Child Care Mandatory and Matching Funds of the Child Care and Development Fund

 

The Mandatory and Matching portion (or Child Care Entitlement or CCE) of the Child Care and Development Fund (CCDF) program consists of Mandatory funds (which are 100% federal) and Matching funds (which require a State match and maintenance of effort). The Mandatory and Matching funds are made available in section 418 of the Social Security Act (42 U.S.C. 618) and are not subject to annual appropriations. Allocations of the Mandatory Funds are based on a State's Federal share of the expenditures for the now-repealed AFDC-linked child care programs (AFDC/JOBS Child Care, Transitional Child Care, and At-Risk Child Care) in 1994 or 1995, or the average of 1992 through 1994, whichever was greater. A State is not required to expend any State funds in order to receive its share of the Mandatory Funds. Previously, the Mandatory and Matching funds provided about $2.9 billion in federal funding per year for child care. The American Rescue Plan (ARP) Act of 2021 (P. L. 117-2) was enacted March 11, 2021 and appropriated $3,550,000,000 (Section 9801) in mandatory and matching funding for CCDF, which is a permanent annual appropriation effective fiscal year 2021. The appropriation includes $3.375 billion to States, $75 million to Territories (previously not eligible), and $100 million to Tribes. To access Matching Funds, a State must obligate all of its Mandatory Funds allotted in a fiscal year and maintain 100% of the State's share of expenditures for the former programs in fiscal year 1994 or fiscal year 1995, whichever is greater (i.e., maintenance of effort). Matching Funds must be matched at the applicable Federal Medical Assistance Percentage (FMAP) rate, which is the Medicaid Program matching rate. The Matching Funds are distributed based on the number of children under age 13 in a State compared with the national total of children under age 13. Section 9801 of the ARP Act of 2021 (P. L. 117-2) appropriated $3.375 billion in CCDF Mandatory and Matching funds to States. Because the state Mandatory fund amount remains fixed in law, the $512,250,000 increase appropriated to states by the ARP Act are awarded in Matching funds. Matching funds are available to states if three conditions are met by the end of the fiscal year in which the funds are awarded: (1) all Mandatory funds are obligated; (2) the states Maintenance-of-Effort funds are expended; and (3) the state provides its share of Matching funds at the FMAP rate. However, states are not required to match the additional funds awarded in section 9801 of the ARP Act in FY 2021 or FY 2022. Section 9801 of the ARP Act appropriated CCDF Mandatory funds to territories for the first time, including American Samoa, Guam, Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the Virgin Islands of the United States. Mandatory funds to territories are allotted based on the number of children under age five living in territories and per capita income in the territories. Territory Mandatory funds are not subject to any matching requirements. Territory Mandatory funds must be obligated in the fiscal year that they are awarded and liquidated in the following year. Not less than 1%, but not more than 2% of the total Mandatory and Matching Funds are reserved for Tribes and tribal organizations based on the number of children living on or near Tribal reservations or other appropriate area served by the tribal recipient. Tribes and tribal organizations are not required to provide matching funds. Prior to the ARP Act, Tribal lead agencies received a proportion of the child care funds appropriated under Section 418 of the Social Security Act. Section 9801 of the ARP Act of 2021 (P. L. 117-2) amended the Social Security Act to explicitly appropriate $100 million in Mandatory funds to Tribal lead agencies. This increases the initial FY 2021 Mandatory funds awarded to Tribal lead agencies by 70 percent. Otherwise, the requirements for Tribal Mandatory funds remain the same. Mandatory funds to Tribes are allocated based on the number of children under the age of 13 in a Tribes service area. In addition to the block grants to States, Territories and Tribes, a small portion of the CCDF is used by the Office of Child Care to provide technical assistance to lead agencies on administering the program. A small portion of CCDF is also used for child care research, demonstration and evaluation activities.

