TANF Child Care Assistance Explained: Eligibility, Subsidies, Costs & How to Apply

What is TANF child care assistance?

TANF stands for Temporary Assistance for Needy Families. States run TANF programs with federal funding, and many use part of that system to help parents pay for child care while they work toward employment or financial stability.

Child care assistance can make it possible for a parent to accept a job, attend job training, complete an approved education program or participate in another required activity. Therefore, child care often works as a support service rather than as a separate cash payment to the parent.

Is child care assistance part of the TANF cash payment?

Usually, no. TANF cash assistance is money intended to help eligible families meet basic needs. Child care assistance is commonly handled as a separate supportive service or subsidy.

In many programs, the state pays an approved child care provider directly. As a result, the parent may never receive the child care payment as cash.

TANF child care and regular child care subsidies are not always the same

States and territories receive federal funding to help eligible low-income families pay for child care. Depending on the state, that help may be called a voucher, certificate, subsidy or child care payment assistance.

Meanwhile, TANF programs may provide child care as a supportive service to people who are participating in employment, training or another approved TANF activity. Therefore, two families in the same state may receive child care through different eligibility pathways.

Compare the two common routes

Who may qualify for TANF child care assistance?

There is no single national eligibility test. States and territories decide detailed rules for child care assistance. However, several factors appear frequently in TANF-related child care programs.

You may need an eligible child

The child normally must meet the age and household rules used by the state program. In addition, the child usually needs care during the hours when the parent or caregiver participates in an approved activity.

You may need an approved reason for child care

A parent may need care because of employment, job search, vocational training, education or another activity in a TANF responsibility plan. Still, states define which activities qualify and how many hours are required.

Income rules can apply

TANF participants have already passed financial eligibility tests for their TANF program. However, transitional child care or a separate child care subsidy may use different income limits.

Which work or education activities can child care support?

Child care assistance usually connects to an activity that helps the parent work or prepare for work. However, the approved activities differ by state and program.

Employment

A parent who works may qualify for care during work hours. Some programs also consider commute time or irregular schedules, but the agency decides how many child care hours it can authorize.

Job search

Certain TANF participants may receive temporary child care while completing an approved job-search activity. Still, job-search child care can have specific time limits or documentation rules.

Vocational training

Programs may support care during approved training that helps a participant gain skills for employment. Therefore, tell the TANF caseworker about your course schedule before arranging care.

College or post-secondary education

Some states allow approved college or post-secondary education to support child care eligibility. Yet not every degree program or class automatically qualifies.

Which children can receive child care assistance?

Age limits vary by state. Many child care subsidy programs focus on younger children, although older children may qualify for before-school, after-school or summer care under certain rules.

Infants and toddlers

Licensed centers, family child care homes and other approved providers may care for infants and toddlers. However, the provider must be authorized for the child’s age group under state rules.

Preschool-age children

A preschool child may qualify for subsidized care while the parent works or attends an approved activity. In addition, families can check Head Start or state prekindergarten because those programs may reduce the number of paid child care hours needed.

School-age children

Families may need care before school, after school, during school breaks or over the summer. Whether the subsidy covers those hours depends on the child’s age and the state’s child care program.

Children with disabilities or special needs

Some programs have additional policies for children who need specialized care or who require care beyond the usual age limit. Therefore, tell the agency about any disability or special care need when you apply.

What does TANF child care assistance pay for?

The program may pay part or all of the approved child care cost, depending on the state, provider rate and family’s eligibility category. The agency commonly pays the provider rather than giving the full amount to the parent.

Costs the program may cover

• Approved full-day child care.
• Part-time care connected with work or training.
• Before-school or after-school care.
• Care during approved education or training hours.
• Some summer or school-break care.
• Approved care from a licensed center or family child care home.
• Other provider arrangements allowed by the state.

Does assistance pay the provider’s full rate?

Not always. States set reimbursement rates or payment ceilings. Therefore, an approved provider may charge more than the amount the program pays.

The state also decides whether the provider can charge the parent the difference. Ask both the agency and provider about any amount you may owe before care starts.

Do families have to pay a child care copayment?

Some child care assistance programs require the parent to pay a portion of the cost. The amount may depend on household income, household size and the type of assistance.

However, some TANF-related categories can have different copayment rules. For example, a family receiving TANF supportive child care may be treated differently from a working family using the regular subsidy program.

Questions to ask before choosing a provider

• Will I owe a weekly or monthly copayment?
• Does the provider charge more than the state reimbursement?
• Who pays registration or supply fees?
• Do I owe money when my child is absent?
• What happens if my work schedule changes?
• When can the provider legally bill me directly?

Can you choose your own child care provider?

Many state programs let eligible parents choose among participating providers. Still, the provider must meet the program’s licensing, approval, health, safety and payment requirements.

Licensed child care centers

A licensed center that participates in the subsidy program is a common option. Before enrolling, confirm that the provider accepts your state’s child care assistance.

