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Planning for the 

Child Care and Development Fund

Targeted Funds for Infants and Toddlers

Department of Health & Human Services

Administration for Children and Families

Office of Family Assistance

Child Care Bureau
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ince FY 1998, Congress has set aside Child 

Care and Development Fund discretionary 

funds for the specific purpose of improving 

the quality of infant and toddler care. As of 

FY 2007, the designated amount equaled 

approximately $100 million per year. These 

targeted funds support access to safe, reliable child care 

programs, a necessity for parents working to achieve and 

maintain self-sufficiency—a primary function of the Child 

Care and Development Fund.

In the years since the targeted funds were initiated, a variety of activities to improve the quality of infant-toddler 

care have been implemented by States and Territories. 

The Child Care Bureau has provided technical assistance 

to States to help plan, implement and evaluate the effectiveness of quality improvement efforts. In addition, in 

October 2002, the Child Care Bureau began the National 

Infant & Toddler Child Care Initiative to work collaboratively with Child Care and Development Fund administrators and other partners to improve the quality and 

supply of infant and toddler child care. 

This publication was developed at the request of the 

Child Care Bureau by the National Infant & Toddler Child 

Care Initiative to support States and Territories to plan 

for the effective use of targeted funds.

A Planning Tool for the

Child Care and Development Fund

Targeted Funds for Infants and Toddlers

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The Impact of Infant/Toddler 

Targeted Funds on Quality:

A Question to be Answered The September, 2002 GAO Report on Child Care Quality Improvement Initiatives1

 reported that although States had implemented 

a variety of activities aimed at improving quality for infants and 

toddlers, few States had actually evaluated their efforts. An April, 

2006 survey of CCDF initiatives produced similar findings.

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 With 35 states 

reporting 339 initiatives, only 4 percent of the initiatives collected data on 

child outcomes, the ultimate indicator of quality improvement.

In fact, reliable evaluation of early childhood programs—with multiple variables having the potential to affect child and program outcomes—is a challenge and can be quite costly. With that said, it is also clear that the intent 

of States is to use all resources effectively. In the National Infant & Toddler 

Child Care Initiative publication, At-A-Glance: Evaluation and Infant/Toddler 

Child Care

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 the Initiative suggests that there are ways for CCDF Administrators to address this dilemma, and consider how evaluation efforts for birth 

to three services can be assimilated into ongoing evaluation efforts or built 

into new initiatives. Suggestions include: • Incorporating evaluation requirements in contracts, particularly for 

new or large initiatives, 

• Working with the higher education system and researchers to develop capacity, funding and interest in evaluating initiatives to improve 

the quality of infant/toddler child care and caregiver practice, 

• Focusing existing data and information collection efforts on infants, 

toddlers, and their families, and 

• Insuring that evaluation tools are measuring structural and process in-

dicators that reflect the developmental needs of infants and toddlers. 

Incorporating evaluation into a State’s quality initiative for infants and toddlers is vital to assuring the best outcomes for children. In the absence of 

reliable evaluation data regarding the impact of CCDF targeted funds on the 

quality of infant/toddler child care, CCDF Administrators may turn to general research findings on child care quality for guidance. 1

 U.S. General Accounting Office. (2002). Child care: States have undertaken a variety of quality improvement initiatives, but more evaluations of effectiveness are needed (GAO-02-897). 2

 Pittard, M., Zaslow, M., Lovelle, B., & Porter, T. (2006). Investing in quality: A survey of state child care 

and development fund initiatives. American Public Human Services Association and Child Trends http://

www.aphsa.org 3

 http://nccic.acf.hhs.gov/itcc/publications/evaluation.htm

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n FY2006-2007, States and Territories implemented a variety of innovative activities through the targeted funds for 

infants and toddlers to improve the quality of care, which 

in turn supports the needs of low-income, working families. A Fact Sheet describing these activities can be found at 

http://nccic.acf.hhs.gov/itcc/publications/index.htm 

Highlights of current activities include 

SUPPORT FOR QUALITY through:

Professional Development – scholarships for caregivers

to attend Infant/Toddler training; development of systems 

to support credentials for the Infant/Toddler workforce; 

implementation of Infant/Toddler Specialists to provide 

technical assistance and consultation to providers; systems of professional development that lead to articulation 

within a career lattice.

Facilities – higher reimbursement for the care of infants

and toddlers; technical assistance focusing on infant/toddler environments; grants to providers for equipment and 

materials to support the needs of infants and toddlers in 

their care.

Child Care Settings and Activities – support for Centers 

of Excellence or demonstration sites as models of high 

quality care for infants and toddlers available to providers 

in the State.

Planning, Research, and Evaluation – support for 

planning and evaluation efforts to determine the effectiveness of States’ current efforts to improve child care for 

infants and toddlers.

Supporting Quality in 

Child Care for Infants and Toddlers:

Use of Targeted Funds by States and Territories

Program Standards – grants to support meeting State and local standards, 

including regulatory, quality rating system standards, and accreditation.
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This tool was developed to assist in the process of effective, strategic 

planning for the use of targeted funds for infants and toddlers. The goal 

is to maximize quality with available funds, through sound decision-making regarding planned initiatives.

