The Child Care Development Fund

Child Care and Development Fund
The Child Care and Development Fund (CCDF) is a state plan that is required by the Administration of Children and Families that describes the design and implementation of the Child Care Development Block Grant (CCDBG). In addition, it describes the required supports and measures which must be carried out as stipulated in the application process for the CCDBG.

Subsidized child care services are available to eligible families through certificates (vouchers) or contracts with providers. This funding may be used for services offered by any legally operating child care provider. In addition to assisting low-income families, the grant assists families receiving temporary public assistance, as well as those who are enrolled in job training programs and/or working so they have affordable childcare and can continue working.

CCDF encourages states to provide parents with information so that they may make informed decisions about child care. The fund also assists states in implementing health, safety, licensing, provider training, and registration standards for child care facilities. Finally, CCDF gives states discretion in developing child care assistance programs within the federal guidelines.

A mixture of federal and state dollars funds the child care subsidies. The agreement between the state and federal government on how these funds are to be used is called the CCDF Plan. The CCDF made available $5 billion in Fiscal Year (FY) 2008 and $7 billion in FY 2009 to States, Territories, and Tribes, including $2 billion provided under the American Recovery and Reinvestment Act (ARRA).

In Texas
In Texas, 28 Local Workforce Development Boards (LWDBs) govern the subsidy system regionally, though these LWDBs must follow directives and measures set by the Texas Workforce Commission (TWC), which serves as the Lead Agency for Texas. TWC provides the LWDBs with the authority and flexibility to set eligibility limits and reimbursement rates based on a number of factors.

Estimated funding for CCDF in Texas, including matching funds, for October 1, 2009 through September 30, 2010 is $503.8 million. Of this, $431.4 million are federal funds and $70.4 million are state Maintenance of Effort and matching funds.

In the News
On February 1, 2010, President Obama’s proposed budget for 2011 called for billions of dollars to be infused into early education. Specifically related to the CCDBG, the proposal called for a $1.6 billion increase, including $373 million for quality early education activities, which includes $137 million for quality improvement activities for infants and toddlers. Other set asides include $26 million for childcare resource/referral and school-age activities, and $1 million for the Child Care Aware Hotline. If approved, this would be the largest one-year increase in CCDBG in 20 years and would help to serve an additional 235,000 children in the United States.