What is the Federal Childcare Subsidy Program?

Public Law 107-67, Section 630, permits Federal agencies, at their discretion, to use appropriated funds normally available for salaries to assist their eligible employees with childcare costs. 

The primary purpose of the Childcare Subsidy Program ("CCSP") is to provide an employee benefit to eligible employees of Federal Agencies, to help ease the financial burden of childcare expenses. The CCSP childcare subsidy payments are also intended to provide an incentive for employees to use licensed, and/or regulated, safe and reliable childcare providers, and improve employee retention, productivity, and morale.

Childcare subsidy payments can reduce the amount of costs parents pay out-of-pocket for childcare services by providing monthly subsidy payments directly to their childcare provider.