The California Department of Social Services (CDSS) has notified counties and child care and development contractors of the new income limits for all direct service and voucher-based child care and development contracts administered.  It reflects the State Median Income (SMI) and Income Ranking Table for Fiscal Year (FY) 2023-24, and the updated Schedule of Income Ceilings is used to determine a family’s income eligibility for state subsidized child care and development programs for FY 2023-24. The updated Income Ranking Table is used to determine an income-eligible family’s priority for enrollment in a state subsidized child care and development programs for FY 2023-24. 

Contractors must enroll families into CDSS-administered child care and development programs in priority order. First priority is for neglected or abused children who are recipients of child protective services, or children who are at risk of being neglected or abused, when there is a written referral from a legal, medical, or social services agency. 

The second priority for enrollment is for income-eligible families, with families who have the lowest gross monthly income in relation to family size receiving the highest priority. If two or more families are in the same priority in relation to income, the family that has a child with exceptional needs must be admitted first. Effective January 1, 2023, families in which the primary home language is a language other than English are also second priority for services. Contractors must ask on their waiting list application if a family’s home language is a language other than English.  Contractors must prioritize the family by the income declared on the application for the means-tested government program.

Effective July 1, 2023, contractors must use the revised FY 23-24 Income Ranking Table when determining enrollment priorities for families.  (CCB 23-16, June 19, 2023.)

The Emergency Child Care Bridge Program provides short-term child care vouchers or payments for approved resource families and parents under the jurisdiction of the juvenile court.  This program has been expanded in two ways.

First, the Bridge Program now covers when a resource family is unable to provide care in addition to when a resource family is not at home.  This means that the Bridge Program now covers families engaging in telework or online classes.

Second, counties can now extend eligibility for the Bridge Program beyond 12 months for a compelling reason.  These reasons include inability to transition to other subsidized child care, loss of eligibility would disrupt stability for the child, and loss of eligibility would jeopardize a permanency plan or successful reunification.

In addition, counties must have a process to pay benefits within 21 calendar days of receipt of a complete attendance record or invoice for payment.  (CCB 22-27, September 26, 2022.)

Effective January 1, 2023, the minimum eligibility period for certain child care programs is extended to 24 months.  The effected programs are:

• General Child Care and Development Programs (CCTR)
• California Family Child Care Home Education Networks (CFCC)
• Migrant Child Care and Development Programs (CMIG)
• Migrant Child Care Alternative Payment Programs (CMAP)
• California Alternative Payment Programs (CAPP)
• Child Care and Development Services for Children with Special Needs (CHAN)

The 24 month eligibility does not apply to CalWORKs Stage 1, 2, or 3 child care.

The 24 month period is not retroactive to before January 1, 2023.  Certifications entered into prior to January 1, 2023 remain in effect.

Child care and development programs remain available until age 13.  If a child turns 13 within the first 12 months of the eligibility period, eligibility is only for 12 months.

Families enrolled on or after January 1, 2023 must receive services for at least 24 months before recertification and are not required to report most changes.  However, families must report income that exceeds the threshold for ongoing income eligibility.  Families can voluntarily report changes that extend their eligibility.

If a family’s 24-month eligibility ends before the end of a California State Preschool Program program year, eligibility extends to the end of the program year, as long as age eligibility requirements are met.

The California Department of Social Services must develop implementing regulations by December 31, 2024.  (CCB 22-37, December 30, 2023, and 22-37E, March 10, 2023

The California Department of Social Services (CDSS) has issued guidance and information on the exclusion of foster care payments and guaranteed income payments when determining eligibility for subsidized child care and development programs. CDSS will implement these changes via childcare bulletin immediately until regulations are adopted, and these changes are effective immediately.

Foster care payments, Approved Relative Caregiver Funding Program payments, Emergency Assistance Program payments, and Tribal Approved Relative Caregiver Funding Program payments are no longer counted as income when determining eligibility for subsidized child care.

Guaranteed income payments received by an individual will not be included as income when determining eligibility for subsidized child care. Guaranteed income payments are unconditional, recurring, regular cash payments, whether publicly or privately funded, that are intended to support the basic needs of eligible recipients. Guaranteed income payments include, but are not limited to, payments provided through pilot programs and projects receiving funding from the California Guaranteed Income Pilot Program. (CCB 22-30, October 10, 2022.)

The California Department of Social Services has provided new policy guidance regarding the use of in-home licensed-exempt child care.  CalWORKs Stage One child care already allows license-exempt in-home child care.  Effective immediately, CalWORKs Stage Two, CalWORKs Stage Three, Alternative Payment Programs and Migrant Alternative Payment Programs must also authorize allows license-exempt in-home child care.  Families must sign a form assuming employer responsibilities for the in-home license-exempt provider and acknowledge they must comply with any applicable federal and state employment laws.

Contractors must promote parental choice and provide translations of the form in a language that the parent understands.  (CCB 22-13, June 23, 2022.)