12-month eligibility, job loss, and the graduated phase-out
The 12-month eligibility period is the most family-friendly feature of modern CCDF, and it was one of the central reforms of the 2014 reauthorization. It exists because low-income work is often irregular: hours change, seasonal jobs end, courses finish, and a program that cut families off at every change would push children in and out of care and parents out of work. The rules below are federal minimums; your state may be more generous.
The minimum 12-month period
Once your child is determined eligible, your child is considered eligible for a minimum of 12 months, regardless of temporary changes in your participation in work, training, or education, as long as your family income does not exceed 85% of your state's median income. Temporary changes include a time-limited absence from work to care for a family member or because of illness, a seasonal gap between work seasons, a student holiday or break, a reduction in hours as long as you are still working or training, and any other cessation of work or training that does not exceed three months or a longer period your lead agency sets. Your state may not end assistance during the 12 months for a temporary change, and it may not require you to report temporary changes.
If you lose your job permanently
A non-temporary loss of work, training, or education is different. Your state has the option, but is not required, to end assistance before the 12 months are up. If it chooses to end assistance, it must first provide a period of continued assistance of at least 3 months, to allow you to search for a job, resume work, or enter training or education. During that continued-assistance period your state does not need to collect additional documentation from you. If you re-engage in a qualifying activity within the period, assistance must continue through the rest of your original eligibility period. Many states choose the simpler option and simply continue assistance for the full 12 months regardless: check your state's plan to see which choice yours made.
The graduated phase-out at redetermination
At the end of the 12 months you go through redetermination. If your income has risen above your state's initial eligibility limit but is still at or below 85% of the state median income, your state must provide for a graduated phase-out: you remain eligible, and your copayment rises gradually to reflect the higher income, rather than your assistance stopping suddenly. The phase-out is what makes a pay rise survivable: a family that earns a little more does not lose all child care help at once. If your income has risen above 85% of the state median income at redetermination, eligibility ends, and your state should give you notice and information about other options.
Other stability protections
Your child does not lose eligibility mid-period because they turn 13 during the period, and a change of residence within your lead agency's service area does not end eligibility either. Children experiencing homelessness have additional protections: states must have procedures to enroll homeless children pending completion of documentation, and must provide training and outreach to promote access for homeless families. If your family becomes homeless during an eligibility period, tell your agency promptly: the rules are designed to keep care continuous, not to create a new application barrier.
Sources: Child Care and Development Block Grant Act of 2014, plain-language summary (ACF); ACF Office of Child Care Technical Assistance, CCDF parental activity guidance; 45 CFR 98.21; ACF FAQ, Does the law require States to offer families a period of job search.