CCDF Updates
ACF Notifies California of Freeze on CCDF, TANF, and SSBG Funds
On January 6, 2026, the Administration for Children and Families (ACF) informed Governor Newsom that the ACF is restricting drawdown for all Child Care Development Fund (CCDF) funds and Temporary Assistance for Needy Families (TANF) provided by ACF until further notice. Additionally, the ACF sent a letter to Governor Newsom freezing any additional drawdown of Social Services Block Grant (SSBG) funds.
Click here to see a breakdown of each California subsidized child care program by federal versus state dollars.
Click here to read the Politico article detailing the Trump administration's $10 billion CCDF cut to 5 Democratic-run states, including California and Illinois.
All ACF letters sent January 6, 2025 informing California that the following programs would be restricted in drawing down funds until further notice.
New Proposed Federal Rule
On January 5th, 2025, the Department of Health and Human Services (HHS), Administration for Children and Families (ACF) released a proposed federal rule that proposes to amend the Child Care and Development Fund (CCDF) regulations (45 CFR part 98) to reduce costs and burden for states and territories administering the CCDF program.
The rule proposes rescinding the four requirements outlined in the 2024 ACF final ruling which instructed Lead Agencies (such as the Dept. of Social Services in California) to implement the following:
- Payment to providers based on child's enrollment
- Pay providers prospectively
- Limit family co-payments to 7% of family income
- Provide some direct services through grants or contracts rather than through voucher-based programs
The proposed rule gives states the choice to continue implementing these policies if they choose. It does not instruct states to rescind these policies.
The 30-day public comment period will close on February 4, 2026. You can submit a public comment here.
