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47 | P a g e FFY 2025–2027 CCDF State Plan

e. Does the Lead Agency allow providers to charge families additional amounts above the required co-payment in instances where the provider’s price exceeds the subsidy payment? [ ] No. [x] Yes. If yes: i. Provide the rationale for the Lead Agency’s policy to allow providers to charge families additional amounts above the required co-payment, including a demonstration of how the policy does not provide a barrier and promotes affordability and access for families: The Lead Agency is committed to paying child care subsidy providers in a way that allows the greatest number of families the greatest degree of access while also ensuring long-term financial sustainability. As with other areas of policy, the Lead Agency will continuously work to balance these competing factors. Because funding levels are not high enough to pay all providers their published price, providers are allowed to charge families any additional amount between the total subsidy payment rate and their published rate on file. While this may place an additional burden on families, the Lead Agency also understands that preventing providers from having this option could reduce the number of providers willing to participate in the program. The Lead Agency believes that current subsidy reimbursement rates will significantly reduce the potential burden to families and allow for a better balance policy and practice to promote affordability and access. ii. Provide data (including data on the size and frequency of such amounts) on the extent to which CCDF providers charge additional amounts to families: Historically, approximately 70% of child care subsidy providers have reported charging families the additional amounts above the required co-payment. From the week starting May 17, 2021, through the week ending September 29, 2024, the Lead Agency used funding from CRRSA and ARPA to pay subsidy providers their published rate for providing child care. As a part of this change, providers were prevented from charging families any amount greater than the required co- payment. Due this prior policy, no data is available to be collected regarding the frequency or amounts of charged to families. 3.2 Calculation of Co-Payment Lead agencies must calculate a family’s contribution (or co-payment), taking into account income and family size, and Lead Agencies may choose to consider other factors in their calculation. 3.2.1 Family co-payment calculation a. How is the family’s contribution calculated, and to whom is it applied? Check if the fee is a dollar amount or if the fee is a percent of income below, and then check all that apply under the selection, as appropriate. i. [ ] The fee is a dollar amount and (check all that apply): [ ] The fee is per child, with the same fee for each child.