Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Rules and Regulations 90605 

1https://www.acf.hhs.gov/occ/data/gy-2024-ccdftribal-allocations-based-appropriations. 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

45 CFR Part 98 

RIN 0970–AD11 

Increase Flexibility for Tribes in Child 

Care and Development Fund (CCDF) 

Eligibility 

AGENCY: Office of Child Care (OCC), 

Administration for Children and 

Families (ACF), Department of Health 

and Human Services (HHS). 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

Child Care and Development Fund 

(CCDF) regulations to provide all Indian 

Tribes and Tribal Organizations 

operating CCDF programs the flexibility, 

at their discretion, to establish and use 

eligibility criteria regardless of family 

income or assets. 

DATES: Effective: November 18, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Megan Campbell, Office of Child Care, 

202–690–6499 or megan.campbell@

acf.hhs.gov. 

SUPPLEMENTARY INFORMATION: 

I. Statutory Authority ..................................................................................................................................................................................... 3 

II. Background ................................................................................................................................................................................................. 3 

Effective Dates ......................................................................................................................................................................................... 5 

Severability .............................................................................................................................................................................................. 5 

III. Development of Regulation ...................................................................................................................................................................... 5 

IV. Discussion of Comments and Regulatory Provisions ............................................................................................................................. 7 

V. Regulatory Process Matters ....................................................................................................................................................................... 9 

Regulatory Flexibility Act ....................................................................................................................................................................... 11 

Unfunded Mandates Reform Act of 1995 .............................................................................................................................................. 12 

Executive Order 13132 ............................................................................................................................................................................ 12 

Assessment of Federal Regulations and Policies on Families .............................................................................................................. 13 

Regulatory Review ................................................................................................................................................................................... 13 

VI. Tribal Consultation Statement ................................................................................................................................................................. 14 

List of Subjects in 45 CFR Part 98 ................................................................................................................................................................ 14 

I. Statutory Authority 

This final rule is being issued under 

the authority granted to the Secretary of 

Health and Human Services by the 

Child Care and Development Block 

Grant (CCDBG) Act of 1990, as amended 

(42 U.S.C. 9857 et seq.), and section 418 

of the Social Security Act (42 U.S.C. 

618). 

II. Background 

In response to requests from Tribal 

Leaders and Tribal Child Care and 

Development Fund (CCDF) Lead 

Agencies for more flexibility on family 

income eligibility to better meet 

community needs and to recent 

statutory changes to eligibility in the 

Tribal Head Start program, this final 

rule amends the CCDF regulations to 

provide all Tribal CCDF Lead Agencies 

the flexibility to serve Indian children 

(as defined by the Tribal Lead Agency) 

in their defined service area regardless 

of family income or assets. This final 

rule is also responsive to Executive 

Order 14112, Reforming Federal 

Funding and Support for Tribal Nations 

To Better Embrace Our Trust 

Responsibilities and Promote the Next 

Era of Tribal Self-Determination, which 

directs agencies to ‘‘increase the 

accessibility, equity, flexibility, and 

utility of Federal funding.’’ This final 

rule provides Tribal Nations with more 

flexibility to better meet community 

needs, responds to calls for greater 

Tribal sovereignty and selfdetermination, and facilitates better 

alignment between Tribal CCDF and 

American Indian and Alaska Native 

(AIAN) Head Start programs. 

The CCDBG Act (42 U.S.C. 9857 et 

seq.), hereafter referred to as the ‘‘Act,’’ 

together with section 418 of the Social 

Security Act (42 U.S.C. 618), authorize 

the CCDF program, which is the primary 

federal funding source to Tribes, States, 

and Territories devoted to supporting 

families access to child care and to 

increasing the quality of child care for 

all children. CCDF plays a vital role in 

supporting child development and 

family well-being; facilitating parent 

employment, training, and education; 

and improving the economic well-being 

of participating families. In fiscal year 

(FY) 2024, 264 Tribal Lead Agencies 

representing 546 federally recognized 

Tribal Nations received CCDF grants 

totaling nearly $600 million.1 Annual 

Tribal CCDF awards range from $70,000 

to $88 million per year. 

