The federal Child Care and Development Fund (CCDF) gives states and territories a flexible resource to engage in a broad set of activities targeting child care quality. States must spend at least 9 percent of CCDF funds each year on approved quality activities, with child care resource and referral systems, child care consumer education, and health and safety training as some common uses of the funds. But states can look beyond these typical uses and consider ways to offer equitable support, especially to reach often-overlooked home-based providers.

CCDF quality set-aside funds can support home-based providers and help more providers get licensed by providing information, coaching, and financial incentives. Start-up grants can help new providers meet minimum health and safety requirements, and quality improvement grants can help providers make necessary program enhancements. Technology improvement grants can increase access to reliable computers for providers if the new equipment would improve provider preparedness and the quality of child care services.

Quality funds can also be used for professional development. States could provide coaches who can mentor and support new or prospective providers, offer targeted trainings in various formats designed for home-based providers, and offer support services, such as infant and early childhood mental health consultation and home visiting, that can support home-based providers’ wellness and care quality. Funds can also be used to translate training and licensing application materials into multiple languages to make access more equitable.

Covering the coordination costs of running staffed family child care networks or informal home-based provider networks is another allowable activity. These networks can support providers’ access to resources, provide peer connections and a social support system, serve as a liaison with state agencies and community partners, and help providers access additional resources through federal programs.

A top priority of the Biden administration is addressing the early care and education workforce shortage (PDF), so new federal spending on child care may offer more opportunities to direct funds toward increasing the supply and quality of home-based providers.

How states can be more inclusive of home-based providers

We suggest six key steps that states could take to better direct available funds toward home-based providers.

  1. Review investments to ensure they are appropriate for and accessible to the full range of home-based caregivers.
  2. Reevaluate licensing and QRIS standards.
  3. Support providers at each stage of their professional development.
  4. Offer business administration and financial management supports.
  5. Build a greater understanding of home-based child care and its specific strengths and needs.
  6. Identify ways to increase quality in license-exempt settings.

Read the full article about leveraging funding for home-based child care by Heather Sandstrom and Fernando Hernandez-Lepe at Urban Institute.