Tracking American Recovery and Reinvestment Act Funds

Child Care and Development Block Grant Outlays

Child Care and Development Block Grant (CCDBG) ARRA funds are available until September 30, 2010. The U.S. Department of Health and Human Services issues weekly reports tracking state outlays of ARRA funds. As of July 17, states, territories, and tribes have drawn down a total of $1.05 billion in child care funds, or 53 percent of the $2 billion allocation. These funds have proven to be a critical economic support for families over the past year.

Seventeen states have drawn down 75 percent or more of their allocated dollars: Arkansas, Alabama, Colorado, Connecticut, Delaware, Hawaii, Idaho, Kentucky, Minnesota, Maryland, New Jersey, North Carolina, Ohio, Oregon, Rhode Island, Tennessee, and Washington. Another twelve states have drawn down between 50-75 percent of their allocated dollars: Arizona, Florida, Georgia, Mississippi, Montana, Nebraska, Nevada, New Mexico, South Carolina, South Dakota, Vermont, and Wisconsin. Please note that ARRA reporting of state outlays includes any tribal funds drawn down within the state.

There are several reasons why states are drawing down ARRA funds incrementally:

1. Due to the rules governing CCDBG, states often first expend funds and then request grant funds to reimburse those expenditures. Therefore, it may be that actual expenditures are higher than the amount shown. 
2. In an effort to ensure accountability, several states held off spending ARRA funds until their most recent biennial state plans became final on October 1 or until they received additional federal reporting requirements. Reporting requirements on Section 1512 of the ARRA were released by the Office of Management and Budget on September 30 and the Child Care Bureau has issued subsequent guidance to states on the reporting terms. The Child Care Bureau has also released specific data reporting requirements for state child care assistance programs. 
3. States are also limited in that they can only drawdown actual planned expenses, as federal law prohibits states from accruing interest on these funds. Therefore, a state can at most only spend out its monthly planned service expenditures, or 1/12 of the annual expenditures for child care assistance. And, because states may provide reimbursement to child care providers for CCDBG services up to two months after services are provided, there may be a further delay in shown expenditures.
4. Finally, CCDBG ARRA funds are available until September 30, 2010. Essentially states received two years of CCDBG funds, nearly halfway into one fiscal year. Drawdown percents are based on the entire $2 billion, not on one year's worth of funds.

While ARRA funds are meant to be spent quickly to serve more families and improve the quality of care, states are appropriately considering what policy changes may be most effective to help families and make systematic improvements in their child care programs. ARRA funds have been crucial to supporting families most hurt during the economic downturn. 

States have already reported to the Child Care Bureau that they are spending the money in a variety of ways to benefit families during the economic crisis, including:

• At least 11 states or territories avoided or will avoid cuts in service or reduced their waiting list.
• At least 11 states or territories have increased or plan to increase their payment rates.
• At least 10 states or territories have increased or plan to increase the period of time that parents can look for jobs.
• At least four states or territories lowered or are planning to lower their copayments.
• At least 41 states or territories have plans for the quality portion that include QRIS, professional development and infant/toddler care.

Go to HHS.gov/Recovery to track weekly financial reports for your state or check back here monthly as we update national and state-by-state spending.

State Outlays      

¹ State outlays include any tribal funds drawn down within the state.

Return to the Economic Recovery: Reinvesting in Child Care homepage.