HHS Rolls Back Four Child Care Block Grant Requirements

The Department of Health and Human Services has issued a final rule that removes four requirements from a March 2024 child care funding regulation. The rule stops mandating a 7 percent cap on family co-payments, ends the requirement to pay child care providers in advance, and removes rules about how providers must be contracted and paid based on a child’s approved enrollment status.

Why it matters: This rule changes how states can structure child care subsidies for low-income working families. By removing federal caps on co-payments and payment timing, states now have full discretion to set their own subsidy rules. The change is mostly administrative for families and providers, as states have already been operating under temporary waivers and can continue their current practices without new federal mandates.

Who it affects

• State, territory, and tribal child care agencies that administer federal subsidies

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This action comes from the Department of Health and Human Services as a final rule published in the Federal Register; readers should review the full document for exact regulatory text and implementation timelines before relying on these details.

Agency: Health and Human Services Department
Source: Federal Register — read the official document