New Rule to Reduce Costs for More than 100,000 Families Receiving Childcare Subsidies

On February 29, 2024, the Biden-Harris Administration’s U.S. Department of Health and Human Services (HHS), through the Administration for Children and Families (ACF), announced a new rule that will reduce costs for families that receive childcare subsidies and improve options for families. This final rule delivers on the Executive Order on Increasing Access to High-Quality Care and Supporting Caregivers, signed by President Biden in April 2023, which directed HHS to reduce childcare costs and improve childcare payment practices. The changes make updates to the Child Care and Development Fund (CCDF), which is the nation’s largest funding stream to help families afford child care and improve quality in child care settings. Key updates to CCDF include:

• Reducing costs to families;
• Expanding choices for families;
• Increasing payments to providers; and
• Cutting red tape.