Tennessee Uses Stimulus Funds to Launch Child Care Scholarship Program for Working Families

J. Allen
Letters are going out to child care centers across the state of Tennessee offering a bit of good news. The American Reinvestment & Recovery Act, aka The Stimulus, features child care assistance funds for working parents.

Tennessee Department of Human Service's officials are asking child care center to help identify families that may be eligible for a temporary scholarship. The state received nearly $42 million to disperse as part of this program.

Aid will go to families with the greatest need that aren't eligible for existing child care assistance programs. Providers will have to submit an application and supporting documentation for currently enrolled children or accept newly enrolled children into their programs. They can begin signing up children starting this week.

"We know that the cost of child care is a significant expense for hard-working families," said DHS Commissioner Gina Lodge. "Many are struggling to make ends meet - to pay the mortgage or the rent, the utilities, and their daycare. This program should help make things a little bit easier for those hardest hit during these tough economic times."

Eligibility is based on a family's gross monthly income. A two person household can't earn more than $2,897 monthly, a three person household tops out at $3,579, while the maximum for a four person household is $4,260. Five and six person households may not exceed $4,942 and $5,623 respectively. The child's parent or guardian must also work at least 30 hours per week and be a U.S. citizen.

Child care centers will be allowed to request scholarships for up to three children. Scholarship amounts will be awarded based on the state's existing reimbursement rate for centers, plus their "star" bonus or their private pay rate, whichever is less. That means a family with three infants enrolled in a three-star facility in one of Tennessee's 15 largest counties could save up to $474 a month.

The program ends September 30, 2010 or when all stimulus dollars have been spent, whichever comes first.

Published by J. Allen

J. Allen is an award winning professional writer in the Chattanooga area. He's always looking for the stories that fall through the cracks in a daily news cycle.  View profile

  • Child care centers in Tennessee will be asked to help identify families in need
  • Some eligible families can save $474 a month
  • Enrollment begins now
The National Association of Child Care Resource and Referral Agencies ranked Tennessee third in the nation in its 2009 report card on the state of child care in the U.S.

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