Policies for TANF Families Served Under the CCDF Child Care Subsidy Program Sarah Minton, Christin Durham, Erika Huber, Linda Giannarelli Presentation for NAWRS/NASTA 2012
Context Many TANF families receive child care help directly from the TANF program, but Other TANF families receive child care subsidies through Child Care and Development Fund (CCDF) programs. What are the rules for TANF families in the CCDF program?
Overview of This Presentation 1. The Child Care and Development Fund (CCDF) Overlap with child care for TANF recipients 2. CCDF Policies Focus on policies for TANF recipients Using data from the CCDF Policies Database
The Child Care and Development Fund (CCDF) CCDF is the largest source of child care subsidies for low-income families. CCDF is part of a federal block grant and is funded with both federal and state matching funding. CCDF was authorized in 1996 under the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). CCDF is not an entitlement program.
How CCDF Generally Works for Eligible Families States set maximum rates they will reimburse providers. Families locate child care. Families pay a copayment (a portion of the cost of care). States pay the remainder of the cost of care to the provider, up to the maximum reimbursement rate.
CCDF and TANF Child Care Spending in FFY 2009 Total CCDF: $9.1 billion Approximate percent from TANF funds transferred to CCDF: 20% TANF Transferred TANF Direct TANF funds spent directly on child care:$1.8 billion CCDF
Families served through CCDF in FFY 2009 ACF Administrative Data: CCDF Families Receiving TANF in the Average Month 957,300 families served in the average month 16% 1,638,000 children served in the average month Yes No
Administrative Structure of CCDF and TANF- Funded Child Care Three variations of state administrative structures for CCDF and TANF-funded child care 1. Same caseworkers and administrative structure 2. Separate caseworkers and administrative structure 3. Combination of the two
What We Cover in the CCDF Policies Database Policies for children served through the primary CCDF program in each state Policies for families receiving TANF only if: They are served under the primary CCDF program, and/or The CCDF and TANF-funded programs share administrative procedures/manuals This presentation captures policies under CCDF-funded child care Policies for TANF-funded child care are picked up only if the program shares administrative procedures/manuals with CCDF-funded care
CCDF Rules Federal rules establish general limits States set detailed rules State policies may vary for subgroups, such as TANF families
Federal Guidelines Family Income below 85 percent of State Median Income Children s Age under age 13 or under age 19 if mentally or physically incapacitated or under court supervision Reason for Care parents working, attending job training, or in an education program or children in need of or receiving protective services
Select State Rules in Effect October 1, 2009 Eligibility and Income Guidelines Priority Policies Redetermination Requirements Copayment Policies
Allowable Activities for CCDF In all states employment is an eligible activity. Almost every state allows for education and training activities. Job search activities are allowed in more than half of the states. Families receiving TANF can qualify based solely on TANF activities in 48 states.
Eligible TANF Activities AK HI CA OR WA NV ID AZ UT MT WY CO NM ND SD NE KS OK MN WI IA IL MO AR MI IN TN KY OH WV PA NC SC VA NH VT NY DE MD ME MA CT RI NJ DC MS AL GA TX LA Which TANF Activities are Approved: TANF work program and other TANF activities TANF work program only No TANF activities For full details, see the CCDF Policies Database. FL
Maximum Monthly Income to Become Eligible for CCDF AK HI CA OR WA NV ID AZ UT MT WY CO* NM ND SD NE KS OK MN IA MO AR WI IL MI IN TN KY OH WV PA NC SC NY VA*** NH VT ME MA CT RI NJ DE MD DC Monthly Income Threshold for a Three-Person Family: TX** LA MS AL GA $1,831 < $2,000 FL $2,000 < $2,500 $2,500 < $3,000 $3,000 < $3,500 $3,500 or greater For full details, see the CCDF Policies Database. *Policies coded for Denver, Colorado. **Policies coded for the Gulf Coast Region. ***Policies coded for Group III areas.