The Act does not explicitly apply 

most of its provisions to the Tribal 

CCDF program, so with some exceptions 

and within certain parameters, the 

Secretary of Health and Human Services 

has the authority to determine many of 

the CCDF requirements for Tribal Lead 

Agencies, including the family income 

and assets eligibility requirements for 

children to receive services from Tribal 

CCDF programs. Previous Tribal CCDF 

regulations included different family 

income and assets eligibility 

requirements and flexibilities based on 

a Tribal Lead Agency’s award allocation 

size in FY 2016. Tribal Lead Agencies 

who had allocations under $250,000 in 

2016 (155 Tribal Lead Agencies) could 

serve any Indian child (as defined by 

the Tribal Lead Agency) in their defined 

service area, regardless of family income 

or assets. However, Tribal Lead 

Agencies with allocations above 

$250,000 in 2016 were subject to the 

same CCDF income and assets eligibility 

standard as States, set forth at 

§ 98.20(a)(2), which meant that family 

income could not be more than 85 

percent of Grantee Median Income 

(GMI) and family assets could not 

exceed $1 million. 

This final rule extends the existing 

flexibility for Tribal Lead Agencies with 

small allocations to disregard family 

income and assets in determining family 

eligibility for CCDF to all Tribal Lead 

Agencies. All Tribal CCDF Lead 

Agencies may continue to use family 

income and/or assets criteria for 

eligibility at their option, but it will no 

longer be a requirement. Tribal Lead 

Agencies choosing to use family income 

or assets criteria for eligibility would 

have the flexibility to determine the 

appropriate threshold for their Nation. 

This final rule does not alter existing 

flexibilities that permit Tribal Lead 

Agencies with medium and large 

allocations to apply categorical 

eligibility criteria for families under 

certain conditions. 

This final rule will benefit Tribal 

Nations by better aligning family 

income eligibility rules in the Tribal 

CCDF with Head Start programs and 

providing necessary flexibility to 

determine how early childhood program 


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90606 Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Rules and Regulations 

family income or assets determinations 

can best support their communities. 

This alignment is particularly salient 

because many American Indian and 

Alaskan Native (AIAN) Head Start grant 

recipients administer a Tribal CCDF 

program. At the request of Tribal 

Nations and the Biden-Harris 

Administration, the Further 

Consolidated Appropriations Act, 2024 

(Public Law (Pub. L.) 118–47, Div. D, 

Tit. II, Sec. 238) included changes to 

AIAN Head Start eligibility criteria, to 

make eligible for Head Start services all 

age-eligible children in an AIAN 

program’s service area regardless of 

income. The Head Start Act, unlike the 

CCDBG Act, required legislative action 

to make this change. 

Effective Dates 

This final rule will become effective 

on the date of publication to expedite 

Tribal Lead Agencies’ ability to 

implement the flexibilities included in 

this final rule. 

Severability 

The provisions of this final rule are 

intended to be severable, such that, in 

the event a court were to invalidate any 

particular provision or deem it to be 

unenforceable, the remaining provisions 

would continue to be valid. 

III. Development of Regulation 

ACF published a notice of proposed 

rulemaking (NPRM) in the Federal 

Register on July 16, 2024, (89 FR 57835) 

proposing revisions to CCDF 

regulations. We provided a 60-day 

comment period during which 

interested parties could submit 

comments in writing electronically. 

ACF received 18 comments on the 

proposed rule (public comments on the 

proposed rule are available for review 

on www.regulations.gov), including 

Tribal Nations and Tribal organizations, 

a state CCDF Lead Agency, non-profit 

and research organizations, parents, and 

individual members of the public. 

Public comments informed the 

development of content for this final 

rule. 

Tribal consultation and comments. 

ACF is committed to consulting with 

Tribal Nations prior to promulgating 

any regulation that has Tribal 

implications. ACF held a formal 

consultation session virtually in August 

2024 with Tribal leaders and authorized 

representatives to discuss the impact of 

the proposed regulations on Tribes. 

