CCDBG Act of 2014: Key Provisions and Implementation Status
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Updated November 22, 2016
CCDBG Act of 2014: Key Provisions and Implementation Status
The Child Care and Development Block Grant Act of 2014
Continuing Eligibility
(P.L. 113-186) was signed into law on November 19, 2014.
The 2014 law requires a “graduated phaseout” of CCDBG
This law reauthorized and amended the CCDBG Act for the
assistance when incomes rise. State plans must explain how
first time since 1996. The CCDBG Act is the main federal
the state will continue assistance to children whose family
law governing state child care programs for low-income
income at the time of eligibility redetermination has
working families. It is administered by the U.S. Department
increased above the state’s initial income threshold, but
of Health and Human Services (HHS). This In Focus
remains below the federal income threshold of 85% SMI. A
reviews key provisions and the law’s implementation status.
proposed rule issued by HHS would have required states
that set initial income eligibility limits below 85% SMI to
Purposes
increase their limits to 85% SMI for at least 12 months if, at
Before 2014, the goals of the CCDBG Act mainly focused
the end of the 12-month eligibility period, family income
on giving states flexibility in designing child care programs
had increased above the state’s initial income threshold. (As
and giving parents flexibility in selecting the right care for
of October 2014, all but two states set continuing eligibility
their family. The 2014 law expanded these purposes to
limits below 85% SMI for a family of three.) However, the
include a focus on child development and high-quality care.
final rule revised this provision, requiring only that states
establish a two-tier eligibility system that is sufficient to
Funding
accommodate increases in family income over time.
The 2014 law authorized CCDBG annual appropriations for
FY2015-FY2020. As Table 1 shows, appropriations
Health and Safety Standards
exceeded the authorization levels in FY2015 and FY2016.
Under prior law, states were required to establish health and
safety requirements in three broad areas: (1) prevention and
Table 1. Authorized and Enacted Funding, in Billions
control of infectious diseases (including immunizations);
(2) building and physical premises safety; and (3) minimum
Fiscal Year
Authorization
Appropriation
health and safety training for child care providers. The 2014
FY2015
$2.360
$2.435
law expanded these requirements to include new topics
such as first aid, cardiopulmonary resuscitation (CPR),
FY2016
$2.478
$2.761
emergency preparedness, and the prevention of sudden
FY2017
$2.540
TBD
infant death syndrome, among others. The 2014 law also
requires states to set age-specific standards for group size
FY2018
$2.603
TBD
limits and child-to-provider ratios. In addition, states must
now certify that all CCDBG providers will receive pre-
FY2019
$2.669
TBD
service and ongoing training on specified health and safety
FY2020
$2.748
TBD
topics, as well as other topics selected by the state.
Initial Eligibility
Health and Safety Enforcement
Prior law did not require states to conduct inspections of
The 2014 law generally retained existing eligibility criteria
child care providers. The 2014 law requires states to
for the CCDBG. To be eligible, children must be under age
conduct the following inspections for compliance with
13 (or older in certain circumstances) and reside with a
health, safety, and fire standards:
parent or parents who are working or attending job training
(unless the child needs or is receiving protective services).
Pre-licensure and annual unannounced inspections of
The family’s income may not exceed 85% of state median
licensed child care providers receiving CCDBG funds
income (SMI) under federal law, but states may set income
(the final rule encourages states to inspect all licensed
limits below the federal maximum (and generally do). The
providers, not just those receiving CCDBG); and
2014 law added one new eligibility requirement: family
assets may not exceed $1 million. The 2014 law also
Annual inspections of license-exempt providers
established a 12-month eligibility period. This means that
receiving CCDBG funds. (States must also explain how
once a child is deemed eligible, the child should generally
any proposed licensing exemptions would not endanger
continue to receive CCDBG support for a full year. (Almost
the health, safety, or development of children.)
half of states and territories were using eligibility periods of
less than 12 months as of October 2014.) Under the 2014
The 2014 law requires licensing inspectors to be trained in
law, children are to retain eligibility for 12 months
regardless of any “temporary change” in parental
the state’s health and safety standards and licensing rules.
work
Further, the law specifies that the ratio of licensing
status or family income, as long as family income has not
inspectors to child care providers must be sufficient to
increased above the federal threshold of 85% SMI.
ensure that inspections occur in a timely manner.
https://crsreports.congress.gov
CCDBG Act of 2014: Key Provisions and Implementation Status
Criminal Background Checks
Workforce
Previously, the CCDBG Act did not require criminal
The 2014 law includes several new provisions related to the
background checks for child care providers, though all
child care workforce. For instance, the law requires states to
states required some type of background check for at least
establish qualification requirements for child care providers
some child care providers. The 2014 law and accompanying
receiving CCDBG funds. In addition, states must require
regulations require states to conduct comprehensive
ongoing training and professional development for CCDBG
criminal background checks every five years for providers
providers. These requirements are to be developed with the
receiving CCDBG funds, as well as providers who are
State Advisory Council on Early Childhood Education and
licensed, regulated, or registered in the state, with the
Care (or a similar entity) and are to incorporate the state’s
exception of individuals exclusively caring for relatives.
