Congress’s bipartisan budget agreement includes a historic funding increase for the Child Care and Development Block Grant (CCDBG), the nation’s largest federal child care assistance program. The additional $5.8 billion for the program over the next two years has enormous benefits for states looking to serve more families and encourage children’s healthy development.

The Child Care and Development Block Grant is a federal and state program that allows states to help low-income families pay for child care so they can work or attend a job training or educational program.

The block grant serves an estimated 15 percent of children eligible under federal parameters.

The funding increase could allow states to realize some of the promises of the law’s reauthorization. Because it is a block grant, states will likely make different choices on how to best spend these funds, as states are aware of the trade-offs they’ve had to make with constrained funding and the issues they need to prioritize to fulfill the reauthorization’s goals.

Our research suggests that investments states should consider include the following:

  1. Improve the quality of care by raising rates paid to child care providers.
  2. Improve provider willingness to serve children in the subsidy system. Maintain the diverse types of providers who participate.

Read the full article on the Child Care and Development Block Grant by Gina Adams at Urban Institute