The regulation requires that agencies pay the child care provider the
child care subsidy for Federal employees who qualify for the program.
Child care providers should invoice the agency or the organization that
has responsibility for administering the child care subsidy program.
In overseas situations where child care costs are paid in foreign currency,
the agency may choose to pay the employee the subsidy. There may be
other rare situations in which an agency feels it is prudent to pay
the employee the subsidy. This is permissible if the agency first obtains
permission from OPM. Agencies are cautioned, however, that they will
be responsible for verifying the child’s attendance in the child
care arrangement named in the employee’s application during the
period covered by the subsidy award.
Advance Payments
May agencies make advance payments to child care providers?
An agency may choose to make advance payments to the child care provider
in certain situations. Advance payments may be paid to the child care
provider when the provider requires child care payments one month in
advance of rendering services. Advance payments may not be made for
more than one month in advance of receiving child care services.
May agencies continue to make payments for employees called to active
duty with the National Guard or Reserves?
Yes, the legislation permits the agency to continue payments. Moreover,
OPM encourages agencies to continue child care subsidies for eligible
full-time employees who are called up to active duty during times of
national emergency as members of the National Guard or Reserves.