early learning guidelines. The final rule issued by HHS
The law prohibits the employment of individuals who
calls for each state’s professional development framework
refuse to consent to a background check or knowingly make
to include six key components: (1) core knowledge and
a false statement on their background check. The law also
competencies, (2) career pathways, (3) advisory structures,
prohibits employment of registered sex offenders or those
(4) articulation agreements, (5) information on workforce
convicted of selected felonies or violent misdemeanors.
characteristics and access to training, and (6) financing.
Under the law, comprehensive background checks include
Payment Rates & Parental Copayments
(1) a search of state criminal and sex offender registries, (2)
The 2014 law includes new provisions tied to provider
a search of state child abuse registries, (3) a search of the
payment rates (also called reimbursement rates) and
National Crime Information Center (NCIC), (4) a Federal
parental copayments (sliding fee scales). These provisions
Bureau of Investigation (FBI) fingerprint check, and (5) a
strengthened existing language about ensuring that CCDBG
search of the National Sex Offender Registry. Based on
children have access to child care services of comparable
consultations with the FBI and other subject-matter experts,
quality to the services received by children in families with
HHS issued regulations that provide technical clarifications
higher incomes. For instance, the law requires states to take
to these requirements. These regulations restrict the NCIC
into account costs associated with higher-quality care when
search to one of the NCIC’s 21 files: the file containing the
setting payment rates. The law also added language stating
National Sex Offender Registry. HHS regulations indicate
that parental copayments should not be a barrier to families
that this is the only one of the NCIC’s files with relevant
receiving assistance. HHS recommends that copayments be
data for these background checks. HHS also notes that
set at a level that does not exceed 7% of family income. A
compliance with the NCIC checks will not be assessed until
proposed rule by HHS would have prevented providers
guidance has been issued by HHS and the FBI. NCIC
from charging any difference between the state’s CCDBG
access is typically restricted to law enforcement agencies,
payment rate and the market rate, with limited exceptions.
so states must form partnerships to complete these checks.
(As of October 2014, 43 states and territories sometimes or
always allowed providers to charge families the difference.)
Consumer Education
The final rule eliminated this provision and instead requires
The 2014 law requires states to have a website describing
states allowing this practice to provide a rationale.
licensing, monitoring, and background check processes.
States must make the results of monitoring and inspection
Implementation Status
reports available electronically, along with information on
Many provisions in the November 2014 law are considered
deaths, serious injuries, and substantiated child abuse in
to have gone into effect immediately, but several have yet
child care facilities. In addition, state websites must have a
to be fully implemented (e.g., quality spending is being
searchable list of licensed and license-exempt child care
phased in over several years and background checks do not
providers, along with information about the provider’s
take effect until FY2018). HHS released a proposed rule on
quality rating (if available).
the law in December 2015 and received about 150
comments from stakeholders. A final rule was published in
Quality of Care
September 2016. States must be fully compliant with the
Prior to reauthorization, states were required to spend at
rule by September 30, 2018 (tribes have an additional year).
least 4% of their child care funds on quality improvement
State child care plans for FY2016-FY2018 were due to
activities. The 2014 law incrementally increases the quality
HHS on March 1, 2016. This is the first round of state plans
spending requirement up to 9% by FY2020. Beginning in
to reflect the 2014 law, which amended the state plan
FY2017 (and in every year thereafter), states must also
process to be triennial, rather than biennial. As part of this
spend an additional 3% on quality activities targeted to
planning process, HHS received requests from 24 states and
infants and toddlers. This means that by FY2020, states will
territories to temporarily waive certain requirements taking
be required to spend a minimum of 12% on combined
effect in calendar year 2016. HHS approved all waiver
quality activities. The new law outlines a number of
requests except those related to health and safety. (HHS
activities states may support with quality spending. For
may waive provisions of the law for up to three years, with
instance, states may offer professional development or other
an optional one-year extension.) Requests to waive
workforce supports, develop or implement tiered quality
provisions taking effect after 2016 must be submitted to
rating and improvement systems, or cultivate statewide
HHS no later than 90 days before their effective date.
systems of child care resource and referral services. In
addition, states must develop or implement early learning
Karen E. Lynch, Specialist in Social Policy
and developmental guidelines covering essential domains of
development from birth to kindergarten entry.
