Child Care and Development Block Grant

Child Care and Development Block Grant (CCDBG) is the Discretionary funding authorized by the CCDBG Act. The Child Care and Development Fund (CCDF) is the primary federal funding source to help certain families with low incomes access child care and

Child Care and Development Block Grant (CCDBG) is the Discretionary funding authorized by the CCDBG Act. The Child Care and Development Fund (CCDF) is the primary federal funding source to help certain families with low incomes access child care and to improve the quality of child care for all children. The CCDF consists of both the CCDBG Discretionary funding and the Mandatory and Matching funding under the Social Security Act. CCDF is a block grant to states, territories, and tribes to provide child care subsidies primarily through vouchers or certificates to families with low income. In addition, CCDF funds are used to improve the quality of child care for both subsidized and unsubsidized children. In addition to the block grants to states, territories and tribes, a small portion of the CCDBG Discretionary funding is used by the Office of Child Care to provide technical assistance to state, territory, and tribal lead agencies on administering the program. A small portion of CCDF is also used for child care research, demonstration and evaluation, and federal administration activities.

Eligibility for Discretionary CCDBG formula grants: All 50 States, the District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and Federally recognized Tribal Governments and consortia. Eligibility for Discretionary CCDBG non-formula awards for technical assistance, research, demonstration, and evaluation projects can be found in the NOFOs or contract solicitations. Applications from individuals (including sole proprietorships) and foreign entities are not eligible and will be disqualified from competitive review and funding under this funding opportunity.

Children under age 13 (or, at the option of the Lead Agency, up to age 19, if physically or mentally incapable of self-care or under court supervision), who (1) reside with a family whose income does not exceed 85% of the State median income for a family of the same size, and (2) who reside with a parent (or parents) who is working or attending job training or educational program, or who are in need of, or are receiving, protective services are eligible. A lead agency shall re-determine a child's eligibility for child care services no sooner than 12 months following the initial determination or most recent re-determination. Once determined eligible, children are expected to receive a minimum of 12 months of child care services, unless family income rises above 85% State median income or, at Lead Agency option, the family experiences a non-temporary cessation of work, education, or training.

Congress directs that funds appropriated for the CCDBG Discretionary Funds must be used to supplement, not supplant, State general revenue funds for child care assistance for low-income families. Lead agencies must use Discretionary funds for child care services on a sliding fee scale basis and for quality improvement activities. A portion of discretionary funds is available for research, demonstration, evaluation and technical assistance. Not more than 5% of the aggregate amount of CCDF Funds expended by the State (15% for Tribes or tribal organizations) may be expended for administrative costs incurred by the State to carry-out all of its functions and duties. The term "administrative costs" does not include the costs of providing direct services. A State or territory shall use not less than 9% of the CCDF funds to improve child care quality and availability including comprehensive consumer education, activities to increase parental choice, and other activities such as resource and referral services, provider grants and loans, monitoring and enforcement of requirements, training and technical assistance, and improved compensation for child care staff. In addition, states and territories are required to spend no less than 3% of their CCDF award on activities to improve the quality of infant and toddler care. Tribal lead agencies may use funds on approved construction or renovation of child care facilities.

Except for approved construction or renovation of child care facilities by Tribal lead agencies, no CCDF funds may be used for the purchase or improvement of land, or for the purchase, construction, or permanent improvement of any building or facility (other than for minor remodeling and for upgrading of facilities to meet state and local child care standards.) No CCDF funds provided directly to child care providers through grants or contracts may be expended for any sectarian purpose or activity, including sectarian worship or instruction. However, lead agencies must give parents the option of receiving vouchers or certificates to allow parents the choice of child care providers, including faith-based or community providers. No CCDF funds may be provided for any services provided to students enrolled in grades 1 through 12 during the regular school day; for any services for which such students receive academic credit toward graduation; or for any instructional services which supplant or duplicate the academic program of any public or private school.

