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Reauthorization of the block grant for child care subsidies Sarah Minton and Kathryn Stevens Presentation for 2015 NAWRS Conference, August 25, 2015 How will state policies for access and quality have to change?

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Page 1: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Reauthorization of the block grant for child care subsidies

Sarah Minton and Kathryn Stevens

Presentation for 2015 NAWRS Conference, August 25, 2015

How will state policies for access and quality

have to change?

Page 2: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

In this presentation

• Introduction to the Child Care and Development Fund

• Overview of the new requirements under the Child Care and Development Block Grant

• Snapshot of state policies prior to reauthorization of the block grant

• Looking forward

Page 3: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Acknowledgments

• Data for this presentation come from the CCDF Policies Database, a project funded by the Department of Health and Human Services, Administration for Children and Families, Office of Planning, Research and Evaluation (HHS/ACF/OPRE).

• This analysis was completed using Urban Institute funds. It does not necessarily represent the views of the Urban Institute, its trustees, or its funders.

Page 4: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

The Child Care and Development Fund

Page 5: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

The Child Care and Development Fund (CCDF)

• Largest source of child care subsidies for low-income families

• Part of the Child Care and Development Block Grant (CCDBG), a block grant funded with federal funding and state matching funding

• Not an entitlement program

Page 6: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

The CCDF Policies Database

• The CCDF Policies Database is a longitudinal database of State/Territory CCDF Policies.

• Data are currently available from 2009 through 2013, with 2014 data to be released later this year.

• http://www.acf.hhs.gov/programs/opre/research/project/child-care-and-development-fund-ccdf-policies-database-2008-2013

Page 7: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

CCDF eligibility

• Federal Guidelines

• Family Income – up to 85 percent of state median income (SMI)

• Children’s Age – through age 12 or have special needs

• Reason for Care – parents working or have other need for care

• States establish detailed policies within the broad guidelines

Page 8: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Reauthorization of the Child Care and Development Block Grant (CCDBG)

• The Child Care and Development Block Grant Act of 2014 was signed into law in November of 2014.

• Prior to this, the program had not been reauthorized since 1996.

• The new law makes several changes to the program, including:

• Changes to family eligibility policies

• Changes to license-exempt provider requirements

Page 9: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Changes to Family Eligibility Policies

Page 10: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Redetermination and reporting requirements under reauthorization

Policy Before Reauthorization After Reauthorization

Redetermination Up to the State/Territory At least a 12-month eligibility period

Initial income limits Up to the State/Territory, with a cap of 85% SMI

Up to the State/Territory, with a cap of 85% SMI

Income limits to remain in the program during eligibility period

Up to the State/Territory, with a cap of 85% SMI

85% SMI

Page 11: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Redetermination and reporting requirements under reauthorization

• 12-month eligibility period

• Can require reporting of changes during 12 months

• Only allowed to end the subsidy in fewer than 12 months if:

Permanent exit from work, school, or training and unemployed for more than 3 months, or

Income goes over 85% SMI

• Encouraged to allow transition (if income <85% SMI)

• Must take into account irregular fluctuations in earnings

• Required by September 30, 2016

Page 12: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Redetermination periods prior to reauthorization (2013)

Redetermination period:

HI

AK

TX

CA

MT

AZ

ID

NV

NM

CO

OR

UT IL

WY

KS

IA NE

SD

MN

ND

OK

WI

FL

MO

WA

GA AL

MI

AR

IN

PA

LA

NY

NC

MS

TN

VA KY

OH

SC

WV

ME VT

NH

MD

NJ

MA

CT

DE

RI

DC

6 months

8 months

12 months

Page 13: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Maximum income eligibility limits for a three person family prior to reauthorization (2013)

Maximum income eligibility limit as a percentage of SMI*:

33 to 54%

55 to 64%

HI

AK

TX

CA

MT

AZ

ID

NV

NM

CO

OR

UT IL

WY

KS

IA NE

SD

MN

ND

OK

WI

FL

MO

WA

GA AL

MI

AR

IN

PA

LA

NY

NC

MS

TN

VA KY

OH

SC

WV

ME VT

NH

MD

NJ

MA

CT

DE

RI

DC

65 to 79%

80 to 85%

NA (Information not available.)

* Percentages may vary slightly depending on what source of SMI figures states use.

