Funding Resources - Welfare to Work Vouchers

Federal Funding Resources for Childcare

There are a number of federal financial resources available that fund childcare programs. PHAs and other program staff can suggest these resources to partners administering childcare programs or access these funds themselves. Following is a short summary of these programs:

The Childcare and Development Fund (CCDF)
The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 eliminated federal childcare entitlements and consolidated the four major sources of federal childcare subsidies for low-income families into a single block grant to states-the Childcare and Development Fund (CCDF). While Federal law sets forth minimum eligibility requirements for CCDF assistance, states may impose additional limitations. For more information on the CCDF, contact your state CCDF administrator. Following are the federal eligibility requirements:

• Children must be under age 13;
  
  
• Family income can be no more than 85 percent of the state median income (SMI) for families of the same size; and
  
  
• The child must be living with parent(s) who are working or attending a job training or educational program, OR the child must be receiving child protective services or living with a parent and at risk of needing child protective services.
  

States vary greatly as to the maximum income eligibility levels. Although at least ten states maintain maximum eligibility at 75 percent of SMI, seven others cut off eligibility at 40 to 49 percent of SMI, thereby serving only the lowest income families. To learn more about your state's system, visit National Childcare Information Center's State Profile page.

Head Start
Head Start is a matching grant program where grantees must contribute 20 percent of the total cost of the program. Traditionally the funding has been provided directly to local agencies operating Head Start programs to provide services for economically disadvantaged preschool children on a part-day and part-year basis. More recently, Head Start grants have been given to programs that provide full-day and year-round services. For more information on Head Start programs, see also the Administration for Children and Families' Head Start page.

Title XX Social Service Block Grant (SSBG)
This grant is a capped entitlement to states based on the population of the state. These funds may be used for a wide range of social services, including childcare.

Federal TANF or State MOE Funds
Federal Temporary Assistance to Needy Families (TANF) and State Maintenance of Effort (MOE) funds are potential resources for PHAs as they address their voucher recipients' childcare needs. TANF funding can be spent directly on childcare services (although states are then obligated to implement time limits on those individuals receiving assistance) or a state may transfer up to 30 percent of its current TANF grant to either its Childcare and Development Fund or its Social Services Block Grant. See Helping Families Achieve Self-Sufficiency: A Guide on Funding Sources for Children and Families through the TANF Program for additional information.

Department of Labor Welfare-to-Work Grants
Department of Labor Welfare-to-Work grants (both formula and competitive) can be used to provide childcare assistance to welfare (TANF) recipients.

The Child and Adult Care Food Program (CACFP)
The Child and Adult Care Food Program (CACFP) is a Federal program that provides healthy meals and snacks to children and adults receiving day care. CACFP is administered by the U.S. Department of Agriculture and reimburses eligible providers for their meal costs. Those eligible for CACFP funds include day care centers, family and group day care homes, Head Start programs, and day care services for children with disabilities. Children ages 12 and younger are eligible to receive up to two meals and one snack each day at a day care home or center through CACFP. Afterschool care snacks are available to children through age 18.