Guidance for Tribal Lead Agencies on the CCDF Tribal Eligibility Final Rule
ACF-OCC-CCDF-PI-25-02
PROGRAM INSTRUCTION
- Log No: ACF-OCC-CCDF-PI-25-02
- Issuance Date: January 7, 2025
- Originating Office: Office of Child Care
- Key Words: Child Care and Development Fund, CCDF
TO
Tribal Lead Agencies administering child care programs under the Child Care and Development Fund (CCDF) program, as amended, including those that have consolidated their CCDF program into an approved P.L. 102-477 Plan, and other interested parties.
SUBJECT
Guidance for Tribal Lead Agencies on the CCDF Tribal Eligibility Final Rule published November 18, 2024.
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, as amended by CCDF Tribal Eligibility Final Rule published in the Federal Register on November 18, 2024 (89 FR 90605).
PURPOSE
This Program Instruction (PI) transmits guidance to Tribal Lead Agencies with medium and large allocations related to the CCDF Tribal Eligibility Final Rule, which provides all Tribal Lead Agencies the flexibility to determine family eligibility for CCDF without regard to family income and assets.
BACKGROUND
On November 18, 2024, the Office of Child Care (OCC) published amendments to the CCDF regulations to provide all Tribal CCDF Lead Agencies the flexibility to serve Indian children (as defined by the Tribal Lead Agency) in their defined service area regardless of family income or assets. The final rule provides Tribes with more flexibility to better meet community needs, responds to calls for greater Tribal sovereignty and self-determination, and facilitates better alignment between Tribal CCDF and American Indian and Alaska Native (AIAN) Head Start programs. Specifically, the rule revised 45 CFR 98.81(b)(1)(ii) so that Tribal Lead Agencies may disregard family income and assets requirements described in 45 CFR 98.20(a)(2) in determining family eligibility for CCDF benefits. The rule made no changes to existing flexibility for Tribal Lead Agencies with a Tribal median income below a level determined by the Secretary to deem any child in their service area categorically eligible, regardless of parent work, education, or training status (45 CFR 98.81(b)(1)(i)).
Tribal Lead Agencies with small allocations were already exempt from the requirements at 45 CFR 98.20(a)(2), and the final rule did not make changes to this existing flexibility for Tribal Lead Agencies with small allocations.
GUIDANCE
Effective November 18, 2024, all Tribal Lead Agencies with medium and large allocations may choose to determine child eligibility regardless of family income or assets or may choose to continue using income and assets when determining if a child is eligible for CCDF. Tribal Lead Agencies that choose to set family income and/or asset thresholds may do so at any threshold level and are no longer required to cap eligibility at 85 percent of Grantee Median Income (GMI) nor cap family assets at $1,000,000. These new flexibilities included in the final rule are at the option of the Tribal Lead Agency. Tribal Lead Agencies with medium and large allocations may implement this new flexibility at any time, including immediately.
All Tribal Lead Agencies with medium and large allocations must continue to prioritize child care services for children with special needs and families experiencing homelessness (45 CFR 98.46(a)(2) and (3)).
The final rule did not make changes related to qualifying activities or the eligibility period. Thus, regardless of whether a Tribal Lead Agency with a medium or large allocation chooses to consider income or assets when determining a child’s eligibility, the Lead Agency must still consider qualifying activities of the parent(s) unless the child is in need of protective services (as defined by the Lead Agency). Specifically, the Tribal Lead Agency must ensure that a child’s parent(s) are participating in an eligible activity, such as work, job training, or education, unless the Tribe has implemented categorical eligibility. Further, the Lead Agency cannot end assistance during the minimum eligibility period for temporary changes to the parent’s qualifying activity or if the child turns 13 during the eligibility period. In addition, during the minimum 12-month eligibility period, the Lead Agency can only require parents to notify them of permanent changes to the status of the parent’s qualifying activity (e.g., work, job training, or education). The final rule did not make changes to existing Tribal categorical eligibility flexibilities.
Continuity of Care Considerations for Tribal Lead Agencies Eliminating Income and Asset Requirements
The final rule also did not change provisions related to continuity of care. Thus, Tribal Lead Agencies that eliminate income or asset requirements when determining CCDF eligibility must continue to meet CCDF requirements that promote continuity of care. The continuity of care policies include: providing a minimum of 12 months of services at the same level between redetermination periods, regardless of a temporary change in a parent(s) work, training, or education status (45 CFR 98.21(a)(1)(ii); and, limiting required reporting to changes that would impact a family’s eligibility or the Lead Agency’s ability to contact the family or pay a provider (45 CFR 98.21(h)(2)). At redetermination, Tribal Lead Agencies must still ensure that parent(s) are participating in a qualified activity and meeting all other eligibility requirements set by the Tribal Lead Agency.
