State Of Play: Rules and Regulations

As part of a “Child Care Reform Package” released on May 11, the Administration issued four separate policy actions: a Head Start Notice of Proposed Rulemaking (NPRM), the Child Care and Development Fund (CCDF) Final Rule, a Temporary Assistance for Need Families (TANF) Information Memorandum, and a CCDF Dear Colleague Letter.

These documents serve different purposes, ranging from proposing and finalizing regulatory changes to providing guidance and policy recommendations.

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Background

Reauthorization vs. Regulation

• Reauthorization: A process through which Congress provides structural updates and policy reforms to improve a program through legislation. Federal programs including Head Start and the Child Care and Development Block Grant (CCDBG), are typically reauthorized every five years – though programs can, and often do, function with expired authorizations because they can continue through annual funding decisions made by Congress.
• Regulation: Rules written by administration officials to explain “how” to carry out the mandates established by laws. Regulations help fill technical gaps when interpreting statute, but relying solely on regulation to adapt policy can leave programs outdated and vulnerable to shifting administrative priorities across administrations. 
• CCDBG was last reauthorized by Congress in 2014 (authorization expired in 2020). Head Start was last reauthorized by Congress in 2007 (authorization expired in 2012). 
• https://www.regulations.gov/learn has more information.

Overview: Notice of Proposed Rulemaking (NPRM)

• An NPRM (Notice of Proposed Rulemaking) is a formal announcement published in the Federal Register when a Federal Agency intends to add to, remove from, or otherwise change policy through a rule or regulation. 
• Interested parties then have a set number of days (usually 30 or 60) to submit public comments, after which the agency is required to review and analyze all comments. 
• After considering all comments, the agency issues a Final Rule including a “preamble” explaining the rule’s purpose and responding to major public concerns.

Published in the Federal Register today, May 11, 2026

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Head Start Notice of Proposed Rulemaking (NPRM)

Restoring Flexibility to Support Head Start Program Access, a proposed rule by the Department of Health And Human Services, Administration for Children and Families.

WHAT’S INCLUDED: The NPRM removes requirements that were effective October 1, 2024, related to wages (to be implemented by August 1, 2031) and benefits (to be implemented by August 1, 2028) in the Head Start program. The following requirements are now proposed for elimination:

NEXT STEPS: Interested parties have 30 days to provide comments and feedback to the Administration for Children and Families, with instructions provided in the Federal Register.

LEARN MORE

• The Core Elements of Head Start
• About Early Head Start/Head Start: An Overview

Comments Submitted in Response to Head Start NPRM

 On June 9, FFYF submitted comments in response to the NPRM. The Head Start program has faced workforce challenges for years, with grantees struggling to offer competitive wages and benefits in the face of rising costs and against a backdrop of largely level funding. Staff turnover, often caused by inadequate compensation, has led to classroom closures, and even without a federal requirement, programs will find it necessary to invest in wages and benefits.

Eliminating the requirement neither guarantees savings nor ensures the estimated 106,000 slots will be preserved; rather, Head Start’s next chapter should be shaped through the reauthorization process to pair structural reforms with the federal investment they require. FFYF remains committed to working with the Administration and Congress to support both a stable, fairly compensated workforce and to advance policies that strengthen Head Start for the children, families, and communities it serves. 

Following the June 11 deadline, HHS is required to review and analyze all comments. After considering all comments, the agency issues a Final Rule including a “preamble” explaining the rule’s purpose and responding to major public concerns.

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Child Care and Development Fund (Final Rule)

Restoring Flexibility in the Child Care and Development Fund, a Final Rule by the Department of Health And Human Services, Administration for Children and Families.

BACKGROUND: A NPRM was originally released in January 2026. During its 30-day comment period, “HHS received 1,244 comments from State human services and educational agencies; members of the U.S. Congress; national, State, and local early childhood and family-focused advocacy organizations.”

WHAT’S INCLUDED: The final rule repeals the following requirements in the Child Care and Development Fund Program: (Note: It remains allowable for States to implement these measures in their subsidy programs; it is no longer a requirement to do so.)

Rolling Back:

• Capping CCDF family co-payment at 7% of income 
• Paying child care providers prospectively (at the start of the service period) 
• Paying providers based on a child’s enrollment rather than daily attendance
• Providing some direct services through grants or contracts

NEXT STEPS: The Final Rule will go into effect  60 days after it is  published in the Federal Register 

LEARN MORE

• Reauthorizing CCDBG through the bipartisan Child Care Modernization Act
• Enrollment vs. Attendance: What it means for providers

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Additional Program Guidance

TANF Information Memorandum (IM)

An IM is a resource that federal agencies use to communicate priorities and clarify policies to stakeholders.  This IM, Using TANF to Support Child Care and At-Home Parental Caregivers, encourages states to consider transferring the maximum amount of TANF funds authorized by law (30% of a state’s federal TANF dollars) to CCDF so states are able to serve more eligible children. 

Learn More

• TANF Program Overview 
• TANF – Federal Expenditures and Child Care (coming soon!)

CCDF Dear Colleague Letter

Dear Colleague Letters are often used to highlight policy priorities and provide recommendations. The Child Care and Development Fund (CCDF) Flexibilities Dear Colleague Letter was sent by the administration to Governors encouraging them to review existing policies to ensure family, friend, and neighbor (FFN) caregivers and faith-based providers were being included in the design of subsidy programs so parents have the full range of choices.

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Questions? Please contact Amanda Guarino, Managing Director of Policy & National Partnerships, at aguarino@ffyf.org.