Payments

Who is paid the child care subsidy?

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.