Active 93.596 Administration For Children and Families, Department of Health and Human Services A - Formula Grants; B - Project Grants Fiscal Year 2016 In FY 2016, 344 grants will be awarded to 50 States , District of Columbia,242 Tribes, and other grantees (research, TA,and hotline). Fiscal Year 2016: 354 grants were awarded to 50 States, District of Columbia, and 242 Tribes and other grantees (research,TA,and hotline).
Fiscal Year 2017 Fiscal Year 2017: 354 grants were awarded to 50 States, District of Columbia, and 242 Tribes and other grantees (research and TA).
Fiscal Year 2018 358 grants were awarded to 50 States, the District of Columbia, 242 Tribes, and other grantees (research and technical assistance(TA)).
Fiscal Year 2019 Awarded grants to 50 States, the District of Columbia, 242 Tribes, and other grantees (research and TA).
Fiscal Year 2020 Awarded grants to 50 States, the District of Columbia, 248 Tribes and other recipients (research and TA).
Fiscal Year 2021 Awarded grants to 50 States, the District of Columbia, 248 Tribes, five Territories (first time and permanent) and other recipients (research and TA).
Fiscal Year 2023 Awards were made to 50 States, the District of Columbia, 246 Tribes, five Territories and other recipients (research and TA).
Fiscal Year 2024 Awards will be made to 50 States, the District of Columbia, 246 Tribes, five Territories and other recipients (research and TA). Social Security Act, as amended, Title IV, Section 418, 42 U.S.C. 618
Child Care and Development Block Grant Act of 1990, as amended (42 USC 9857, et seq)
Public Law -
American Rescue Plan (ARP) Act of 2021 (P. L. 117-2) Eligibility: All 50 States, the District of Columbia, and Federally recognized Tribal Governments, including Alaskan Native Corporations. Section 9801 of the ARP Act of 2021 (P. L. 117-2) provides CCDF Mandatory funds to territories for the first time, including American Samoa, Guam, Puerto Rico, the Commonwealth of the Northern Mariana Islands, and the Virgin Islands of the United States. Children under age 13 (or, at the option of the Lead Agency, up to age 19, if physically or mentally incapable of self-care or under court supervision), who (1) reside with a family whose income does not exceed 85% of the State median income (SMI) for a family of the same size, and (2) who reside with a parent (or parents) who is working or attending job training or educational program, who or are in need of, or are receiving protective services. A Lead Agency shall re-determine a child's eligibility for child care services no sooner than 12 months following the initial determination or most recent re-determination. Once determined eligible, children are expected to receive a minimum of 12 months of child care services, unless family income rises above 85% SMI or, at Lead Agency option, the family experiences a non-temporary cessation of work, education, or training. Lead Agencies must operate under a CCDF plan approved by the Administration for Children and Families, and must provide assurances that the recipient will comply with the requirements of the CCDBG Act and all applicable Federal law(s). Preapplication coordination is required. Each recipient must designate a Lead Agency to which awards are made and that is accountable for the use of the Mandatory and Matching Funds provided, the duties of which shall include developing a CCDF plan. In conjunction with the development of the CCDF plan, the Lead Agency must hold at least one public hearing no earlier than nine months before the CCDF plan becomes effective and after at least 20 days of statewide public notice, to provide the public an opportunity to comment on the provision of child care services under the plan. In advance of the hearing, the Lead Agency must make the content of the plan available to the public. The Lead Agency must also coordinate the provision of services under the program with other Federal, State, and local child care and early childhood development programs. Also, the Lead Agency must consult with appropriate representatives of local governments. Tribal Lead Agencies submitting applications for construction must submit an environmental impact assessment. Please see Information Memorandum for ARP Act Increased Mandatory and Matching Funds (CCDF-ACF-IM-2021-04) at https://www.acf.hhs.gov/occ/policy-guidance/arp-act-increased-mandatory-and-matching-funds. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. A Lead Agency desiring to receive an allotment for a fiscal year is required to submit a three-year CCDF plan to the Administration for Children and Families, as well as financial and other information necessary for the award process. Each plan must contain certifications and assurances by the Lead Agency that it will comply with the requirements of the Child Care and Development Block Grant Act (CCDBG). The plan must also include: the designation of a Lead Agency; the provision of assurances regarding policies and procedures as stated in Section 658E(c)(2) of the amended CCDBG; an outline of the proposed use of block grant funds in compliance with Section 658E(c)(3) of the CCDBG; the provision of certification regarding payment rates as stated in Section 658E(c)(4) of the CCDBG; and the establishment of a sliding fee scale. Additional requirements are specified by 45 CFR Parts 98 and 99. Awards are made after the receipt and approval of an application and plan by the Administration for Children and Families. Contact the headquarters or regional location, as appropriate for application deadlines The Administration for Children and Families will review the CCDF plans for approval and will act on the plans within 90 days. Guidelines for appealing disapprovals of CCDF plans are specified in regulations at 45 CFR Part 99. CCDF plans must be submitted every three years. Not applicable. Title IV of the Social Security Act appropriates funds (Mandatory and Matching Funds) for the purpose of providing child care assistance. Lead Agencies must use Mandatory and Matching Funds for child care services on a sliding fee scale basis, activities that improve the quality or availability of such services, and other activities that realize the goals of the CCDBG Act. Performance Reports: Performance monitoring is in accordance with 45 CFR 98.90. 45 CFR Part 75 Subpart F applies to this program. Lead Agencies and subrecipients must retain all CCDF records for three years from the day the Lead Agency or subrecipient submits the Financial Reports as required by the CCDF regulations at 45 CFR 98.90. The Tribal Lead Agency must retain all records pertinent to the construction or renovation of a facility for a period equal to the period of the recipient's use of the facility plus 3 years (after final disposition), or for 3 years after the Tribe makes final payment and all pending matters (including any ongoing audits, claims, or litigation) are completed or closed, whichever is later. Statutory Formula: Title n/a Chapter n/a Part n/a Subpart n/a Public Law n/a Section 418 of the Social Security Act, 45 CFR 98.55

