CCDF Final Rule-Understanding Subsidy Eligibility

CCDF Final RuleUNDERSTANDINGSUBSIDY ELIGIBILITY1

Presenters2FederalEllen WheatleyStateTerry Shaner WadeDeputy Director,Office of Child CareDirector, Bureau of Subsidized Child CareServices; Office of Child Development andEarly LearningPA Department of Human ServicesMinh LêErin MewhinneyProgram Specialist,Office of Child CareDirector, Division of Early Care andLearning; Office of Early ChildhoodCO Department of Human Services

ReauthorizationIn 2014, Congressreauthorized Child Careand Development BlockGrant (CCDBG). This wasan historic re-envisioningof child care.

Effective/Compliance DatesEffective Date: 60 days after publication in theFederal Register on September 30, 2016.Compliance Date: Full compliance by September30, 2018. Compliance determined through CCDFPlans and federal monitoring.Compliance Date (Tribes): Compliance throughreview and approval of the FY 2020 - 2022 TribalCCDF Plans that become effective October 1,2019.4

OverviewAddresses4 majortopical areas:5

Key Regulatory References98.20: ELIGIBILITY FOR SERVICES(a) Eligibility conditions(b) Additional eligibility conditions98.21: ELIGIBILITY DETERMINATION PROCESSES(a) 12 month eligibility (incl. definition of temporary,continued assistance/job search, co-payments)(b) Graduated Phase-out(c) Irregular fluctuations in income(d) Reporting changes in circumstances

Subsidy Eligibility Lengthened Eligibility &Continuity Continued Assistance/JobSearch Graduated Phase-out Application to Tribes7

LengthenedEligibility in the LawThe law establishedminimum 12 montheligibility periods,regardless of a temporarychange in parents’ statusas working or attendingjob training or education, iffamily income does notexceed 85% of SMI.8(45 CFR 98.21(a))

Lengthened EligibilityThe Final Rule: Clarifies that minimum 12-month eligibility applies toinitial and subsequent eligibility periods. Prohibits shorter authorization periods within theminimum 12 month eligibility period. Clarifies that co-payments cannot be raised during theeligibility period45 CFR 98.21(a)9

Lengthened EligibilityDefines “temporary” to include at a minimum:– Any time-limited absence from work for an employed parentdue to reasons such as need to care for a family member oran illness;– Any interruption in work for a seasonal worker who is notworking between regular industry work seasons;– Any student holiday or break for a parent participating intraining or education;– Any other cessation of work or attendance at a training oreducation program that does not exceed three months, or aperiod longer established by the Lead Agency.45 CFR 98.21(a)10

Lengthened EligibilityThe Final Rule also requires that a child retain theireligibility until the next re-determination regardless of:– Any change in age, including turning 13 years old during theeligibility period;– Any change in residency within the State, Territory, or Tribalservice area.45 CFR 98.21(a)11

Lengthened EligibilityAdds that Lead Agencies may discontinue assistance priorto next re-determination only in limited circumstances*: Excessive unexplained absences (after attempts to contactfamily); A change in residency outside of State, Territory, or Tribal servicearea; or Substantiated fraud or intentional program violations.*This does not include continued assistance/job search which wasin the law.45 CFR 98.21(a)12

Continuity DuringEligibility PeriodsAt eligibility determination andredetermination, informationneeded to determine CCDFEligibility: child agefamily incomequalifying activityother information asdetermined by the Lead Agency45 CFR 98.21(e)

Reporting During Eligibility PeriodLimit reporting requirements to: changes that impact a child’s federal eligibility (income over85% of SMI, which families must report) information that impacts a LA’s ability to communicate wparents or providersMust not require an office visit in order to fulfillnotification requirementsMust offer a range of notification options (e.g. phone,email, extended hours)45 CFR 98.21(e)

Reporting DuringEligibility Period (cont.)Lead Agency has option to requirereporting if family experiences a nontemporary change in work, job training,or education status.Family must be allowed to reportchanges at any time and Lead Agenciesmust act on information that isbeneficial to the family amount of childcare assistance or copayment level.45 CFR 98.21(e)

Continued Assistance beforeOptional TerminationThe law gives a State the option toend assistance prior to the end ofthe eligibility period due to loss ofwork or cessation of attendance at ajob training or educational program.However, it must provide at least 3months of continued assistanceafter such loss or cessation.45 CFR 98.21(a)(2)16

Cont. Assistance/ Job Search in Final Rule Cont. assistance must be provided at least the same level; No requirement to collect documentation; and If, by the end of the 3 month period, the parent is again engagedin an eligible work, education, or training activity, assistancecannot be terminated. Lead Agencies can still use job search status as initial qualifyingactivity as long as:– assistance is provided for at least 3 months; and– assistance continues if the parent becomes engaged in aneligible work, education, or training activity.45 CFR 98.21(a)(2)17

