CCDF Child Care Assistance in 2027: Who Qualifies and How to Apply

Finding affordable, reliable child care is one of the biggest challenges for working parents. The Child Care and Development Fund (CCDF) is a federal and state partnership designed to help low-income families access safe and supportive care for their children while parents work, train for a job, or attend school.

Administered by the U.S. Department of Health and Human Services (HHS), CCDF provides states with block grants to subsidize child care costs for eligible families. Roughly 1.3 million children nationwide benefit from this support each month, which not only helps parents remain employed but also ensures children receive quality early care that prepares them for school and beyond. Even so, the program reaches only a fraction of the families who qualify, and many states keep waiting lists.

Updated November 2026: This guide covers what families need to know heading into 2027, including HHS's 2026 CCDF rule changes, federal funding, new state verification requirements, expanded child care tax benefits, and what to watch for in the year ahead.

If you're looking for more details about the programs that affect your family, finances, and future, be sure to sign up for BenefitKarma to stay in the know.

Key takeaways

• CCDF helps low-income families pay for child care while parents work, look for work, or go to school or job training.
• Federal law caps eligibility at 85% of your state's median income, but most states set lower limits.
• You apply through your state, and rules, co-payments, and wait times vary widely.
• A 2026 federal rule removed the requirement that states cap family co-payments at 7% of income, so some families could see higher costs depending on their state.
• New 2026 tax changes, including a larger Child and Dependent Care Tax Credit and a higher dependent care FSA limit, can help cover costs CCDF doesn't.
• In 2027, watch for final federal funding levels, state co-payment changes, and new Medicaid work requirements that start January 1.

What is the CCDF?

The Child Care and Development Fund is a federal block grant program created to make child care more affordable for families with low incomes. It combines two funding streams: the Child Care and Development Block Grant (CCDBG), which Congress funds each year, and mandatory Child Care Entitlement to States funding. States have flexibility in how they use the family and education benefit funds, but federal law requires them to:

• help families pay for child care costs
• improve the quality and safety of child care programs (states must spend at least 12% of their CCDF money on quality improvements)
• increase access to early learning and development opportunities

Essentially, CCDF is designed to support both parents and children: parents can stay employed or continue their education, while children receive care that promotes healthy growth and school readiness.

For federal fiscal year 2026, total CCDF funding is about $12.4 billion. That includes $8.83 billion for CCDBG, an $85 million increase over 2025.

Note: CCDF is not the same everywhere. Because states administer the program differently, eligibility rules, co-payments, wait times, provider options, and priorities vary widely. Check your state benefits resource page for local details.

Who is eligible for the CCDF?

Eligibility rules vary by state, but federal guidelines set some basic standards:

• Income: Families must earn less than 85% of their state's median income, though many states set lower limits, often tied to a percentage of the federal poverty level.
• Work or school requirement: Parents must be employed, looking for work, or enrolled in education or training programs, such as WIOA-funded job training or college classes paid for with Pell Grants.
• Child's age: The program covers children under age 13, or up to age 19 if the child has special needs or is under court supervision.
• Residency and citizenship: Applicants must live in the state where they apply. Only the child's citizenship or immigration status counts: children must be U.S. citizens or qualified immigrants, and states may not deny help based on a parent's status.

Not sure what else you might qualify for? Try our Benefit Eligibility Screener.

What kinds of things does the CCDF pay for?

The CCDF subsidy pays for a wide range of care options. Families can usually choose the type of care that works best for them, as long as the provider meets state standards. Covered options often include:

• Licensed child care centers: Daycare centers that meet state regulations.
• Family child care homes: Smaller, home-based programs run by providers.
• Relatives or informal caregivers: In some states, grandparents, other family members, or trusted caregivers can qualify if they meet training and safety requirements.
• Before- and after-school programs: For school-aged children who need care outside of school hours. Some families also use free Title I after-school programs.
• Specialized care: In certain cases, programs that meet the unique needs of children with disabilities, which can work alongside early intervention services and IDEA supports.

In most cases the state pays its share directly to your provider, and you pay a co-payment based on your income and family size.

How do you sign up for CCDF?

Applications are handled at the state level, usually through your state's Department of Human Services, Early Childhood office, or similar agency. The process generally involves:

1. Find your state agency: Each state has its own child care assistance portal. Start with our state resources directory, or search "[your state] child care assistance" to locate the right office.
2. Fill out an application: You'll need to provide proof of income, household size, work or school enrollment, and residency, plus your child's birth certificate or immigration documents.
3. Select a provider: Once approved, you'll choose a provider who accepts CCDF payments. The state pays its portion directly to the provider, while you pay your co-payment.

Processing times vary by state. In states with waiting lists, you may be approved but have to wait for funding to open up, so it's smart to apply as early as possible.

Do you have to resubmit for CCDF (and how often)?

Yes. CCDF is not a one-time benefit. It requires periodic re-certification to make sure families still meet income and work or school requirements.

• Federal law guarantees at least a 12-month eligibility period. During that year, you generally keep your assistance even if your hours change or you get a raise, as long as your income stays below 85% of state median income.
• Some states allow a longer eligibility period, while others may ask for updates sooner if your circumstances change significantly (for example, if you permanently stop working or going to school).
• Families usually need to submit pay stubs, proof of enrollment in school or training, and updated household information during the renewal process.

What other programs do CCDF recipients qualify for?