Tribes and Tribal organizations were 

informed of these events through formal 

letters to Tribal leaders and 

announcements to Tribal CCDF 

administrators. ACF also distributed 

materials specifically addressing the 

impact of the proposed rule on Tribes. 

ACF will publish a consultation report, 

which will be posted as a supplemental 

document in the Federal Register and 

will include information on 

consultation attendees as well as their 

specific comments. During consultation, 

ACF received testimony from one 

authorized representative who 

expressed strong support for the 

proposed change. This final rule was 

informed by this testimony. 

In addition, prior to the development 

of the NPRM, OCC sought feedback from 

Tribal Nations and other interested 

parties on areas where more flexibility 

and/or different program rules would 

better serve children, families, and 

Tribal Nations through a formal Request 

for Information (RFI), published in the 

Federal Register at 88 FR 48409 (July 

27, 2023). Through the RFI process, 

many Tribal Lead Agencies expressed 

support for changing eligibility 

requirements so they can serve Indian 

children (as defined by the Tribal Lead 

Agency), regardless of family income. 

OCC also received feedback on the need 

for flexibility in eligibility 

determination at the ACF Tribal Early 

Childhood Consultation held in July 

2024. This final rule was informed by 

this feedback. 

This final rule maintains the structure 

and organization of the current CCDF 

regulations. Where language of previous 

regulations remains unchanged, the 

preamble explanation and interpretation 

of that language published with all prior 

final rules also is retained, unless 

specifically modified in the preamble to 

this rule. (See 57 FR 34352, Aug. 4, 

1992; 63 FR 39936, Jul. 24, 1998; 72 FR 

27972, May 18, 2007; 72 FR 50889, Sep. 

5, 2007; 81 FR 67438, Sept. 30, 2016; 89 

FR 15366, Mar. 1, 2024). 

IV. Discussion of Comments and 

Regulatory Provisions 

This final rule amends § 98.81(b)(1) to 

provide all CCDF Tribal Lead Agencies 

the flexibility to determine family 

eligibility for CCDF without regard to 

family income and assets. Specifically, 

the rule revises § 98.81(b)(1)(ii) so that 

all Tribal Lead Agencies may disregard 

family income and assets requirements 

described in § 98.20(a)(2), while 

retaining the ability for Tribal Lead 

Agencies with a Tribal median income 

below a level determined by the 

Secretary to deem any child in their 

service area categorically eligible, 

regardless of work, or training status. 

Previously, the 40 percent of Tribal 

Lead Agencies with medium and large 

allocations were subject to the 

requirements at § 98.20(a)(2) that 

children must be in families with 

incomes below 85 percent Grantee 

Median Income (GMI) and with assets 

under $1 million to be eligible for 

CCDF. Tribes with small allocations 

were already exempt from the 

requirements at § 98.20(a)(2). Extending 

the flexibility to serve any Indian child 

in the service area regardless of family 

income or assets to all Tribal Lead 

Agencies gives the Lead Agencies the 

authority to better meet the needs of 

Tribal Nations and their communities 

and supports Tribal sovereignty and 

self-determination. It also creates better 

opportunities for Tribes to align CCDF 

programs with other Tribal early 

childhood programs, including Tribal 

home visiting, Early Head Start, Head 

Start preschool, and tribally or state 

funded preschool. 

The new flexibility included in this 

final rule is at the option of the Tribal 

Lead Agency. Therefore, Tribal Lead 

Agencies with medium and large 

allocations may choose to continue 

using income and/or assets when 

determining if a child is eligible for 

CCDF. Tribal Lead Agencies who choose 

to keep income and/or assets as 

eligibility criteria are not limited to 

setting the income threshold at or below 

85 percent GMI, or an asset limit at $1 

million and may set these thresholds 

higher. 

This final rule does not make any 

other changes to Tribal CCDF 

regulations. No other changes were 

made to family eligibility rules, 

including existing Tribal categorical 

eligibility flexibilities, which remain 

unchanged. 

