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Obligation and Liquidation Requirements

In general, an obligation is an action that commits the funds; for example, through issuance of a voucher or certificate to a family or through a contract or subgrant for purchase of services. Liquidation generally means the payment of funds to a third party, such as a child care provider, as a result of an obligation.

If Source of Funds Is FY 2020 (10/1/19–9/30/20)

Obligation Must Be Made by End of...

And Liquidated by End of…

Discretionary

FY 2021 (9/30/2021)

(By end of 2nd fiscal year)

FY 2022 (9/30/2022)

(By end of 3rd fiscal year)

Mandatory

FY 2020 (9/30/2020)

(For states requesting Matching Funds, by end of 1st fiscal year)

No requirement to liquidate by a specific date

Matching

FY 2020 (9/30/2020)

(By end of 1st fiscal year)

FY 2021 (9/30/2021)

(By end of 2nd fiscal year)

Maintenance of effort

FY 2020 (9/30/2020)

(For states requesting Matching Funds, by end of 1st fiscal year)

FY 2020 (9/30/2020)

(For states requesting Matching Funds, by end of 1st fiscal year)