Development Block Grant (CCDBG) Act (42 U.S.C. § 9857 et seq.), as amended by the CCDBG Act of 2014 (Pub. L. 113-186); section 418 of the Social Security Act (42 U.S.C. § 618); 45 CFR Parts 98 and 99.

Purpose

The CCDF Plan serves as the Lead Agency's application for a three-year cycle of CCDF funds and is the primary mechanism OCC uses to determine Lead Agency compliance with the requirements of CCDBG and its regulations. Lead Agencies must use the CCDF Plan to provide a description of how the program will be administered in accordance with CCDF rules and regulation to provide high-quality child care services to eligible families. The Administration for Children and Families (ACF) makes Plans publicly available to many users including members of Congress, Congressional committees, State and local child care administrators, advocacy groups, researchers, and the general public. The FFY 2025-2027 State/Territory Plan is a central part of OCC’s implementation and oversight of CCDF to achieve the CCDF policy goals and a CCDF child care program that meets the needs of the children and families it serves.

Guidance for Completing the Plan

Plan Structure

State and Territory CCDF Lead Agencies must use the CCDF Plan to describe their implementation of the CCDF program. It is organized into the following sections:

  • CCDF Program Administration
  • Child and Family Eligibility and Enrollment and Continuity of Care
  • Child Care Affordability
  • Parental Choice, Equal Access, Payment Rates, and Payment Practices
  • Health and Safety of Child Care Settings
  • Support for a Skilled, Qualified, and Compensated Child Care Workforce
  • Quality Improvement Activities
  • Lead Agency Coordination and Partnerships to Support Service Delivery
  • Family Outreach and Consumer Education
  • Program Integrity and Accountability 

The sections reflect key CCDF policy principles, and although the Plan is divided into sections for reporting and accountability purposes, ACF encourages Lead Agencies to approach the Plan in a cross-cutting, integrated manner. The Plan allows Lead Agencies and the federal government to use this information to confirm and validate CCDF policies and collect key data to provide a full understanding of the CCDF program. Lead Agencies can use it to plan ahead and share how Lead Agencies work with partners and build on CCDF policies to address the needs of children and families who rely on child care for child and family well-being.

Considerations

In completing the FFY 2025-2027 Plan, each Lead Agency should consider all policies and activities that will be in effect as of October 1, 2024, the start of the FFY 2025-2027 CCDF Plan period. This includes the policies and activities related to direct services to families receiving child care assistance through CCDF as well as broader activities to support child care supply-building and quality improvement activities for child care programs for all children. Lead Agencies must include and describe all relevant policies and activities funded by CCDF.

OCC will review each Plan for:

  • Completeness — have all required components of the question been answered (e.g., have all requirements been described for all CCDF provider categories, including licensed and license-exempt providers)?
  • Responsiveness — do the responses address the information requested in the question?
  • Clarity — does the response provide a clear understanding of the Lead Agency’s CCDF requirement?
  • Compliance — is the response allowable and does it fully meet the requirements of the CCDBG statute and the CCDF Final Rule?
  • Consistency within the Plan — is response consistent with similar/related areas of the Plan? For example, is there consistency in responses across various questions that discuss children with disabilities?
  • Consistency with known state activities — has the state included all activities relevant to the question based on what OCC is aware of from other reports on CCDF activities?

Lead Agencies should complete their Plans to reflect all outstanding non-compliance(s), including those for which OCC issued a preliminary notice of non-compliance for the FFY2022-2024 Plan review, as part of the onsite monitoring cycle for the FFY2022-2024 Plan, or other official OCC correspondence that the Lead Agency has not fully addressed. If a Lead Agency has an outstanding non-compliance finding(s) that have not been cleared prior to July 1, 2024, they should be addressed in the Plan as outlined below. 