Graduated Phase-outThe law requires Lead Agencies to havegraduated phase-out policies and proceduresfor families who, at redetermination, exceedthe Lead Agency’s initial income threshold, iftheir income is still below 85% of SMI, providedthey are also working or attending a jobtraining or education program.Note: If the Lead Agency’s initial eligibilitythreshold is set at 85% of SMI, they would beexempt from this requirement.45 CFR 98.21(b)18

Graduated Phase-out (cont.)The Final Rule requires two-tiered eligibility with 2nd tier at: 85% of SMI; or An amount lower than 85percent of SMI for a family of thesame size, but above the initial eligibility threshold, that: accounts for the typical household budget of a low incomefamily; andprovides justification that the second eligibility threshold is:o sufficient to accommodate increases in family incomeover time that are typical for low-income workers andthat promote and support family economic stability; ando reasonably allows a family to continue accessing childcare services without unnecessary disruption.45 CFR 98.21(b)19

Graduated Phase-out (cont.)Once deemed eligible, a family shall receive a full eligibility periodunder the same conditions as a typical eligibility period, with theexception of co-payments.Lead Agencies may increase co-payments during graduated phaseout (and require additional interim reporting).A family shall be considered eligible for the full min. 12 mo eligibilityperiod even if their income exceeds the 2nd eligibility threshold aslong as it does not exceed 85% of SMI.45 CFR 98.21(b)20

Graduated Phase-out Flowchart

22How Subsidy Eligibility PoliciesApply to Tribes

How do the SubsidyReq. Apply to Tribes?Tribes receiving large and medium allocations aresubject to the majority of these requirements.– Tribes receiving small allocations are exemptAllows Tribes receiving large or mediumallocations option to consider any Indian childeligible, regardless of a family'swork/income/training status if the Tribe’sMedian Income is below 85% of SMI, providedthat services still go to those with the highestneed.– Tribes with small allocations have flexibility toset their own eligibility requirements23

Q&As24

Can a Lead Agency collect informationprior to 12 months in order to meetredetermination timeframe?Yes. In some cases, Lead Agencies may find itnecessary to collect some information prior to 12months to complete the redetermination processin time. Such practices are allowed, but should belimited (e.g. a few days or weeks in advance).(continued)

Can a Lead Agency collect informationprior to 12 months in order to meetredetermination timeframe? (continued)Note: Even if information is collected in advance,eligibility cannot be terminated prior to theminimum 12-month period, even if disqualifyinginformation is discovered during the preliminarycollection of documentation.**Unless it indicates that family income has exceeded 85% of SMI or, atthe Lead Agency option, the family has experienced a non-temporarycessation in work, or attendance at a training or education program.

Can a Lead Agency reduce the authorizedamount of service (i.e. decrease hours)during the eligibility period?Generally, no. The statute says eligible families shall “receive suchassistance, for not less than 12 months” and the rule clarifies thatthis means assistance must be provided at least at the same levelthroughout the eligibility period.However, a State is not obligated to pay for services that are notbeing used, so if a family voluntarily changes their carearrangement to use less care, the State can adjust their paymentsaccordingly.

If a Lead Agency chooses to terminateassistance for loss of job, training, oreducation, must this apply to all families?The Lead Agency has the option of choosing thisoption for all CCDF families or for only a subset ofCCDF families, as long as the Lead Agency providesat least three months of continued assistancewhen terminating assistance.

Does the family have to provide anysupporting documentation during a periodof continued assistance?No. While the Lead Agency must provide at least 3months of continued assistance, there is nofederal requirement to document that the parentis engaged in a job search or other activity relatedto resuming attendance in an education ortraining program during that time.

Is there a limit to the number of continuedassistance/job search periods?No, the Lead Agency must offer the minimum3 month period of continued assistance each timeit chooses to terminate assistance prior to the endof the eligibility period for a loss of job, training,or education.

ResourcesCCDF Reauthorization Page (incl. statutory ®ulatory language, presentations, fact sheets,and ongoing FAQs): ly Childhood Training and TechnicalAssistance System: https://childcareta.acf.hhs.gov/National Center on Child Care SubsidyInnovation and and-accountability

State PresentationTerry Shaner WadeDirector, Bureau of Subsidized Child Care ServicesOffice of Child Development and Early LearningPennsylvania Department of Human Services

State PresentationErin MewhinneyDirector, Division of Early Care and LearningOffice of Early ChildhoodColorado Department of Human Services

Q & As34

Thank you for all you do forchildren and families!35

(a) 12 month eligibility (incl. definition of temporary, continued assistance/job search, co-payments) (b)Graduated Phase-out (c) Irregular flu