Matching is mandatory. Statutory/Regulatory Formula: Section 418 of the Social Security Act; Title 45 CFR, Part 98.55.

This program has MOE requirements, see funding agency for further details. Additional Information: Awards are made to Lead Agencies with approved CCDF plans. If Matching Funds are requested, Mandatory Funds must be obligated by the end of the first fiscal year. There is no time limit on liquidation of Mandatory Funds and no time limit on obligation of Mandatory Funds if no Matching Funds are requested. Matching Funds must be obligated by the end of the first fiscal year and liquidated by the second fiscal year. State funds expended toward the Maintenance of Effort requirement must be both obligated and expended by the end of the first fiscal year. Mandatory and Matching Funds awarded to Tribes and tribal organizations must be obligated by the end of the second fiscal year and liquidated by the end of the third fiscal year. Method of awarding/releasing assistance: Quarterly. A list of Office of Child Care Regional Program Managers is located at: https://www.acf.hhs.gov/occ/contact-information/office-child-care-regional-program-managers Julie Poppe
Office of Child Care, Administration for Children and Families, U.S. Department of Health and Human Services
Washington, DC 20201 US
Julie.Poppe@acf.hhs.gov
Phone: 202-401-4795 https://www.acf.hhs.gov/occ 75-1550-0-1-609 (Formula Grants) FY 22$3,417,284,992.00; FY 23 est $3,341,250,000.00; FY 24 est $3,341,250,000.00; FY 21$3,341,808,529.00; FY 20$2,829,490,000.00; FY 19$2,917,000,000.00; FY 18$2,946,142,984.00; FY 17$2,917,000,000.00; FY 16$2,916,771,935.00; - States and DC. These figures do not include CCDF Discretionary Funds under CFDA 93.575.(Formula Grants) FY 22$75,000,000.00; FY 23 est $75,000,000.00; FY 24 est $75,000,000.00; FY 21$75,000,000.00; FY 20$0.00; - Territories(Formula Grants) FY 22$100,000,000.00; FY 23 est $100,000,000.00; FY 24 est $100,000,000.00; FY 21$100,000,000.00; FY 20$58,340,000.00; - Tribes(Project Grants) FY 22$33,689,555.00; FY 23 est $33,750,000.00; FY 24 est $33,750,000.00; FY 21$33,167,549.00; FY 20$29,170,000.00; - For States, including DC, the range of awards in FY 2022 is: $6,751,745 to $346,909,807; the average award is $65,514,706. For the five Territories, the range of awards in FY 2022 is: $2,554,563 to $57,415,483; the average award is $15,000,000. For 246 Tribal recipients, the range of awards in FY 2022 is: $6,836 to $13,837,593; the average award is $406,504. These figures include mandatory and matching funding for CCDF appropriated by the ARP Act, which is a permanent annual appropriation effective FY 2021. These figures are not inclusive of funds received through Assistance Listing 93.575. These funds are subject to the Child Care and Development Fund regulations at 45 CFR Parts 98 and 99. Not applicable.