  • If the Lead Agency remains out of compliance with a CCDF requirement for which OCC has issued a non-compliance and the Lead Agency does not expect to demonstrate compliance by October 1, 2024, responses to related Plan items must contain the following information: 
    • The date of the preliminary notice issued by OCC for reference purposes;
    • An affirmation that the Lead Agency needs additional time to meet the requirement; and
    • A brief description of the current policy, including the way in which it is out of compliance.
  • If the Lead Agency remains out of compliance with a CCDF requirement for which OCC has issued a non-compliance but the Lead Agency expects to fully implement the appropriate policy by October 1, 2024, the Lead Agency may complete the Plan with the updated policy but will be expected to discuss and demonstrate evidence with the Regional Office during the Plan review process. Responses to related Plan items must contain the following information:
    • The date of the preliminary notice issued by OCC for reference purposes;
    • The policy as it will be implemented and the anticipated implementation date. 

Lead Agencies may continue to submit amendments to the FFY 2022-2024 CCDF Plan until July 1, 2024.

Submission of Appendix 1 of the FFY 2025-2027 CCDF Plan

As part of the Plan review process, if OCC identifies any CCDF requirements that are not fully implemented, OCC will communicate a preliminary notice of non-compliance for those requirements via an emailed letter. The letter will include a standardized template for Lead Agencies to submit as their 60-day response to that preliminary notice. This template is found at Appendix 1: Lead Agency Implementation Plan. This required response via the Appendix will facilitate better clarity between OCC and the Lead Agency on which elements of a requirement are unmet, how they are unmet, and the Lead Agencies’ steps and anticipated timeline to fully implement those unmet CCDF requirements. 

Lead Agencies must use the Appendix to submit a response to each CCDF requirement identified to be out of compliance within 60 days of receiving official notification of non-compliances via the FFY 2025-2027 CCDF Plan approval letter. The Appendix will be available for Lead Agencies to use in the Child Care Automated Reporting System (CARS) after the Plan approval letter is issued. Non-compliances in the Appendix will include those for which a waiver has been approved, those newly identified as part of the FFY 2025-2027 Plan review process, and existing non-compliances from the past Plan and Monitoring cycle that remain non-compliant. The Appendix will be used for implementation oversight throughout the FFY 2025-2027 plan cycle to reflect amendments, onsite monitoring findings, and other relevant changes related to Lead Agency compliance with CCDF. 

For each non-compliance in the Appendix, Lead Agencies must describe the following: 

  • Action Steps: List the action steps needed to correct the finding (e.g., legislative approval, policy manual revisions). For each action step list the: 
    • Responsible Entity: Indicate the entity (team, agency, etc.) responsible for completing the action step and any other responsible parties the Lead Agency needs to work with to correct the findings. 
    • Expected Completion Date: List the expected completion date for each major action. 
  • Overall Target Date for Compliance: List the date Lead Agency anticipates implementation (i.e., achieving full compliance with the CCDF requirement(s)). Note: Compliance will not be officially determined by OCC until the FFY 2025-2027 CCDF Plan is amended and approved.

Transitional Waivers

Lead Agencies may begin submitting waiver requests for certain provisions included in the new 2024 Final Rule on May 1, 2024. OCC will provide additional information about requirements eligible for waivers and the process for submission in a separate Program Instruction. Regardless of whether a Lead Agency plans to apply for a waiver, the Lead Agency must fully complete the Plan and be prepared to complete the Appendix in the fall.

