Linking State CCDF Policies to Child Care Subsidy Participation for Children from Underserved Groups

• In Event: Supporting Access to Quality Child Care: Subsidy Policy, Providers, and Underserved Families

Abstract

Introduction
Access to affordable, high-quality early care and education (ECE) is essential for children’s development and parents’ employment, yet some U.S. families face barriers to access. Data from the National Survey of Early Care and Education (NSECE) document persistent inequities, including limited options for infants, toddlers, and children with disabilities, and children experiencing homelessness (Henly & Adams, 2018; Paschall et al., 2021). The Child Care and Development Fund (CCDF) is the primary federal mechanism for subsidizing child care for low-income families, but its effectiveness depends on state policy decisions (Slicker et al., 2023). Within a federal–state governance structure, states exercise substantial discretion over reimbursement rates and payment practices, creating meaningful variation in provider incentives and access (Banghart et al., 2024). As policies increasingly devolve to state governments, understanding how specific CCDF policies shape enrollment of children from underserved groups is important.

Research Questions
Our study uses national data to examine whether state subsidy policies predict ECE centers’ enrollment of underserved children. We ask to what extent state-specific policies are associated with whether ECE centers serve these groups:
1. Infants and toddlers?
2. Children with IEPs?
3. Children experiencing homelessness?

Methods
We use data from the 2019 NSECE, a nationally representative survey of ECE providers. Analyses use the Level 2 restricted-use center-based provider sample, which allows linkages to the 2018 CCDF Policies Database. The analytic sample consists of center-based programs across all 50 states and DC that reported serving at least one child supported by subsidies (n = 3,474). Dependent variables indicate whether a center enrolled any infants or toddlers (under age 3), children with disabilities (IEP/IFSP), or children experiencing homelessness. Independent variables capture state-level CCDF policies most relevant to provider participation, including base reimbursement rates, differential reimbursement, use of subsidy contracts, and payment practices that increase payment predictability. We estimated logistic regression models predicting enrollment of each population, clustering standard errors at the state level and controlling for key program characteristics. We applied NSECE survey weights and used full-information maximum likelihood to address limited missing data.

Results
Results indicate that state CCDF policy choices are meaningfully associated with whether ECE centers enroll children from underserved groups. Higher base reimbursement rates and differential reimbursement are associated with increased likelihood of serving infants (OR=1.12, p<0.001) and toddlers (OR=2.57, p=0.002). Policies that increase payment predictability (i.e., subsidy contracts, enrollment-based payments) are consistently associated with higher odds of toddler enrollment (OR=2.87, p=0.02). Similar patterns emerge for children with disabilities: higher toddler reimbursement rates, subsidy contracts, enrollment-based payment policies, and especially subsidy contracts, each predict greater likelihood of enrolling children with IEPs. Policies less frequently predict increased enrollment of children experiencing homelessness; only higher toddler reimbursement rates were statistically significant (OR=1.22, p=0.004).
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Implications
Findings show state CCDF policy decisions are associated with increased enrollment of several underserved groups. State-specific subsidy policies appear to be important in promoting equitable enrollment. These results are particularly relevant for policymakers aiming to leverage subsidy policies to promote enrollment for children who have historically lacked access to ECE.

Author

• Cara L Kelly, University of Oklahoma
  Presenting Author