Support for Families: Gradual Child Care Assistance Phase-Out and More Choice
This act aims to help low-income families retain child care assistance even as their earnings slightly increase. It introduces a gradual reduction of support instead of an abrupt cut-off. Additionally, for fiscal years 2022 and 2023, the act increases flexibility in spending child care funds, giving parents more choices.
Key points
Working or studying families whose income slightly exceeds the initial limit will see a gradual phase-out of child care assistance, preventing sudden loss of support.
For 2022 and 2023, states will have more flexibility in how they spend child care funds, potentially offering more options for parents.
The changes are designed to prevent a 'child care cliff,' where a small income increase leads to a complete loss of child care benefits, often discouraging career advancement.
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