*This is an archive page. The links are no longer being updated. 1991.06.06 : Regulations -- Child Care and Development Block Grant Contact: Barbara Cebuhar (202) 401-9215 June 6, 1991 HHS Secretary Louis W. Sullivan, M.D., today announced the publication of regulations to implement a new program that will help low-income families obtain child care services. The regulations cover the Child Care and Development Block Grant. Funding for the block grant is set at $732 million for fiscal year *This is an archive page. The links are no longer being updated. 1991. "This child care program represents a significant expansion of our commitment to family self-sufficiency," Secretary Sullivan said. "The program is designed to help families who are working, or who are receiving job training or education, to provide the child care they want for their children. This assistance is built on the foundation of parental choice in selecting among child care options." The Child Care and Development Block Grant is to begin operation in September of this year. The block grant is designed to help states provide child care services to low-income families, to improve the quality and availability of child care services and increase the availability of early childhood development and before-and after-school care programs. "We encourage states to provide 'seamless' child care programs which include a wide range of child care choices and enable parents to make informed decisions to meet their family's needs," said Jo Anne B. Barnhart, assistant secretary for children and families, the HHS agency responsible for overseeing the program. "Unique state and local needs must be addressed at a level of government closest to the nation's families." Under the Child Care and Development Block Grant, states must use 25 percent of the grant money to improve child care quality and increase the availability of related services: three- fourths of that amount is earmarked for early childhood development and before-and after-school care. The remaining funds--75 percent of the grant money--are to pay for direct child care services to low-income families, and can also be used to improve the availability and quality of child care. "We want families to receive needed child care services, and we want it to be as easy as possible to meet families' varying needs. After all, each family is in the best position to make these decisions," said Barnhart. The block grant is one of a number of child care programs administered by the Administration for Children and Families. Other programs include child care for recipients of Aid to Families with Dependent Children, transitional child care for those who leave welfare and begin work, and the new At-Risk Child Care Program, which provides child care for families at risk of becoming AFDC recipients. The Child Care and Development Block Grant regulations, authorized by P.L. 101-508, were published as an interim final rule, with a 60-day comment period. Written comments may be made to the Administration for Children and Families. # # # Highlights of the Child Care and Development Block Grant Interim Final Rule o As one of its first major actions, the new Administration for Children and Families (ACF) has issued interim final regulations for the Child Care and Development Block Grant Program. o The regulation emphasizes the importance of parental choice in family decisions regarding child care and will permit parents to choose from a broad range of child care providers, including: - child care centers - group home providers - family child care providers - sectarian organizations - relatives - friends and - neighbors. o The regulation encourages Grantees to coordinate child care services and to design programs that, to the maximum extent possible, provide "seamless service" to the families who will participate. To the extent permitted by statute, a family should be able to retain the same provider regardless of the source of funding for their child care. o In order to encourage coordination with the other programs, the regulation provides flexibility in establishing policies and procedures. For example, payment rates, sliding fee scales and health and safety requirements will be determined at the State and local level. o Seventy-five percent of Block Grant funds must be spent on child care services and activities to improve the availability and quality of child care. The regulations require that a preponderance of this money be spent on services by requiring that Grantees spend at least 85 percent for services in the first two years of program operation, and 90 percent in the following years. o Under this 75 percent of Block Grant funds, services will be provided through certificates or through grants and contracts with providers. Grantees must inform all parents who are offered services that certificates are available to them, and such certificates must be available any time services are offered. o Of the remaining 25 percent of Block Grant funds, 75 percent must be spent for early childhood development and/or before- and after-school services; 20 percent must be spent on improvements in the quality of child care services (i.e. resource and referral, assistance in meeting standards, monitoring of compliance with licensing and regulatory requirements, training and staff compensation); and the remaining 5 percent may be used for any of the stated purposes. o Although Grantees have flexibility to establish State or local rules, procedures or other requirements in the areas of licensing standards, registration of providers, health and safety requirements and payment rates, such requirements issued for the purposes of the Block Grant must not significantly restrict parental choice from among categories of care or types of providers. o The regulations also provide for parental access, parental complaint procedures, and consumer education to afford parents opportunities to gain information about child care services and child care providers in order to make sound decisions. ###