+-----------------+------------------------+--------------------------+
| **ACF**         | **U.S. DEPARTMENT OF   |                          |
|                 | HEALTH AND HUMAN       |                          |
|                 | SERVICES**             |                          |
|                 |                        |                          |
|                 | **Administration on    |                          |
|                 | Children, Youth and    |                          |
|                 | Families**             |                          |
+-----------------+------------------------+--------------------------+
| **A             | **1. Log No.           | **2. Issuance Date:      |
| dministration** | ACYF-IM-CC-03-01**     | March 31, 2003**         |
+-----------------+------------------------+--------------------------+
| **for           | **3. Originating       |                          |
| Children**      | Office: Child Care     |                          |
|                 | Bureau**               |                          |
+-----------------+------------------------+--------------------------+
| **and           | **4. Key Words: Child  |                          |
| Families**      | Care and Development   |                          |
|                 | Fund**                 |                          |
+-----------------+------------------------+--------------------------+
|                 | **Disregard of         |                          |
|                 | Monetary Allowances    |                          |
|                 | for Certain Children   |                          |
|                 | of Vietnam War         |                          |
|                 | Veterans**             |                          |
+-----------------+------------------------+--------------------------+

To: State and Territorial Lead Agencies administering child care
programs under the Child Care and Development Block Grant (CCDBG) Act of
1990 as amended, and other interested parties.

Subject: Income Disregard of Monetary Allowances for Certain Children of
Vietnam War Veterans

Purpose: To inform States, Territories, Tribes and other interested
parties of the final regulations published on July 31, 2002 by the
Department of Veterans Affairs and to provide notification that the
monetary allowances covered by these regulations should be disregarded
in determining eligibility and family co-payments for child care
services funded through CCDF.

References: 38 U.S.C. δ1823(c) on monetary benefits to Vietnam Veterans;
the Child Care and Development Block Grant Act of 1990 as amended (CCDBG
Act); section 418 of the Social Security Act; 45 CFR 98 and 99;
Consolidated Appropriations Act, 2003 (Pub. L. 108-7).

Background: Pursuant to sections 421 and 422(c) of Pub. L. 104-204,
effective October 1, 1997, title 38, United States Code (U.S.C.), was
amended by the addition of a new chapter 18, under which certain VA
benefits and services are provided to children of Vietnam veterans
(including adult children) who were born with the congenital defect
spina bifida. A subsequent amendment to chapter 18 made by section 401
of Pub. L. 106-419, effective December 1, 2001, provides VA benefits and
services to children of women Vietnam veterans born with certain other
birth defects. Included among the benefits provided for these children
is a monthly monetary allowance paid at a rate that is based on the
child's level of disability. Section 1823(c) of title 38, U.S.C., states
that "\[n\]otwithstanding any other provision of law, a monetary
allowance paid an individual under \[chapter 18\] shall not be
considered as income or resources in determining eligibility for, or the
amount of benefits under, any Federal or federally assisted program."

> Guidance: In determining eligibility and family co-payment amounts for
> child care services funded through CCDF, monetary benefits provided to
> the children of Vietnam veterans, as described in 38 U.S.C. 1823(c).
> This statute can be found at
> <http://www4.law.cornell.edu/uscode/38/1823.html>

Inquiries: Inquiries should be directed to the appropriate Veterans
Administration Office.

Joan E. Ohl

Commissioner

Administration on Children,

Youth and Families