Awards are made to Lead Agencies with approved CCDF plans. Formula awards to Lead Agencies are for three years. Recipients must obligate all discretionary funds in the fiscal year in which they are awarded or in the succeeding fiscal year. Those funds must be liquidated no later the end of the third fiscal year. Requirements for competitive awards including technical assistance, research, demonstration and evaluation awards vary and can be found in the NOFO. The length of awards for competitive awards varies depending on the award.

Each recipient must designate a lead agency to which awards are made and that is accountable for the use of the Discretionary funds provided, the duties of which shall include developing a CCDF plan. In conjunction with the development of the CCDF plan, the lead agency must hold at least one public hearing no earlier than nine months before the CCDF plan becomes effective and after at least 20 days of statewide public notice, to provide the public an opportunity to comment on the provision of child care services under the plan. In advance of the hearing, the lead agency must make the content of the plan available to the public. The lead agency must also coordinate the provision of services under the program with other federal, state, and local child care and early childhood development programs. Also, the lead agency must consult with appropriate representatives of local governments. Tribal lead agencies submitting applications for construction must submit an environmental impact assessment. See most recent guidance regarding submission of state plans on OCC's website at https://www.acf.gov/occ.

A state, territory, or tribal lead agency desiring to receive a block grant allotment for a fiscal year is required to submit a three-year CCDF plan to the Administration for Children and Families, as well as financial and other information necessary for the awards process. Each CCDF plan must contain certifications and assurances by the lead agency that it will comply with the requirements of the CCDBG Act. The plan must also include: the designation of a lead agency; the provision of assurances regarding policies and procedures as stated in Section 658E(c)(2) of the CCDBG Act; an outline of the intended use of block grant funds in compliance with Section 658E(c)(3) of the CCDBG Act; the provision of certification regarding payment rates as stated in Section 658E(c)(4) of the CCDBG Act; and the establishment of a sliding fee scale. Additional requirements are specified by 45 CFR Parts 98 and 99. Technical assistance, research, demonstration, and evaluation projects may be funded through grants, or cooperative agreements. Applicants may find and apply to NOFOs on https://www.grants.gov.

Criteria for selecting proposals for technical assistance, research, demonstration, or evaluation projects will be published in the NOFO(s) or other solicitations.

Block grants to state, territory and tribal lead agencies are awarded after the receipt and approval of the CCDF plan by the Administration for Children and Families. For non-formula grant awards, each application is reviewed against four factors: eligibility, the application deadline, required electronic submission or waiver requested and approved, and the Award Ceiling. If the application does not meet all of these factors, then it is disqualified from the merit review process. After the initial review, applications are reviewed and evaluated by merit review panels using only the criteria described in the Application Review section of the NOFO. Each panel is composed of experts with knowledge and experience in the area under review. Generally, review panels include three reviewers and one chairperson. While merit review scores and their ranking are not binding, ACF does consider them when selecting projects for funding. Scores and rankings are only one element used in the award decision-making process. Other criteria are explained in the Program Description section and in the Application Review section of the NOFO. In addition, ACF reserves the right to evaluate applications in the larger context of the overall portfolio by considering the geographic distribution of federal funds (e.g., ensuring coverage of states, counties, or service areas) in its pre-award decisions. ACF may elect not to fund applicants with management or financial problems that would indicate an inability to successfully complete the proposed project. In addition, ACF may elect to not allow a prime recipient to subaward if there is any indication that they are unable to properly monitor and manage subrecipients. Applications may be funded in whole or in part. Successful applicants may be funded at an amount lower than requested.

The Administration for Children and Families will review the CCDF plans for approval and will act on the plans within 90 days.

CCDF plans for block grant funding must be submitted every three years by states, territories, and tribes. For non-formula technical assistance, research, demonstration, and evaluation grants, non-competing continuations will be issued based on availability of funds, satisfactory progress, compliance with terms and conditions and a determination that continuation funding is in the best interest of the federal government.

Guidelines for appealing the disapproval of CCDF plans are specified in regulations (45 CFR Part 99). For non-formula grant awards, there is no appeal process for unsuccessful applicants. For existing recipients, appeals in regards to disallowances may take place in accordance with 45 CFR Part 16, subject to the limitations of the Appendix A. (45 CFR §98.66(d))