Does the law require States to pay for absence days?

The law says that States must implement enrollment and eligibility policies that support the fixed costs of providing child care services by delinking provider payment rates from an eligible child’s occasional absences due to holidays or unforeseen circumstances such as illness. Paying for days when the child is occasionally absent helps promote continuity of care by allowing the provider to retain the slot for the child without a financial penalty to the provider.  Child care programs have fixed costs (staff, facilities, etc.) that must be paid regardless of whether or not a child is present on any particular day.  Private-paying parents generally pay for an entire period (e.g., a week or month) even if the child is out sick within that period.

The law says States must implement this provision “to the extent practicable.”  Each State is expected to implement policies, including policies that require payment for absence days, to the extent that is practicable for that State.  A refusal to implement any such policies as being “impracticable” will not be accepted, as will policies that set unreasonable limitations on providers utilizing such policies.  ACF may establish additional parameters through regulation, and in the meantime strongly encourages States, at a minimum, to pay for a significant number of absence days in order to promote stability and continuity for families and providers.  ACF will ask each State to describe the rationale for its policy in the CCDF Plan.

(Reference: Section 658E(c)(2)(S)(ii))