HHS News Release

HHS Secretary Donna E. Shalala today announced final child care regulations to promote affordable, accessible and quality care for children. These final regulations will help guide states in the implementation of the new unified child care program included in the 1996 welfare reform law.

"I'm proud to announce that we're issuing new child care regulations that will help make child care more accessible and trustworthy," said Secretary Shalala. "Parents need to have the peace of mind that when their children are in child care, they are in safe and caring hands."

The regulations require states to ensure that children receiving services under the block grant be immunized; that child care premises be safe; and that staff receive health and safety training. The regulations also make requirements for providing information to parents on payment rates; maintenance of effort; and minimum funding levels for quality. And to better inform parents about choices, the final rule requires states to provide consumer education to all parents on a full range of available providers.

In the regulations, states must also have payment rates that provide equal access to parents to make it easier for them to choose the care appropriate for their child. In addition, family co-payments must be based on an affordable sliding fee scale and payment rates to providers cannot be set based on whether a family receives welfare or not.

"Affordable, accessible, high-quality child care is critical to low-and middle-income working parents," said Olivia Golden, HHS assistant secretary for children and families. "Too many children are in care that isn't good enough to help them grow and develop to their full potential. We're proud that these regulations strive for excellence in care to children."

States can provide subsidies to families with incomes up to 85 percent of the state median income. Yet, a recent report by HHS showed that most states have income caps far below that level. In 37 states, a family of three with an income of $28,000 is not eligible for any support. Of the 10 million children eligible for federal assistance, only 1 million receive aid. This need to help low income working families prompted the President to propose increased funds to states.

The Clinton Administration has put special emphasis on early childhood development, with increases proposed each year in child care funding. Earlier this year, the President proposed an investment of over $20 billion over 5 years for improving and expanding child care.

The 1996 new welfare law folded several federal child care funding programs into the Child Care and Development Block Grant. The rule was published in today's Federal Register.

Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Contact: Michael Kharfen, (202) 401-9215