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U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

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Work Life

Child Care Subsidy Program

Child care can be extremely expensive, especially for lower income families. But without quality child care arrangements, working parents are hard-pressed to remain effective either at work or at home. Federal agencies, at their own discretion, can now use appropriated funds, including revolving funds otherwise available for salaries, to assist lower income employees with the costs of child care.

This Child Care Subsidy Program applies to employees whose children are under the age of 13, or disabled and under the age of 18, and are enrolled, or will be enrolled, in licensed family child care homes or center-based child care. The child care must be licensed and/or regulated by State and/or local authorities.

OPM issued final regulations (5 CFR Part 792) effective March 24, 2003 implementing the Child Care Subsidy Program legislation, entitled “Agency Use of Appropriated Funds for Child Care Costs for Lower Income Employees.” The authority was first established as a pilot program by Congress in Public Law 106-58, sec. 643 (September 29, 1999) and was made permanent in Public Law 107-67, sec. 630 (November 12, 2001).