CHILD CARE AND DEVELOPMENT FUND (CCDF) STATE AND TERRITORY SPENDING UNDER THE GRANT YEAR 2020 AWARD AS OF 9/30/2020
GY 2020 Highlights:
This summary provides cumulative information obtained from state and territory ACF-696 financial reports submitted for the Grant Year1(GY) 2020 CCDF award showing cumulative expenditures through September 30, 2020. The GY 2020 reports detail expenditures from each of the CCDF funding streams (Mandatory, Matching, and Discretionary), funds transferred from the Temporary Assistance for Needy Families (TANF) program to CCDF in GY 2020, Discretionary Disaster Relief funds, and Discretionary Coronavirus Aid, Relief, and Economics Security (CARES) Act funds. Included are expenditures for administration, direct and non-direct services, and congressionally mandated funds for quality activities and infant and toddler quality activities.
As of September 30, 2020, cumulative expenditures from the GY 2020 award totaled approximately $8.8 billion. This total includes approximately $125 million in excess state Match above the amounts required to draw down the full allotment of federal CCDF funds. Footnotes have been added to Table 5b — Matching State Share Summary identifying excess expenditures reported by states.
In Fiscal Year 2020, the allocation of $3.4 billion from the CARES Act likely influenced how funds were transferred by states between spending categories and funding streams. Of note, CARES Act funds were not subject to administrative, quality, and direct spending caps and minimums, which gave states latitude on how to use the funds.
Maintenance of Effort. States reported spending the $888 million of state funds necessary to meet the established MOE level for GY 2020 and draw down federal Matching funds.
Non-Federal Match. In addition to meeting the above MOE requirement and obligating their Mandatory funds by September 30, states must match federal expenditures with state funds at the applicable Federal Medical Assistance Percentages (FMAP) rate to be eligible for federal Matching funds. In the first quarter of FY2020, regular FMAP rates were used. In the final three quarters of FY2020, FMAPs for all states were increased by 6.2 percent. The enhanced FMAP has the effect of lowering the amount of state funds needed to match the federal funds. States matched the $1.3 billion in federal Matching funds with $1.1 billion in state expenditures.
TANF Transfers. Section 404(d) of the Social Security Act allows states to transfer portions of their TANF grant to either CCDF or the Social Services Block Grant. In Fiscal Year (FY) 2020, 27 states transferred a total of approximately $1.4 billion in GY 2020 federal TANF funds to CCDF.
Unobligated Matching Balances. In FY 2020, Kansas released $70,000 of GY 2020 federal Matching funds to be redistributed to other states in FY 2021.
[1] Fiscal Year (FY) refers to the period from October 1 through September 30, during which states and territories may spend funds awarded in the current and prior years. Grant Year (GY) refers to the year the funds were awarded, although states and territories may liquidate some CCDF funding streams in later fiscal years.