Family child care homes

Some approved providers care for children in a home setting. These providers must follow the state rules that apply to participating family child care homes.

Relative or individual caregivers

Certain states allow an individual or relative to become an approved child care provider. However, background checks, health and safety requirements or training may apply.

Tennessee, for example, allows some Families First, Transitional Child Care and At-Risk Child Only families to choose an individual provider. That person’s home must meet health and safety standards, and the provider must pass a background check and complete required training.

Can you change providers later?

Usually, yes, but you may need agency approval before the change takes effect. Otherwise, the new provider may not receive payment for care given before authorization.

What documents may you need?

The exact checklist comes from your state program. Still, several documents commonly help the agency confirm household information, income, work schedules and the need for child care.

Household and child records

• Identity documents when required.
• Proof of the child’s age or relationship.
• Residence information.
• Social Security information when requested.
• Custody or caregiver documents when relevant.

Work or training records

• Recent pay stubs.
• Employer statement or work schedule.
• Job offer information for new employment.
• Training enrollment or class schedule.
• School records for an approved education program.
• TANF responsibility or employment plan when applicable.

Income information

The agency may request earned and unearned income for people who belong in the child care household. Therefore, report income accurately even if TANF already has some of your financial information.

How to apply for TANF child care assistance

The application route depends on your state. Some TANF participants request child care through their TANF caseworker. Other states use a separate child care assistance office or online portal.

Can child care continue after TANF cash assistance ends?

Sometimes. Many states provide transitional child care so parents can continue working after TANF cash assistance closes. However, eligibility periods, income limits and work-hour rules vary.

Why transitional child care matters

A parent may leave TANF because earnings increase. Yet child care costs can remain high. Transitional assistance can reduce the risk that a new job becomes unaffordable because the family suddenly loses child care support.

For example, Tennessee currently offers Transitional Child Care to certain families after Families First closes. The state says qualifying families can receive this help for up to 18 months, subject to its work and eligibility rules.

Can TANF child-only families receive child care assistance?

In some states, yes. Child-only TANF cases often involve grandparents, aunts, uncles or other relatives caring for a child while the adult caregiver remains outside the TANF cash-assistance unit.

Child care rules for these families can differ from the rules for a parent receiving regular TANF. Therefore, the caregiver should ask whether the state has a separate at-risk, kinship or child-only child care category.

Tennessee example

Tennessee has an At-Risk Child Care category for guardians in Families First child-only cases who work or attend school. The state describes these caregivers as commonly including grandparents, aunts and uncles.

Current Tennessee guidance also requires qualifying caregivers in that category to meet the state’s work, education or training participation rules.

Can child care assistance have a waitlist?

Yes. Child care subsidies can depend on available funding, program priorities and state policies. Therefore, some eligible families may wait for an opening even after submitting an application.

Are TANF families always placed on the same waitlist?

Not necessarily. States can prioritize certain groups, including TANF participants, families transitioning from TANF or children involved with child welfare. Priority rules vary, so ask which category your family belongs to.

What should you do while waiting?

• Keep your contact information current.
• Respond to agency notices quickly.
• Ask whether your TANF status gives you priority.
• Check Head Start or Early Head Start.
• Ask employers or schools about child care assistance.
• Use the state child care search to identify participating providers.

Common TANF child care problems and what to do

Your provider does not accept the subsidy

Ask whether the provider can enroll in the state’s payment program. If not, use the state’s provider search to find another participating option.

Your work schedule changes

Report the new schedule when required. Otherwise, your authorized child care hours may no longer match the hours your family actually needs.

You started care before approval

Contact the agency immediately. Some programs will not pay for care before the authorization date, so you may become responsible for that cost.

Your application is missing documents

Read the notice carefully. Then submit the requested records by the stated deadline. If you cannot obtain a document, ask whether an alternative is acceptable.

Your child care case closes when TANF closes

Ask whether you qualify for transitional child care or the regular low-income child care subsidy. In some states, you must take action to move into the next eligibility category.

You cannot afford the copayment

Contact the agency before stopping care. Ask whether the payment is correct, whether your income was updated properly and whether another program category applies.

Your provider stops participating

Ask how quickly you must select a new provider. In addition, confirm the effective date of the provider change before moving the child.

Other programs that can reduce child care costs

TANF-related child care is not the only source of help. Depending on your child’s age, household income and family situation, another program may cover part or all of the cost.

Head Start can be especially important for TANF families

USAGov explains that children can qualify for Head Start or Early Head Start regardless of income when their family receives certain public assistance, including TANF. Therefore, TANF families with young children should check local Head Start availability.

However, Head Start schedules may not cover every hour a parent works. In that case, ask whether your child care subsidy can cover care before or after the Head Start day.

Official child care and TANF resources

Child care eligibility, copayments, approved activities, provider rules and application procedures can change. Therefore, confirm important details with the program serving your state or territory.