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GAO-19-222R 1 (2019-02-15)

handle is hein.gao/gaobacsfz0001 and id is 1 raw text is: 




G       A      O        U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington,  DC  20548





February  15, 2019


The  Honorable  Lamar  Alexander
Chairman
The  Honorable  Patty Murray
Ranking  Member
Committee   on Health, Education, Labor  and Pensions
United States  Senate


The  Honorable  Robert C. Bobby  Scott
Chairman
The  Honorable  Virginia Foxx
Ranking  Member
Committee   on Education  and Labor
House  of Representatives

Child Care  and  Development Fund: Subsidy Receipt and Plans for New Funds

The  federal child care subsidy program known   as the Child Care and Development Fund
(CCDF)   is the primary source of federal funding dedicated to assisting low-income families who
are working  or participating in education and training by increasing their access to quality child
care.' In fiscal year 2015, the latest year for which data are publicly available, CCDF provided
child care assistance to about 1.4 million children each month.2 Discretionary funding for CCDF
is authorized by the Child Care and  Development   Block Grant (CCDBG) Act of   1990,  as
amended,   and the U.S. Department   of Health and Human   Services  (HHS)  administers the funds
to states.3 In addition to authorizing funding, the CCDBG Act of 2014 included various

1CCDF  is not an entitlement program, which means that states are not required to serve all eligible families who
apply for CCDF subsidies; thus some eligible families who apply for subsidies may not receive them. Families who
qualify for, but do not receive, CCDF subsidies could still receive public assistance for child care through other federal
or state programs such as Head Start or a state's pre-kindergarten program if they meet eligibility requirements.
Further, not all eligible families may apply for CCDF subsidies because, as we previously found, several factors
influence families' child care decisions that can make it difficult or unappealing to pursue subsidies. See GAO, Child
Care: Access to Subsidies and Strategies to Manage Demand Vary Across States, GAO-1 7-60 (Washington, D.C.:
Dec. 15, 2016).
2At the time of this report's issuance, preliminary 2016 data from the U.S. Department of Health and Human Services
also estimated that about 1.4 million children received child care assistance each month.
3Discretionary CCDF funds are entirely federal funds that are allocated to states based on a statutory formula. See,
42 U.S.C. § 9858m. Under the program, these discretionary funds do not require a state match. CCDF is also made
up of mandatory and matching funding, which is authorized under the Social Security Act (42 U.S.C. § 618) and
administered by HHS. A portion of the mandatory funding is guaranteed to states, without states having to match the
funds with state child care spending. To be eligible for its share of the remaining mandatory funds (matching funds), a
state must first spend a designated amount of its own state funds. 42 U.S.C. § 61 8(a)(2).
Page  1                                             GAO-19-222R   Child Care and Development Fund

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