TN 80 (04-99)

Citations:

Social Security Act, as amended, section 1612; 42 U.S.C. 9858q;

20 CFR 416.1102, 416.1103, and 416.1124(b)

A. Introduction

Child care assistance programs may provide payments to low income families or to children with special needs. Such payments may be made for certain child care activities such as early childhood development, before- and after-school services, and services designed to permit a parent to continue working.

Since 1990, the Child Care and Development Block Grant Act (CCDBGA) has provided Federal funds for a variety of child care payments and assistance. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 consolidated various child care funding under the CCDBGA. In 7/98, the Agency for Children and Families published regulations announcing that the Child Care and Development Fund (CCDF) would administer the payments authorized under CCDBGA.

B. Policy

The following policies apply to child care payments and assistance:

1. CCDBGA Payments Made From the CCDF

Effective 10/1/92, payments made to the child's family from the CCDF and under CCDBGA are excluded from income for SSI purposes. There is no specific resource exclusion for payments made under CCDBGA. Regular resource counting rules apply.

NOTE: Payments the child's family makes to the child care provider using CCDBGA funds count as income to the provider.

2. Other Child Care Payments

Child care payments not included above are subject to the general rules pertaining to income and income exclusions.

C. Procedure

Evaluate child care payments according to their source.

1. Payments from the CCDF

Verify the source of child care payments provided from the CCDF by:

• using documents in the individual's possession; or

• contacting the provider of services; or

• using a regional or field office precedent.

2. Other Child Care Payments

Determine the nature of the payments and apply the appropriate rules pertaining to income.

NOTE: Child care payments may be provided as part of a social services program and should be evaluated to determine if this is the case. Child care payments provided as part of a social services program are not income for SSI purposes.

D. References

• Assets that are not resources, SI 01110.115

• Assistance based on need, SI 00830.175

• Income based on need, SI 00830.170

• Social services, SI 00815.050 (income) and SI 01120.110 (resources)