Jan. 15, 2026
DEEP DIVE: Unpacking the Child Care and Development Fund Notice of Proposed Rule Making
This EducationCounsel Deep Dive, Unpacking the Child Care and Development Fund Notice of Proposed Rule Making, examines a recent Notice of Proposed Rule Making (NPRM) by the U.S. Department of Health and Human Services (HHS) entitled Restoring Flexibility in the Child Care and Development Fund (CCDF). The proposed rule would rescind the following four requirements for Child Care and Development Fund (CCDF) Lead Agencies that were previously added in the 2024 rule during the Biden Administration:
- Limiting family co-payments for child care subsidies to no more than 7% of household income;
- Using grants and contracts to build child care supply for underserved populations, including infants and toddlers, children with disabilities, and underserved geographic areas;
- Paying child care providers prospectively to conform with generally accepted payment practices;
- Paying based on enrollment rather than attendance which helps to address fixed costs.
HHS also notes in its proposed rule that, although these policies would no longer be requirements, states may continue to implement them as they are still allowable under the Child Care and Development Block Grant (CCDBG) Act.
The Deep Dive discusses each of these four provisions in detail, including reasons why states should strongly consider implementing these policies even if HHS does rescind them as requirements. We also provide an overview of the 2024 rule’s provisions that the NPRM does not seek to rescind and conclude with some implications of the proposed rule for CCDF Lead Agencies.
Click here to access the Deep Dive and click here to download a PDF version.