On July 11, 2023, Vice President Kamala Harris proposed a rule change to the Child Care & Development Block Grant (CCDBG) program. The change aims to cap co-payments for families at or below 7% of their income.
The CCDBG program provides federal funding to states to assist low-income families with child care expenses. The rule change would make child care more affordable by reducing out-of-pocket costs.
The Biden administration is committed to making child care more affordable for American families. In April 2023, President Biden signed an executive order directing federal agencies to find ways to lower costs and expand access to child care.
The administration has proposed a rule change as an initial step to implement an order. Currently, the proposed change is undergoing a 45-day comment period. After this period, the Department of Health and Human Services (HHS) will review the comments and make necessary revisions.
The proposed rule change would have a significant impact on low-income families. According to the White House, a family in Montana earning $46,000 could save approximately $1,000 per year. The objective of the rule change is to increase the affordability of child care for more families.
At present, only 15% of eligible families participate in the CCDBG program. The proposed change aims to simplify participation and expand the availability of child care slots.
