3.1 Family Co-payments

Lead Agencies must establish and periodically revise a sliding-fee scale for families receiving CCDF services that varies based on income and the size of the family to determine each family’s contribution (i.e., co-payment) and does not create a barrier to receiving CCDF assistance. In addition to income and the size of the family, the Lead Agency may use other factors as appropriate when determining family contributions/co-payments. Lead Agencies may not use price of care or amount of subsidy payment in determining co-payments. Lead Agencies must ensure that the total payment to a child care provider is not reduced because of family’s lowered or waived co-payment. 3.1.1 Family co-payment Lead Agencies may not charge any family more than 7% of a family’s gross income, regardless of the number of children participating in CCDF. a. What is the maximum percent of a family’s gross income any family could be charged as a co-payment? TWC adopted a new policy on July 9, 2024, that caps co-payments at 7 percent of a family’s gross income for children in care. TWC implemented the new copayment methodology with the launch of TX3C on January 13, 2025. This policy change will both be rolled out incrementally as families are recertified, and TWC will therefore request a temporary waiver of this federal requirement. TWC was granted extension of this prior approved waiver for January 14, 2026 to August 1, 2026. b. Does the Lead Agency certify that their sliding fee scales are always based on income and family size (regardless of how many different scales they may use)? [x] Yes. [ ] No. If no, describe: 3.1.2 Sliding fee scale Provide the CCDF co-payments for eligible families in the table(s) below according to family size for one child in care. a. Is the sliding fee scale set statewide? [x] Yes. [ ] No. If no, describe how the sliding fee scale is set: b. Complete the table below. If the sliding fee scale is not set statewide, complete the table for the most populous locality: -- A B C D E F Family Size Lowest monthly income at initial eligibility where the family is first charged a co-pay (greater than $0). What is the monthly co-payment for a family of this size based on the income level in (A)? What percentage of income is the co- payment in (B)? Highest monthly income at initial eligibility where a family is charged a co-pay before a family is no longer eligible. What is the monthly co- payment for a family of this size based on the income level in (D)? What percentage of income is this co- payment in (E)? 1 2 62.00 1.00 2.00 5216.00 365.00 7.00 3 76.00 2.00 2.00 6443.00 451.00 7.00 4 91.00 2.00 2.00 7670.00 537.00 7.00 5 105.00 2.00 2.00 8897.00 623.00 7.00 c. What is the effective date of the sliding-fee scale(s)? October 1, 2025 d. Provide the link(s) to the sliding-fee scale(s): https://www.twc.texas.gov/sites/default/files/ccel/docs/bcy-26-psoc-chart-twc.pdf 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: CCS rule §809.92 states that Boards may develop a policy that allows providers to charge parents more than the assessed parent share of cost in instances where the provider's published rate exceeds the Board's reimbursement rate (including the assessed parent share of cost) to all parents except (1) parents who are exempt from a copay; (2) parents with a copay calculated at zero; or (3) parents with child care services during the initial job search period. This policy is determined at the local level and is based on the needs of the LWDA related to child care capacity, availability, and accessibility. By allowing providers to charge the difference in certain local areas, Boards can support more parental choice and child care access for families they serve. 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: Out of the 28 Boards, two Boards (Workforce Solutions of Texoma and Workforce Solutions Permian Basin) have opted to allow providers to charge families the difference between their published rate and the reimbursement rate. Data on the size and frequency of those amounts follows: Texoma 7 out of 62 CCDF-funded providers charge the difference. Approximately 15 out of 79,316 CCDF-funded families pay these additional charges which range from $7.20 to $757.00 per month. Permian Basin 31 out of 92 CCDF-funded providers charge the difference. Approximately 675 out of 79,316 CCDF-funded families pay these additional charges which range from $1.00 to $1,487.20 per month. In Texoma, 25 out of the 40 (63 percent) CCDF-funded providers in Texoma are in a child care desert. In Permian Basin, 42 out of the 67 (63 percent) CCDF-funded providers are in a child care desert. Allowing providers to charge families the difference between the published rate and the reimbursement rate supports parental choice and child care access for families in these LWDAs.