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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. The CCDF consists of two funding streams: the mandatory Child Care Entitlement (CCE) and the discretionary Child Care and Development Block Grant (CCDBG) (see CFDA 93.575). The CCE portion consists of “matching funds,” which require a State match and maintenance of effort, and “mandatory funds.” CCDBG was created by the Omnibus Budget Reconciliation Act of 1990 (P.L. 101-508) and is subject to annual appropriations. The Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996 (P.L. 104-193) consolidated funding for child care under the Social Security Act, where CCE is authorized, and made such funding generally subject to the requirements of the CCDBG Act. The Child Care and Development Block Grant Act of 2014 (P.L. 113-186) reauthorized the discretionary portion of CCDF through FY 2020 and made significant changes to improve the health, safety, and quality of child care and provide more continuous child care assistance to low-income children and families. The combination of the discretionary and mandatory funds provides about $8.1 billion in federal funding per year for child care. Additional funds are provided by State matching and maintenance of effort funds, as well as funds transferred from the Temporary Assistance for Needy Families (TANF) program.