Update on Child Care Funding - Frequently Asked Questions

Official source

The Tennessee Department of Human Services (TDHS) is committed to helping working families and is proud to collaborate with child care providers and quality partners who facilitate child care solutions that benefit Tennessee’s workforce, employers, and young Tennesseans in care. Many of the Department’s programs are funded and adjusted based on the guidelines of federal partners. Federal funds are used for a variety of child care programs including Smart Steps Child Care Payment Assistance and initiatives that help child care providers to promote quality care for all.

Federal Funding Changes Affecting Child Care Services in Tennessee

In the early 2020s, grants calculated based on National School Lunch participation, population and income per capita factors (the federal grant award funding formula) and COVID-19 pandemic response funding made it possible for Tennessee to increase investments in Smart Steps and supports available to child care providers.

With COVID-19 investments ending on September 30, 2024, and the Child Care Development Fund (CCDF) discretionary award to Tennessee being reduced by approximately $44.5 million for the 2025 fiscal year, adjustments were required. As our state implements changes based on current budgetary allotments, updates will strategically focus available funds to prioritize the needs of families with minimal disruption.

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Update on Child Care Funding - Frequently Asked Questions

Official source

The Tennessee Department of Human Services (TDHS) is committed to helping working families and is proud to collaborate with child care providers and quality partners who facilitate child care solutions that benefit Tennessee’s workforce, employers, and young Tennesseans in care. Many of the Department’s programs are funded and adjusted based on the guidelines of federal partners. Federal funds are used for a variety of child care programs including Smart Steps Child Care Payment Assistance and initiatives that help child care providers to promote quality care for all.

Federal Funding Changes Affecting Child Care Services in Tennessee

In the early 2020s, grants calculated based on National School Lunch participation, population and income per capita factors (the federal grant award funding formula) and COVID-19 pandemic response funding made it possible for Tennessee to increase investments in Smart Steps and supports available to child care providers.

With COVID-19 investments ending on September 30, 2024, and the Child Care Development Fund (CCDF) discretionary award to Tennessee being reduced by approximately $44.5 million for the 2025 fiscal year, adjustments were required. As our state implements changes based on current budgetary allotments, updates will strategically focus available funds to prioritize the needs of families with minimal disruption.