2024

CHILD CARE & DEVELOPMENT

BLOCK GRANT (CCDBG) IN THE U.S.*

The Child Care and Development Block Grant (CCDBG) is the primary federal grant program that allows states to provide
child care assistance to low-income working families with children under age 13. In the U.S., 64% of these funds serve
children 5 and under.1 These subsidies provide working parents with access to quality child care in a setting of their choice.

HOW CCDBG WORKS CCDBG & FAMILIES WITH YOUNG CHILDREN

Using an established federal formula, funding is awarded CCDBG subsidies help remove barriers to affordable, quality
by the U.S. Department of Health and Human Services, child care. Families receiving a subsidy may choose any
Administration for Children and Families (ACF) to states, participating child care provider (center-based, home-based,
territories, and tribal entities. In the U.S.: those providing nontraditional hour care, etc.).

Under federal rules, children whose parents are employed

$10,614,901,079 CCDBG and Mandatory Funds2 or participating in training/education programs and whose
household income is under 85% of the State Median Income
$1,269,893,588 CCDBG State Match3 (SMI) are eligible, as are children in need of or receiving child
protective services. Lead Agencies have the flexibility to
$976,162,281 TANF Transferred to CCDBG 4 design their own subsidy programs and may also choose to
set additional requirements or set lower income eligibility
rates.
Through a Lead Agency, states allocate the funds to support:
On average in the U.S., states have capped eligibility at 62%
Families: Eligible families use subsidies to help cover the
of SMI. This would mean a family of three is eligible if they
cost of care (if a provider/program agrees to accept them).
make: $3,989 or less per month ($47,871 per year).10
Providers: Lead Agencies work with providers to designate
Lead Agencies can choose to prioritize certain populations.
slots for subsidy-eligible children. Funding also helps to
recruit and retain a qualified, fairly compensated workforce.

Quality Care: Lead Agencies are required to have child care

licensing in place to ensure children are served in quality,
safe environments. Funding also supports continuous quality
improvement.

CCDBG IN THE U.S. HOW MUCH DO FAMILIES

NEED VS. REACH PAY FOR CARE IN THE U.S.?
Copayments for a three-person family
22,982,579 Children 5 and under 5 earning $30,000 per year range from:

14,813,607 Children 5 and under with $0 per month. $477

(64%) all available parents in the workforce6 In 24 States/ in Nevada
Territories

6,280,772 Children 5 and under eligible for The median monthly copayment is $10.11
(27%) CCDBG7
Families that do not receive subsidies pay
Children 5 and under significantly higher costs. For instance, the price of
839,226
served by CCDBG8 center-based infant care ranges from:12

13% Eligible children served by CCDBG $607 per month. $2,039

due to insufficient federal funding9 Mississippi Massachusetts

50 F ST NW SUITE 740, WASHINGTON, DC | 202.730.0943 | FFYF.ORG

CCDBG subsidies provide working
parents with access to quality child
care in a setting of their choice.

CCDBG & PROVIDERS

In the U.S., 209,077 child care providers accept CCDBG
subsidies.13
CCDBG & QUALITY
Child care providers are reimbursed by the state to offset the To receive CCDBG funds, Lead Agencies must have child
costs of serving children with subsidies. ACF recommends care licensing requirements in place to ensure children are
that Lead Agencies set provider reimbursement rates at served in quality, safe environments. These requirements
the 75th percentile of the market rate, based on data from a differ by state. Lead Agencies may establish different
market rate survey (MRS). This is the price that the lowest 75%
14
rules depending on the setting (e.g., center-based, home-
of child care programs reported charging. based) and may exempt some providers from licensing
requirements altogether (e.g., faith-based programs).
However, there is a significant gap between how much
providers are reimbursed and how much it costs to provide ◗ U.S. Teacher Qualifications
care. Learn more about provider reimbursement rates here.15 Educators play a crucial role in supporting children’s
development. Education and training requirements ensure
The Consequences: On average in the U.S., providers are they have the necessary knowledge and skills.
only reimbursed 51% of what it actually costs to care for an
infant in a center-based program.16 Low payment rates make In most states, there are multiple pathways to qualification.
it difficult for providers to maintain fiscal stability and provide Requirements may include a minimum age, education
high-quality care. Some are forced to charge working families level, and/or prior work experience. In 12 states, no formal
higher fees to compensate. education is required. In 13 states, a high school diploma/
GED is the minimum qualification.17

Learn more about minimum requirements for directors

and teacher assistants in U.S. here.18

◗ U.S. Teacher-Child Ratios19

Teacher-child ratios are crucial for safety as well as
ensuring high-quality and individualized interactions.
Providers receiving CCDBG funds must adhere to ratios
set by the state.

The American Academy of Pediatrics recommends

the following ratios for child care centers:19
Infant 1:3
Toddler 1:4 for age 1-2
Preschool 1:7 for age 3
1:8 for age 4

There is significant variation across states. In the U.S.,

the range for teacher-child ratios is: 20
Infant 1:3-1:6
Toddler 1:4-1:12 for age 2
Preschool 1:8-1:20 for age 4

*The statistics in this fact sheet refer to the sum or average across 50 states and D.C.

For more information or to ask us a question about CCDBG your state, contact FFYF at [email protected].
Scan or click the QR code for full references and links.

50 F ST NW SUITE 740, WASHINGTON, DC | 202.730.0943 | FFYF.ORG