What is the history of the Child Care and Development Fund?

In 1990, the Congress established the Child Care and Development Block Grant (CCDBG).  The CCDBG Act was the Federal government’s effort to meet low income families’ growing need and demand for child care.  The goals of this Act were to:

• Allow each State maximum flexibility in developing child care programs and policies that best suit the needs of children and parents within each State;
• Promote parental choice to empower working parents to make their own decisions on the child care that best suits their family’s needs;
• Encourage States to provide consumer education information to help parents make informed choices about child care;
• Assist States providing child care to parents trying to achieve independence from public assistance; and
• Assist States in implementing the health, safety, licensing and registration standards established in State regulations.

In 1988 and 1990, Congress also established three programs funded and administered under Title IV-A of the Social Security Act:

1.       Child care for families on welfare (AFDC) and/or enrolled in the JOBS program

2.       Transitional child care (TCC) for families leaving welfare

3.       Child care for low-income families at risk of becoming welfare recipients.

The Child Care and Development Fund (CCDF) was authorized by the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) of 1996.  PRWORA reauthorized the CCDB Act, eliminating the separate Title IV-A programs and consolidated Federal child care subsidy funding.  ACF selected the name CCDF to signify the unification of the CCDBG and new child care subsidy funding under the Social Security Act.  The CCDF provided increased Federal funding for child care over past programs.  The preponderance of the funds is distributed to States to operate child care subsidy programs and improve the quality and availability of child care.  All children receiving CCDF services benefit from the health and safety requirements, consumer education, parental choice, and other provisions of the CCDBG statute.

See regulations at 45 CFR Parts 98 and 99 for CCDF Rules