Page 14: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Job search policies under reauthorization

Policy Before Reauthorization After Reauthorization

Job Search Up to the State/Territory At least a 3-month job search period

Page 15: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Job search policies under reauthorization

• Job search of at least 3 months

• Required if state terminates assistance prior to 12 months

• For continuing eligibility

When a parent loses employment

When a parent stops attending a training or education program

• Required by September 30, 2016

Page 16: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Job search policies prior to reauthorization (2013)

If job search is an eligible activity:

HI

AK

TX

CA

MT

AZ

ID

NV

NM

CO

OR

UT IL

WY

KS

IA NE

SD

MN

ND

OK

WI

FL

MO

WA

GA AL

MI

AR

IN

PA

LA

NY*

NC

MS

TN

VA KY

OH

SC

WV

ME VT

NH

MD

NJ

MA

CT

DE

RI

DC

Yes, for initial and continuing eligibility

Yes, only for continuing eligibility

No

Page 17: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Changes to License-Exempt Provider Requirements

Page 18: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Policies for license-exempt providers under reauthorization

Policies Before Reauthorization After Reauthorization

Background checks Up to the State/Territory Comprehensive criminal background checks

Health and safety Up to the State/Territory Annual on-site inspections Training requirements

Page 19: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Policies for license-exempt providers under reauthorization, continued

• Background checks

• Comprehensive criminal background check for all child care staff members

• Health and safety requirements

• Annual inspections

• Pre-service and ongoing training requirements, must address health and safety topics

• Option to exempt relative caretakers

• Additional provider requirements

• Required by September 30, 2016 (except background checks – September 30, 2017)

Page 20: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Background checks prior to reauthorization (2013)

If there is a criminal history background check requirement:

Yes, for the provider and others

HI

AK

TX

CA

MT

AZ

ID

NV

NM

CO

OR

UT IL

WY

KS

IA NE

SD

MN

ND

OK

WI

FL

MO

WA

GA AL

MI

AR

IN

PA

LA

NY

NC*

MS

TN

VA KY

OH

SC

WV

ME VT

NH

MD

NJ

MA

CT

DE

RI

DC

Yes, for the provider only

No

NA

*Unregulated providers cannot provide care through the subsidy program.

Page 21: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Health and safety inspections prior to reauthorization (2013)

*Unregulated providers cannot provide care through the subsidy program. **This information is not in the state’s policy manual.

If providers are required to comply with a list of health and safety standards:

Yes, self-completed checklist

HI

AK

TX

CA

MT

AZ

ID

NV

NM

CO

OR

UT IL

WY

KS

IA NE

SD

MN

ND

OK

WI

FL

MO

WA

GA AL

MI

AR

IN

PA

LA

NY

NC*

MS

TN

VA KY

OH

SC

WV

ME VT

NH

MD

NJ

MA

CT

DE**

RI

DC

Yes, completed through home visit/inspection

No

NA

Page 22: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Looking Forward

Page 23: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

How these policy changes might affect families

Family Situation Before Reauthorization After Reauthorization

A parent’s income increases above the state’s income eligibility thresholds, but below 85% SMI.

The family becomes ineligible for the program. The State/Territory may choose to provide a grace period.

The family remains in the program for the 12-month eligibility period (unless income increases again above 85% SMI).

A parent is on maternity leave from work.

The State/Territory may choose to provide care during the absence.

The family remains in the program for the 12-month eligibility period since it’s a temporary absence from employment.

A parent loses his or her job. The State/Territory may choose to provide a job search period. Otherwise, the family becomes ineligible for the program.

The family remains in the program for the 12-month eligibility period or is given at least a 3-month job search period.

Page 24: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

How these policy changes might affect families, continued

• Work supports and continuity of care

• Longer eligibility periods

• No loss of subsidy for small increases in income

• Eligibility for job search

• Care that meets higher health and safety, as well as quality,

standards

Page 25: Reauthorization of the block grant for child care subsidiesnawrs.org/wp-content/uploads/2015/09/7C-Minton-Reauthorization-CCBG.pdfSep 07, 2015  · •Snapshot of state policies prior

Contact us

Sarah Minton, [email protected]

Kathryn Stevens, [email protected]

Special thanks to Lorraine Blatt, a Research Assistant at

the Urban Institute, for preparing the graphics for this

presentation.