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ACF's Oversight of American Rescue Plan Act Child Care Stabilization Grants

Announced on  | Last Modified on  | Project Number: A-02-23-02007
Status
Completed
Agency
Administration for Children and Families

OBJECTIVE

The Child Care and Development Fund (CCDF) is a Federal and State partnership program that provides financial assistance to improve the access to quality child care for low-income families so parents can work or attend a job training or educational program. The American Rescue Plan Act of 2021 (ARP) appropriated $39 billion in child care stabilization grants and supplemental discretionary CCDF funds to be used to respond to the COVID-19 pandemic. These funds provided States, Territories, and Tribes with additional program flexibilities but were also subject to different restrictions than States' annual CCDF funding. According to HHS's Administration for Children and Families (ACF), this funding served more than 200,000 child care providers and benefited as many as 9.5 million children. We will determine how States used these funds, identify any risk areas, and review ACF's oversight of ARP child care stabilization funds. In a separate series of audits, we will determine whether selected States used ARP child care stabilization and supplemental CCDF discretionary funds in accordance with Federal and any applicable State requirements.

TIMELINE

REPORT PUBLISHED

ACF Did Not Monitor States’ Compliance With All American Rescue Plan Child Care Stabilization Grant Provisions (A-02-23-02007)
  • The selected States varied in their determination of subgrant award amounts, frequency of provider payments, and allowable use of funds. Also, States reported experiencing challenges in implementing subgrant programs such as developing application systems and State-specific challenges.
  • ACF conducted monitoring activities to oversee States’ ARP child care stabilization grant programs, including monthly interviews with State officials and collecting and reviewing State subgrant award data; however, not all ARP provisions were monitored by these activities. In addition, ACF did not require States to develop internal controls to ensure integrity and accountability of their ARP child care stabilization grant programs.
  • ACF used State-reported program data to publish fact sheets on States’ subgrant programs that were not always reliable or accurate.

25-A-02-110.01 to ACF - Open Unimplemented
Update expected on 02/26/2026
We recommend that the Administration for Children and Families develop a written plan that can be quickly tailored to fit the circumstances, in the event of future funding of new, emergency, or temporary CCDF programs that includes procedures to identify the key compliance provisions of the authorizing and appropriating legislation, effectively monitor compliance with key provisions, and assess and update the plan as program risk areas are identified.

25-A-02-110.02 to ACF - Open Unimplemented
Update expected on 02/26/2026
We recommend that the Administration for Children and Families strengthen its procedures to assess the reliability of State-reported program data, collected for emergency, or temporary CCDF programs, prior to publishing such data.

25-A-02-110.03 to ACF - Open Unimplemented
Update expected on 02/26/2026
We recommend that the Administration for Children and Families establish requirements that States develop internal controls and identify areas of risk for future emergency, or temporary CCDF programs.

View in Recommendation Tracker
Work Plan Type
Office of Audit Services
HHS Agencies
Administration for Children and Families
Issue Areas
COVID-19 Financial Stewardship
Target Groups
Children and Families
Financial Groups
Grants