Indicator: 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 dataWhy 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. 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. 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.
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. 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.
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
The framework's recommendations are based on syntheses of existing research. Please see the framework report for a list of works cited.