Everything To Know About Child Care Subsidy


Everything To Know About Child Care Subsidy

The CCDF or Child Care Development Fund, a program of the Department of Health and Human Services Administration for Children and Families in the United States, funds several state-based childcare subsidies partially. Child care subsidy helps low-income group individuals to low the cost of childcare.

The reduction in childcare costs is for low-income group families with parents either going to school, attending training, or working full time. However, not all eligible families get the subsidy as per federal guidelines. The remaining requirements are not fulfilled by the other funding sources either.

Everything To Know About Child Care Subsidy
Everything To Know About Child Care Subsidy

Eigibility For Receiving Child Care Subsidy

As per federal guidelines, only those families might access childcare subsidies that make less than 85% of the median income of their state. Different states have the option of lowering this threshold within their program for reducing the number of eligible individuals. States can also put forward the demand for income-based co-payments that can further restrict subsidy access. To be eligible for the subsidy, the following criteria need to be fulfilled:

  • You need to be the guardian or the parent of a kid, not more than 13 years old.
  • You will have to use the services of a licensed and also duly registered childcare agency.
  • Present valid residential proof
  • Have a definite and compelling reason for availing the subsidy like education, employment, or any particular health requirements.

What Are The Benefits?

A particular sliding scale depending on the income of the family is used for calculating the amount a family can receive as subsidy for childcare. It means the lesser the income of a family; the higher will be its subsidy amount. The amount will also depend on the number of hours parents spend on doing activities like training, paid work, looking for employment, and volunteering. To an extent, the childcare subsidy amount also depends on the kind of childcare services availed. These include occasional care, extended daycare, outside school hours care, and family daycare.

These subsidies are generally paid directly to the family childcare agencies and homes. However, parents need to take the responsibility of paying the amount of the difference between the subsidy amount and the fee for childcare.

Everything To Know About Child Care Subsidy
Everything To Know About Child Care Subsidy

Child Care Subsidy As A Replacement For Other Benefits

The all-new childcare subsidy comes as a replacement for the old Child Care Rebate and Child Care Benefit. The all-new subsidy payment is all set to work for making childcare a stress-free and also affordable alternative for families. The subsidy also aims at providing more assistance to the middle and also low-income group families.

The allowance is paid only for approved childcare and not for registered care like relatives and grandparents. It is also not paid for childcare services received in kindergarten and preschool.

There also exists a Child Care Safety Net for providing extra payments to disadvantaged children and families. So, by opting for these programs, you can give your child a better future.

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