Overview

Every state administers a Child Care Assistance Program using federal Child Care and Development Fund (CCDF) dollars to help low- and moderate-income families purchase care in the child care market. States have broad flexibility in determining which families and providers participate, how much providers are paid, and how funding is distributed through vouchers and grants. These decisions shape families’ access to care and the stability of child care programs. Well-designed Child Care Assistance payments can expand access, but work best as part of a broader financing strategy that combines per-child payments with other funding mechanisms to support consistent, reliable care and program quality.