Introduction
Licensed family child care (FCC) homes represent an important part of the child care sector, particularly for families with low incomes, irregular or unpredictable work schedules, and those living in rural areas with limited child care options. However, the number of licensed FCC homes has fallen over the past 20 years. FCC providers face several challenges, including low pay and limited access to benefits that are typically offered to salaried employees.
To better support FCC homes in Colorado, the Colorado Department of Early Childhood (CDEC) launched a pilot program (the Family Child Care Home Benefits Pilot, or “the pilot”) that offered selected providers additional funding to support their access to benefits. Participating FCC homes received funds each month that could be used to help cover the costs of benefits such as health care (medical, dental, vision, HSA or FSA), paid time off (for professional development, sick leave, vacation), and retirement contributions (establishing a fund and making contributions).
The Building and Sustaining the Child Care and Early Education Workforce (BASE) project conducted a study of the pilot. A total of 39 FCC homes participated in the study, which comprised a descriptive analysis and an implementation analysis. The descriptive analysis used survey data to examine characteristics of the participating FCC homes, providers, and assistants, characteristics of their jobs, and information on their economic well-being and mental and physical health status. The implementation analysis used data from interviews to examine the implementation of the pilot, including the infrastructure supporting implementation, challenges and supports for implementation, providers’ and assistants’ experiences with it, and providers’ perceptions of its effects. This brief describes the findings from these analyses.
Purpose
This brief presents the implementation findings from an evaluation of a benefits compensation pilot program for providers and assistants in home-based child care and early education (CCEE) settings in the state of Colorado.
Key Findings and Highlights
Pilot Experience and Implementation
Providers generally found the pilot application and process for distributing funds straightforward, though some faced challenges with technology and documentation requirements.
Support from CDEC staff, peer connections, and the pilot’s flexible structure were key facilitators of successful implementation.
CDEC staff reported minimal challenges to implementation; those noted were mainly related to payment tracking and processing.
Use of Pilot Funds
All providers used funds for paid time off, retirement savings, or health care; assistants primarily used funds for paid time off.
The pilot influenced how providers approached and prioritized their use of benefits.
Provider and Assistant Perceptions
Most providers reported improved financial stability for their FCC homes, job satisfaction, and a greater sense of recognition and appreciation.
Many providers noted improvements in their mental, physical, and personal economic well-being.
Providers with assistants observed positive impacts on assistant well-being as well.
Reflections and Recommendations
Some providers expressed concern about the pilot ending and offered suggestions for improvement, such as extending the timeline, increasing funding amounts, and offering greater flexibility in how funds can be used.
Methods
A total of 39 FCC homes applied to participate in the pilot program. The evaluation relied on two data sources. A survey was fielded to all participating providers and assistants 10 to 12 months after the pilot started. The survey collected information on demographic characteristics and professional credentials, FCC characteristics, job characteristics (for assistants only), income, material well-being, job demands and supports, job stress, and job satisfaction. Interviews were conducted with a subset of providers 10 to 12 months after the pilot started and collected information on implementation experiences with the pilot, contextual information that may shape the viability and implementation of the pilot, provider perceptions about the pilot, and attitudes, beliefs and expectations about the pilot and CCEE. CDEC staff interviews were also conducted and collected information on implementation experiences with the intervention, state and local political, social, and economic contextual features, CDEC features, and their experiences in development, start-up, and implementation of the pilot.
Appendix
Appendix
| File Type | File Name | File Size | Technical Supplement: Supporting Family Child Care Homes in Colorado: Implementation Findings from the Family Child Care Home Benefits Pilot Program | 1,275.59 KB |
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Citation
Bernardi, Alexandra, Sydney Roach, Cynthia Miller. (2025). Supporting Family Child Care Homes in Colorado: Implementation Findings from the Family Child Care Home Benefits Pilot Program. OPRE Report 2025-145. Washington, DC: Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services. Available at: https://www.acf.hhs.gov/opre/project/building-and-sustaining-early-care-and-education-workforce-base
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Glossary
- CHILD CARE AND EARLY EDUCATION (CCEE):
- refers to programs and the workforce that educate and care for children from birth to age 13. This term includes educators in centers and in home-based settings who care for infants, toddlers, preschool- and school-aged children. “CCEE” refers to a larger age group than early care and education (ECE), which consists of services for young children only (for example, Head Start, public pre-K, and centers serving children from birth to age 5). ECE programs are included in the definition of CCEE.
- CHILD CARE AND EARLY EDUCATION SETTING:
- refers to the physical location (for example, a center, school, or home) where children receive care. Settings can include Head Start child care centers; community-based child care centers; licensed and license-exempt home-based child care settings that receive subsidies; and the home or location of relatives, neighbors, or other individuals who are paid to care for children.
- FAMILY CHILD CARE (FCC) HOME :
- refers to a licensed child care home operating within a family’s residence that provides care to at least one child not related to the head of the household.
- FAMILY CHILD CARE (FCC) PROVIDER :
- refers to the owner of the FCC home, who typically directly provides child care. Some FCC providers employ paid assistants to help with care, while others are the only individuals providing care in their homes.