If States Have Any Priority Policies AK WA HI CA OR NV ID AZ UT MT WY CO NM ND SD NE KS OK MN WI IA IL MO AR MI IN TN KY OH WV PA NC SC VA NH VT NY DE MD ME MA CT RI NJ DC MS AL GA TX LA If State Has Priority Policies: Yes No Information not available For full details, see the CCDF Policies Database. FL
Priority Policies Related to TANF 50 Subsidy guaranteed Priority, subsidy not gauranteed Varies No priority States 40 30 20 21 18 32 10 0 7 7 4 TANF Recipients For full details, see the CCDF Policies Database. 10 Families Transitioning Off TANF 10 5 1 1 1 Families At Risk of Becoming Dependent on TANF
Redetermination Requirements for Most Families AK WA HI CA OR NV ID AZ UT MT WY CO NM ND SD NE KS OK MN WI IA IL MO AR MI OH IN KY TN WV PA NC SC VA NH VT NY ME MA CT RI NJ DE MD DC MS AL GA TX LA Redetermination Period: 6 months 12 months Varies by local area For full details, see the CCDF Policies Database. FL
Redetermination Exemptions for TANF Recipients AK WA HI OR NV CA ID AZ UT MT WY CO NM ND SD NE KS OK MN WI IA IL MO AR MI OH IN KY TN NY PA WV VA NC SC ME VT NH MA CT RI NJ DE MD DC MS AL GA If TANF Recipients are Exempt from Redetermination: Yes No TX LA FL For full details, see the CCDF Policies Database.
Copayment Policies Most families are required to pay a copayment. Copayments generally increase with income. States set the exact formula and income ranges. How states define income varies.
Copayment Exemptions for TANF Recipients Yes Varies 50 40 States 30 20 29 2 25 25 10 0 TANF Families with No Earned Income TANF Families with Earned Income Child-Only TANF Families For full details, see the CCDF Policies Database.
Treatment of TANF Income When Determining Copayments AK HI CA OR WA NV ID AZ UT MT WY CO NM ND SD NE KS OK MN WI IA IL MO AR MI IN TN KY OH VT NY PA WV VA NC SC NH ME MA CT RI NJ DE MD DC MS AL GA If TANF Income is Counted: Fully counted Varies/partially counted Not counted Eligibility determined by TANF Caseworker TX LA For full details, see the CCDF Policies Database. FL
Example Family Copayment Copayment = 5% of Income State excludes TANF income when calculating copayment Family 1 Family 2 Earnings $848 $628 TANF $0 $220 Total Income $848 $848 Total Countable Income $848 $628 (TANF excluded) Monthly Copayment $42 $31
Summary CCDF is a significant source of child care subsidies for TANF families. 16 percent of CCDF families receive TANF. CCDF policies often vary for TANF families. Families can qualify based solely on TANF activities in 48 states. TANF families are guaranteed CCDF subsidies in 21 states. TANF families are exempt from redetermination requirements in 3 states. TANF families pay no copayment in 29 states. TANF income is excluded when calculating copayment in 17 states. Future work understanding the overlap between CCDF and TANFfunded child care policies
Sources for CCDF Information The state data used in this presentation are taken from the CCDF Policies Database. Additional information can be found on the OPRE project website: http://www.acf.hhs.gov/programs/opre/cc/ccdf_policies/ Federal CCDF regulations as well as program data and statistics may be accessed via the Office of Child Care s website: http://www.acf.hhs.gov/programs/ccb/index.html
Contact Us Linda Giannarelli, Project Director The Urban Institute lgiannar@urban.org Sarah Minton, Project Manager The Urban Institute sminton@urban.org Christin Durham, Project Manager The Urban Institute cdurham@urban.org
Funding for this Project The CCDF Policies Database is funded by the Office of Planning, Research and Evaluation, under the Administration for Children in Families, the U.S. Department of Health and Human Services. The views expressed in this presentation do not necessarily reflect the views or policies of the Office of Planning, Research and Evaluation, the Administration for Children and Families, the U.S. Department of Health and Human Services, the Urban Institute, or the Urban Institute s trustees or funders.