Planning for Sustainability: A Systems Approach

Planning for use of the CCDF infant/toddler targeted funds offers an opportunity for States 

to strategically maximize the impact of targeted funds on the quality of child care for babies 

and toddlers.6

 A systems approach is the most effective means of assuring sustainable quality for infants and toddlers within the context of State early childhood systems. Based on the 

planning process used with States and Territories participating in the National Infant & Toddler Child Care Initiative, the following suggestions may guide effective planning:

1. Use a systems planning process - Consider how each element of the early care 

and education system addresses the needs of babies, toddlers and their families. 

A description of these elements can be found at http://www.nccic.acf.hhs.gov/itcc/

publications/earlycareandeducation.htm 

2. Develop a long range strategic plan with shorter term goals and objectives - Systems change can take a long time and it is important to build in achievable steps 

along the way.

3. Align the strategic plan with other system planning efforts - Many States have 

existing plans that may just need to be revisited to ensure they adequately address the child care needs of babies and toddlers. Considerations for assessing 

the State’s system for infants and toddlers include asking if early childhood system 

development efforts include:

a. Representation from infant/toddler programs,

b. Data/information on infants, toddlers, and their families,

c. An assessment of how available programs meet the needs of low-income, 

working families,

d. Goals/objectives/benchmarks specific to infants and toddlers,

e. An assessment of all early childhood system elements and their interrelationship, and

f. An analysis of the effects of system change on services to children under three.

4. Strategically align the targeted funds for infants and toddlers with the system 

plan - Is there evidence that the current use of targeted funds is producing the desired results? If changes need to be made consider and evaluate the system impact.

Research on Quality in Child Care:

Quality Indicators Identified Across Studies

What is known about quality in child care? 

Although little is known about the impact of CCDF targeted funds on the quality of infant/toddler 

care, data has emerged from research into child care quality. The GAO report contains a summary of major reviewers’ findings regarding child care quality – information that has become 

known to the field in the years since targeted funds were first made available.

More recently, a 2005 summary of current research 

on infant/toddler child care quality conducted by 

the National Center for Children in Poverty (NCCP) 

found that across all non-maternal child care settings, lower child-adult ratios and smaller group 

sizes were the strongest predictors of quality of all 

factors considered in their review, as a direct effect 

or as a moderator of caregiver-child interactions. A 

second set of factors demonstrating a positive effect 

on quality in infant/toddler care were related to the 

education and specialized training of caregivers, 

followed by higher wages for staff. 4

In 2006, a study conducted by the National Institute 

of Child Health and Human Development (NICHD) 

concluded that child care quality was best measured 

in two categories: regulable and process features. 

Regulable features that indicate quality included 

adult-to-child ratio, group size, and caregiver education. Process features related to quality included 

positive caregiving as the strongest predictor of 

quality for young children in child care settings.5

 

The critical question for CCDF Administrators is how 

can these consistent research findings be translated 

into effective quality enhancements through the use 

of CCDF Targeted Funds for Infants and Toddlers and 

Quality Expansion Funds?

System Planning:

CCDF Targeted Funds for Infants and Toddlers as 

a Part of the Early Childhood System

4 Kreader, J. L., Ferguson, D., Lawrence, S. (2005). Infant and toddler child care quality. National Center for Children in Poverty

5 National Institute of Child Health and Human Development. (2006). The NICHD study of early child care and youth development: Findings for 

children up to age 4 1⁄2 years (NIH Publication No. 05-4318). Washington, DC: U.S. Department of Health and Human Services. 6

At-a-Glance: Early Childhood Systems Planning for Infants and Toddlers http://nccic.acf.hhs.gov/itcc/publications/planning.htm

John M. Love, Peter Z. Schochet and Alicia 

L. Meckstroth, Are They in any Real Danger? 

What Research Does – and Doesn’t—Tell 

us About Child Care Quality and Children’s 

Well-Being

Smaller group size

Lower child-to-staff ratios

Safer equipment and space

Appropriate caregiving

Developmentally appropriate practice

Caregiver responsiveness

Author and review Structural attributes that the review 

concluded contribute to children’s 

developmental progress or caregivers’ 

ability to create developmentally 

supportive environment

Aspects of child-caregiver 

interactions that the review 

concluded contribute to children’s 

developmental progress 

Jack P. Shonkoff and Deborah A. Phillips, 

eds., From Neurons to Neighborhoods

Staff wages

Lower staff turnover

Caregiver education

Caregiver training

Caregiver continuity fosters the attachments 

that improve social development 

Verbal environment that child care providers create contributes to children’s cognitive 

and language development

Deborah Vandell and Barbara Wolfe, Child 

Care Quality: Does it Matter and Does it 

Need to be Improved?

Smaller group size

Lower child-to-staff ratios

Caregiver education

Caregiver training

Emotionally supportive and cognitively

enriching settings

U.S. General Accounting Office. (2002). Child Care Quality Improvement Initiatives (GAO-02-897).

Major Reviewers’ Findings Regarding Child Care Quality Research
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With the intended outcome that targeted funds increase the quality of 

care for infants and toddlers, the next step is to take a look at the practice-to-outcome connection to see if past targeted funds activities have 

had a positive impact in your state. 

