OSSE Expands Child Care Assistance and Increases Reimbursement Rates
By Audrey Kasselman
Under 3 DC applauds the Office of the State Superintendent of Education (OSSE) for keeping their word on increasing eligibility for assistance to reach more DC families and increasing subsidy reimbursement rates for child care providers across programs, independent of their current quality rating. Increased subsidy reimbursements to providers will allow them to cover their costs, grow, improve and innovate their programs to better meet the early learning needs of our youngest residents.
As directed by the Birth-to-Three For All DC law, OSSE expanded eligibility for child care assistance to families of three earning up to $74,580 and families of four earning up to $90,000. Mayor Bowser’s office estimates that this expansion will make an additional 2,200 children under the age of 5 eligible for the program.
Increased Subsidy Reimbursement Rates for All Providers
OSSE increased this year’s subsidy (or assistance) reimbursement rates across all quality designations for early childhood education providers. Providers will see meaningful increases in the reimbursement they receive from the child care assistance program for DC families compared to the last fiscal year. Providers can use these additional funds to create more high-quality programming, hire more staff and increase staff pay. The rates increased the most for infant and toddler providers from last year to this year. See the high-level summary tables below for more details on the percentage increases.
| Developing | FY22 to FY23 Change | |
| Child Development Center | Infants/Toddlers | 27% increase |
| Preschoolers | 17% increase | |
| Out-Of-School Time | 7% increase | |
| Child Development Home | Infants/Toddlers | 29% increase |
| Preschoolers | 30% increase | |
| Out-Of-School Time | 20% increase |
| Progressing | FY22 to FY23 Change | |
| Child Development Center | Infants/Toddlers | 23% increase |
| Preschoolers | 13% increase | |
| Out-Of-School Time | 6% increase | |
| Child Development Home | Infants/Toddlers | 20% increase |
| Preschoolers | 20% increase | |
| Out-Of-School Time | 17% increase |
| Quality/High Quality | FY22 to FY23 Change | |
| Child Development Center | Infants/Toddlers | 14% increase |
| Preschoolers | 4% increase | |
| Out-Of-School Time | 2% increase | |
| Child Development Home | Infants/Toddlers | 15% increase |
| Preschoolers | 10% increase | |
| Out-Of-School Time | 15% increase |
Daily Child Care Copayments Reduced for DC Families
Many families who participate in the assistance program pay a portion of the cost for their child(ren) to attend their early learning program(s). Compared to last year, most of this year’s daily copays have been reduced. For example, families of four who earn from $15,000 to $30,000 will have a copay of zero dollars. Families of three or four with two children, who earn $64,636-$90,000 will pay less than 6 percent of their yearly income. This means a family of four with two children earning $90,000 will pay $3,984 annually for child care–significantly less than the $25,480 average (per infant) for center-based private pay child care in the District or the $20,449 average (per toddler) for home-based care.
These copayments are ahead of what is called for in the District of Columbia’s Birth-to-Three Law for this fiscal year, and are trending toward 2027 requirements.
See the table below for more details on what percentage of their income families participating in the child care subsidy program can expect to pay this year.
| % of FPG | % of Annual Income | ||||||
