Overview

• The Biden Administration announces a new rule to cap childcare costs for over 100,000 families, reducing financial strain and expanding access to aid.
• The rule modifies the Child Care and Development Fund, affecting an average of 1.3 million children monthly, with changes to take effect on April 30.
• Families receiving childcare subsidies will see copays capped at 7% of their income, with some states encouraged to eliminate copays for vulnerable groups.
• Childcare providers will benefit from being paid based on enrollment rather than attendance, ensuring financial stability and keeping more centers open.
• States have until 2026 to fully implement the changes, with provisions for a two-year waiver for those undergoing substantial adjustments.