Contracts or Grants

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Grants and contracts are good strategies for building the supply and quality of infant and toddler care, and Lead Agencies have broad authority to use them with other government or non-governmental organizations.

This implementation guide focuses on the use of contracts to stabilize child care and support overall improvements to the child care system. Potential challenges to using contracts are identified and strategies and resources are offered to overcome concerns.

This implementation guide outlines strategies for using contracts for direct service child care slots.

Guidance from the Office of Child Care (OCC) strongly recommends CCDF Lead Agencies use funds to expand access to high-quality child care by increasing the use of contracts or grants, among other strategies.

A governmental inter-agency written agreement is often referred to as a Memorandum of Understanding (MOU) or Memorandum of Agreement (MOA). In general, written agreements bind two or more agencies to terms outlined within the agreement.

This fourth webinar in a six-part Hot Topics series supports States and Territories in identifying multiple strategies for building a supply of quality infant and toddler care, specifically in high-need areas.

Lead Agencies can use direct service grants or contracts to increase the supply of quality child care for underserved or vulnerable populations. This brief provides information on direct service grants and contracts, including: