6 min read · Last updated August 20, 2026

In this article

• What CCDF actually pays for, and what you pay
• The 7 percent benchmark that just stopped being federal law
• A worked example, using the old federal benchmark
• How to find out what you will actually owe
• Frequently asked questions

Priya Nair’s childcare subsidy approval letter arrived the same week her son Arjun turned 3. It told her she qualified for the Child Care and Development Fund (CCDF), the federal-state program that helps working families afford licensed child care. What it did not tell her was the number she actually cared about: what she would owe out of pocket every week for Arjun’s daycare. That figure comes from a separate calculation, her state’s sliding-fee co-payment scale, and as of July 13, 2026, the federal rule that used to cap it changed for every state at once.

What CCDF actually pays for, and what you pay

The Child Care and Development Fund covers part of the cost of licensed care for eligible working families, but nearly every state requires an approved family to pay a co-payment toward the remainder. The federal rule requires every state’s Child Care and Development Fund (CCDF) plan to use a sliding-fee scale. That means the co-payment is set by income and family size, according to 45 CFR 98.45 in the Code of Federal Regulations. The same rule lets a state waive the co-payment entirely, at its own discretion, for specific groups. That list includes families at or below 150% of the federal poverty level, about $49,500 a year for a family of four. It also includes children in foster or kinship care, families experiencing homelessness, children with a disability, and children already enrolled in Head Start or Early Head Start. The exact dollar figure you owe, and whether you fall into a waiver group, depends entirely on which state you live in and where your income falls on that state’s own scale.

The 7 percent benchmark that just stopped being federal law

For families who applied any time after March 2024, the number behind that scale had a federal ceiling. No more than 7% of family income, a mandatory cap created by that year’s Child Care and Development Fund (CCDF) Final Rule. That changed on July 13, 2026, when a new CCDF Final Rule from the Administration for Children and Families took effect, repealing the mandatory 7% cap. Federal policy now reverts to the original statutory language: co-payments simply cannot be “a barrier” to a family receiving child care assistance, a much looser standard that each state now interprets on its own.

This does not mean co-payments are about to spike everywhere. The 7% figure started in 2016 as an optional federal benchmark. It was drawn from Census Bureau data showing families spent an average of 7% of income on child care, before it became a mandatory rule in 2024. Many states had already built their sliding-fee scales around that number for years and have no particular reason to abandon it now that it is voluntary again. The point for a family budgeting a subsidy is narrower. The number is no longer guaranteed by federal law, so it is worth confirming directly with your state rather than assuming the old cap still applies.

A worked example, using the old federal benchmark

Here is how the math worked under the 7% benchmark, and how to adapt it once you know your own state’s current rate. Take a family of three earning $3,000 a month. Using the benchmark, multiply monthly income by 0.07: $3,000 times 0.07 equals $210 a month, or roughly $48 a week, the highest co-payment that benchmark would have allowed. A family earning $2,000 a month under the same math would land at $140 a month, or about $32 a week. States with multiple tiers often charge meaningfully less than the ceiling for families in the lower bands, so treat these figures as a ceiling estimate, not a quote. Once you know your own state’s current percentage or flat-fee table, the same multiplication tells you your own likely range before you ever see a bill.

How to find out what you will actually owe

Ask your state’s Child Care and Development Fund (CCDF) agency for its current sliding-fee scale directly, since a scale published before July 2026 may reflect the old mandatory cap rather than the state’s current choice. If you have not yet applied, start with our guide to how to apply for the CCDF childcare subsidy. Check where your household falls on the state-by-state income limits before you ask about the co-payment tier, since the two numbers come from the same income test. Most state child care assistance offices publish this table on their own website or can read you your exact tier over the phone using your household size and income. Ask specifically whether your state kept the 7% benchmark, adopted a different percentage, or moved to a flat-dollar scale, since all three now exist across different states.

Frequently asked questions

Does getting approved for CCDF mean child care is free? No. Approval means the state will pay part of the cost of licensed care. Nearly every state still requires an approved family to pay a co-payment set by that state’s own sliding-fee scale based on income and family size.

Is the 7% co-payment cap still the law? No, not as a federal requirement. It was mandatory from the 2024 CCDF Final Rule until a new rule took effect July 13, 2026, which repealed the mandatory cap. States now set their own co-payment policy, though many may choose to keep a similar benchmark voluntarily.

How do I find my state’s current co-payment amount? Contact your state’s Child Care and Development Fund (CCDF) agency directly and ask for its current sliding-fee scale table. Because the federal cap just changed, a number you find on an older webpage or in an old approval letter may not reflect your state’s current policy.

Can my co-payment be $0? Yes, for certain groups. A state can waive the co-payment entirely for families at or below 150% of the federal poverty level, about $49,500 a year for a family of four. The same waiver option covers children in foster or kinship care, families experiencing homelessness, children with a disability, and kids already enrolled in Head Start. Ask your caseworker whether your household fits one of those categories.

Does my co-payment change if my income changes during the year? It can, depending on your state’s redetermination schedule. Most states reassess your co-payment tier at your regular CCDF renewal rather than immediately after every paycheck change, so ask your caseworker when your next redetermination date falls.