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Child Care and Development Fund Fact Sheet

The Child Care and Development Fund (CCDF) made available $7 billion to States, Territories, and Tribes in Fiscal Year (FY) 2009, including $2 billion provided under the American Recovery and Reinvestment Act. CCDF is authorized by the Child Care and Development Block Grant Act (CCDBG) and Section 418 of the Social Security Act. The purpose of CCDF is to assist low-income families, families receiving temporary public assistance, and those transitioning from public assistance in obtaining child care so they can work or attend training/education.

The American Recovery and Reinvestment Act (ARRA) provided $2 billion in one-time supplemental FY 2009 CCDF Discretionary Funds to State, Territory, and Tribal Lead Agencies.

Child Care Services Funded by CCDF

Subsidized child care services are available to eligible families through certificates (vouchers) or contracts with providers. Parents may select any legally operating child care provider. Child care providers serving children funded by CCDF must meet basic health and safety requirements set by States and Tribes. These requirements must address prevention and control of infectious diseases, including immunizations; building and physical premises safety; and minimum health and safety training.

Quality Activities

A minimum of 4 percent of CCDF funds must be used to improve the quality of child care and other additional services to parents, such as resource and referral counseling regarding the selection of child care providers. Consistent with prior years, the fiscal year 2009 appropriation includes funding for targeted purposes: $271 million for quality expansion activities of which $99.5 million is to improve the quality of care for infants and toddlers; and $19 million to improve school-age care and Child Care Resource and Referral Services (including $1 million for the Child Care Aware hotline). The supplemental FY 2009 funds provided by ARRA also contain targeted funds: $255 million of which $94 million must be used for activities to improve the quality of infant and toddler care.

To improve the health and safety of available child care, CCDF Lead Agencies provide training, grants and loans to providers; improved monitoring; compensation projects; and other innovative programs. Many Lead Agencies are making systemic investments, such as developing quality rating and improvement systems and professional development systems. Tribes may use a portion of their funds to construct child care facilities provided there is no reduction in the current level of child care services.

Coordination of Resources

The CCDF allows States to serve families through a single, integrated child care subsidy program under the rules of the Child Care and Development Block Grant (CCDBG) Act. States coordinate CCDF with Head Start, pre-k, and other early childhood programs. States can also transfer a portion of Temporary Assistance for Needy Families (TANF) dollars to CCDF, or spend TANF directly for child care.

State and Tribal Child Care Plans

All States, Territories and Tribes must submit comprehensive plans every two years and conduct public hearings to invite public comment.


Fiscal year 2009 funding includes approximately $10 million for child care research, demonstration, and evaluation activities. These funds are increasing the capacity for child care research at the national, State, and local levels while addressing critical questions with implications for children and families. Funds have been awarded to support individual project areas, including policy research, research partnerships, research scholars, and a web-based archive called Child Care and Early Education Research Connections.

Technical Assistance

One-fourth of 1 percent of the total CCDF is used by the Child Care Bureau to provide technical assistance to grantees. Its technical assistance network is designed to address the needs of States, Territories and Tribes administering CCDF. The network includes the following projects:

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