MDHS Commits $5 Million to Expand Child Care

MDHS Commits $5 Million in TANF Funds to Expand Child Care Assistance for Mississippi Working Families

The Mississippi Department of Human Services (MDHS) today announced a $5 million investment of Temporary Assistance for Needy Families (TANF) direct funds to child care assistance for low-income working families in Federal Fiscal Year 2026.

The new funding will be administered through MDHS’s Division of Early Childhood Care and Development (DECCD) and distributed through the established Child Care Payment Program (CCPP) voucher system. These TANF direct funds are in addition to existing child care support MDHS provides through various subgrantees offering afterschool programs and workforce supports for working families.

“Child care is not a luxury — it is the infrastructure that makes work possible for Mississippi families,” said Robert G. “Bob” Anderson, MDHS Executive Director. “This $5 million investment is a targeted, responsible use of TANF funds to reach working parents who need help, and it reflects our commitment to deploying public resources where they make a real difference.”

This investment is separate from – and in addition to – MDHS’s existing annual conversion of approximately $25.7 million from TANF to the Child Care Development Fund (CCDF), which reflects the maximum allowed under federal law. By investing these direct funds, MDHS is able to extend child care assistance to additional eligible families beyond those currently supported through the CCDF conversion, while preserving the agency’s capacity to respond to other emerging program priorities.

Families seeking child care assistance do not need to submit a new or separate application. Eligibility will be determined through the standard CCPP process, including income eligibility standards and work or education requirements.

Approved vouchers funded through the TANF direct stream will provide the same level of assistance as those funded through CCDF. DECCD will assign each approved certificate to a single funding stream, prioritizing CCDF dollars first, followed by any applicable state funds, and then TANF direct funds.

Child care providers will continue to receive payment through the established CCPP reimbursement process with no changes to their current billing or reporting requirements.

“Mississippi working families have always been the heart of what we do at MDHS,” said Dr. Chad Allgood, Director of the Division of Early Childhood Care and Development. “This additional investment means we can say yes to more families trying to build a better future.”

MDHS encourages eligible families to apply through the Child Care Payment Program at mdhs.ms.gov or by contacting their local county DHS office. Additional program information is available through the MDHS DECCD hotline at 1-800-948-4060.

Additional Resources

MDHS_Understanding TANF FundingDownload
MDHS_TANF Allocation ChartDownload

FAQs

Child care is essential to Mississippi’s workforce. Following the funding of all new subgrants in January and renewal of existing subgrants in October 2025, MDHS has a clear picture of unassigned funds to support this critical workforce need. MDHS believes this allocation to Child Care is the most fiscally responsible assignment of taxpayer funds to support Child Care and keep the enrollment at pre-pandemic levels.

The 196 R federal report is simply a snapshot in time of the amount of money that MDHS has received over the five year accounting period and the amount that it has expended on the final day of each quarter. It does not consider existing, unpaid TANF obligations and unassigned funds.

MDHS wants to ensure the public that we take utilization of taxpayer funds seriously. MDHS is taking a fiscally conservative stance on this initial investment. In October, MDHS will make consideration of a future increase once existing subgrants have been closed out or renewed. We believe that this $5 million is sustainable and responsible utilization to at least sustain the CCPP at pre-pandemic levels.

MDHS has extensive controls in place to ensure that any funds meant for child care certificates are utilized for children of working parents.

There are over 100,000 children in Mississippi in the B-5 age group. Funding has always been outpaced by need.

MDHS undertakes a reimbursement rate survey every three years that locks in the reimbursement rate the agency pays to providers for the attendance of children.

In October, MDHS will review available funds and continue support of working families.

MDHS currently funds multiple sub grantees to provide direct child care and after school care assistance to hundreds of families across the state through TANF APA subgrants that allow parents to remain in the workforce.