Tips for Your CCDF Plan Responses

  • Remember the audience is going to be broader than the Office of Child Care. Responses will be read by people who are very familiar with your State or Territory and those that are reading to learn more about your program. Do not assume that readers understand your early childhood system or that they know your acronyms, so provide clear responses.
  • Read the questions carefully. Some questions have changed for clarity or to reduce burden, including:
    • Some questions that previously requested narrative responses or required citations may now simply ask you to certify that you are meeting CCDF requirements. In those cases, you may check yes if you are fully meeting the requirement. If you are not yet fully meeting the requirement, you may check “no” and use the “Explain” text box provided to briefly describe your current implementation status. (See more detail on non-compliances below).
    • Some questions that previously requested narrative responses now offer multiple choices. You may simply select the appropriate choice(s) and/or select “other” and provide additional information where requested. Again, please follow instructions carefully to assess whether the question allows for multiple selections or whether you must select one option.
    • Some questions that previously required a citation or link to a policy may now ask for specific “policy language” or a description. Please read questions carefully to provide the information requested. 
    • Information previously provided in the State or Territory’s CCDF Plan that is not included may be requested during a separate OCC reporting or oversight process in the future. For example, while there are fewer questions in this Plan regarding quality goals and expenditures, some of the information previously requested may be included in a future iteration of the annual Quality Progress Report (ACF-218).
  • In responding to questions, states and territories are asked to follow all instructions, and for narrative responses provide brief, specific summaries and/or bullet points only with specific language that responds to the question. Do not use tables or copy and paste charts, add attachments, or paste manuals into the Plan.
  • When addressing existing non-compliances in specific types of questions:
    • Questions to certify by checking “yes,” “no, describe” when Lead Agency does not expect to come into compliance by October 1, 2024: Check “no” and use the “describe” box to briefly describe the current policy and indicate the requirement is not yet met.
    • Questions to certify “yes” “no, describe” when Lead Agency does expect to fully implement requirement by October 1, 2024: Check “yes” and discuss additional evidence with the regional office as requested.
    • Questions to certify by checking a list of components with “other” or “please explain” option if the Lead Agency expects to be fully implementing the requirement by October 1, 2024: Check off all required components and use the “please explain” box to briefly explain implementation status and date full implementation. Discuss the need for additional evidence with the regional office as requested.
    • Questions to certify by checking a list of components with “other” or “please explain” option if the Lead Agency does not expect to be fully implementing the requirement by October 1, 2024: Check “other” and use the “please explain” option to discuss current status of non-compliance finding.
    • Questions that require a description of a policy or procedure and the Lead Agency expects to be in full compliance by October 1, 2024: For questions that require Lead Agencies to describe their policy or procedure to demonstrate it meets the CCDF requirement should use the available text box to fully describe all aspects of the compliant policy or procedure.
    • Questions that require a description of a policy or procedure and the Lead Agency does not expect to be in full compliance by October 1, 2024: The Lead Agency should use the available text box to briefly describe current status of implementation and non-compliance finding.

Alignment between the CCDF Plan and OCC Monitoring

As part of OCC’s aligned oversight framework and timelines for the CCDF Plan and monitoring moving forward, OCC Monitoring will evaluate implementation of specific CCDF Plan provisions through onsite visits in relation to the FFY 2025-2027 Plan period and Appendix 1. The specific regulatory provisions and timelines for on-site monitoring will be shared separately prior to the start of the next monitoring cycle for this plan period.

Lead Agency Responsibilities

Section 658D(b)(l)(A) of the CCDBG Act requires the Lead Agency to "administer, directly or through other State governmental or non-governmental agencies... " the funds received. The regulations at 45 CFR 98.11 provide that, in addition to retaining overall responsibility for the administration of the program, the Lead Agency must also (among other things) promulgate all rules and regulations of the CCDF program; ensure compliance with the approved Plan and all Federal requirements; oversee the expenditure of funds by sub­ grantees and contractors; and ensure that any local or non-governmental entities through which the state and territory administers the program operate according to the rules established for the CCDF.

ACF reminds Lead Agencies that in preparing their triennial Plans, the Act requires Lead Agencies to: 

  • Consult with appropriate representatives of local governments; the State Advisory Council on Early Childhood Education and Care or similar coordinating body; and Indian Tribes and tribal organizations within the state at the option of the Tribe(s).
  • Coordinate the provision of services with the required Federal, State, and local child care and early childhood programs and agencies;
  • Provide statewide notice of at least one public hearing before the Plan is submitted to ACF to provide the public an opportunity to comment on the child care services to be provided under the Plan (Section 658D(b)(1) and (2) of the Act; 45 CFR 98.14); and
  • Complete a local Market Rate Survey or an Approved Alternative Methodology. A Market Rate Survey or an ACF pre-approved alternative methodology and a narrow cost analysis must be developed and conducted no earlier than 2 years (July 1, 2022) before the date of submission of the Plan and a detailed report must be made widely available 30 days after the completion of these activities that includes how stakeholder views and comments were considered (658E(c)(4)(B)(i) (98.45 (c)). 