IF10416
https://crsreports.congress.gov
CCDBG Act of 2014: Key Provisions and Implementation Status
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10416 · VERSION 4 · UPDATED
Updated November 22, 2016
CCDBG Act of 2014: Key Provisions and Implementation Status
The Child Care and Development Block Grant Act of 2014
Continuing Eligibility
(P.L. 113-186) was signed into law on November 19, 2014.
The 2014 law requires a “graduated phaseout” of CCDBG
This law reauthorized and amended the CCDBG Act for the
assistance when incomes rise. State plans must explain how
first time since 1996. The CCDBG Act is the main federal
the state will continue assistance to children whose family
law governing state child care programs for low-income
income at the time of eligibility redetermination has
working families. It is administered by the U.S. Department
increased above the state’s initial income threshold, but
of Health and Human Services (HHS). This In Focus
remains below the federal income threshold of 85% SMI. A
reviews key provisions and the law’s implementation status.
proposed rule issued by HHS would have required states
that set initial income eligibility limits below 85% SMI to
Purposes
increase their limits to 85% SMI for at least 12 months if, at
Before 2014, the goals of the CCDBG Act mainly focused
the end of the 12-month eligibility period, family income
on giving states flexibility in designing child care programs
had increased above the state’s initial income threshold. (As
and giving parents flexibility in selecting the right care for
of October 2014, all but two states set continuing eligibility
their family. The 2014 law expanded these purposes to
limits below 85% SMI for a family of three.) However, the
include a focus on child development and high-quality care.
final rule revised this provision, requiring only that states
establish a two-tier eligibility system that is sufficient to
Funding
accommodate increases in family income over time.
The 2014 law authorized CCDBG annual appropriations for
FY2015-FY2020. As Table 1 shows, appropriations
Health and Safety Standards
exceeded the authorization levels in FY2015 and FY2016.
Under prior law, states were required to establish health and
safety requirements in three broad areas: (1) prevention and
Table 1. Authorized and Enacted Funding, in Billions
control of infectious diseases (including immunizations);
(2) building and physical premises safety; and (3) minimum
Fiscal Year
Authorization
Appropriation
health and safety training for child care providers. The 2014
FY2015
$2.360
$2.435
law expanded these requirements to include new topics
such as first aid, cardiopulmonary resuscitation (CPR),
FY2016
$2.478
$2.761
emergency preparedness, and the prevention of sudden
FY2017
$2.540
TBD
infant death syndrome, among others. The 2014 law also
requires states to set age-specific standards for group size
FY2018
$2.603
TBD
limits and child-to-provider ratios. In addition, states must
now certify that all CCDBG providers will receive pre-
FY2019
$2.669
TBD
service and ongoing training on specified health and safety
FY2020
$2.748
TBD
topics, as well as other topics selected by the state.
Initial Eligibility
Health and Safety Enforcement
Prior law did not require states to conduct inspections of
The 2014 law generally retained existing eligibility criteria
child care providers. The 2014 law requires states to
for the CCDBG. To be eligible, children must be under age
conduct the following inspections for compliance with
13 (or older in certain circumstances) and reside with a
health, safety, and fire standards:
parent or parents who are working or attending job training
(unless the child needs or is receiving protective services).
Pre-licensure and annual unannounced inspections of
The family’s income may not exceed 85% of state median
licensed child care providers receiving CCDBG funds
income (SMI) under federal law, but states may set income
(the final rule encourages states to inspect all licensed
limits below the federal maximum (and generally do). The
providers, not just those receiving CCDBG); and
2014 law added one new eligibility requirement: family
assets may not exceed $1 million. The 2014 law also
Annual inspections of license-exempt providers
established a 12-month eligibility period. This means that
receiving CCDBG funds. (States must also explain how
once a child is deemed eligible, the child should generally
any proposed licensing exemptions would not endanger
continue to receive CCDBG support for a full year. (Almost
the health, safety, or development of children.)
half of states and territories were using eligibility periods of
less than 12 months as of October 2014.) Under the 2014
The 2014 law requires licensing inspectors to be trained in
law, children are to retain eligibility for 12 months
regardless of any “temporary change” in parental
the state’s health and safety standards and licensing rules.
work
Further, the law specifies that the ratio of licensing
status or family income, as long as family income has not
inspectors to child care providers must be sufficient to
increased above the federal threshold of 85% SMI.
ensure that inspections occur in a timely manner.
https://crsreports.congress.gov
CCDBG Act of 2014: Key Provisions and Implementation Status
Criminal Background Checks
Workforce
Previously, the CCDBG Act did not require criminal
The 2014 law includes several new provisions related to the
background checks for child care providers, though all
child care workforce. For instance, the law requires states to
states required some type of background check for at least
establish qualification requirements for child care providers
some child care providers. The 2014 law and accompanying
receiving CCDBG funds. In addition, states must require
regulations require states to conduct comprehensive
ongoing training and professional development for CCDBG
criminal background checks every five years for providers
providers. These requirements are to be developed with the
receiving CCDBG funds, as well as providers who are
State Advisory Council on Early Childhood Education and
licensed, regulated, or registered in the state, with the
Care (or a similar entity) and are to incorporate the state’s
exception of individuals exclusively caring for relatives.
