Kentucky Child Care Assistance Program

Written By Lucy Budge

Overview 

Over the past three years, Kentucky has made significant improvements to the state's long-standing Child Care Assistance Program (CCAP) to better meet the needs of low-income families. The state increased family eligibility from 160% of the Federal Poverty Level to 85% of the State Median Income, made all childcare employees eligible regardless of income, raised provider reimbursement rates, and reimburses providers based on enrollment rather than attendance.

These improvements are part of a broader state effort to expand access to high-quality childcare for working families across income ranges, which also included establishing the complementary Kentucky Employee Child Care Assistance Partnership (ECCAP). 

 

Why It Matters 

Many low-income Kentucky families cannot afford high-quality childcare without assistance. CCAP helps low-income parents pay for childcare, making it possible for them to work or continue their education while their children receive quality care. 

The recent improvements to the CCAP program aim to increase accessibility and stability of childcare: 

  • Increased income threshold: Raising eligibility to 85% SMI has allowed thousands more families to qualify for assistance. 

  • Enrollment-based reimbursement: Paying providers based on enrollment and care schedule rather than attendance has created much-needed financial stability for childcare businesses. 

  • Support for childcare workforce: Making all childcare workers eligible regardless of income has improved the retention of childcare staff. 

 

Quick Facts

  • Core Model: Financial assistance through subsidies 

  • Notable Feature: Families now remain eligible for a 12-month period, giving them stable, uninterrupted support 

  • Launch Date: Major improvements were implemented in 2022, 2023, and 2024

  • Eligibility: Families with household incomes at or below 85% of State Median Income 

  • Current Funding: Part of a $112.45 million state allocation for 2024-2026, which funds multiple childcare initiatives 

  • Participants: Approximately 42,000 children enrolled 

  • Program Coverage: Statewide, serving families in all Kentucky counties 

 

Background

CCAP was initially established to provide financial assistance to eligible families, enabling access to affordable childcare while promoting self-sufficiency and child development. Funded through a combination of federal Child Care and Development Fund allocations and state appropriations, CCAP has evolved significantly to address changing family needs and economic conditions. 

In January 2022, CCAP eligibility increased from 160% to 200% of the Federal Poverty Guidelines, then further expanded to 85% of the State Median Income in July 2022. These changes resulted in an additional 2,999 families and 4,425 children becoming eligible for the program. 

In July 2021, subsidy rates for participating childcare providers were also increased to the 80th percentile of the state's Market Rate Survey, ensuring more competitive payments and boosting the financial stability of the childcare sector. 

 

How it Works

The program provides subsidy funds directly to childcare providers on behalf of eligible families: 

  • Parents apply through multiple channels including online through the state’s portal, “kynect,” by phone, or in person 

  • Eligibility is determined based on income, residency, and work/education requirements 

  • Families select from approved childcare providers that best meet their needs 

  • The state pays providers directly based on the number of children enrolled, while families contribute a co-payment determined by their income 

The Division of Child Care and the Division of Family Support jointly administer the program under the Kentucky Cabinet for Health and Family Services, Department for Community Based Services.

 

Key Features

  • Family Choice: Any licensed, certified, or registered childcare provider may participate in the program, giving families choice in selecting care arrangements 

  • Extended Eligibility Period: Families may remain eligible for a full year even if employment changes 

  • Transitional Assistance: Families leaving CCAP due to increased income receive six months of assistance at 50% of their previous rate, helping to mitigate the "benefit cliff" 

  • Childcare Workforce Support: Childcare staff working at least 20 hours weekly are eligible for CCAP for their own children, regardless of household income 

  • Enrollment-Based Reimbursement: Providers receive stable payments based on enrollment rather than daily attendance, ensuring more consistent income 

  • One-Stop Application System: Families can access all state childcare assistance programs through the online “kynect” portal, reducing paperwork and simplifying the process of finding the support they need 

 

Policy Levers

  • Funding Appropriations: Funding allocation significantly increased to $112.45 million for the 2024-2026 biennium 

  • Eligibility Expansion: Income threshold set at 85% of State Median Income reaches more working families 

  • Extended Eligibility Period: 12-month certification with 90-day job search grace periods provides stability to families with young children 

  • Market-Based Reimbursement: Provider payments set at the 80th percentile of market rates help keep childcare providers in business 

  • Enrollment-Based Payments: Switching to enrollment-based reimbursement gives providers stable income 

 

Results

CCAP has demonstrated significant impact on Kentucky families and the childcare system: 

  • Growing Participation: 35,717 children from 20,865 families enrolled as of September 2023 

  • Expanded Access: Nearly 7,800 children from 5,300 families receiving assistance due to the increased income threshold 

  • Impact on the Childcare Workforce: Over 3,200 childcare workers and 5,600 of their children now benefit from automatic eligibility 

  • Provider Stability: Enrollment-based reimbursement and higher payment rates have strengthened the childcare system statewide 

 

Learn More

 

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Lucy Budge https://www.untitledsite.co
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Kentucky Employee Child Care Assistance Partnership