Indicator: Access to child care subsidies Breadcrumb Home Indicators Access To Child Care Subsidies Definition Eligible families have access to child care by using subsidies to pay for care. Recommended Metric(s) Percentage of eligible families receiving assistance to pay for child care through subsidies Type(s) of Data Needed Administrative data Why it matters Child care subsidies can help improve the economic well-being of families with low incomes by allowing them to afford child care, find employment, or pursue further education.1, 2, 3, 4 These subsidies also allow families to choose higher-quality child care than they could afford without the subsidy, which in turn is linked with optimal child outcomes.5, 6, 7 An analysis from the Center for Law and Social Policy found that in 2019, “just 8 percent of potentially eligible children received subsidies based on federal income eligibility limits and 12 percent of potentially eligible children received subsidies based on state income eligibility limits.” Black children had the highest rates of access, and Asian and Latino children had the lowest rates of access nationally. Barriers to child care subsidy receipt for eligible families include lack of knowledge of the availability of subsidies, lack of a perceived need for help, and challenges in navigating and coordinating services from multiple agencies to apply for and continue receiving the subsidy.8, 9 What to know about measurement Each state receives resources from the federal Child Care and Development Fund (CCDF) program, which is the primary federal funding source for child care subsidies to help eligible families access child care. Federal reporting requirements for the CCDF block grant ask states to provide case-level data on a monthly or quarterly basis about children and families receiving child care subsidies.10 However, because state data systems differ, and many agencies issue subsidy authorizations or payments on different schedules, it may be difficult to make comparisons across states. For example, the time unit of data collection for child care subsidy services may differ because it is determined by the state’s payment policies.11 Source frameworks This indicator appeared in three source frameworks reviewed for this report. Our proposed definition draws from the National School Readiness Indicators framework prepared by Rhode Island KIDS COUNT. Our recommendation to focus on eligible families, rather than eligible children, draws from the CCDF federal reporting requirements outlined above. References 10Office of Child Care. (2022). Data & funding. Office of the Administration for Children & Families, U.S. Department of Health & Human Services. https://www.acf.hhs.gov/occ/data-011Krafft, C., Davis, E. E., & Forry, N. D. (2015). Continuity of child care subsidy receipt: Why definitions of spells and gaps matter. Child Trends. https://www.childtrends.org/publications/continuity-of-child-care-subsidy-receipt-why-definitions-of-spells-and-gaps-matter1Adams, G., & Rohacek, M. (2002). More than a work support?: Issues around integrating child development goals into the child care subsidy system. Early Childhood Research Quarterly, 17(4), 418–440. https://doi.org/10.1016/S0885-2006(02)00184-92Weber, R. B., Grobe, D., & Davis, E. E. (2014). Does policy matter? The effect of increasing child care subsidy policy generosity on program outcomes. Children and Youth Services Review, 44, 135–144. https://doi.org/10.1016/j.childyouth.2014.06.0103Blau, D., & Tekin, E. (2007). The determinants and consequences of child care subsidies for single mothers in the USA. Journal of Population Economics, 20(4), 719–741. https://www.jstor.org/stable/403444064Fuller, B., Kagan, S. L., Caspary, G. L., & Gauthier, C. A. (2002). Welfare reform and child care options for low-income families. The Future of Children, 97–119. https://www.jstor.org/stable/16027695Johnson, A. D., & Ryan, R. M. (2015). The role of child-care subsidies in the lives of low-income children. Child Development Perspectives, 9(4), 227–232. https://doi.org/10.1111/cdep.121396McCartney, K., Dearing, E., Taylor, B. A., & Bub, K. L. (2007). Quality child care supports the achievement of low-income children: Direct and indirect pathways through caregiving and the home environment. Journal of applied developmental psychology, 28(5-6), 411–426. https://doi.org/10.1016/j.appdev.2007.06.0107The NICHD Early Child Care Research Network. (2005). Child care and child development: Results from the NICHD study of early child care and youth development. The Guilford Press. https://psycnet.apa.org/record/2005-07172-0008Forry, N., Daneri, P., & Howarth, G. (2014). Childcare subsidy literature review. Office of Planning, Research, and Evaluation, Administration for Children and Families, U.S. Department of Health and Human Services. https://www.acf.hhs.gov/opre/report/child-care-subsidy-literature-review9Shlay, A. B., Weinraub, M., Harmon, M., & Tran, H. (2004). Barriers to subsidies: Why low-income families do not use child care subsidies. Social Science Research, 33(1), 134–157. https://doi.org/10.1016/S0049-089X(03)00042-5