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<classification authority="sudocs">GA 1.13:GAO-02-894</classification>
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 <subject>Child care programs</subject>
 <subject>Disadvantaged persons</subject>
 <subject>Federal aid to states</subject>
 <subject>Federal/state relations</subject>
 <subject>Public assistance programs</subject>
 <subject>State-administered programs</subject>
 <subject>Subsidies</subject>
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 <subject>Aid to Families with Dependent Children</subject>
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<titleInfo>
 <title>Child Care: States Exercise Flexibility in Setting Reimbursement Rates and Providing Access for Low-Income Children</title>
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<abstract>Federal welfare legislation passed in 1996 placed a greater
emphasis on helping low-income families end dependence on	 
government benefits by promoting job preparation and work. To	 
reach this goal, the legislation gave states greater flexibility 
to design programs that use federal funds to subsidize child care
for low-income families. Under the Child Care and Development	 
Fund, this flexibility includes the freedom to largely determine 
which low-income families are eligible to receive child care	 
subsidies. These maximum rates consist of two parts--a state	 
subsidy and family co-payment. States also establish maximum	 
reimbursement rates for child care. States reported considering  
market rate survey and budget and policy goals in setting maximum
reimbursement rates. All states reported conducting market rate  
surveys in the past 2 years that obtained data on providers&apos;	 
fees, but 10 states reported that they did not base the 	 
reimbursement rates for child care providers on their most recent
market rate surveys. In the nine communities visited, GAO	 
calculated that hypothetical families&apos; access to child care	 
centers and family home providers varied widely as a result of	 
the different subsidies and family co-payments established by	 
each state.</abstract>
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 <topic>Child care programs</topic>
 <topic>Disadvantaged persons</topic>
 <topic>Federal aid to states</topic>
 <topic>Federal/state relations</topic>
 <topic>Public assistance programs</topic>
 <topic>State-administered programs</topic>
 <topic>Subsidies</topic>
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 <topic>Aid to Families with Dependent Children</topic>
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