To support the sustainability of child care providers through the COVID-19 health emergency, the Department of Human Services, Division of Family Development (DFD) will temporarily provide Differential Payments to providers on behalf of families participating in the Subsidy Program.

The Differential Payments will provide up to $300 for full-time care, or $150 for part-time care, per eligible child, per month above the baseline reimbursement rate from January 1, 2022 through December 31, 2023.

In contrast to the existing supplemental payments, the Differential Payments are designed to help pay the tuition difference and reduce any other costs or fees paid by families, e.g. co-payments, which are not covered by reimbursement payments.

This means that if a provider’s rate is greater than the reimbursement rate, the provider must reduce the family’s cost of care, any difference owed, or credit issued (if monies are owed), by the additional amount received through the Differential Payment. Families will only pay the tuition difference, and any co-payment, if the total subsidy payment (reimbursement rate plus Differential Payment) does not cover the provider rate. Click links below to view documents.