Does the law require States to offer families a period of job search?

A State cannot terminate CCDF assistance prior to the end of the 12-month eligibility period due to a temporary change in the parent’s work, training and education status.  If a parent experiences a non-temporary loss of job, education or training that affects eligibility, States have the option - but are not required - to terminate assistance prior to re-determination at 12 months.  However, prior to terminating the subsidy, the State must provide a period of continued assistance of at least 3 months to allow parents to engage in job search, resume work, or to attend an education or training program as soon as possible.  

It is important to note that the law allows States to continue child care eligibility for the full 12-month eligibility period even if the parent experiences a non-temporary loss of job, education, or training that affects eligibility.  There are reasons States may want to continue eligibility for some or all of the 12-month period.  In particular, changing child care programs can have a negative effect on children – especially on their social and emotional development.  Losing a subsidy doesn’t just affect the parent – it affects the child and likely means that they have to leave the care of a trusted caregiver – even if their parent is going to return to work after a short job search.  CCDF has an important role in supporting child development, meaning that the value of continuity within a quality child care setting for a child’s development and continuing assistance offers significant benefits to children.

One additional reason to extend eligibility beyond the 3 month job search period is to facilitate a longer job search.  Retention of eligibility during a longer job search period can make it easier for parents to apply for jobs and ensures that they have child care in place when they find one that supports children’s development by maintaining continuity in their early learning placement¹.

(Reference: Section 658E(c)(2)(N)(iii))