Basics

• Federal funds are distributed to states, tribes and territories through the Child Care and Development Fund. Authorized by the Child Care and Development Block Grant Act, the CCDF allocates $5 billion annually to help low-income parents who need to work or finish school. The funds are dispersed to states, tribes and territories based on comprehensive plans submitted every two years. States must match a portion of the awarded funds. Besides the 4 percent that is designated for improving the quality of child care through provider training and health and safety initiatives, all of the money is earmarked for monetary assistance with child care expenses.
  
  

Eligibility

• To qualify for CCDF assistance, you must need care for a child under the age of 13, so you can work, attend work-related training or attend school, according to the U.S. Department of Health and Human Services. The agency, charged with distributing funds in your state, tribe or territory, may make exceptions and cover care for physically or mentally handicapped children up to age 19. To qualify, your family income must not be more than 85 percent of your state's median income for families of the same size.
  
  

Child Care Options

• Families who meet eligibility requirements can use the financial assistance at any type of day care program, as long as the program is operating legally. Family day cares, child care centers, religious-based programs, preschool and after-school programs all qualify. Funds for child care may be paid to the parent or to the provider by electronic transfer or check, depending on the responsible agency's policy. The National Child Care Information and Technical Assistance Center provides links to state agencies responsibility for taking applications for assistance and dispersing funds.
  
  

Considerations

• State agencies charged with allocating funds to families are required to use a sliding scale to determine the portion of child care fees each family should be responsible for, based on factors such as family size and income, according to the U.S. Department of Health and Human Services. Co-payments may be waived for families living at the state's poverty level or if care is for children in protective services. Some states maintain a waiting list because of the high demand for child care assistance.