| Family Size | 3 | 4 | |||||
| Time | Full Time | ||||||
| Children in care | First | Second | Combined | First | Second | Combined | |
| 0-50% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 51-60% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 61-70% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 71-80% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 81-90% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 91-100% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | |
| 101-110% | 1.08% | 0.38% | 1.46% | 0.45% | 0.16% | 0.61% | |
| 111-120% | 1.26% | 0.44% | 1.70% | 0.52% | 0.19% | 0.71% | |
| 121-130% | 1.43% | 0.50% | 1.94% | 0.59% | 0.21% | 0.80% | |
| 131-140% | 1.61% | 0.57% | 2.17% | 0.66% | 0.23% | 0.90% | |
| 141-150% | 1.78% | 0.63% | 2.41% | 0.74% | 0.26% | 1.00% | |
| 151-160% | 1.95% | 0.69% | 2.64% | 0.81% | 0.29% | 1.10% | |
| 161-170% | 2.13% | 0.75% | 2.88% | 0.88% | 0.31% | 1.20% | |
| 171-180% | 2.31% | 0.82% | 3.12% | 0.96% | 0.34% | 1.29% | |
| 181-190% | 2.48% | 0.87% | 3.35% | 1.03% | 0.36% | 1.39% | |
| 191-200% | 2.65% | 0.94% | 3.59% | 1.10% | 0.39% | 1.49% | |
| 201-210% | 2.83% | 1.00% | 3.82% | 1.17% | 0.41% | 1.58% | |
| 211-220% | 3.01% | 1.06% | 4.06% | 1.24% | 0.44% | 1.68% | |
| 221-230% | 3.18% | 1.12% | 4.30% | 1.32% | 0.46% | 1.78% | |
| 231-240% | 3.35% | 1.18% | 4.54% | 1.39% | 0.49% | 1.88% | |
| 241-250% | 3.53% | 1.24% | 4.77% | 1.46% | 0.52% | 1.98% | |
| 251-260% | 3.70% | 1.30% | 5.00% | 1.53% | 0.54% | 2.07% | |
| 261-270% | 3.79% | 1.33% | 5.12% | 1.57% | 0.55% | 2.12% | |
| 271-280% | 3.84% | 1.36% | 5.20% | 1.59% | 0.56% | 2.15% | |
| 281-290% | 3.89% | 1.37% | 5.27% | 1.61% | 0.57% | 2.18% | |
| 291-300% | 3.95% | 1.39% | 5.34% | 1.64% | 0.58% | 2.21% | |
| 301-310% | 4.00% | 1.41% | 5.42% | 1.66% | 0.59% | 2.25% | |
| 311-320% | 4.06% | 1.43% | 5.49% | 1.68% | 0.59% | 2.28% | |
| 321-330% | 4.11% | 1.45% | 5.56% | 1.70% | 0.60% | 2.31% | |
| 331-340% | 4.22% | 1.49% | 5.71% | 1.75% | 0.62% | 2.36% | |
| 341-350% | 4.33% | 1.53% | 5.85% | 1.79% | 0.63% | 2.43% | |
| 351-360% | 4.44% | 1.56% | 6.00% | 1.84% | 0.65% | 2.49% | |
| 361-370% | 4.55% | 1.60% | 6.15% | 1.88% | 0.66% | 2.55% | |
| 371-380% | 4.73% | 1.67% | 6.39% | 1.96% | 0.69% | 2.65% | |
| 381-390% | 4.91% | 1.73% | 6.64% | 2.03% | 0.72% | 2.75% | |
| 391-400% | 5.09% | 1.79% | 6.88% | 2.11% | 0.74% | 2.85% | |
| 401-410% | 5.36% | 1.89% | 7.25% | 2.22% | 0.78% | 3.00% | |
| 411-420% | 5.63% | 1.98% | 7.61% | 2.33% | 0.82% | 3.15% | |
| 421-430% | 5.63% | 1.98% | 7.61% | 2.33% | 0.82% | 3.15% | |
Collapsing the Quality Tiers
For this upcoming year, OSSE made adjustments to provide subsidy reimbursements at similar levels across Developing, Progressing and Quality/High-Quality Programs, with a slight boost for Quality/High-Quality Programs. This is a more equitable approach to ensure that all providers, at minimum, have the funds to meet the full cost of providing quality care and that no quality tier is significantly disadvantaged in terms of reimbursement rates. While OSSE’s rationale for flattening the quality tier based funding formula is that it does not actually require more funding to deliver higher quality programming, the agency’s updated approach maintains a slight rate advantage for Quality/High-Quality programs to continue to incentivize early learning programs to strive to improve their quality. See the tables below which illustrate how reimbursement rates differ between High Quality and Progressing programs (center and home) and between Quality and Developing programs (center and home).
