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Child Care Mandatory and Matching Funds of the Child Care and Development Fund


Total Assistance, FY 2008 to Present
Assistance Type: FORMULA GRANTS
Popular Name: Child Care and Development Fund (CCDF)
CFDA Number

Objectives: The Child Care and Development Fund (CCDF) is the primary federal funding source to help certain low-income families access child care and to improve the quality of child care for all children. As a block grant, CCDF gives funding to States, Territories, and Tribes to provide child care subsidies primarily through vouchers or certificates to low-income families. In addition, CCDF funds are used to improve the quality of child care for both subsidized and unsubsidized children. CCDF consists of both Discretionary funding authorized by the Child Care and Development Block Grant (CCDBG) Act and Mandatory and Matching funding under the Social Security Act. The Mandatory and Matching portion (or Child Care Entitlement or CCE) of the CCDF program consists of Mandatory funds (which are 100% federal) and Matching funds (which require a State match and maintenance of effort). The Mandatory and Matching funds are made available in section 418 of the Social Security Act (42 U.S.C. 618) and are not subject to annual appropriations. The Mandatory and Matching funds provide about $2.9 billion in federal funding per year for child care. The Matching Funds are distributed based on the number of children under age 13 in a State compared with the national total of children under age 13. To access Matching Funds, a State must obligate all of its Mandatory Funds allotted in a fiscal year and maintain 100% of the State's share of expenditures for the former programs in fiscal year 1994 or fiscal year 1995, whichever is greater (i.e., maintenance of effort). Matching Funds must be matched at the applicable FMAP rate, which is the Medicaid Program matching rate. Not less than 1%, but not more than 2% of the total Mandatory and Matching Funds are reserved for Tribes and tribal organizations based on the number of children living on or near Tribal reservations or other appropriate area served by the tribal grantee. Tribes and tribal organizations are not required to provide matching funds. The District of Columbia is treated as a State for purposes of receiving its share of Mandatory and Matching Funds.