Child Care and Development Fund Decoded

America's child care subsidy, in plain English

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Priority groups: who gets CCDF help first

Because CCDF funding does not cover every eligible family, federal law requires states to give priority for services to certain groups. Priority does not change the eligibility tests: it decides the order in which eligible families are served when money is short, and it decides who moves first off a waiting list.

The three federal priority categories

Priority groupWhat it means
Children of families with very low incomesFamilies at the lowest end of the income scale, taking family size into account; states define the threshold in their plans
Children with special needsChildren with disabilities or developmental needs; states define special needs in their plans and may include wider vulnerable populations
Children experiencing homelessnessAdded by regulation to the two statutory priorities; states must have procedures to enroll homeless children pending documentation

These three categories come from the statute and from 45 CFR 98.46(a)(3). The Administration for Children and Families reports annually on whether each state serves these groups in accordance with the priority requirement, using state administrative data and the state plans.

How states add their own priorities

States commonly add further priority groups in their plans: families receiving or transitioning off Temporary Assistance for Needy Families, families with infants and toddlers, families in which a parent is a teenager, families involved with the child welfare system, and families in areas with little available care. National data show the pattern: in fiscal year 2019, about 10% of CCDF families reported income from TANF, and most states gave first priority to families receiving, at risk of receiving, or transitioning off TANF. If your family falls into any priority group, say so on your application and ask how your state orders its waiting list: priority is only useful if the agency knows you belong in the group.

Children with special needs in practice

For children with special needs, priority is only the start. States may pay higher rates for children with disabilities, recognizing that care costs more, and providers may receive additional support to serve them. If your child has an individualized education program, an individualized family service plan, or a diagnosed disability, bring that documentation to your application: it supports both priority placement and the correct payment rate. If a provider says it cannot serve your child, ask your lead agency and your local child care resource and referral agency about providers with experience in inclusive care and about any additional rate or support available.

Children experiencing homelessness

Homelessness priority comes with practical protections: states must enroll homeless children pending completion of documentation, so a missing document does not block the start of care, and must train staff and conduct outreach to promote access. If your family is staying in a shelter, a motel, a car, or doubled up with others because you lost housing, tell your agency: the McKinney-Vento definition used in education contexts is broad, and your state's CCDF plan describes how it identifies homeless children for priority.

Sources: ACF, CCDF Report on States' and Territories' Priorities for Child Care Services, Fiscal Year 2022; 45 CFR 98.46(a)(3); ACF, Characteristics of Families Served by CCDF (FY 2019).

General information only. This page explains the Child Care and Development Fund in plain English. It is not legal, financial, or benefits advice, and it cannot decide whether you qualify or how much help you would receive. Only your state, territory, or Tribal lead agency can decide a concrete case. Rules, income limits, and copayments differ by state and change over time, so always confirm the current position with your state child care agency before you act on it. Contact: hello [at] tapetoolhq.com.