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Setting child care subsidy reimbursement rates: Nebraska’s market rate survey and other methodologies


Section 658E(c)(4) of the Child Care and Development Block Grant (CCDBG) Act, 42 U.S.C. § 9858c(c)(4), requires Lead Agencies—states, territories and tribes—to certify that their provider reimbursement rates are sufficient to ensure that children eligible for Child Care Development Fund (CCDF) subsidies will have equal access to the child care market when compared to children whose families do not qualify for subsidies and therefore pay for child care privately. The objective of this requirement is to ensure provider reimbursement rates are high enough that recipients who are eligible for subsidies aren’t priced out of the child care market; that is, subsidy-eligible families can access comparable care as families who are paying directly (private pay), without any additional public support. (author abstract)

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