Challenges
Access
Location
Illinois
Stakeholders
Businesses, Nonprofits, State Government
Beneficiaries
Parents, Children, Childcare Providers, Job Seekers
Overview
In 2022, Illinois significantly expanded its Child Care Assistance Program (CCAP) by raising income eligibility and cutting parent co-payments, thereby reaching 20,000 more children.
Key Impact Metrics
-
~20K
more children received childcare assistance
-
$0
Copay for thousands of families
Problem
The Child Care Assistance Program (CCAP) is a policy initiative that helps low-income working families pay for childcare. However, the program had strict limits. Before 2022, initial eligibility was capped at 185% of the Federal Poverty Level, below the federal recommendation of 85% of the state median income. This resulted in a significant benefits cliff, where small pay raises caused a complete loss of crucial assistance.
Solution
The CCAP expansion in 2022 offered a vital solution to make childcare significantly more affordable and accessible for Illinois's working families. The core of the expansion involved raising the income eligibility threshold to allow families earning up to 200% of the Federal Poverty Level to qualify upon initial application, vastly increasing the number of eligible households. Concurrently, the policy substantially reduced family co-payments, in some cases eliminating them for the lowest-income families, directly alleviating financial burdens. This expansion, primarily supported by federal American Rescue Plan Act funds, aimed to empower more parents to maintain employment while ensuring their children had access to necessary care, thereby strengthening both family stability and the state's economy.
Results
- Beneficiary Impact117,000 children served in FY2023
- Employee Impact$19.25 wage floor for teachers
- Financial Results$512M provided in federal funding
Replication Tips
- Use Federal guidance as a benchmark: Illinois aimed for the federal max of 85% state median income and started moving in that direction. Other states replicating should evaluate their current cutoff and consider phasing up to that level if fiscally possible. It dramatically broadens its reach to include more working-class families.
- Budget and funding: Secure sustainable funding for expansion—Illinois did it through increased general revenues in a strong budget year and by leveraging federal relief funds to initially bolster childcare.
Suggested Implementation Timeline
~10-14 months
