ADMINISTRATION FOR CHILDREN AND FAMILIES, DEPARTMENT OF HEALTH AND HUMAN SERVICES

AUTHORIZATION:

42 U.S.C. 9858; Child Care and Development Block Grant Act of 1990; Personal Responsibility and Work Opportunity Reconciliation Act of 1996, Public Law 104-193; Balanced Budget Act of 1997, Public Law 105-33.

OBJECTIVES:

To make grants to States and Tribes to assist low- income families with child care and to: (1) Allow each State maximum flexibility in developing child care programs and policies that best suit the needs of children and parents within State; (2) promote parental choice to empower working parents to make their own decisions on the child care that best suits their family's needs; (3) encourage States to provide consumer education information to help parents make informed choices about child care; (4) assist States to provide child care to parents trying to achieve independence from public assistance; and (5) assist States in implementing the health, safety, licensing, and registration standards established in State regulations.

TYPES OF ASSISTANCE:

Formula Grants.

USES AND USE RESTRICTIONS:

Lead agencies shall assure that a substantial portion of the Discretionary Funds will be used to provide assistance to low-income working families. Not more than five percent of the aggregate amount of funds expended by the State may be expended for administrative costs incurred by the State to carry out all of its functions and duties. The term `administrative costs' does not include the costs of providing direct services. A State shall use not less than 4 percent of the amount of funds to improve child care quality and availability including comprehensive consumer education, activities to increase parental choice, and other activities such as resource and referral services, provider grants and loans, monitoring and enforcement of requirements, training and technical assistance, and improved compensation for child care staff. Except for approved construction of child care facilities by tribal grantees, no CCDF funds may be used for the purchase or improvement of land, or for the purchase, construction, or permanent improvement of any building or facility (other than for minor remodeling and for upgrading facilities to meet State and local child care standards.) Certain amounts of discretionary funds must be used for specific purposes: quality expansion; infant and toddler quality improvement; and child care resource and referral and school-age child care activities. A portion of funds is designated for the U.S. Department of Health & Human Services to carry-out research, demonstration, and evaluation projects.

ELIGIBILITY REQUIREMENTS:

Applicant Eligibility:   All States, the District of Columbia, Territories (Guam, American Samoa, Puerto Rico, U.S. Virgin Islands, and Commonwealth of the Northern Mariana Islands), federally recognized Tribal Governments, Tribal organizations, Alaska Native organizations, and Native Hawaiian organizations.

Beneficiary Eligibility:   Children under age 13 (or, at the option of the grantee, up to age 19, if disabled or under court supervision), who reside with a family whose income does not exceed 85 percent of the State median income for a family of the same size, and who reside with a parent (or parents) who is working or attending job training or educational program; or are in need of, or are receiving protective services.

Credentials/Documentation:   Grantees (States, Tribes, Tribal organizations, and Alaskan Native Organizations) must operate under a Health and Human Services (HHS) plan, and must certify compliance with all Federal regulations governing the payments under the Child Care and Development Fund.

APPLICATION AND AWARD PROCESS:

Preapplication Coordination:   The Chief Executive Officer of each grantee must designate a Lead Agency, the duties of which shall include developing a plan. In conjunction with the development of the plan, the lead agency must hold at least one public hearing after at least 20 days of statewide public notice, to allow 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 units of general purpose local government. This program is excluded from coverage under E.O. 12372.

Application Procedure:   The Lead Agency of each State, Territorial or Tribal Government desiring to receive an allotment for a fiscal year is required to submit a two-year plan to the Secretary of Health and Human Services (HHS). Each plan must contain certifications and assurances by the Chief Executive Officer of the Lead Agency that it will comply with the requirements of the Child Care and Development Fund and the applicable regulations. The plan must also contain information which includes: the provision of assurances regarding policies and procedures as stated in Section 658E(c)(2) of the Child Care and Development Block Grant Act of 1990 as amended; an outline of the intended use of block grant funds; the provision of certification regarding payment rates as stated in Section 658E(c)(4) of the Child Care and Development Block Grant Act; and the establishment of a sliding fee scale. Additional requirements are specified by 45 CFR Parts 98 and 99. This program is excluded from coverage under OMB Circular No. A- 110.

Award Procedure:   Grants are awarded after the receipt and approval of the plan by the Administration for Children and Families.

Deadlines:   Contact Headquarters Office listed below for deadline dates.

Range of Approval/Disapproval Time:   The Department will review the plans for approval and will act on the plans within 90 days.

Appeals:   Guidelines for appeals of disapprovals for State, Territorial, and Tribal Government plans are specified in regulations, 45 CFR 99.

Renewals:   Plans for States, Tribes, and tribal organizations must be submitted every 2 years.

ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements:   Allocations for States are based on a formula that takes into account the number of children below the age of 5, the number of children receiving assistance through the School Lunch Program in the State and per capita income. Not more than 2 percent of the total Discretionary funds of the Child Care and Development Fund are reserved for Tribes, Tribal Organizations, and Alaska Native organizations and not more than one-half of 1 percent of the total funds is reserved for the Territories. (Puerto Rico is treated as a State for allotment purposes.)

Length and Time Phasing of Assistance:   Grant awards are made to Lead Agencies with approved plans. Grantees must obligate all Discretionary funds in the fiscal year in which they are granted or in the succeeding fiscal year. Those funds must be liquidated in the third year.

POST ASSISTANCE REQUIREMENTS:

Reports:   As specified in 45 CFR Part 98, States must report to the Secretary of Health and Human Services (HHS) annually on aggregate data on families, children in care, providers, payment methods, and consumer education. Quarterly case-level reports are required to provide data on families, children, and providers, and expenditure information.

Audits:   In accordance with the provisions of OMB Circular No. A- 133 (Revised, June 24, 1997), Audits of States, Local Governments, and Nonprofit Organizations, nonfederal entities that receive financial assistance of $300,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $300,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Circular No. A-133. Further auditing may be necessary.

Records:   Proper grant accounting records must be maintained.

FINANCIAL INFORMATION:

Account Identification:   75-1515-0-1-609.

Obligations:   (Grants and Contracts) FY 99 $999,974,000; FY 00 est $1,182,672,000; and FY 01 est $2,000,000,000.

Range and Average of Financial Assistance:   Not applicable.

PROGAM ACCOMPLISHMENTS:

In fiscal year 1999, 310 grants were awarded. It is anticipated that 312 grants will be awarded in fiscal year 2000 and 320 grants in fiscal year 2001.

REGULATIONS, GUIDELINES, AND LITERATURE:

These funds are subject to the Child Care and Development Fund Final Rule, issued July 24, 1998.

INFORMATION CONTACTS: