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Federal Draft--Child Care Entitlement

Updated: Dec 18, 2021

The details on the two programs start on page 157 of the document linked HERE. We will add to this blog as we review the current language.

Birth Through 5 Child Care and Early Learning Entitlement Program: Page 157-218

Universal Preschool Program: Page 218-253


**Disclaimer: This information is based on how the bill read on 10/29/21. It is incomplete as we realized it was going to change significantly over the coming months. We will update when/if the bill passes into law.


Child care entitlement Summary


Beginning 10/1/2024, every eligible child will receive funding. (Gives States time to implement.)


Eligible families are those that are seeking work/working/in school/on FMLA. Determinations are good for not less than 12 months.


2022: Families that do not exceed 100% of the CO State Median Income

2023: Families that do not exceed 125% of the CO State Median Income

2024: Families that do not exceed 150% of the CO State Median Income

2025-2027: Families that do not exceed 250% of the CO State Median Income

AND lives with a family participating in eligible activities/or identified as at risk populations (ie., kinship care, etc.)/living with parents who are 65 or older.


Eligible Providers

  • Are licensed with the State and remains in compliance with regulations (programs on probation may not be eligible)

  • Are participating in the quality rating system while receiving funds

  • Offers inclusive care (serves children with disabilities)

Total Federal Funding to the States (remains available until 9/30/27)

For 2022 -

  • $11,460,000,000 for activities (h)(1)(A)(i) in fiscal year 2022

  • $5,730,000,000 for activities (h)(2)(C) in fiscal year 2022

  • $4,125,600,000 for activities (h)(1)(A)(i) or (h)(2)(C) in fiscal year 2022

  • $1,604,400,000 for activities (g)(2)(A)(iii) in fiscal year 2022

For 2023 -

  • $16,235,000,000 for activities (h)(1)(A)(i) in fiscal year 2023

  • $8,117,500,000 for activities (h)(2)(C) in fiscal year 2023

  • $5,844,600,000 for activities (h)(1)(A)(i) or (h)(2)(C) in fiscal year 2023

  • $2,272,900,000 for activities (g)(2)(A)(iii) in fiscal year 2023

For 2024 -

  • $20,055,000,000 for activities (h)(1)(A)(i) in fiscal year 2024

  • $10,027,500,000 for activities (h)(2)(C) in fiscal year 2024

  • $7,219,800,000 for activities (h)(1)(A)(i) or (h)(2)(C) in fiscal year 2024

  • $2,807,700,000 for activities (g)(2)(A)(iii) in fiscal year 2024

For 2025-2027-

Money from the Treasury that is not otherwise appropriated, funds necessary for 2025-2027 for payments to States, to remain available for 1 additional fiscal year (except for work under section (i), (k), and (l) or in paragraph (2) or (3)


Additional funds to those listed are made available for Indian Tribes and Tribal Organizations as well as Territories (Guam, American Samoa, The Commonwealth of the Northern Mariana Islands, and the United states Virgin Islands).


In addition to the listed amount $1,000,000,000 per year would be made available to States/Tribes/Territories to carry out the grants to localities. $130,000,000 a year through 2025 would remain with the Federal Government for Federal Administration costs. 2026-2027 it would be 1.06 percent of the previous years appropriation amount.


Non participating states that have Head Start Programs could receive funds to expand services.


State plans must be implemented within 3 years.


Payment Rates (State must provide an assurance in their application that):

  • Funds will be sufficient to meet the cost of child care (based on a cost estimation model or cost study (clause iii). That model/study would be updated not less than every 3 years.

1) State must consult with relevant entities and stakeholders to

inform the payment rates.

2) Rates must vary based on geographic area, provider type, age

of child and additional costs associated with providing inclusive

care. Payment practices must support the fixed costs of

providing child care services.

3) Rates for lower rated programs are sufficient to enable them to increase their rating.

4) Ensure adequate wages for staff that:

---provide at a minimum a living wage that is equivalent to

wages for elementary educators with similar credentials and

experience

---are adjusted annually for cost of living increases.

---the State has to establish a wage ladder

  • Will be based on quality ratings

1) Highest tier, at a minimum, are equivalent to Head Start

Performance standards (641(a)(1)(B) of Head Start Act (42 U.S.C.

9836a(a)(1)(B)) or other evidence-based standards approved by

the Secretary.

2) Quality indicators and thresholds are appropriate for child

development in different care settings and varying age groups,

including mixed age groups.

3) Different standards are included for nontraditional hours of

operation.

4) Provide additional resources/supports to enable the improvement of ones quality rating.

5) Families must have access to high quality options within 6 years

of the bills enactment.

Sliding Scale Fee for Copayments (no charging parents more than copayment)

  • Fee would be appropriate based on the amount of care (FT/PT)

  • Fees for all children would be based on a families income:

-- $0 - not more than 75% of State Median Income

-- 0-2% of family income - 75.01%-100% of State Median Income

-- 2.01-4% of family income - 100.01%-125% of State Median Income

-- 4.01-7% of family income - 125.01%-150% of State Median Income

-- 7% of family income - 150.01%-250% of State Median Income

Additional State Stipulations

  • Would work to increase access to quality care options for underserved populations (infants/toddlers, children with disabilities, dual language learners, nontraditional hours of care)

  • the State would apply, under this section, the policies and procedures described in subparagraphs (A), (B), (I), (J), (K)(i), (R), and (U) of section 658E(c)(2) of 13 the Child Care and Development Block Grant Act of 1990 (42 U.S.C. 9858c(c)(2)), and the policies and procedures described in section 658H of such Act (42 U.S.C. 9858f),

  • Licensing would provide technical assistance for licensure

  • 2022-2024, if the State has an application that is approved can receive the Federal funds to run the program. (2022-2024 are "transition years" for implementation.

  • 2025-2027, the State would be entitled to 95.440% of expenditures (not including clause (ii) and clause (iii); 1.06045% and the FMAP of expenditures to improve quality and supply of child care services.

  • State would receive 53.022% of the Federal share of expenditures for the administration costs of the program.

  • State would provide advance estimates of expenditures for years 2025-2027 to ensure no over/under payment for previous periods.

  • State would award grants or contracts consistent with the Act.

  • State would award certificates to families as payment for care or as a deposit for care (if consistent with providers requirement of all families).

  • 2025-2027 State would retain 5-10% (called "quality child care amount") of previous years amount to fund start up and expansion grants, funding to improve quality ratings, facilities grants for remodeling/renovation/repair and even construction of facilities (with Secretary approval) with Federal interest.

--Provisions would not apply for renovation or rebuilding of Family

Child Care Homes

--Provisions for buildings/facilities funds not allowed if used for

sectarian instruction or religious worship.

--Federal interest is not retained after 10 years.

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