Continuity of Care Considerations for Tribal Lead Agencies Setting Income Requirements Below 85% GMI
Tribal Lead Agencies that choose to keep income and/or assets as eligibility criteria have new flexibility to determine the income and asset thresholds and are not limited to setting the income threshold at or below 85 percent GMI or the asset limit at $1 million. Tribal Lead Agencies may now set these thresholds higher or lower. Requirements related to continuity of care at 45 CFR 98.21(a)(1)(i) still apply to a Tribe with a medium or large allocation that sets their income threshold below 85 percent GMI. Therefore, the Lead Agency must continue to provide a minimum of 12 months of services at the same level and can only end services for reasons related to income during the minimum 12-month eligibility period if the family’s income increases above 85 percent of GMI for a family of the same size. Lead Agencies also cannot require parents to report changes in income during the minimum 12-month eligibility period, unless income goes above 85 percent of GMI (45 CFR 98.21(i)(1)(i)). Tribal Lead Agencies with medium and large allocations that set income eligibility thresholds below 85 percent of GMI must also meet the requirements at 45 CFR 98.21(b) for a graduated phase-out with a second tier of eligibility that allows for income growth for families.
Continuity of Care Considerations for Tribal Lead Agencies Setting Incomes Requirements At or Above 85 Percent GMI
Tribal Lead Agencies with medium and large allocations that choose to set income thresholds above 85 percent of GMI may end assistance for families whose income exceeds the Tribe’s income eligibility threshold during the minimum 12-month eligibility period if they choose to do so. In addition, at the Tribal Lead Agency’s discretion, they can require families to report permanent increases to income between determinations in cases where the family’s income exceeds the Tribe’s income eligibility threshold.
In addition, Tribal Lead Agencies with medium and large allocations with income thresholds at or above 85 percent GMI are not required to have a second eligibility tier or graduated phase-out. While Tribal Lead Agencies with income thresholds above 85 percent GMI have these additional flexibilities, OCC strongly encourages Tribal Lead Agencies to implement policies that maximize continuity of care for children and families.
Notifying OCC of Eligibility Changes
Tribal Lead Agencies that change their policies in order to disregard family income and assets or to change their income eligibility threshold before May 1, 2025, are expected to notify OCC of the new policy within 60 days of the policy’s effective date because changing eligibility criteria is considered a substantial program change to their FY2023-FY2025 CCDF Plan. Tribal Lead Agencies have flexibility in how they notify OCC of changes to their eligibility policies to reflect the new rule.
- Tribal Lead Agencies with medium and large allocations that choose to not consider family income or assets when determining eligibility may notify OCC of these changes by:
- Submitting a letter describing the policy changes and effective dates to their OCC regional office (optional templates provided); or,
- Submitting an amendment for FY 2023-2025 Plan question 5.1.5.1 describing that the Tribe does not have a definition for income because it no longer takes income into account and submit an amendment for question 5.1.5.5 describing that the Tribe does not have a process for families to certify assets because it no longer takes assets into account.
- Tribal Lead Agencies with medium and large allocations that continue to consider family income or assets when determining eligibility but choose to set the thresholds higher than 85 percent GMI or $1 million may notify OCC of these changes by:
- Submitting a letter detailing the policy changes and effective dates to their OCC regional office (optional templates provided); or,
- Submitting amendments to relevant Plan questions in Section 5.1.5 of their FY 2023-2025 CCDF Plan.
Tribal Lead Agencies that change their policies in order to disregard family income and assets or to change their eligibility threshold effective after May 1, 2025, will report this change in their FY 2026-2028 Plans and are not expected to notify OCC separately.
Tribes that incorporate CCDF programs into an approved P.L. 102-477 Plan who wish to eliminate income eligibility and asset requirements or change their income eligibility threshold to align with this new rule may also be required to submit an amendment to the CCDF portion of their P.L.102-477 Plan. P.L. 102-477 grantees should contact their assigned BIA Workforce Development AOTR for additional guidance.
FURTHER INQUIRIES
Please direct any questions to the Child Care Regional Program Manager (RPM) by contacting the OCC Regional Office.
/s/
Ruth J. Friedman
Director
Office of Child Care
ATTACHMENTS