Copayments: what families pay for CCDF child care
CCDF rarely covers the whole cost of care. In most states, families pay a copayment: a share of the cost that the family pays directly to the provider, while the subsidy covers the rest up to the state's payment rate. How the copayment is set, and whether it is capped, has changed recently, and the change is the single most important thing to get right about CCDF costs in 2026.
The 7% cap, and its repeal
The March 2024 CCDF final rule required states to set family copayments that were affordable and did not act as a barrier to assistance, and it set a federal ceiling: copayments could not exceed 7% of family income for any family, regardless of how many children in the family received assistance. The 7% figure came from a long-standing federal benchmark based on Census data showing families spent about 7% of income on child care on average. In 2026, a new final rule rescinded that mandatory cap, effective July 13, 2026, along with the requirement to pay providers based on enrollment rather than attendance and the requirement to pay providers prospectively. The underlying statutory rule remains: copayments must not be a barrier to families receiving assistance. But there is no longer a federal percentage ceiling, so your state's copayment schedule decides what you pay.
Do not trust older articles on copayments
Articles written between March 2024 and mid-2026 often present the 7% cap as settled law. It is not anymore. If an article tells you your copayment cannot exceed 7% of your income, check its date: after July 13, 2026, that statement is out of date. What matters now is your state's own copayment schedule in its current CCDF plan.
What states actually charge
States set copayments on sliding scales tied to income, family size, and sometimes the number of children in care. Many states waive copayments entirely for the lowest-income families, and many kept copayments at or below 7% of income in their 2025-2027 state plans even before the cap was repealed: a 2026 analysis of those plans found 34 states and the District of Columbia with maximum copayments at or below 7%, with most of the rest operating under temporary waivers. Your copayment can also change at redetermination if your income changes, and under the graduated phase-out it rises gradually rather than jumping. Always ask your agency for the copayment schedule that applies to your income and family size, in writing, before you commit to a provider.
The gap between the payment rate and the provider's price
Your subsidy is the state's payment rate for your child's age group, care type, and area, minus your copayment. If your provider charges more than the state's payment rate, you may have to pay the difference on top of your copayment, depending on your state's rules: some states prohibit providers from charging subsidized families more than the payment rate, others allow it within limits. Ask two questions before you enroll: what is the state's payment rate for my child's care, and will I owe anything beyond my copayment? The answers decide your real monthly cost more than any headline percentage.
Worked example
Suppose your state's payment rate for full-time toddler care in your county is $900 a month, and your copayment on the state's sliding scale is $90 a month. The state pays the provider $810 and you pay $90. If the provider's actual price is $1,000 and your state allows the provider to charge the difference, your real cost is $90 plus $100, or $190 a month. If your state prohibits extra charges, your cost stays $90. Same copayment, very different bill: the provider's price and your state's extra-charge rule matter as much as the copayment itself.
Sources: 45 CFR 98.45(l)(3) as added by the March 2024 CCDF final rule; ACF 2026 CCDF final rule rescinding the 7% cap, enrollment-based payment, and prospective payment requirements, effective July 13, 2026; Bipartisan Policy Center, What is the Child Care and Development Block Grant; CLASP and National Women's Law Center, 2026 CCDF rulemaking comment (state-plan copayment analysis).