Requirements for Low-Income Daycare Assistance
Daycare assistance in the US, funded by the Child Care and Development Fund (CCDF), seeks to move families out of poverty. This is accomplished by giving parents the ability to obtain marketable skills and earn income sufficient to pay monthly expenses while still having access to safe, affordable child care services. While each state has its own methods of implementing subsidized daycare, they all require that families meet the requirements that constitute a low-income family. Children must be below a certain age, and parents must be either working, going to school or receiving job/career training. Several other stipulations must also be met in order to be eligible for assistance.
Income Level Requirements
In order to apply for subsidized daycare, your family income must be at or below the Federal Poverty Income Guidelines (FPIG). The guidelines for what constitutes a “low-income” family vary by state which can affect both household income and the number of dependents present in your family unit. The definition of a “low-income family” changes each year in order to reflect employment and economic conditions as well as total program funding available for all the states. To determine whether or not your family qualifies for assistance, you must calculate your total monthly or annual gross income from all sources. Once total income has been determined, you can consult the appropriate social services agency for your state to see if your family is eligible.
Scope of Coverage
Some states will only offer funding to parents that are either working, enrolled in school, or taking vocational training. Other states offer temporary subsidies to lower daycare costs for parents that are on medical or maternity leave, unemployed, or looking for work. It is important to remember that the assistance being given by the state is temporary and only meant to relieve parents from financial strain during some sort of transitional period. In most cases, documentation is required to prove that one or both parents meet all of the requirements for funding. In-person and/or phone interviews may also be required depending on where you live. For most states the maximum length of coverage for low-income daycare assistance is 6 or 12 months. The duration of funding for medical leave or unemployment is usually 1 to 3 months.
Subsidized Daycare Payment Methods
Daycare costs are rarely paid entirely by the government. All states require a co-payment for the duration of funding, though this can be waived under certain circumstances. The co-payment amount is determined by total household income, family size, and (sometimes) number of children receiving care. The following table contains sample data taken from a September 2010 publication by the Minnesota Department of Human Services:
| Two Person Household | Five Person Household | |
|---|---|---|
| Max. Allowable Income | $27,805 | $47,432 |
| Scenario 1 | ||
| Gross Annual Income Range | $10,928 – $14,569 | $25,790 – $27,984 |
| Monthly Co-payment Required | $4 | $56 |
| Scenario 2 | ||
| Gross Annual Income Range | $18,748 – $19,528 | $30,649 – $31,981 |
| Monthly Copayment Required | $44 | $64 |
Keep in mind that the definition of a household or family unit varies by state, so this needs to be considered when calculating gross household income. In addition to salaries and wages, this figure can include income such as investment, disability, unemployment insurance and other forms of regular income. In calculating household size, some states make a distinction between dependents and income-earners while other states do not. In the previous example for the state of Michigan, a household of five could consist of four income-earning adults and one dependent under the age of 13. Or it could consist of one working parent with five school-aged dependents. Unfortunately, the income allowance and associated co-payment requirements would be the same in both cases.
Daycare Assistance for Young Children
Daycare assistance is only available for parents with children under the age of 13. Assistance is also available for children with special needs that are under the age of 19. Community development programs for young children and toddlers are accessible in many areas. Most notable of these programs is the Early Head Start program for low-income mothers with young children. The aim of this federally-funded program is to “increase the school readiness of young children from low-income families”. It is available for children ages 3 to 5 in a variety of locations. You can find a location nearest to you by clicking on the program link. There are also state-funded preschool programs available for toddlers that aim to prepare them for kindergarten.
For those living below the poverty line, subsidized daycare costs can truly be a lifeline to starting a new career and avoiding destitution. Even if your family doesn’t qualify for daycare assistance, you may still be eligible for private scholarships and tax credits under the Earned Income Tax Credit designed to assist low-income families. For specific application requirements for your state, you can start you search at the National Child Care Information and Technical Assistance Center’s (NCCIC) website located here.