early learning guidelines. The final rule issued by HHS
The law prohibits the employment of individuals who
calls for each state’s professional development framework
refuse to consent to a background check or knowingly make
to include six key components: (1) core knowledge and
a false statement on their background check. The law also
competencies, (2) career pathways, (3) advisory structures,
prohibits employment of registered sex offenders or those
(4) articulation agreements, (5) information on workforce
convicted of selected felonies or violent misdemeanors.
characteristics and access to training, and (6) financing.
Under the law, comprehensive background checks include
Payment Rates & Parental Copayments
(1) a search of state criminal and sex offender registries, (2)
The 2014 law includes new provisions tied to provider
a search of state child abuse registries, (3) a search of the
payment rates (also called reimbursement rates) and
National Crime Information Center (NCIC), (4) a Federal
parental copayments (sliding fee scales). These provisions
Bureau of Investigation (FBI) fingerprint check, and (5) a
strengthened existing language about ensuring that CCDBG
search of the National Sex Offender Registry. Based on
children have access to child care services of comparable
consultations with the FBI and other subject-matter experts,
quality to the services received by children in families with
HHS issued regulations that provide technical clarifications
higher incomes. For instance, the law requires states to take
to these requirements. These regulations restrict the NCIC
into account costs associated with higher-quality care when
search to one of the NCIC’s 21 files: the file containing the
setting payment rates. The law also added language stating
National Sex Offender Registry. HHS regulations indicate
that parental copayments should not be a barrier to families
that this is the only one of the NCIC’s files with relevant
receiving assistance. HHS recommends that copayments be
data for these background checks. HHS also notes that
set at a level that does not exceed 7% of family income. A
compliance with the NCIC checks will not be assessed until
proposed rule by HHS would have prevented providers
guidance has been issued by HHS and the FBI. NCIC
from charging any difference between the state’s CCDBG
access is typically restricted to law enforcement agencies,
payment rate and the market rate, with limited exceptions.
so states must form partnerships to complete these checks.
(As of October 2014, 43 states and territories sometimes or
always allowed providers to charge families the difference.)
Consumer Education
The final rule eliminated this provision and instead requires
The 2014 law requires states to have a website describing
states allowing this practice to provide a rationale.
licensing, monitoring, and background check processes.
States must make the results of monitoring and inspection
Implementation Status
reports available electronically, along with information on
Many provisions in the November 2014 law are considered
deaths, serious injuries, and substantiated child abuse in
to have gone into effect immediately, but several have yet
child care facilities. In addition, state websites must have a
to be fully implemented (e.g., quality spending is being
searchable list of licensed and license-exempt child care
phased in over several years and background checks do not
providers, along with information about the provider’s
take effect until FY2018). HHS released a proposed rule on
quality rating (if available).
the law in December 2015 and received about 150
comments from stakeholders. A final rule was published in
Quality of Care
September 2016. States must be fully compliant with the
Prior to reauthorization, states were required to spend at
rule by September 30, 2018 (tribes have an additional year).
least 4% of their child care funds on quality improvement
State child care plans for FY2016-FY2018 were due to
activities. The 2014 law incrementally increases the quality
HHS on March 1, 2016. This is the first round of state plans
spending requirement up to 9% by FY2020. Beginning in
to reflect the 2014 law, which amended the state plan
FY2017 (and in every year thereafter), states must also
process to be triennial, rather than biennial. As part of this
spend an additional 3% on quality activities targeted to
planning process, HHS received requests from 24 states and
infants and toddlers. This means that by FY2020, states will
territories to temporarily waive certain requirements taking
be required to spend a minimum of 12% on combined
effect in calendar year 2016. HHS approved all waiver
quality activities. The new law outlines a number of
requests except those related to health and safety. (HHS
activities states may support with quality spending. For
may waive provisions of the law for up to three years, with
instance, states may offer professional development or other
an optional one-year extension.) Requests to waive
workforce supports, develop or implement tiered quality
provisions taking effect after 2016 must be submitted to
rating and improvement systems, or cultivate statewide
HHS no later than 90 days before their effective date.
systems of child care resource and referral services. In
addition, states must develop or implement early learning
Karen E. Lynch, Specialist in Social Policy
and developmental guidelines covering essential domains of
development from birth to kindergarten entry.
IF10416
https://crsreports.congress.gov
CCDBG Act of 2014: Key Provisions and Implementation Status
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10416 · VERSION 4 · UPDATED