Child Care Mandatory and Matching Funds of the Child Care and Development Fund

The Mandatory and Matching portion (or Child Care Entitlement or CCE) of the Child Care and Development Fund (CCDF) program consists of two formula grant opportunities. The purpose of the two formula grants funds is to help certain families with low

The Mandatory and Matching portion (or Child Care Entitlement or CCE) of the Child Care and Development Fund (CCDF) provides mandatory child care funding, which consists of two formula grant funds (Mandatory and Matching) for states, territories, and tribes. The purpose of the two formula grants funds is to help certain families with low incomes access child care and to improve the quality of child care for all children. The Mandatory and Matching funds are made available in section 418 of the Social Security Act (42 U.S.C. 618) and are not subject to annual appropriations. A small portion of CCDF Mandatory and Matching funding is used by the Office of Child Care to provide technical assistance to state, territory, and Tribal lead agencies on administering the program, and is also used for child care research, demonstration and evaluation activities.

Eligibility: All 50 States, the District of Columbia, American Samoa, Guam, Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Virgin Islands of the United States, and Federally recognized Tribal Governments, including Alaskan Native Corporations. Eligibility for 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 (SMI) 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, who or are in need of, or are receiving protective services. 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% SMI or, at lead agency option, the family experiences a non-temporary cessation of work, education, or training.

Title IV of the Social Security Act appropriates funds (Mandatory and Matching Funds) for the purpose of providing child care assistance. Lead agencies must use Mandatory and Matching Funds for child care services on a sliding fee scale basis, activities that improve the quality or availability of such services, and other activities that realize the goals of the CCDBG Act. Lead agencies must ensure that not less than 70% of the total amount of Mandatory and Matching Funds are used to provide child care assistance to families who are receiving assistance under the Temporary Assistance for Needy Families program, families who are attempting through work activities to transition off of temporary assistance programs, and families who are at risk of becoming dependent on temporary assistance programs. 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. States, territories, and tribes 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, territories, and some tribal lead agencies are required to spend no less than 3% of their CCDF award on activities to improve the quality of infant and toddler care. Funds may be used by Tribal lead agencies for approved construction or renovation of child care facilities. A portion of CCDF Mandatory and Matching funds is available for research, demonstration, evaluation, and technical assistance.

Except for approved construction or renovation of child care facilities by Tribal lead agencies, no Mandatory or Matching 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 Mandatory or Matching 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 Mandatory or Matching 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. If State Matching Funds are requested, State Mandatory Funds must be obligated by the end of the first fiscal year. There is no time limit on liquidation of Mandatory Funds and no time limit on obligation of Mandatory Funds if no Matching Funds are requested. Matching Funds must be obligated by the end of the first fiscal year and liquidated by the second fiscal year. State funds expended toward the Maintenance of Effort requirement must be both obligated and expended by the end of the first fiscal year. Territory Mandatory funds must be obligated in the fiscal year that they are awarded and liquidated in the following year. Mandatory Funds awarded to Tribes and tribal organizations must be obligated by the end of the second fiscal year and liquidated by 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 Mandatory and Matching 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.

A lead agency desiring to receive an 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 award process. Each plan must contain certifications and assurances by the lead agency that it will comply with the requirements of the Child Care and Development Block Grant Act (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 amended CCDBG Act; an outline of the proposed 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.

Awards are made after the receipt and approval of an application and plan by the Administration for Children and Families.

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

CCDF plans must be submitted every three years.

Guidelines for appealing disapprovals of CCDF plans are specified in regulations at 45 CFR Part 99. 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))