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3. Things You Need to Know

3.1 Child Care Assistance

3.1.1 Child Care Assistance Program Background The Child Care and Development Block Grant Act of 1990 (CCDBG Act, as amended) is the main federal law governing child care programs for low-income working families. The CCDBG Act authorizes discretionary appropriations to support grants to state, territorial, and tribal lead agencies. Lead agencies use these funds to subsidize the child care expenses of eligible children and to improve the overall quality and supply of child care. DSS is the Lead Agency in South Dakota.

3.1.2 Federal Poverty Level (FPL) & State Median Income (SMI) The FPL is a measure of income issued every year by the Department of Health and Human Services (HHS). Federal poverty levels are used to determine eligibility for certain programs and benefits, including Child Care Assistance, Medicaid, and CHIP. HHS publishes its annual update of the Poverty Income Guidelines, also referred to as the FPLs, each year in mid to late January.

The new FPLs go into effect for eligibility determinations from March 1 onward each calendar year in BEES. January and February determinations will be made using the prior year’s FPLs. Upon updating the FPL limits March 1 all active CCA cases are reassessed, and any resulting positive changes are applied, such as decreases in family copayments.

The SMI is an additional measure of income issued by the Department of Health and Human Services (HHS). State Median Income is used to determine eligibility for certain CCA categories including cases with Special Needs and Graduated Phase Out cases. HHS publishes its annual update to State median Income, also referred to as the SMI annually and CCA updates eligibility limits that are use SMI annually on October 1.

3.1.3 Family Copayments Families are expected to contribute to the cost of child care based on a sliding fee scale. The sliding fee scale accounts for variations in household income and family size. Recipients of CCA are responsible for payment of any difference in child care expenses not covered by Child Care Assistance and for the assigned copayment if applicable.

Copayment amount is calculated based on Household Income and distributed amongst each child receiving CCA recipient and their provider(s) based on their household unit type. • Applicants with incomes at or below 170% FPL do not have required copayments. • Applicants with incomes above 170% FPL will have a copayment. • Please Note: Some family sizes between 170% FPL and 209% FPL will exceed 85% of SMI, in these cases, the 85% SMI is the income limit. • Copayments are determined at a family (Income Support Case IC) level, then divided out on a per child and per provider level. • If a family is in phase out, their income will exceed 209% FPL; however, the copayment calculation will remain the same.

Copayments are waived for foster families caring for children in the custody of the State of South Dakota Child Protection Services or the custody of a Tribal Child Protection agency; children determined to be in need of protective services who may reside in a placement with a relative caretaker or in a host placement through a family service agency; and for families receiving TANF or 0+TANF benefits.