Childcare Assistance Programs: Help Paying for Daycare

Quality childcare is expensive, often costing more than rent or college tuition. But assistance programs can help make childcare affordable so you can work or attend school.

Child Care and Development Fund (CCDF)

This federal program provides childcare subsidies to low-income families who are working or in education/training. Benefits go directly to childcare providers, and families pay a copay based on income. Apply through your state or county social services office.

Head Start and Early Head Start

These free programs serve children from birth to age 5 in families at or below the poverty level. Head Start provides comprehensive early education, health, nutrition, and parent involvement services. Search for programs at eclkc.ohs.acf.hhs.gov.

Other Options

• Childcare Tax Credit – claim when filing taxes
• Employer childcare benefits – some employers subsidize care
• Sliding-scale childcare centers – many nonprofits adjust fees by income
• State pre-K programs – free preschool in many states

The Child Care and Development Fund

The Child Care and Development Fund, also known as CCDF, is the primary federal program that helps low-income families pay for childcare. Administered by states, territories, and tribes, CCDF provides subsidies that cover part or all of the cost of childcare for eligible families. Eligibility is generally limited to families with incomes below 85 percent of the state median income, though many states set their thresholds lower. Parents must be working, attending school, or participating in a job training program to qualify.

One of the most important features of CCDF is parental choice. Families who receive subsidies can select the childcare provider that best meets their needs, whether that is a licensed childcare center, a family childcare home, or a relative caregiver. Subsidies are typically paid directly to the provider on behalf of the family. Families may be required to pay a copayment based on their income, but this amount is designed to be affordable.

Head Start and Early Head Start

Head Start is a federally funded program that provides free early childhood education, health services, nutrition support, and family engagement opportunities to children from birth to age five in low-income families. Early Head Start serves infants, toddlers, and pregnant women, while Head Start serves children ages three to five. Both programs are designed to promote school readiness and support the overall development of the child.

Eligibility for Head Start is primarily based on family income at or below the federal poverty level, though children in foster care, families experiencing homelessness, and families receiving public assistance such as TANF or SSI are automatically eligible regardless of income. Head Start programs operate in every state and are available in a variety of settings, including schools, community centers, and family childcare homes. To find a program near you, visit the Head Start locator at eclkc.ohs.acf.hhs.gov or call 1-866-763-6481.

State and Local Childcare Programs

In addition to federal programs, many states and local governments operate their own childcare assistance initiatives. Some states offer pre-kindergarten programs for all four-year-olds, regardless of family income. Others provide tax credits for childcare expenses that go beyond the federal Child and Dependent Care Credit. Check with your state’s childcare resource and referral agency to learn about all available programs. You can find your local agency by calling 1-800-424-2246 or visiting childcareaware.org.

Some employers also offer childcare benefits such as dependent care flexible spending accounts, which allow you to set aside pre-tax dollars to pay for childcare. Others provide on-site childcare, backup care services, or childcare referral assistance. If your employer does not currently offer childcare benefits, consider asking your human resources department whether such options could be made available. The cost savings from pre-tax dependent care accounts alone can amount to hundreds or even thousands of dollars per year.

Navigating Waitlists and Maximizing Your Options

Demand for childcare subsidies often exceeds available funding, which means many families end up on waiting lists. To improve your chances of receiving assistance, apply as early as possible and apply to multiple programs simultaneously. Keep your contact information current with every program you have applied to, and respond promptly to any requests for documentation. If you are placed on a waitlist, ask about your position and how often the list moves. In the meantime, explore other options such as cooperative childcare arrangements with other families, community-based programs, or faith-based childcare centers that may offer reduced rates.

The Child Care and Development Fund

The Child Care and Development Fund, also known as CCDF, is the primary federal program that helps low-income families pay for childcare. Administered by states, territories, and tribes, CCDF provides subsidies that cover part or all of the cost of childcare for eligible families. Eligibility is generally limited to families with incomes below 85 percent of the state median income, though many states set their thresholds lower. Parents must be working, attending school, or participating in a job training program to qualify.

One of the most important features of CCDF is parental choice. Families who receive subsidies can select the childcare provider that best meets their needs, whether that is a licensed childcare center, a family childcare home, or a relative caregiver. Subsidies are typically paid directly to the provider on behalf of the family. Families may be required to pay a copayment based on their income, but this amount is designed to be affordable.

Head Start and Early Head Start

Head Start is a federally funded program that provides free early childhood education, health services, nutrition support, and family engagement opportunities to children from birth to age five in low-income families. Early Head Start serves infants, toddlers, and pregnant women, while Head Start serves children ages three to five. Both programs are designed to promote school readiness and support the overall development of the child.

Eligibility for Head Start is primarily based on family income at or below the federal poverty level, though children in foster care, families experiencing homelessness, and families receiving public assistance such as TANF or SSI are automatically eligible regardless of income. Head Start programs operate in every state and are available in a variety of settings, including schools, community centers, and family childcare homes. To find a program near you, visit the Head Start locator at eclkc.ohs.acf.hhs.gov or call 1-866-763-6481.

State and Local Childcare Programs

In addition to federal programs, many states and local governments operate their own childcare assistance initiatives. Some states offer pre-kindergarten programs for all four-year-olds, regardless of family income. Others provide tax credits for childcare expenses that go beyond the federal Child and Dependent Care Credit. Check with your state’s childcare resource and referral agency to learn about all available programs. You can find your local agency by calling 1-800-424-2246 or visiting childcareaware.org.

Some employers also offer childcare benefits such as dependent care flexible spending accounts, which allow you to set aside pre-tax dollars to pay for childcare. Others provide on-site childcare, backup care services, or childcare referral assistance. If your employer does not currently offer childcare benefits, consider asking your human resources department whether such options could be made available. The cost savings from pre-tax dependent care accounts alone can amount to hundreds or even thousands of dollars per year.

Navigating Waitlists and Maximizing Your Options

Demand for childcare subsidies often exceeds available funding, which means many families end up on waiting lists. To improve your chances of receiving assistance, apply as early as possible and apply to multiple programs simultaneously. Keep your contact information current with every program you have applied to, and respond promptly to any requests for documentation. If you are placed on a waitlist, ask about your position and how often the list moves. In the meantime, explore other options such as cooperative childcare arrangements with other families, community-based programs, or faith-based childcare centers that may offer reduced rates.