Ohio created a 2025–2027 Child Care and Development Fund (CCDF) State Plan, outlining compliance with rule changes introduced by the Administration for Children and Families (ACF) in the Child Care Development Block Grant (CCDBG). The state plan will reduce child care costs, increase access, and simplify enrollment for Ohio’s families.
Despite progress, reports from the First Five Years Fund (FFYF) and the National Women’s Law Center (NWLC) highlight ongoing challenges, such as affordability and accessibility. This data reinforces the importance of continued efforts to improve practices and strengthen the child care system for families supported through CCDBG. By implementing these changes, Ohio can better support economic stability and child care access for all families.
The planning process included a public comment period from May 30 to June 20, 2024, and a public hearing was held on June 20. Stakeholders could submit comments on the plan. You can read Groundwork Ohio’s comments here.
ACF is working to increase access to high-quality early learning experiences for children living in low-income households whose families can’t afford the rising cost of child care. ACF emphasized support for these children in the most recent rule implemented in April of 2024.
ACF’s new rule intends to:
lower families' costs for child care,
increase access to care and improve family well-being,
strengthen CCDF payment practices to child care providers,
expand child care options,
better support child care operations, and
reduce program bureaucracy for families, making it easier for them to enroll in CCDF.
This rule requires Ohio to cap family co-payments at 7% of household income, streamline eligibility policies, and align payment practices with the private-pay market, such as paying child care providers based on enrollment and providing prospective payments to providers, along with engaging in grants or contracts for direct services. Ohio must also enhance child care supply and quality for underserved areas and minimize disruptions through streamlined eligibility policies.
CCDBG Helps Increase Access to Child Care
Economic stability is essential for families to thrive. When families are financially secure, they can afford safe housing, nutritious food, quality health care, and child care. Unfortunately, many families in Ohio are struggling. The child poverty rate in Ohio is increasing, with nearly one in five children under age five living in poverty. Families earning less than 145% of the Federal Poverty Level (about $36,000 annually for a mother and two children) qualify for financial assistance. However, earning just over $17 per hour disqualifies a mother from receiving help. Sustained investment and policy improvements are needed to ensure all families can access affordable, high-quality child care.
Child Care for Low-Income Families
Recent reports from the FFYF and the NWLC reveal both progress and ongoing challenges in the state's child care infrastructure. While income eligibility limits and provider payment rates have increased, there are still gaps in access and affordability for Ohio families.
Administered by ACF, the CCDBG helps low-income families afford child care as it provides block grants to states, which then distributes these funds as child care subsidies. FFYF released a factsheet overviewing the CCDBG in Ohio that highlights:
Only 9% of eligible children under age five receive CCDBG assistance due to insufficient federal funding.
Without subsidies, families face high child care costs, ranging from $734 to $1,250 per month for center-based infant care. Subsidies help, but even with assistance, the financial burden can be substantial.
Ohio has 5,163 child care providers accepting CCDBG subsidies. However, there is a significant gap between reimbursement rates and the actual cost of providing care. The state has been working to increase these rates, yet they remain below the federally recommended 75th percentile of market rates.
NWLC’s Annual Report
The NWLC's report, Two Steps Forward, One Step Back, further shows the complexities and challenges of child care assistance policies in Ohio:
In 2023, Ohio raised its income eligibility limits slightly, with the limit for families transitioning from Temporary Assistance to Needy Families (TANF) set at $37,296. Despite these adjustments, many families still struggle to qualify for assistance due to restrictive income limits.
Ohio exempts homeless families and those receiving protective child care services from copayments. Families with incomes at or below the federal poverty level are also exempt. However, families just above this threshold face significant out-of-pocket costs.
The state has increased its base payment rates to the 35th percentile of 2022 market rates as of February 2024.
Ohio allows parents to continue receiving child care assistance while searching for a job for up to four months. This policy helps parents maintain stability during periods of unemployment, though the support period is relatively short.
Infant Toddler Infrastructure Grants
The new rule requires states to serve children and families through grants and contracts. One way DCY has built supply and increased parental choice through grants and contracts is through the Infant and Toddler Infrastructure Grants. DCY launched these competitive grants to increase access to infant and toddler care in communities with high infant mortality rates, and $15 million annually was allocated for these grants to rebuild the workforce and support early care programs.
In December 2023, DCY announced the first round of grants, and on June 25, 2024, a second round was introduced. These grants can be used to:
Reopen an infant/toddler classroom.
Convert a closed classroom to an infant/toddler classroom.
Expand programs for infant/toddler space.
Applications are accepted from July 8, 2024, at 8:00 a.m. through July 19, 2024, at 5:00 p.m.
For more detailed information on the state of child care assistance policies, visit the First Five Years Fund's 2024 CCDBG State Fact Sheets and the National Women's Law Center's report, Two Steps Forward, One Step Back: State Child Care Assistance Policies 2023.