The Illinois Department of Human Services (IDHS) Child Care Assistance Program (CCAP) plays a vital role in ensuring that families across Illinois have access to affordable, quality child care. For families, child care providers, and stakeholders involved in early childhood education, staying informed about program updates is essential. This article breaks down the significant changes to the Illinois Action For Children Child Care Assistance Program, effective July 1, 2024, offering a comprehensive guide to help you understand how these updates may affect you.
Understanding the New Income Eligibility Guidelines
A key aspect of the Illinois Action for Children Child Care Assistance Program is income eligibility. To align with federal and state regulations, the income eligibility levels for CCAP are being re-indexed to the current Federal Poverty Level (FPL) starting July 1st.
- Initial Eligibility: The income threshold for initial eligibility remains at 225% of the Federal Poverty Level.
- Redeterminations: For families undergoing redeterminations, the eligibility level is set at 275% of the FPL.
- Family Contribution: Importantly, families will continue to contribute no more than 7% of their reported gross income towards child care costs.
For detailed information on the updated income guidelines, you can refer to the official documents provided by IDHS:
- English Version
- Spanish Version
These resources provide a clear breakdown of the income levels and can help families determine their potential eligibility under the Illinois Action for Children Child Care Assistance Program.
Reimbursement Rate Increase for Family Child Care Homes
Good news for licensed family child care homes, licensed group homes, and license-exempt home providers! Recognizing the crucial role these providers play, the Illinois Action for Children Child Care Assistance Program is increasing reimbursement rates.
These rate increases are a result of the newly ratified contract with SEIU and are being implemented in two phases:
- January 1, 2024 Increase: Already in effect.
- July 1, 2024 Increase: The second increase will be reflected in the monthly billing certificate for care provided in July.
Providers do not need to take any action to receive these updated rates. Furthermore, retroactive payments covering the period from January through June 2024 will be issued in the Fall of 2024. This retroactive payment ensures that providers receive the full benefit of the rate increases.
Alt text: A joyful childcare provider is engaging in playful learning activities with a group of diverse young children in a brightly lit classroom, highlighting the positive impact of early childhood education programs.
While rates for child care centers are not currently being increased, IDHS is actively working on other initiatives to strengthen and expand child care options across Illinois. Current CCAP rates can be found on the IDHS website: https://www.dhs.state.il.us/page.aspx?item=10864.
Decoupling CCAP Reimbursement and Private Tuition Rates: Increased Flexibility for Providers
A significant policy revision within the Illinois Action for Children Child Care Assistance Program is the “decoupling” of CCAP reimbursement rates from private tuition rates. Previously, there were limitations on providers charging the state a higher rate than their private pay rates. This is now changing.
Providers now have the option to charge the state a higher rate than what they charge families paying privately. This change offers several benefits:
- Maintaining Affordability for Non-CCAP Families: By decoupling rates, providers can increase CCAP rates without automatically raising costs for families who are not eligible for assistance, helping maintain stable child care arrangements for all.
- Increased Provider Flexibility: This change removes barriers for providers who wish to offer scholarships, discounts, or sliding fee scales to private-pay families.
This policy shift provides greater financial flexibility for child care providers and can contribute to a more sustainable child care ecosystem in Illinois.
CCAP Support for Registration Fees
To further ease the financial burden on families, the Illinois Action for Children Child Care Assistance Program will now assist with registration fees. Licensed and license-exempt centers that charge registration fees are being asked to complete and submit Registration Certification forms to their CCR&R (Child Care Resource & Referral) agency.
Once processed, the registration fee will be added to the family’s first CCAP payment. CCAP will cover:
- Up to $50 for a single child in care.
- Up to $100 for multiple children from the same household.
This assistance with registration fees can make a meaningful difference for families accessing child care services through the Illinois Action for Children Child Care Assistance Program.
End of Initial Activity Search Policy
It’s important to note a change regarding the Initial Activity Search policy. Due to the expiration of federal COVID relief funds, this policy will end on June 30, 2024.
Previously, this policy allowed families 3 months of CCAP eligibility to find employment or enroll in an educational program. Effective July 1, 2024, all new applications will require proof of an eligible activity (such as employment or enrollment in education) to be approved for CCAP.
Alt text: A parent is warmly dropping off their young child at a daycare center, symbolizing the crucial support the Child Care Assistance Program provides to working families.
An exception remains for families experiencing homelessness, who will continue to have a grace period to provide documentation of an eligible activity. Families applying for the Illinois Action for Children Child Care Assistance Program after July 1st should be prepared to provide proof of an eligible activity as part of their application.
Looking Ahead
These updates to the Illinois Action for Children Child Care Assistance Program reflect the ongoing commitment of IDHS to strengthen early childhood education and support Illinois families. By staying informed about these changes, families and providers can effectively utilize the program and contribute to a thriving early childhood landscape in Illinois. The Illinois Department of Human Services continues to evaluate and adapt the CCAP program to best serve the needs of the community, ensuring equitable access to high-quality child care for all.
