Report: Costs in most states exceed subsidies for child care

WASHINGTON – A new report shows child care providers charge more than federal subsidies provided to low-income parents in most states across the U.S.

The report, released Tuesday by the Department of Health and Human Services Office of the Inspector General, focuses on the Child Care Development Fund, an $8.2 billion block grant.

The federal recommendation is that states provide payment rates at the 75th percentile, which allows eligible families to access 3 out of 4 providers without paying more out of pocket. But the report shows most states set their rates much lower.

The Administration for Children and Families says it has placed 33 states on a corrective action plan to ensure they’re complying with equal access requirements. ACF says it will provide states with training and guidance.