ACF-OCS-DCL-2026-01 Using SSBG Funds for Child Care and Related Services
Dear Colleague Letter
DCL#: ACF-OCS-DCL-2026-01
DATE: June 18, 2026
TO: SSBG States and Territories
SUBJECT: Using SSBG Funds for Child Care and Related Services
Dear Colleagues,
This Father’s Day, the Administration for Children and Families (ACF), Office of Community Services (OCS) recognizes the important role of fatherhood. Two-parent households support greater economic security, increased parental engagement, and positive child outcomes across measures of health, education, and well-being. ACF is committed to supporting states and territories in fully leveraging the flexibilities of the Social Services Block Grant (SSBG) to strengthen America’s families. There are numerous ways SSBG funds can be used for child care and child care-related programs and services in alignment with federal requirements and ACF’s commitment to strengthening families, supporting parental choice, and improving outcomes for children.
In support of ACF’s Child Care Reform efforts to strengthen parental choice and our “A Home for Every Child” initiative, OCS encourages states and territories to use available flexibilities to center parents as primary decision-makers; tailor services to identified community needs; and expand options for families. To the extent permitted by federal and state law, and in accordance with the SSBG Uniform Definition of Services and applicable state and local child care standards, this Dear Colleague Letter provides information regarding how SSBG funds may be used to effectively support the child care needs of families.
Three service categories of the SSBG Uniform Definition of Services specifically include child care: Day Care Services—Children, Protective Services for Children, and Special Services for Persons with Developmental or Physical Disabilities. In addition, there are other SSBG service categories that include child care-related services as a component or adjacent service, such as the Pregnancy and Parenting Services for Young Parents category, which includes child care education as a component service, and the Home Based Services category, which includes a component for personal care activities that may include supervision of children to help prevent abuse.
States and territories are encouraged to use the flexibility of SSBG to strengthen child care supports in ways that reflect their local needs and priorities. For example, SSBG funds can be directed to strengthen support for families who rely on stay-at-home caregiving or homeschooling. Within the Day Care Services — Children category, SSBG funds may be directed toward child care subsidies, respite care, or part-time supervision that helps stay-at-home parents manage essential activities; maintain family stability; or address health, employment, or training needs. These same services can also assist homeschooling families by providing appropriate care for younger siblings or structured supervision during periods of the day when parents are teaching or managing household responsibilities. SSBG resources may also be used under the Prevention and Intervention Services and Home Based Services categories to offer counseling, parenting education, case management, and other supports that strengthen family formation and marriage. Together, these allowable uses give states and territories a flexible set of tools to meet the unique needs of stay-at-home and homeschooling families while advancing SSBG’s core goals of promoting stability, preventing neglect, and supporting healthy child development.
SSBG funds can also be used to strengthen a wide range of foster care-related supports that promote safety, stability, and family well-being. In furtherance of ACF’s A Home for Every Child initiative, states and territories may direct funding toward the recruitment, training, and retention of foster parents, helping jurisdictions build and sustain a strong pool of caregivers. They may also invest in prevention-focused counseling and education services that stabilize families, strengthen parenting, and reduce the need for foster care involvement. In addition, SSBG resources can bolster child care services for children in foster care, including support for placements involving children who are not eligible for Title IV-E, and can enhance case management capacity by supporting staffing, training, and operational costs that ensure children and families receive consistent, high-quality services. Together, these allowable uses offer a streamlined, flexible pathway for jurisdictions to meet child care needs, support foster families, and promote long-term family well-being.
Additional examples of Allowable Child Care—Related Uses of SSBG Funds
- Protective Services Child Care
- Child care for at-risk children receiving protective services
- Special Needs Child Care Supports
- Preschool screening, respite care, transportation assistance, and similar family support services
- Child Care Supportive Services
- Early learning and enrichment activities
- Nutrition during care
- Transportation to access child care
- Developmental screening and health monitoring
- Parent counseling or case planning
In working to address local needs and priorities, grant recipients must ensure that all SSBG-funded services are directed toward one of the five program goals permitted by the statute as noted in Section 2001 of the Act. 42 U.S.C. § 1397 (PDF). Those program goals are:
- Achieving or maintaining economic self-support to prevent, reduce, or eliminate dependency
- Achieving or maintaining self-sufficiency, including reduction or prevention of dependency
- Preventing or remedying neglect, abuse, or exploitation of children and adults unable to protect their own interests, or preserving, rehabilitating or reuniting families
- Preventing or reducing inappropriate institutional care by providing for community-based care, home-based care, or other forms of less intensive care
- Securing referral or admission for institutional care when other forms of care are not appropriate, or providing services to individuals in institutions
In support of SSBG program goals and with the benefit of the program’s flexibilities, states and territories are encouraged to identify strategies that reflect local conditions, elevate parental choice, and strengthen family well-being.
/s/
Corine Frank
Acting Director
Offices of Community Services
Administration for Children and Families
Department of Health and Human Services