Looking at Targeted Funds Activities: 

What outcomes have resulted from past use?

A variety of initiatives have been supported by the CCDF since FY1998. Consideration of 

the following questions will assist States to determine which initiatives will be most effective in enhancing quality for babies and toddlers: 

•	 What activities have been supported through targeted infant-toddler funds in the past?

•	 Have low-income, working families benefited from past initiatives?

•	 What information is known about outcomes related to these activities?

m What outputs from past targeted funds use can be measured? Examples include 

such numbers as the increase in children served and teachers trained, or monies 

distributed through grants to enhance facilities and materials.

m What is known about outcomes from these activities? Considerations may include 

the quality of expansion settings, retention of trained teachers, and sustainability 

of initial increases in ITERS scores.

•	 What evidence exists that past and current use of targeted funds contributed to an

increase in quality for infants and toddlers?

m What evaluation system is in place to assess outcomes of the activities put in place 

through targeted funds for infants and toddlers?

m If none, what indicators demonstrate that past use has improved quality for infants 

and toddlers?

•	 Do past activities align with current system goals?

m How do previous initiatives fit within the scope of early childhood system planning 

overall?

Assess the overall quality of infant-toddler child care

 in your State or Territory. 

As with any critical planning process, knowing current status relative to the goal is essential to moving 

forward effectively. The challenges and time constraints of a rigorous evaluation prevent most States 

from accomplishing a comprehensive assessment. However, much can be learned by involving a group 

of informed leaders in a survey or focus group designed to offer a glimpse of the quality of infant-toddler care across the geographic and economic strata of your State, at the program and system level. 

Working within existing groups or planning initiatives focused on young children can assist with this process. Such groups might include State licensing representatives, tribal representatives, CCR&R’s, State Head 

Start Associations, State teams involved with the National Infant/Toddler Child Care Initiative, or any Statelevel early childhood planning or coordinating boards, such as the Early Childhood Comprehensive Systems (ECCS) planning teams. Integrating Infant and Toddler targeted funds activities with existing planning 

efforts will assist in keeping targeted funds activities aligned with State system goals, as well as supporting 

systemic progress toward a continuum of quality early care and education for all children.

Looking at Quality: 

How does the State system measure up to research-based indicators?

The following questions may guide discussion to assess the quality of infant-toddler care, relative to 

indicators identified in the national research:

• Do State licensing rules provide for research-based indicators of quality such as caregiver-child 

ratio and group size that meet the needs of infants and toddlers? Examples of existing standards 

include State or national accreditation standards, those set forth by State quality rating systems 

and Early Head Start Performance Standards. 

• If current State standards do not meet ratios identified as optimal for infants and toddlers, what percentage of programs voluntarily exceed licensing standards and meet quality indicators for ratio and 

group size? 

m What incentives are in place for programs to achieve quality indicators?

• What systems are in place that require or offer incentive for caregiver education or specialized 

training in all child care settings? 

m If systems are present, what percentage of infant-toddler caregivers participate in these systems?

m If no systems are in place, what is known about the level of education of infant-toddler caregivers in your State?

• How is quality supported in unlicensed/unregulated (family, friend and neighbor) care?

How can State and Territory planning teams 

determine which initiatives will make the 

greatest improvements in quality for infants 

and toddlers?

Making the Most of Targeted Funds 

for Infants and Toddlers

Consider current and past use of funds targeted 

for infants and toddlers. 

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Summary

The CCDF established Targeted Funds to improve the quality 

of child care for infants and toddlers to ensure high quality 

environments and interactions. The first step in planning for 

effective use of these funds is to assess the current status of 

quality initiatives in your State or Territory. The next step is to look 

at your past use of funds, and determine whether or not these activities have contributed positively to the quality of care for infants and 

toddlers, including those from low-income, working families. Finally, 

it is important to take a close look at any systemic gaps between the 

quality infants and toddlers need and the current situation, and plan 

strategically to use targeted funds for infants and toddlers to make a 

positive difference.

Plan for quality for infants and toddlers in child care. 

Effective decision-making stems from consideration of relevant information. When 

responses to the questions above have been gathered across geographic settings 

and from a variety of early childhood leaders, results can be compiled and considered for discussion, analysis, and prioritization. 

Planning for Quality:

Analyzing to determine the most effective use of targeted funds for infants and toddlers

In thinking intentionally about how to use targeted funds for infants and toddlers most effectively, the information gathered in the planning process may be summarized to guide decision-making toward improving the quality of child care for children birth to three. The following questions can be used to frame the 

decision-making process, and lead to the most effective use of targeted funds for infants and toddlers:

•	 What are the indicators of quality established in research?

•	 What is the current status of quality in our State?

•	 What indicators of quality demonstrate the greatest gap between current status and what is known through research to support quality for 

infants and toddlers?

•	 How have outcomes from past initiatives contributed to current quality?

•	 Considering infants and toddlers from an early childhood systems perspective, what are the most important priorities?

•	 Which infant/toddler targeted fund initiatives will support these identified priorities?

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