NAEYC applauds the Administration for its publication of the Child Care and Development Fund (CCDF) final rule, which takes important steps to:  

• reduce families’ child care costs 
• increase programs’ stability through equitable payment practices 
• make it easier for families to access child care subsidies. 

Key provisions in this final rule respond to several challenges long expressed by early childhood educators, including those that NAEYC shared in our August 2023 comments to the Administration about this set of regulations, which were informed by a survey of the field. For example, in several welcome changes, this rule will:  

• Better support and stabilization providers participating in the subsidy system, by requiring lead agencies to pay providers based on enrollment rather than attendance; requiring them to pay providers prospectively; and clarifying that they can pay providers at the true cost of care even when it exceeds private pay rates.   
• Expand the use of grants and contracts to expand supply and support providers in serving certain populations, including those underserved geographic areas, infants and toddlers, and children with disabilities. 
• Encourage more providers to accept subsidies, which will expand options and help families find child care that meets their needs. 

Along with our appreciation for the ways in which this final rule will reduce families’ cost burdens, we appreciate the Administration’s additional clarity and oversight to ensure that costs associated with reducing families’ co-payments do not come at the expense of providers through reduced reimbursement rates. 

NAEYC looks forward to working closely with our members, Affiliates, and partners to provide support as states and programs begin to implement these changes; and we remain committed to our work to hold Congress accountable for providing the robust and sustained investments needed to support states in equitably implementing these changes, and building a strong system of child care and early learning that helps early educators, families, and young children thrive.