The Need
Affordability is a major barrier for many families trying to access licensed, quality child care. Reducing family copayments for Colorado Child Care Assistance Program (CCCAP) makes the program a viable option for more parents and caretakers, giving them the ability to work or attend school, and have more money for food, transportation, housing, and other needs.
The Strategy
This strategy lowers the cost of child care for low-income families enrolled in CCCAP by reducing the family's out-of-pocket copayment, also known as the parent fee.
CCCAP instituted a new copay structure on July 1, 2021, establishing a formula based on a marginal rate increase rather than on an increased percentage of a family’s gross income. The marginal rate eliminates the steep increase a family would face if its income rose under the previous formula. The new formula slowly increases the copay amount when a family’s income rises, allowing families to retain more of that income.
Key Outcomes and Learnings
The reduced copayments policy helps keep Colorado responsive to evolving federal requirements and has helped families save an average of $127.00 each month since July 1, 2021.
Funding
Amount: $9,461,871
Sources:
- American Rescue Plan Discretionary
- Coronavirus Response and Relief Supplemental Appropriations (CRRSA)
Expiration: September 30, 2024
Next Steps
CDEC will continuously evaluate data to inform the implementation of current and new policies that provide CCCAP-eligible families with reliable care.
Evidence Brief
"CCCAP Reduced Co-Payments for Families and CCCAP Expanded Income Eligibility for Families"
Brodsky Research and Consulting
(September 2023)
