Seventy Percent of States Report that Administrative Burden is a Barrier to Provider Participation in CCDF

This Data Point describes the barriers related to provider participation identified by states and territories in their FY25-27 Plans. The analysis identifies several major barriers to provider participation in CCDF, including examples of administrative burden reported by states. Key findings include:

• One core purpose of the Child Care and Development Fund (CCDF) is to provide participating parents with choice in their child care arrangements.
• CCDF Lead Agencies identified barriers to provider participation in the subsidy system in their Fiscal Year 2025-2027 (FY25-27) Plans.
• States and territories reported a range of barriers to provider participation in the CCDF subsidy system. Administrative burden was among the most frequently reported barriers to provider participation in CCDF: 70 percent of states and territories identified administrative burden, with low reimbursement rates and payment process barriers among the other most-frequently identified barriers.
• Barriers related to administrative burden include time-consuming or costly processes for documenting compliance with licensing, quality, health and safety, or other requirements.
• The federal government can take steps to reduce burdensome regulations and alleviate these barriers, while other barriers may be best addressed by states.
• Continued efforts to reduce barriers to provider participation may help to bring more providers into the subsidy system, thus increasing access to child care and supporting parental choice.

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