Predictors of Child Care Subsidy and TANF Receipt

Background and Purpose:

In 2013, over 40% of children in the U.S. lived in low-income families. Childhood experiences of economic hardship result in long lasting disparities in children’s achievement, health, and social functioning. In light of these disparities, the U.S. has a number of policies designed to improve the lives of low-income children and families. Two of these policies are child care subsidies, administered through the Child Care Development Fund (CCDF), and Temporary Assistance for Needy Families (TANF). The purpose of this research was to understand what predicted receipt of CCDF subsidy and TANF benefits among those deemed potentially eligible for the benefits.

Methods:

Receipt of benefits at child age three were examined in wave three data from the Fragile Families and Child Well-being study. The sample was limited to four income groups: those under 50% of the federal poverty level (FPL), those under 100% FPL, those between 100-200% FPL, and those above 200% FPL. Three outcomes were examined: receiving TANF only, receiving child care subsidy only, and receiving both benefits. Finally, various characteristics of mothers, including their race, employment status, work schedule (e.g. nights, weekends), health, depression, immigrant status, marital status, economic hardship, education, and childcare type at child age 1 were explored. A series of logit models were run to understand the relationship between the characteristics of mothers in the sample and which type of benefits they received.

Results:

Among mothers under 50% FPL, receiving TANF only was more likely for those who were black and less likely for those who were employed, working nights, or married. For mothers who were between 100-200% FPL, receiving TANF only was more likely for those who had children in poor health and less likely for those who were working. Mothers who reported working, having a higher level of education, and being married had a lower likelihood of receiving TANF only, while having a child in poor health or higher levels of economic hardship were associated with a greater likelihood of receiving TANF only.

Receiving childcare subsidy only was more likely for black or Asian mothers, as well as those who had a formal childcare arrangement; mothers who were less likely to receive only the subsidy were those who were married or worked different times each week.

Receiving both TANF and childcare subsidy was more likely for black mothers, and mothers who reported using a formal childcare arrangement; it was less likely for mothers who were married, working, or had higher levels of education.

Conclusions and Implications:

These findings suggest individual characteristics may predict receipt of either TANF or child care subsidy benefits among mothers and that the predicts vary by benefit. Interestingly, working mothers were less likely to receive TANF and childcare subsidy benefits. Future work should explore this relation as these safety net benefits are designed to support work among low-income mothers.