CFR > Title 45 - Public Welfare > SUBTITLE A—DEPARTMENT OF HEALTH AND HUMAN SERVICES > SUBCHAPTER A—GENERAL ADMINISTRATION (parts 1 to 100) > PART 98—CHILD CARE AND DEVELOPMENT FUND > SUBPART F—Use of Child Care and Development Funds (§98.50 to §98.55) > 98.50—Child care services.

98.50—Child care services.

(a) Of the funds remaining after applying the provisions of paragraphs (c), (d) and (e) of this section the Lead Agency shall spend a substantial portion to provide child care services to low-income working families.
(b) Child care services shall be provided:
(1) To eligible children, as described in § 98.20 ;
(2) Using a sliding fee scale, as described in § 98.42 ;
(3) Using funding methods provided for in § 98.30; and
(4) Based on the priorities in § 98.44.
(c) Of the aggregate amount of funds expended (i.e., Discretionary, Mandatory, and Federal and State share of Matching Funds), no less than four percent shall be used for activities to improve the quality of child care as described at § 98.51.
(d) Of the aggregate amount of funds expended (i.e., Discretionary, Mandatory, and Federal and State share of Matching Funds), no more than five percent may be used for administrative activities as described at § 98.52.
(e) Not less than 70 percent of the Mandatory and Matching Funds shall be used to meet the child care needs of families who:
(1) Are receiving assistance under a State program under Part A of title IV of the Social Security Act,
(2) Are attempting through work activities to transition off such assistance program, and
(3) Are at risk of becoming dependent on such assistance program.
(f) Pursuant to § 98.16(g)(4), the Plan shall specify how the State will meet the child care needs of families described in paragraph (e) of this section.