In this year of the Michigan Child Care Policy Research Partnership, Public Policy Associates (PPA) worked with the Michigan Department of Education/Office of Great Start (MDE/OGS) and the Michigan Department of Health and Human Services (MDHHS) to study severalpolicy changes for the Child Development and Care (CDC) assistance program. Thesechanges responded to the COVID-19 pandemic and continuing challenges in access to quality child care within the state. The 2021policy changes were financed through an influx of federal funding. Without this funding, these changes would not have been possible.

The eligibility threshold is based on family income and size. The payment rates in Michigan are set based on provider type (family or group home or center), child age, and provider quality rating. The family contribution is normally required for those who have enough income to contributesomething toward the cost of child care.

 2021 Policy Changes to the CDC Program

  • Increased eligibility threshold (to 15o% and later to 185% of Federal Poverty Level)
  • Increased payment rates to providers (by 30% and more)
  • Waiver of the family contribution requirement (also called the family co-payment)

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