High Quality vs. Progressing Child Development Center
| High Quality
Full-Time Traditional FY23 |
High Quality
Full-Time Traditional FY22 – FY23 % Change |
Progressing
Full-Time Traditional FY23 |
Progressing
Full-Time Traditional FY22-FY23 % Change |
High Quality
Full-Time NonTraditional FY23 |
High Quality
Full-Time NonTraditional FY22 – FY23 % Change |
Progressing
Full-Time NonTraditional FY23 |
Progressing
Full-Time NonTraditional FY22-FY23 % Change |
||
| Infant and Toddler | $107.24 | 14.2% increase | $98.65 | 23.3% increase | $134.05 | 14.2% increase | $123.31 | 23.3% increase | |
| Infant and Toddler Special Needs | $125.47 | 6.9% increase | $118.38 | 9.2% increase | – | – | – | – | |
| Pre-School | $66.81 | 3.6% increase | $63.00 | 12.6% increase | $83.51 | 3.6% increase | $78.75 | 12.6% increase | |
| Pre-School Before and After | $66.81 | 3.6% increase | $63.00 | 12.6% increase | – | – | – | – | |
| School-Age Before and After | $36.74 | 1.9% increase | $36.74 | 1.9% increase | $45.92 | 1.9% increase | $45.92 | 1.9% increase | |
| School-Age Before or After | $36.74 | 1.9% increase | $36.74 | 1.9% increase | – | – | – | – | |
| Pre-School and School-Age Special Needs | $77.14 | 2.3% increase | $75.60 | 1.6% increase | – | – | – | – |
High Quality vs. Progressing – Child Development Home
| High Quality
Full-Time Traditional FY23 |
High Quality
Full-Time Traditional FY22 – FY23 % Change |
Progressing
Full-Time Traditional FY23 |
Progressing
Full-Time Traditional FY22-FY23 % Change |
High Quality
Full-Time NonTraditional FY23 |
High Quality
Full-Time NonTraditional FY22 – FY23 % Change |
Progressing
Full-Time NonTraditional FY23 |
Progressing
Full-Time NonTraditional FY22-FY23 % Change |
||
| Infant and Toddler | $91.75 | 15% increase | $84.28 | 20.4% increase | $114.68 | 15% increase | $105.35 | 20.4% increase | |
| Pre-School | $58.50 | 10.6% increase | $53.04 | 19.6% increase | $73.12 | 10% increase | $66.30 | 19.6% increase | |
| Pre-School Before and After | $58.50 | 10.6% increase | $53.04 | 19.6% increase | – | – | – | ||
| School-Age Before and After | $32.20 | 15% increase | $32.20 | 15% increase | $40.25 | 15% increase | $40.25 | 15% increase | |
| School-Age Before or After | $32.20 | 15% increase | $32.20 | 15% increase | – | – | – | – |
Quality vs. Developing Child Development Center
| Quality
Full-Time Traditional FY23 |
Quality
Full-Time Traditional FY22 – FY23 % Change |
Developing
Full-Time Traditional FY23 |
Developing
Full-Time Traditional FY22-FY23 % Change |
Quality
Full-Time NonTraditional FY23 |
Quality
Full-Time NonTraditional FY22 – FY23 % Change |
Developing
Full-Time NonTraditional FY23 |
Developing
Full-Time NonTraditional FY22-FY23 % Change |
||
| Infant and Toddler | $100.66 | 14.2% increase | $98.65 | 27.4% increase | $125.82 | 14.2% increase | $123.31 | 27.4% increase | |
| Infant and Toddler Special Needs | $120.79 | 5.3% increase | $118.38 | 9.2% increase | – | – | – | – | |
| Pre-School | $64.28 | 3.6% increase | $63.00 | 16.9% increase | $80.35 | 3.6% increase | $78.75 | 16.9% increase | |
| Pre-School Before and After | $64.28 | 3.6% increase | $63.00 | 16.9% increase | – | – | – | ||
| School-Age Before and After | $36.74 | 1.9% increase | $36.74 | 1.9% increase | $45.92 | 1.9% increase | $45.92 | 1.9% increase | |
| School-Age Before or After | $36.74 | 1.9% increase | $36.74 | 1.9% increase | – | – | – | ||
| Pre-School and School-Age Special Needs | $77.14 | 2.3% increase | $75.60 | .2% increase | – | – | – |
Quality vs. Developing – Child Development Home
| Quality
Full-Time Traditional FY23 |
Quality
Full-Time Traditional FY22 – FY23 % Change |
Developing
Full-Time Traditional FY23 |
Developing
Full-Time Traditional FY22-FY23 % Change |
Quality
Full-Time NonTraditional FY23 |
Quality
Full-Time NonTraditional FY22 – FY23 % Change |
Developing
Full-Time NonTraditional FY23 |
Developing
Full-Time NonTraditional FY22-FY23 % Change |
||
| Infant and Toddler | $86.00 | 15% increase | $84.28 | 28.8% increase | $107.50 | 15% | $105.35 | 28.7% increase | |
| Pre-School | $54.12 | 10% increase | $53.04 | 29.9% increase | $67.65 | 10% increase | $66.30 | 29.9% increase | |
| Pre-School Before and After | $54.12 | 10% increase | $53.04 | 29.9% increase | – | – | – | – | |
| School-Age Before and After | $32.20 | 15.4% increase | $32.20 | 15% increase | $40.25 | 15% increase | $40.25 | 15% increase | |
| School-Age Before or After | $32.20 | 15.4% increase | $32.20 | 15% increase | – | – | – | – | |
