What the Child Care and Development Fund is
The Child Care and Development Fund (CCDF) is a federal program that helps low-income families pay for child care. States receive federal money and run their own CCDF programs, so the rules, income limits, and payment amounts differ by state. The program pays child care providers directly — not you — and covers care while you work, attend school, or participate in job training.
CCDF is not a tax credit and does not require you to file taxes to receive it. It is a separate information program run by your state's child care licensing agency or department of human services. The program covers infants, toddlers, preschoolers, and school-age children up to a certain age (usually 12 or 13, but this varies by state).
Key Takeaways
- CCDF is run by your state, so you contact your state child care agency or department of human services to learn about the program in your area.
- Income limits and copay amounts vary by state, and some states have waiting lists because demand exceeds available funds.
- The program pays your child care provider directly, so you need to use a provider who is registered or licensed in your state.
- You must be working, in school, or in a job training program to receive CCDF, though some states allow brief periods of job searching.
- Your copay (if any) is based on your income and family size, and it typically increases as your income rises.
Who runs CCDF and how to find your state program
Each state administers its own CCDF program under federal guidelines. The agency that runs it is usually called the Department of Human Services, Department of Children and Family Services, or Office of Child Care — the name depends on your state. You can find your state's CCDF program by calling 211 (a free referral line) or by searching "[your state] child care subsidy" online.
Once you find the right agency, they will tell you the current income limits, whether there is a waiting list, what copay you would pay, and what documents you need to bring. Some states process requests quickly; others have long waiting lists. Calling first saves you a trip if the program is currently closed to new people.
Income limits and how much you pay
CCDF has income limits set by each state, but they are typically between 100% and 200% of your state's median income for a family your size. This means a family of three might have a limit of $40,000 to $80,000 per year, depending on the state. Your state's CCDF office can tell you the exact limit for your family size.
If you are below the income limit, you pay a copay based on your income and family size. The copay is usually a percentage of your income or a flat monthly amount — again, this varies by state. Some states charge no copay for families below a certain income threshold. As your income rises, your copay typically rises too, but it will not exceed what the state sets as the maximum.
What types of child care CCDF covers
CCDF pays for care provided by licensed or registered child care centers, family child care homes, and in-home providers (sometimes called nannies). The exact rules about which providers are covered depend on your state. Some states cover only licensed providers; others cover license-exempt providers in certain situations, such as when the provider is a relative.
The program does not cover all child care equally. Most states pay less for infant care than for preschool care, and they may pay less for evening or weekend care than for daytime care. Before you choose a provider, ask your state CCDF office which providers are approved and what the payment rate is for each type of care. This tells you whether the provider will accept CCDF and whether the state's payment will cover the full cost.
Work, school, or training requirements
To receive CCDF, you must be working at least part-time, attending school full-time, or participating in a job training program. Some states allow a short job-search period (usually one to four weeks) before you must be working. If you stop working or leave school, your CCDF coverage typically ends within 30 days, though some states allow a grace period.
Both parents in a two-parent household must meet the work or school requirement, unless one parent is caring for a child with a disability or is unable to work due to a documented medical condition. Tell your CCDF caseworker when ready if your work or school status changes, because continuing to receive benefits when you no longer meet the requirement can result in having to repay the money.
How to report changes and keep your coverage active
Your CCDF coverage is based on your current income, family size, and work status. If any of these change — you get a raise, lose a job, have another child, or move — you must report it to your state CCDF office. Most states require you to report changes within 10 to 30 days. Failing to report can result in overpayment, which you may have to repay.
Your CCDF case is usually reviewed once a year. Your state will send you a notice asking you to verify your income, work status, and family size. You will need to provide recent pay stubs, a letter from your employer, proof of school enrollment, or other documents. If you do not respond by the important date, your coverage will end. Keep copies of everything you send, and ask your caseworker for a receipt or confirmation number.
Waiting lists and what to do if the program is closed
Many states have more families who need child care than the program has money to serve. When this happens, the state closes the program to new people and creates a waiting list. If your state's CCDF program is closed, you can ask to be added to the waiting list. Some states prioritize families with the lowest income or families where all parents work.
While you wait, look into other options: your employer may offer a child care subsidy or flexible spending account, your state may have other child care programs with different rules, or you may be able to use the Dependent Care Account (a tax-advantaged savings account for child care expenses). Ask your state CCDF office what other programs might help while you wait.
Frequently Asked Questions
What documents do I need to bring to explore?
You will typically need proof of income (recent pay stubs or tax returns), proof of work or school enrollment, proof of residency, proof of citizenship or legal residency, and your child's birth certificate. Your state CCDF office will give you a complete list. Bring originals or certified copies, not photocopies, unless the office says photocopies are acceptable.
Can I use CCDF for after-school care or summer camp?
Yes, CCDF covers after-school care and summer care for school-age children in most states. However, the program must cover the hours you are working or in school. If you work 9 to 5 and need care from 3 to 6 p.m., CCDF will cover it. Some states also cover a limited amount of care for activities like sports or tutoring, but this varies.
What happens if my provider closes or I want to change providers?
Tell your CCDF caseworker right away. You can switch to a different approved provider, and your coverage will transfer to the new provider. There is usually no penalty for changing providers. However, if you go without approved care for more than a few days, your coverage may end, and you will need to reapply.
Do I have to repay CCDF if I receive too much?
Yes. If you receive more CCDF than you were supposed to — because you did not report a change in income or work status — your state will ask you to repay the overpayment. This is why reporting changes quickly is important. Ask your caseworker about a repayment plan if you cannot pay the full amount at once.
Can I receive CCDF and the child care tax credit at the same time?
No. If you receive CCDF, you cannot claim the child and dependent care credit on your federal taxes for the same child and the same months. However, you can use CCDF for part of the year and claim the tax credit for a different part of the year if your circumstances change. Talk to a tax preparer about your specific situation.