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Securing and Managing Child Care Subsidies - Questions and Answers for Centers Considering Participation

by Judith Bordin
July/August 2001
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Article Link: http://exchangepress.com/article/securing-a/5014035/

In 1994, the federal government passed the Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA). It replaced Aid to Families and Dependent Children (AFDC) with Temporary Assistance to Needy Families (TANF) and heralded the emergence of welfare reform. One of the major issues that loomed large for the success of this program was child care. Welfare reform mandated that more parents enter the workforce and the need for care has increased. The need for slots for these children became critical. Thus, many states have instituted capacity building programs. They encouraged licensed providers to enroll welfare-to-work families in their programs and receive a subsidy while the parents attend training or begin employment. This article reports the findings of a survey that asked providers about their motivation and experiences accepting subsidies in welfare reform.


A list of all licensed caregivers in one county was obtained from the local resource and referral agency. A total of 283 surveys were mailed, 57 (20.1%) were sent to child care centers, and 226 (79.8%) were sent to family day care providers. One hundred forty-four providers (50.5%) returned their surveys in the preaddressed, stamped envelopes. Thirty-five child care centers (64.1 %) and 109 family day care providers (48.2%) responded ...

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