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Family Child Care Providers in the CACFP - Operational Effects of Reimbursement Tiering: A Report to Congress on the Family Child Care Homes Legislative Changes Study

  • by Natasha Zotov, Shao-hsun Keng and William Hamilton
  • 4/1/2002
  • EFAN-02-004

Overview

Family child care providers who participate in the Child and Adult Care Food Program (CACFP) receive reimbursement for qualifying meals served to children in their care. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 mandated a two-tiered reimbursement structure designed to target benefits more narrowly to low-income children and called for a study of its effects on program participants and on meals offered to children. Participating providers who receive the lower Tier 2 reimbursements tend to charge higher hourly fees and spend somewhat less on food, according to analyses controlling for provider's location and operating characteristics. The pattern of meals and snacks that providers offered was not altered by tiering, however.

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