Comment: Commenters unanimously 

expressed support for the proposed 

change to provide all Tribal Lead 

Agencies the flexibility to serve all 

Indian children (as defined by the Lead 

Agency) in their service area regardless 

of family income or assets. Commenters 

noted that the change is a step toward 

promoting Tribal sovereignty and 

enabling Tribal Nations to implement 

the CCDF program in a way that meets 

the unique needs of each community. 

They also noted that the change better 

aligns with eligibility rules of other 

early childhood programs, including 

Head Start, which may lead to more 

inclusive and equitable services for 

Native families. 

Response: We acknowledge that 

commenters supported the proposed 

change and agree that this change 

supports Tribal sovereignty and have 

retained the provision as proposed with 

one minor addition to clarify that Tribal 

Lead Agencies may disregard eligibility 

requirements for assets, in addition to 


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those required for income, which has 

always been the intent of the rule. 

Comment: While all commenters 

supported the change, some noted that 

all Tribal Lead Agencies may not have 

the funding to serve all Indian children 

in their service areas. 

Response: This regulatory change 

provides a new flexibility for all Tribal 

Lead Agencies. The rule does not 

impact Congressionally appropriated 

funds or Tribal CCDF allocations. 

Disregarding income and assets as 

eligibility criteria is an option for Tribal 

Lead Agencies, not a requirement. 

Tribal Lead Agencies have flexibility to 

establish income and asset requirements 

that balance the needs of the community 

and resources available. 

V. Regulatory Process Matters 

Paperwork Reduction Act 

Under the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq., as amended), all 

Departments are required to submit to 

the Office of Management and Budget 

(OMB) for review and approval any 

reporting or recordkeeping requirements 

inherent in a proposed or final rule. As 

required by this Act, we will submit all 

revised data collection requirements to 

OMB for review and approval. 

The final rule modifies the previously 

approved ACF–118–A CCDF Tribal Plan 

information collection (OMB #0970– 

0198). ACF initiated the process to 

receive OMB approval to revise and 

extend approval of the ACF–118–A 

CCDF Tribal Plan. This began with the 

initial 60-day comment period, which 

started on July 2, 2024, (89 FR 54827) 

and the first comment period ended on 

September 3, 2024. ACF will include 

the changes that result from this final 

rule in the revision request that is 

submitted to OMB for review and 

approval. This includes updates to the 

information collection and the 

associated burden estimates. This 

process will include publication of a 

second Federal Register notice 

soliciting public comments over a 30- 

day period on the revisions to the ACF– 

118–A CCDF Tribal Plan. 

CCDF title/code 

Relevant 

section in the 

proposed rule 

OMB 

control No. 

Expiration 

date Description 

ACF–118–A (CCDF Tribal Plan) 

Part I and Part II.

§ 98.81 0970–0198 4/30/2025 This final rule provides new flexibilities which Tribal lead agencies with medium and large allocations will be required to report on in the CCDF plans. 

The table below provides current 

approved annual burden hours and 

estimated annual burden hours for these 

existing information collections that are 

modified by this final rule. 

ANNUAL BURDEN ESTIMATES

Instrument 

Total 

number of 

respondents 

Total 

number of 

responses per 

respondent 

Current 

approved 

average 

burden hours 

per response 

Current annual 

burden hours 

Estimated 

average 

burden hours 

per response 

based on 

final rule 

Estimated 

annual 

burden hours 

based on 

final rule 

ACF–118A Part I (for all tribes) ................... 265 1 120 10,600 120 10,600 

ACF–118–A Part II (for medium and large 

Tribes only) ............................................... 106 1 24 848 24 848 

We did not receive any public 

comments on these burden estimates, 

which were included in the NPRM. 

Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA) 

(see 5 U.S.C. 605(b), as amended by the 

Small Business Regulatory Enforcement 

Fairness Act) requires federal agencies 

to determine, to the extent feasible, a 

rule’s impact on small entities, explore 

regulatory options for reducing any 

significant impact on a substantial 

number of such entities, and explain 

their regulatory approach. The term 

‘‘small entities,’’ as defined in the RFA, 

comprises small businesses, not-forprofit organizations that are 

independently owned and operated and 

are not dominant in their fields, and 

governmental jurisdictions with 

populations of less than 50,000. HHS 

considers a rule to have a significant 

impact on a substantial number of small 

entities if it has at least a 3 percent 

impact on revenue on at least 5 percent 

of small entities. The Secretary certifies, 

under 5 U.S.C. 605(b), as enacted by the 

RFA (Pub. L. 96–354), that this 

rulemaking will not result in a 

significant impact on a substantial 

number of small entities, as this 

rulemaking primarily impacts tribes 

receiving federal CCDF grants. 

Therefore, a regulatory flexibility 

analysis is not required for this 

document. 

Unfunded Mandates Reform Act of 1995 

Title II of the Unfunded Mandates 

Reform Act of 1995 (UMRA), Public 

Law 104–4, establishes requirements for 

federal agencies to assess the effects of 

regulatory actions on state, local, and 

tribal governments, and the private 

sector. Under section 202 of the UMRA, 

the Department generally must prepare 

a written statement, including a costbenefit analysis, for proposed and final 

rules with ‘‘federal mandates’’ that may 

result in expenditures by State, local or 

Tribal governments, in the aggregate, or 

the private sector, of $100 million in 

1995 dollars, updated annually for 

inflation. In 2024 the threshold is 

approximately $183 million. This final 

rule does not impose an unfunded 

mandate on State, local, or Tribal 

governments or the private sector of 

more than $183 million per year. 

Therefore, ACF is not required to 

provide a statement, including a costbenefit analysis, of the impacts of the 

changes. 

Executive Order 13132 

Executive Order 13132 requires 

federal agencies to consult with State 

and local government officials if they 

develop regulatory policies with 

federalism implications. Federalism is 

rooted in the belief that issues that are 


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90608 Federal Register / Vol. 89, No. 222 / Monday, November 18, 2024 / Rules and Regulations 

not national in scope or significance are 

most appropriately addressed by the 

level of government close to the people. 

This rulemaking does not have 

substantial direct impact on the States, 

on the relationship between the federal 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with section 6 of Executive 

Order 13132, this action does not have 

sufficient federalism implications to 

warrant the preparation of a federalism 

summary impact statement. 

Assessment of Federal Regulations and 

Policies on Families 

Assessment of Federal Regulations 

and Policies on Families section 654 of 

the Treasury and General Government 

Appropriations Act of 2000 requires 

federal agencies to determine whether a 

policy or regulation may negatively 

affect family well-being. If the agency 

determines a policy or regulation 

negatively affects family well-being, 

then the agency must prepare an impact 

assessment addressing seven criteria 

specified in the law. HHS believes it is 

not necessary to prepare a family 

policymaking assessment (see Pub. L. 

105–277) because the action it takes in 

this final rule will not have any impact 

on the autonomy or integrity of the 

family as an institution. 

Regulatory Review 

We have examined the impacts of the 

rule under Executive Order 12866, 

Executive Order 13563, the RFA (5 

U.S.C. 601–612), and the UMRA of 1995 

(Pub. L. 104–4). Executive Orders 12866 

and 13563 direct us to assess all 

benefits, costs, and transfers of available 

regulatory alternatives and, when 

regulation is necessary, to select 

regulatory approaches that maximize 

net benefits (including potential 

economic, environmental, public health 

and safety, and other advantages; 

distributive impacts; and equity). 

The Office of Information and 

Regulatory Affairs has determined that 

this final rule is not a significant 

regulatory action under section 3(f)(1) of 

Executive Order 12866, as amended by 

Executive Order 14094. This final rule 

has, however, been designated ‘‘a 

significant regulatory action’’ under 

section 3(f) of Executive Order 12866, as 

amended by Executive Order 14094. Of 

the nearly $600 million appropriated for 

264 Tribal Lead Agencies in FY 2024, 

approximately $422 million was 

allocated to grantees that already have 

discretion to take-up the flexibilities 

included in this rule. The remaining 

$173 million is allocated to Tribal Lead 

Agencies that could be impacted by the 

change included in this rule. Further, 

these Tribal Lead Agencies have 

discretion on whether to adopt this 

flexibility based on their unique needs. 

