Funding the Child Care System

Child care across the country, including in Alaska, is primarily driven and largely funded by a federal child care law – known as the Child Care and Development Block Grant (CCDBG) that authorizes the Child Care Development Fund (CCDF).

The Child Care and Development Block Grant (CCDBG) & Child Care and Development Fund (CCDF) Overview

Child Care and Development Block Grant (CCDBG)

For more than 80 years the federal government has invested in early childhood education programs to help working parents and positively impact children during the early years.

Child care federal legislation evolved over the years as more women entered the workforce and a greater understanding of childhood brain development was gained. In 1990, the Child Care and Development Block Grant Act (CCDBG) was enacted to help low-income working families access child care. The CCDBG was reauthorized in 2014, with new requirements to improve the quality of child care programs and increase support for families and child care providers.

Today, the CCDBG is the federal child care law, serving families with children from birth to age 13. It authorizes the Child Care and Development Fund (CCDF) program, which is funding administered to states, territories, and tribes for child care.

Current Funding Levels

Federal

Funding for CCDBG has been increased several times since its reauthorization.

In FY2022, the federal CCDBG was funded at $6.2 billion.

Funding for CCDBG has been increased several times since its reauthorization. For FY2023, the CCDBG appropriation is $8 billion, representing a $1.9 billion increase above the prior year’s funding. This is the second largest increase in discretionary funding in the history of CCDBG—following the $2.4 billion increase in FY 2018. The increase is a much-needed step in the right direction. For Alaska, this represents a $3.1 million increase for FY 2023.

State

In FY2022, Alaska received $10.1 million in CCDF funding.

To secure its CCDF funding, the State of Alaska maintains a required minimal match, which is a current investment of $3.5 million.

For FY2023, Alaska will receive $13.2 million, representing a $3.1 million increase from the 2022 CCDBG increase. State-by-state breakdown of FY2023 funding here.

Alaska’s child care system is fragile. Many of Alaska’s child care programs struggle to stay open. Read thread’s legislative agenda for strengthening the system to ensure all Alaskans have access to affordable, high-quality child care.

Additional Resources