Policy Backgrounders

Updated Rule for the Federal Child Care and Development Fund

March 15, 2024

Trusted Insights for What’s Ahead^®

The US Department of Health and Human Services finalized an updated rule to ensure that the largest program for supporting child care for working families with low incomes, the Child Care and Development Fund (CCDF), supports greater parental choice and affordability in child care.

• CCDF, which is administered by states, territories, and Tribes, currently serves more than one million children and their families across the country.
• The Administration projects the updated rule is expected to lower child care costs for more than 100,000 families and improve financial stability for 140,000 child care providers.
• The President’s FY 2025 Budget proposes a nearly $500 million increase for the Child Care and Development Block Grant, which is a component of CCDF.