Federal Child Care Subsidy Rule Change: States Now Set Own Copayment Limits
The Trump administration rescinded a nationwide 7% income copayment cap for child care subsidies effective July 13, 2026, allowing states and territories to set their own sliding-fee structures—potentially increasing family costs.
On July 13, 2026, the U.S. Department of Health and Human Services (HHS) rescinded a nationwide requirement that limited family copayments under the Child Care and Development Fund (CCDF) to no more than 7% of household income. This change gives states, territories, and Tribal nations authority to set their own sliding-fee policies for child care assistance programs.
What Changed and What It Means
- The federal 7% copayment cap no longer applies across all jurisdictions
- Individual states now determine their own copayment structures and eligibility rules
- Many states may continue using a 7% or lower limit, but others may increase family contributions
- Copayment policies now vary significantly by location
Newcomer families relying on child care subsidies must check their specific state's policy, as costs may increase or eligibility requirements may shift. Contact your state's child care subsidy agency (often called the Child Care Assistance Program, child care voucher program, or child care subsidy office) to confirm current copayment amounts and income limits in your area. Income limits have expanded in many states, so even if you were previously ineligible, you may now qualify.
Sources
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