Families who qualify for CCDF often also meet the income guidelines for other assistance programs, such as:

• SNAP (food stamps): Helps with grocery costs. Estimate your amount with our SNAP benefit calculator.
• Medicaid or CHIP: Provides health insurance for children and low-income parents.
• WIC (Women, Infants, and Children): Offers food and nutrition support for pregnant women and young children. Here's how to sign up for WIC.
• Head Start and Early Head Start: Free preschool and early childhood programs.
• TANF (Temporary Assistance for Needy Families): Provides cash assistance for very low-income families.
• Tax credits: The Earned Income Tax Credit and the Child Tax Credit can put more money back in your pocket at tax time.
• School meals: Children in eligible families often qualify for the National School Lunch Program and Summer EBT.

These programs work together to support family stability, helping cover basics like food, healthcare, and housing alongside child care. You can explore more options in our guide to family and education benefit programs.

What to expect for CCDF in 2027

Here's what families who use or plan to apply for CCDF should watch in the year ahead.

• Federal funding is still being decided: Congress hasn't finished the fiscal year 2027 budget. A temporary spending bill keeps CCDF funded at current levels through December 11, 2026, and the House has proposed $8.84 billion for CCDBG, a $10 million increase. The final number will affect how many families states can serve and whether waiting lists grow.
• Co-payment decisions shift to the states: With the federal 7% cap gone, each state sets its own co-payment rules. States submit new three-year CCDF plans in 2027 for the period starting October 2027, so watch for proposed changes and public comment opportunities on your state resource page.
• Medicaid work requirements begin: Starting January 1, 2027, many adults covered through Medicaid expansion must show 80 hours a month of work, school, or volunteering to keep coverage. Parents and caregivers of children 13 and under are exempt, but you may still need to report the exemption. Learn more about Medicaid changes under H.R. 1.
• A bigger child care tax break at filing time: When you file your 2026 tax return in early 2027, you can claim the expanded Child and Dependent Care Tax Credit for the first time. If your employer offers a dependent care FSA, open enrollment is when you choose how much to set aside for 2027, up to $7,500. Also check the latest on the Child Tax Credit.
• A possible stay-at-home parent rule: If HHS formally proposes letting some married stay-at-home parents receive CCDF assistance, there will be a public comment period before anything takes effect. Current recipients are not affected unless a final rule is adopted.

What changed for CCDF in 2026?

CCDF continues to be funded, but several federal changes in 2026 affect how the program works for families and providers.

A new federal rule rolls back 2024 requirements

On May 12, 2026, HHS finalized a rule called "Restoring Flexibility in the Child Care and Development Fund," which took effect July 13, 2026. It removes several requirements from a 2024 rule. States are no longer required to:

• cap family co-payments at 7% of household income
• pay providers at the start of the care period instead of reimbursing them afterward
• pay providers based on enrollment rather than daily attendance
• use grants or contracts to build care for hard-to-serve groups

States may keep these policies if they choose, and many already meet the 7% co-payment benchmark. HHS says the change reduces costs and paperwork for states. Child care advocates warn it could raise co-payments for some families and make providers less willing to accept subsidies. Check with your state agency to see whether your co-payment is changing.

Stricter verification and funding disputes

In January 2026, following fraud allegations involving child care providers in Minnesota, HHS began requiring all states to submit additional verification and data before drawing down CCDF funds. HHS also froze CCDF, TANF, and Social Services Block Grant funding to five states (California, Colorado, Illinois, Minnesota, and New York). Federal courts blocked that freeze, so funding has continued while litigation plays out. If you live in an affected state, your benefits should not have stopped, but you may notice more documentation requests.

A proposal to pay stay-at-home parents

In September 2026, news reports revealed that the administration is drafting a rule that would let some married couples with one stay-at-home parent receive CCDF assistance. Read more in our coverage of the stay-at-home parent child care plan. Nothing has changed for current recipients, and any new rule would go through a public comment period first.

Ripple effects from H.R. 1

Recent legislation, particularly H.R. 1, sometimes called the "One Big Beautiful Bill Act", doesn't change CCDF directly, but it affects many of the families who use it:

• Changes to related programs: H.R. 1 reduced federal spending on SNAP and Medicaid. SNAP work requirements now extend to more adults, including parents whose youngest child is 14 or older (see ABAWD). Medicaid work requirements begin January 1, 2027, though parents of children 13 and under are exempt.
• Administrative hurdles: New work and paperwork rules across safety net programs mean families who miss deadlines or struggle with documentation risk losing help, even if they're still eligible. Losing SNAP or Medicaid can make CCDF co-payments harder to afford.
• New tax help for child care: Starting with the 2026 tax year, the Child and Dependent Care Tax Credit can cover up to 50% of qualifying expenses for lower-income families, the dependent care FSA limit rose from $5,000 to $7,500 (see a new IRS rule on dependent care FSAs), and businesses get a bigger tax credit for offering employee child care. Note that the dependent care credit is not refundable, so families with little or no tax liability may not benefit.

The bottom line: CCDF still exists and remains the largest source of federal child care help for working families. But the rules are shifting heading into 2027: co-payment protections are now up to each state, verification is stricter, and related programs have new requirements. If you rely on CCDF, stay in touch with your state agency, keep your documents up to date, and look into the new tax benefits that can help fill the gaps when you file in 2027. For more help, visit our Find Benefits hub.