State CCDBG Plans to Use Subsidy Policies to Promote Stable, Quality Care

Dec 22, 2009


The Child Care and Development Block Grant (CCDBG) is the largest source of federal funding for child care available to states. Every two years, states must lay out their plans for using all CCDBG funds to help low-income families access child care and to improve the quality of child care for all children, including infants and toddlers. Below are examples of promising child care licensing, subsidy, and quality enhancement policies and initiatives supporting infant/toddler care as reported by states in their FFY 2008-2009 CCDBG plans.

Actions taken by states to use subsidy policies to promote stable, quality care included:


Paying higher subsidy payment rates for infant/toddler care with additional payment enhancements

  • Missouri paid a higher subsidy rate for infant and toddler care compared to other age groups and added a 25 percent payment increase to the base reimbursement if a child had special needs.
  • New Mexico reported that the state used the CCDBG infant/toddler earmark to pay a higher subsidy rate for infant and toddler care and added $120 a month per child for nationally accredited providers.

Establishing stable child care contracts

  • Connecticut spent about a quarter of CCDBG subsidy dollars to contract directly with licensed providers to offer child care slots for subsidy-eligible children, including infants and toddlers.


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