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                                                                                       Updated November 22, 2016

CCDBG Act of 2014: Key Provisions and Implementation Status


The Child Care and Development Block Grant Act of 2014
(P.L. 113-186) was signed into law on November 19, 2014.
This law reauthorized and amended the CCDBG Act for the
first time since 1996. The CCDBG Act is the main federal
law governing state child care programs for low-income
working families. It is administered by the U.S. Department
of Health and Human Services (HHS). This In Focus
reviews key provisions and the law's implementation status.


Before 2014, the goals of the CCDBG Act mainly focused
on giving states flexibility in designing child care programs
and giving parents flexibility in selecting the right care for
their family. The 2014 law expanded these purposes to
include a focus on child development and high-quality care.


The 2014 law authorized CCDBG annual appropriations for
FY2015-FY2020. As Table 1 shows, appropriations
exceeded the authorization levels in FY2015 and FY2016.

Table I. Authorized and Enacted Funding, in Billions

   Fiscal Year       Authorization      Appropriation

     FY2015              $2.360             $2.435
     FY2016              $2.478             $2.761
     FY2017              $2.540              TBD
     FY2018              $2.603              TBD
     FY2019              $2.669              TBD
     FY2020              $2.748              TBD


The 2014 law generally retained existing eligibility criteria
for the CCDBG. To be eligible, children must be under age
13 (or older in certain circumstances) and reside with a
parent or parents who are working or attending job training
(unless the child needs or is receiving protective services).
The family's income may not exceed 85% of state median
income (SMI) under federal law, but states may set income
limits below the federal maximum (and generally do). The
2014 law added one new eligibility requirement: family
assets may not exceed $1 million. The 2014 law also
established a 12-month eligibility period. This means that
once a child is deemed eligible, the child should generally
continue to receive CCDBG support for a full year. (Almost
half of states and territories were using eligibility periods of
less than 12 months as of October 2014.) Under the 2014
law, children are to retain eligibility for 12 months
regardless of any temporary change in parental work
status or family income, as long as family income has not
increased above the federal threshold of 85% SMI.


The 2014 law requires a graduated phaseout of CCDBG
assistance when incomes rise. State plans must explain how
the state will continue assistance to children whose family
income at the time of eligibility redetermination has
increased above the state's initial income threshold, but
remains below the federal income threshold of 85% SMI. A
proposed rule issued by HHS would have required states
that set initial income eligibility limits below 85% SMI to
increase their limits to 85% SMI for at least 12 months if, at
the end of the 12-month eligibility period, family income
had increased above the state's initial income threshold. (As
of October 2014, all but two states set continuing eligibility
limits below 85% SMI for a family of three.) However, the
final rule revised this provision, requiring only that states
establish a two-tier eligibility system that is sufficient to
accommodate increases in family income over time.


Under prior law, states were required to establish health and
safety requirements in three broad areas: (1) prevention and
control of infectious diseases (including immunizations);
(2) building and physical premises safety; and (3) minimum
health and safety training for child care providers. The 2014
law expanded these requirements to include new topics
such as first aid, cardiopulmonary resuscitation (CPR),
emergency preparedness, and the prevention of sudden
infant death syndrome, among others. The 2014 law also
requires states to set age-specific standards for group size
limits and child-to-provider ratios. In addition, states must
now certify that all CCDBG providers will receive pre-
service and ongoing training on specified health and safety
topics, as well as other topics selected by the state.


Prior law did not require states to conduct inspections of
child care providers. The 2014 law requires states to
conduct the following inspections for compliance with
health, safety, and fire standards:

* Pre-licensure and annual unannounced inspections of
   licensed child care providers receiving CCDBG funds
   (the final rule encourages states to inspect all licensed
   providers, not just those receiving CCDBG); and

* Annual inspections of license-exempt providers
   receiving CCDBG funds. (States must also explain how
   any proposed licensing exemptions would not endanger
   the health, safety, or development of children.)

The 2014 law requires licensing inspectors to be trained in
the state's health and safety standards and licensing rules.
Further, the law specifies that the ratio of licensing
inspectors to child care providers must be sufficient to
ensure that inspections occur in a timely manner.


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