Any Lead Agency considering using an alternative methodology, instead of a market rate survey, is required to submit a description of its proposed approach to its ACF Office of Child Care Regional Program Office for pre-approval in advance of the Plan submittal (see  https://www.acf.hhs.gov/occ/policy-guidance/ccdf-acf-pi-2018-01). Advance approval is not required if the Lead Agency plans to conduct both methodologies but will continue to set payment rates at a percentile of the market rate.  

OCC offered timeline flexibilities for Lead Agencies that planned to use an alternative methodology for the FFY2025-2027 CCDF Plan but could not finalize all required activities (including setting rates) by the Plan submission date of July 1, 2024. Lead Agencies with an approved alternative methodology must include a status update on the methodology and timeline in CCDF Plan item 4.2.1. The status update must include an update to the timeline for completion, including the dates when the alternative methodology activities will be conducted, any completed steps, the anticipated date of completion, and expected date new rates will be in effect using the alternative methodology. In addition to the status update, Lead Agencies must also report increased payment rates that are adjusted for inflation in Plan item 4.3.2.

Submission Deadline and Effective Date 

The state and territory deadline for the submission of the Plan is July 1, 2024. OCC will review Plan submissions from July through September 2024. As part of the review process, Lead Agencies should expect to respond to questions and requests for clarifications from OCC. OCC will send an approval letter to Lead Agencies in October that will address approved activities and any requirement(s) not fully implemented in compliance with the CCDF Final Rule. Once approved, Plans will be effective from October 1, 2024, through September 30, 2027.

Lead Agencies are required to post their approved Plan and Plan Amendments on the Lead Agency’s website. Lead Agencies must post Appendix 1 on its website following submission to OCC. 

Plan Submission Process Using CARS:

States and territories will submit their Plans electronically through Child Care Automated Reporting System (CARS) by the July 1, 2024 deadline. We expect the ACF -118 to be available in CARS to accept FY2025-27 CCDF Plan submissions beginning in May 2024. OCC will notify Lead Agencies and provide additional guidance on how to submit once the CARS site is available. The CARS 118 module will include all language and questions included in the final CCDF Plan Preprint template approved by the Office of Management and Budget. Please note that the format of the questions on CARS could be modified from the Word version of the document to ensure compliance with Section 508 policies regarding accessibility to electronic and information technology for individuals with disabilities. (See http://www.section508.gov/ for more information.) 

Plan Amendments

Once a Lead Agency Plan is approved, any substantial change to the CCDF program during the Plan period requires an amendment to the approved Plan per 45 CFR 98.18(b) of CCDF regulations. Lead Agencies must submit the amendment within 60 days of the effective date of the change. ACF will make determinations on amendments no later than 90 days following the date on which the amendment is received, unless a written agreement to extend that period has been secured.

Substantial changes include, but are not limited to, any changes that affect CCDF administration and policies such as policy changes to program eligibility (e.g., changes in income eligibility levels), payment rates, sliding fee scales, changes in responsible agency/entity who is administering CCDF activity (e.g., change in agency who oversees quality funds), change in CCDF Lead Agency, change in subsidy or quality activities that affects parents and/or providers access to the program (e.g., adding a new professional development initiative or changing the subsidy application process), and changes to the Lead Agency consumer education website address.

Lead Agencies are not required to submit Plan Amendments for basic "edits" or revisions to Plan questions that do not constitute a CCDF program change. Whenever you are unsure if you are making a substantial change, please consult with your Regional Office staff.

Questions

Please direct any questions to the Child Care Regional Program Manager in the appropriate ACF Regional Office.

 

/s/ 
______________________________ 
Ruth Friedman, Ph.D. 
Director 
Office of Child Care