Child Care and Early Education Research Connections

Skip to main content

States can improve child care assistance programs through cost modeling


 As of fiscal year 2022, 49 states were using a methodology that sets future maximum payment rates based on past market rates charged, making them unresponsive to market or economic changes. By the final year the payment rates are used, the underlying data could represent the child care market of up to five years prior. There is, however, an alternative to market rate surveys: cost estimation modeling. Cost models use regulatory requirements and program characteristics to quantify the typical expenses child care providers face and develop an estimate of what it truly costs to provide care. Moving to cost modeling is a change that states could make already with the approval of the Administration for Children and Families (ACF); in fact, District of Columbia and New Mexico have already done so, and Virginia will soon join them. (author abstract)

Resource Type:

Related resources include summaries, versions, measures (instruments), or other resources in which the current document plays a part. Research products funded by the Office of Planning, Research, and Evaluation are related to their project records.

- You May Also Like

These resources share similarities with the current selection.

Precarious progress: State child care assistance policies 2022

Reports & Papers

Fiscal modeling studies

Interactive Tools

New Mexico Child Care Cost Model

Interactive Tools
Release: 'v1.40.0' | Built: 2023-11-07 08:40:06 EST