Child Care Development Block Grant (CCDBG): Strengthening Ohio’s Early Learning System

The Child Care and Development Block Grant (CCDBG) is the largest source of federal funding for child care in Ohio. It helps low-income working families afford safe, reliable child care so parents can stay in the workforce and children can learn and grow in quality settings. 

Why CCDBG Matters for Families 

In Ohio, the average annual cost of center-based child care for two children (an infant and four year old) is $21,931—more than the average annual housing cost of $17,048 and even higher than the average annual in-state college tuition of $13,016, according to Child Care Aware of America's Child Care Affordability in Ohio Fact Sheet.  The average cost of infant care alone in Ohio recently grew to over $13,000, according to The Alliance For Early Success. 

In a recent statewide poll conducted by Public Opinion Strategies on behalf of Groundwork Ohio, child care expenses were identified as one of the most significant barriers to workforce participation and financial stability. As of August 2024 polling, fully two-thirds or 66% of Ohioans and 69% of voters across the nation believe federal funding for child care and early learning programs for low-income working families is a good investment of taxpayer money. Among Ohio parents, 74% believe this is a good investment, according to The First Five Years Fund 2024 State Fact Sheet Child Care & Early Learning In Ohio.

Source: Untapped Potential In Ohio: How Childcare Impacts Ohio's Workforce Productivity And The State's Economy, U.S. Chamber of Commerce Foundation in partnership with Ohio Chamber of Commerce and Groundwork Ohio.

Source: Groundwork Ohio Poll Data from 2024

CCDBG increases child care affordability while expanding the range of choices available to parents, enabling families to find care that meets their needs. Affordable child care, made possible for low-income families through CCDBG, allows parents to remain in the workforce, pursue training, or further their education—strengthening both family economic stability and Ohio’s economy overall. 

 Ohio Data Snapshot 

• Federal CCDBG funding to Ohio: $443.5M 

• Families with children under 5 years old served annually: ~29,440 

• 813,626Children 5 and under 5 

• 540,413 (67%) Children 5 and under with all available parents in the workforce 

• 237,548 (30%) Children 5 and under eligible for CCDBG  

• 12% Eligible children served by CCDBG due to insufficient federal funding 

• Subsidy: In Ohio, a family of three with a CCDBG subsidy pays between $132 to $1,455 per month. 

  
  

Why CCDBG Matters for Providers  

• Stability: Subsidies ensure reimbursement for providers who serve low-income families. This stability is vital not only for the providers themselves but also for maintaining consistent services for working families. 

• Workforce: CCDBG funds can improve provider compensation and benefits, bolstering recruitment and retention efforts. In Ohio, reimbursement rates were raised to the 50th percentile based on the 2024 Market Rate Survey—effective June/July 2024. Starting July 2026, providers will be paid based on enrollment rather than attendance, making revenue more predictable and sustainable.  

• Quality: CCDBG strengthens teacher quality by dedicating funding to quality improvement activities like professional development and workforce supports. It also funds continuous quality improvement systems — known in Ohio as Step Up to Quality (SUTQ) — which help providers improve classroom environments, teaching practices, and outcomes for children. 

  
  

Challenges & Opportunities 

Challenge: Too many eligible Ohio families are unable to access child care subsidies due to limited funding. Without adequate funding, providers navigate workforce shortages and rising costs of operating quality child care programs. 

Opportunity: With increased federal and state investment, Ohio can expand access, strengthen financial stability of providers and the programs they operate, and give more children the foundation they need to thrive. 

Recent Changes & Policy Context 

Federal budget deliberations present an opportunity for greater investment in child care –but because CCDBG is discretionary, it is vulnerable to a lapse of federal appropriations. Most recently, in the absence of an agreement among U.S. Senate members on federal appropriations has led to a government shutdown beginning October 1, 2025. This shutdown adds uncertainty and risk to the opportunities to increase child care investments.  

In contrast to steep cuts in the U.S. House’s appropriations, the U.S. Senate’s proposal for FY2026 includes:

• President’s Proposal: $8.746 billion for CCDBG 

• ECE Advocates’ Ask: $12.4 billion increase 

• Senate Appropriations Proposal: $8.831 billion 

  
  

While final decisions are currently stalled, next steps will require important decisions around funding Ohio’s child care system. Investing in CCDBG means investing in Ohio’s children, families, and future workforce. Policymakers must ensure funding keeps pace with the real needs of families and providers. 

Interested in learning more? Visit our CCDBG page!