Evaluation of Family Access to Childcare and Employment Outcomes

High-quality child care is essential to child development and family stability, but many Minnesotan families struggle to afford quality care. The Child Care Assistance Program (CCAP), administered by the Department of Children, Youth, and Families (DCYF), helps eligible low‑income families access care so parents can work or attend school. Demand for the program has grown substantially in recent years, but the funding for benefits has remained unchanged, leaving many eligible applicants unable to receive benefits. To better understand families’ child care journeys and how CCAP may support parents’ employment, Minnesota Management and Budget partnered with DCYF to conduct a descriptive analysis of CCAP applications, eligibility, benefit receipt, and employment patterns. This report links CCAP administrative data with state unemployment insurance data, offering a novel view into applicant experiences and the employment trends of participating families. These findings are descriptive and are not designed to assess causal impact but point to areas of further study.

Key Takeaways 

• Employed CCAP participants have fewer employers than other public benefit recipients, suggesting CCAP participation may support employment stability.
• Three in four families that applied for CCAP in recent years never received child care services. Applications rose substantially from the pre- to post-pandemic period, but the number of households receiving support fell. Over the study period, the share of applicants found ineligible rose 16 percentage points, and the share of eligible families who never selected a provider rose 5 percentage points. Possible explanations include easier applications after CCAP's addition to MNBenefits, a changing applicant profile, shifts in county worker demands and capacity, and difficulty finding child care providers.
• Most eligible applicants who receive benefits do so within 70 days of application, with multi-application households waiting much longer. While most applicants are never found eligible, those who qualify receive support quickly after application. This suggests that the primary administrative burden, for both applicants and program staff, lies in determining eligibility and selecting a provider rather than in delivering benefits. For those who do need to submit multiple applications, time to service is much longer, highlighting the compounding effects of multiple applications.

Taken together, these findings suggest CCAP may play an important role in supporting stable employment for eligible and participating parents, but many families encounter barriers to accessing assistance. The report identifies opportunities to improve the application process, reduce administrative burden, and better understand the needs of families seeking subsidized care. Further analysis is necessary to inform future policy and practice decisions.

Descriptive Report

Project Status: 

Completed

Evaluation Priority Area: 

Human Services