ACF takes action to increase support for child care providers

Child Care and Development Fund (CCDF): Improving Child Care Subsidy System

Each month, 1.3 million children participate in child care programs with support from the Child Care and Development Fund (CCDF), which helps working families afford child care. The child care subsidy system relies on over 200,000 participating child care providers that enroll eligible children in their programs, enabling parents to go to work or attend school or job training. Policies that bolster the financial stability of child care providers promote a strong subsidy system and have an added benefit of stabilizing the child care sector as a whole.

Executive Order on Increasing Access to High-Quality Care and Supporting Caregivers

Last April, President Biden signed the Executive Order on Increasing Access to High-Quality Care and Supporting Caregivers, which instructed federal agencies to undertake a comprehensive set of executive actions to improve care across the lifespan. Over the last year, the Department of Health and Human Services has taken several important steps to improve payment practices in the federal child care subsidy program to implement the Executive Order.

New Rules for CCDF Payment Practices

In March 2024, ACF published new rules for CCDF that requires better state payment practices for child care providers that receive federal subsidies. This includes paying child care providers when services begin rather than weeks or even months later. Child care providers, most of which are small businesses, often have immediate expenses and need payment to make payroll and pay bills. In addition, subsidy payments will need to cover temporary absences, as child care providers incur expenses even if a child misses a day. These changes will help make sure that more than 140,000 child care providers receiving federal funding are paid more fairly and on-time.

Minimum Thresholds for Payment Rates

In April 2023, ACF notified states that they must meet minimum thresholds when setting payment rates for providers caring for children participating in the subsidy program. ACF now requires that child care payment rates are set no lower than a level that reflects the 50th percentile of child care prices in an area, which allows families receiving subsidies to access at least half of the child care providers in their area. Before this enforcement action, more than 18 states set child care reimbursement rates so low that parents in the subsidy program couldn’t afford tuition in over half of the child care providers in their state. Over the past year, all these states have made progress: increasing payment rates to providers, improving access for families, and ensuring providers receive more funding to support their employees. When fully implemented, this action will increase child care payments for nearly 47,000 center- and home-based child care providers. The higher payments have allowed child care providers to invest in their staff, continuing to fuel overdue increases in wages across the sector.

Improved Methodology for Provider Payment Rates

ACF is also partnering with states to use an improved methodology when setting provider payment rates for the CCDF program so rates will reflect child care operating costs and pay providers based on the cost of providing high-quality care, rather than setting rates based on tuition prices. With support from ACF’s Office of Child Care, 12 states have been approved to use an approach to setting payment levels that reflects the cost of quality and paying higher salaries. As more states adopt this strategy, ACF will continue to ensure federal child care subsidies are part of the sector-wide solution to help address the long-standing compensation challenges facing the early care and education workforce.

Call for Congressional Funding

While these executive actions are important steps, the Biden-Harris Administration has also called on Congress to fully fund child care with an investment of $600 billion over ten years so that more families can access affordable and high-quality child care and preschool. This proposal would ensure that the average family pays $10 per day for child care and defray child care costs for 16 million children. Importantly, this proposal includes fair compensation for child care staff by creating a wage floor that covers basic living expenses and pay parity with public school teachers for those with similar qualifications.

Celebrating Care Workers Recognition Month

As we celebrate Care Workers Recognition Month, we acknowledge the important progress to date and the need for continued investment and improvement for the child care workforce that supports children, families, communities, and our economy.

SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 1: No Poverty
• SDG 4: Quality Education
• SDG 5: Gender Equality
• SDG 8: Decent Work and Economic Growth
• SDG 10: Reduced Inequalities

The article addresses issues related to poverty, access to quality education, gender equality, decent work and economic growth, and reduced inequalities.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 1.3: Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.
• Target 4.2: By 2030, ensure that all girls and boys have access to quality early childhood development, care, and pre-primary education so that they are ready for primary education.
• Target 5.4: Recognize and value unpaid care and domestic work through the provision of public services, infrastructure, and social protection policies and the promotion of shared responsibility within the household and the family as nationally appropriate.
• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
• Target 10.2: By 2030, empower and promote the social, economic, and political inclusion of all, irrespective of age, sex, disability, race, ethnicity, origin, religion, or economic or other status.

The article’s content relates to targets that aim to implement social protection systems, provide quality early childhood development and education, recognize and value unpaid care work, achieve full and productive employment, and promote social and economic inclusion.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 1.3.1: Proportion of population covered by social protection floors/systems, by sex, distinguishing children, unemployed persons, older persons, persons with disabilities, pregnant women, newborns, work-injury victims, and the poor and vulnerable.
• Indicator 4.2.1: Proportion of children under 5 years of age who are developmentally on track in health, learning, and psychosocial well-being, by sex.
• Indicator 5.4.1: Proportion of time spent on unpaid domestic and care work, by sex, age, and location.
• Indicator 8.5.1: Average hourly earnings of female and male employees, by occupation, age group, and persons with disabilities.
• Indicator 10.2.1: Proportion of people living below 50 percent of median income, by age, sex, and persons with disabilities.

The article implies indicators such as the proportion of the population covered by social protection systems, the proportion of children developmentally on track, the proportion of time spent on unpaid care work, average hourly earnings by gender and occupation, and the proportion of people living below a certain income threshold.

SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: acf.hhs.gov

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