..This report was prepared by Capstone LLC, which was engaged by KinderCare Learning Companies to conduct an independent analysis of federal child care policy and appropriations. All findings and conclusions reflect Capstone’s independent assessment.

This report:

• Provides an overview of the Child Care and Development Fund (CCDF), including its multiple funding streams, its funding levels relative to the Department of Health and Human Services (HHS) budget, and how state allocations are determined.
• Details CCDF mechanics at the state level, including a discussion of eligibility, how child care providers participate in state voucher programs, and state payment practices.
• Details political support for CCDBG, recent increases in funding, and the outlook for near term CCDBG appropriations.
• Details the limited role of the US Department of Education in federal child care policy and provides an overview of recent administrative actions at the US HHS and their implications for funding flow.
• Discusses the differences between CCDF and Head Start, and the relevance of Head Start funding for private child care providers.