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Delaware TANF State Plan 10-1-23 to 09-30-26 Page 40 of 59

co-pays not to increase during their initial eligibility. At redetermination, cases will be reviewed to determine if the family will continue on with traditional childcare, go on to graduated phase out or close. o Income under 185% FPL will remain on traditional CC. o Income between 185-199% FPL will go on to graduated phase out for an additional 12 months at a set co-payment. o Income at 200% FPL and above will close in CC.

• Childcare cases will only close at any time for the following reasons:

o Excessive unexplained absences of the child from the childcare site; o Intentional IPV or substantiated fraud; o A permanent change in the child’s residency; o Income exceeds 85% of the State Median Income (SMI); o A written request to close the case or to authorize childcare for a specific length of time; or o Death of case head or child.

• Subsidized Childcare & Childcare for Working Families not on TANF

Delaware uses TANF and MOE funds to subsidize or co-pay childcare for working TANF recipients or those participating in TANF approved work preparation activities. Delaware also uses TANF and MOE funds to provide childcare to working low-earning Delaware families. The purpose is to enable families to pay for childcare while engaged in work preparation and/or employment and to enable low-earning families to pay childcare expenses so they can accept and retain employment.

Diversion Assistance Program

Delaware uses a combination of TANF and/or MOE funds to operate a Diversion Assistance program intended to help a family through a financial problem which jeopardizes employment and which, if not resolved, could result in the family needing regular ongoing assistance. Delaware will not use TANF funds for medical expenses not covered by Medicaid. MOE will be used to cover medical costs not covered under Medicaid. The Diversion Assistance payment will not exceed $1,500 or the financial need resulting from the crisis, whichever is less. Diversion Assistance, which is available to both applicant and recipient families, is not a supplement to regular assistance but is in place of it.

Eligibility requirements for Diversion Assistance are as follows: • The parent must be living with his or her natural or adopted children; • The family has not received a Diversion Assistance payment in the past 12 months;