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Subsidized Child Care Assistance Program Policy Manual Chapter 7. Family Definition and Determining Income Eligibility Revised 08/01/2024

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ii. 133% of the federal poverty level for all children ages 6- 12 who do not have special needs. iii. 85% State Median Income (SMI).

If income is less than 85% SMI but exceeds the federal poverty limits of 133% or 200%, a graduated phase out period of 12 months is given during which services continue with an adjustment of the parental fee. The graduated phase out period shall begin the day after the certification period ends.

A recertification packet is not mailed to children in graduated phase out. In situations where one child is in graduated phase out while the other children are eligible for continued services, the child in graduated phase out is not eligible to recertify and the remaining eligible children will receive a recertification packet.

If the income exceeds 85% SMI at redetermination, a ten (10) work day notice is issued to terminate services if there are more than ten (10) work days left in the current certification period. If there are less than ten (10) work days left in the certification period, the case will terminate at the end of the certification period.

If a recipient reports a decrease in income during the graduated phase out period and the reduced income is at or below the appropriate FPL, the child care worker must process this as a change in circumstance in NC FAST and decrease the income. This will also decrease the parental fee, which is appropriate.

The child care worker will react to the reported decreased income as a change in circumstance and will not complete a new application. Subsidized child care services shall continue through the end of the 12- month certification period. NC FAST will recognize that the family is