This final rule does not stipulate any 

new requirements. 

VI. Tribal Consultation Statement 

Executive Order 13175, Consultation 

and Coordination with Indian Tribal 

Governments, requires agencies to 

consult with Indian tribes when 

regulations have substantial direct 

effects on one or more Indian tribes, on 

the relationship between the Federal 

Government and Indian tribes, or on the 

distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. The 

discussion in sections III and IV of the 

preamble serves as the Tribal impact 

statement and contains a detailed 

description of the consultation and 

outreach in this final rule. 

(Catalog of Federal Domestic Assistance 

Program Number 93.575, Child Care and 

Development Block Grant; 93.596, Child Care 

Mandatory and Matching Funds) 

Dated: November 14, 2024. 

Xavier Becerra, 

Secretary, Department of Health and Human 

Services. 

List of Subjects in 45 CFR Part 98 

Child care, Grant programs-social 

programs. 

For the reasons set forth in the 

preamble, we amend 45 CFR part 98 as 

follows: 

PART 98—CHILD CARE AND 

DEVELOPMENT FUND 

■ 1. The authority citation for part 98 

continues to read as follows: 

Authority: 42 U.S.C. 618, 9858, 

■ 2. Amend § 98.81 by revising 

paragraph (b)(1)(ii) to read as follows. 

§ 98.81 Application and Plan procedures. 

* * * * * 

(b) * * * 

(1) * * * 

(ii) The basis for determining family 

eligibility may be determined by the 

Tribe notwithstanding family income or 

assets as described in § 98.20(a)(2). 

* * * * * 

[FR Doc. 2024–26909 Filed 11–15–24; 8:45 am] 

BILLING CODE 4184–87–P 

DEPARTMENT OF TRANSPORTATION 

Federal Motor Carrier Safety 

Administration 

49 CFR Chapter III 

[Docket No. FMCSA–2024–0201] 

RIN 2126–AC66 

Federal Motor Carrier Safety 

Regulations 

AGENCY: Federal Motor Carrier Safety 

Administration (FMCSA), Department 

of Transportation (DOT). 

ACTION: Final rule; general technical, 

organizational, conforming, and 

correcting amendments. 

SUMMARY: FMCSA amends its 

regulations by making technical 

corrections throughout the Federal 

Motor Carrier Safety Regulations 

(FMCSRs). The Agency makes minor 

changes to correct inadvertent errors 

and omissions, remove or update 

obsolete references, and improve the 

clarity and consistency of certain 

regulatory provisions. The Agency also 

makes a change to its rules of 

organization, procedures, and practice. 

Because the rule does not impose any 

new material requirements or increase 

compliance obligations, it is issued 

without prior notice and opportunity for 

comment, pursuant to the good cause 

exception in the Administrative 

Procedure Act (APA). 

DATES: Effective November 18, 2024. 

Petitions for Reconsideration of this 

final rule must be submitted to the 

FMCSA Administrator no later than 

December 18, 2024. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Nicholas Lockhart, Regulatory 

Development Division, Office of Policy, 

FMCSA, 1200 New Jersey Avenue SE, 

Washington, DC 20590–0001; (202) 366– 

2219; nicholas.lockhart@dot.gov. 

SUPPLEMENTARY INFORMATION: 

I. Legal Basis for the Rulemaking 

Congress delegated certain powers to 

regulate interstate commerce to DOT in 

numerous pieces of legislation, most 

notably in section 6 of the Department 

of Transportation Act (DOT Act) (Pub. 

L. 89–670, 80 Stat. 931, 937, Oct. 15, 

1966). Section 6 of the DOT Act 

transferred to DOT the authority of the 

former Interstate Commerce 

Commission (ICC) to regulate the 

qualifications and maximum hours of 

service of employees, the safety of 

operations, and the equipment, of motor 

carriers in interstate commerce (80 Stat. 

939). This authority, first granted to the 

ICC in the Motor Carrier Act of 1935 


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