How Much Does CCAP Cover for Child Care?

Child care can take a bigger bite out of your budget than rent. For many families, it's the single largest monthly expense. The good news is that have resources to help you through it: Child Care Assistance Program. So the real question now is, how much does the Child Care Assistance Program actually pay?

Let me walk you through it in plain terms, so you know what to expect before you start calling providers.

What the Child Care Assistance Program pays for

The Child Care Assistance Program helps cover the cost of child care while you work, look for work, or go to school. It's funded through a federal program and run by your state, which is why the details shift a little depending on where you live.

Here's the part that matters most. In most cases, you pay a small share called a copayment, and the program pays the rest directly to your child care provider. You're not fronting the full bill and waiting for a refund. The money goes to the provider on your behalf.

How your subsidy amount is figured out

The Child Care Assistance Program doesn't pay one flat amount to everyone. Your subsidy depends on four things:

• Your household income. Lower income means a smaller copayment and more help.
• Your family size. A larger household is measured against higher income limits.
• Your child's age. Care for infants and toddlers costs more, so the program pays more for younger children.
• The hours of care you need each week. Full-time care draws a larger subsidy than part-time.

Your state puts those four pieces together to decide what you pay and what the program covers.

How much you'll pay out of pocket

Most families pay a copayment. It's the smaller portion of the cost, and you pay it directly to your provider each month.

Federal rules cap how high that copayment can go. States are not allowed to charge a family more than 7 percent of their income as a copayment, no matter how many children are in care, according to the U.S. Administration for Children and Families. Many states set it lower than that, and some waive it entirely for families with the lowest incomes.

So if your income is very low, your out-of-pocket cost may be little to nothing. That's by design. The program is built so that the families who need the most help pay the least.

What the program will cover, and where the limit is

Each state sets a maximum rate it will pay a provider. That cap is the most the program will send for your child's care.

States set those maximums using a market rate survey, a regular check of what child care actually costs in your area. They update the rates over time, usually once a year, so the cap keeps pace with real prices. Because each state runs its own survey, the maximum in your state may look very different from a neighboring one.

Here's the honest part. If your provider charges more than your state's maximum rate, you may have to cover the difference yourself, on top of your copayment. It's worth asking a provider two questions before you enroll: do you accept the Child Care Assistance Program, and do you charge more than the state rate? The answers tell you exactly what your real cost will be.

Is it worth pursuing?

For most families who qualify, yes. The program is designed to take the largest share of the bill off your plate and hand it straight to your provider. Even with a copayment, and even if you cover a small gap above the state rate, you're paying a fraction of the full cost.

Child care assistance may not be the only thing your family qualifies for either. Many parents who qualify for help with child care also qualify for tax credits like the Child and Dependent Care Credit, or for other state and federal programs they didn't know existed.

What to do next

You've already done the part that stops most people. You found out you qualify. Your next step is to run Radar, by Turnout, a free benefits scan again with your full picture in mind. It shows you everything your family may qualify for beyond child care, and if any of it gets confusing, we know the system and can walk through it with you.

Then start calling providers. Ask the two questions: do you accept the program, and do you charge above the state rate? Now you know what the answers mean.