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Child Care Fee Assistance Updates 2026

If you've been wondering what the new income categories mean for your family, why your fee assistance certificate hasn't arrived yet, or what a "Basic Allowance for Child Care" could actually do for military families, this Q&A breaks it all down.


We covered the fiscal year 2026 updates that just went into effect, walked through our newly updated calculators so you can see what you could potentially pay, and introduced our biggest policy proposal yet: a Basic Allowance for Child Care that could fundamentally change how military families access care.


Here's what you need to know:


Several updates went into effect this year, and depending on your situation, they might significantly impact what you pay for child care.


More income categories (but not necessarily better ones). The DoD added a 12th income category for families earning over $175,000 annually. If you're dual military or a high-income family, you'll likely pay more in parent fees moving forward, whether you're using CDC care or fee assistance off-installation.


Provider rate caps increased. For families using fee assistance off-installation (MCCYN), the rate cap jumped from $1,800 to $2,000 per month. Part-time care went from $900 to $1,000 (except Army families, who get $2,000 regardless). This means more of your provider's fee is covered, reducing what you pay out of pocket, unless you're in that new 12th income category. If you haven't received your updated certificate yet, you should see it by the end of February. We don't yet know if retroactive payments will be issued for families who would have benefited from the increase.


Child Care in Your Home (CCH) didn't get the same increase. The in-home care pilot program, what many families call the "nanny program", is still capped at $1,800. This is disappointing, especially since CCH families consistently pay more than families using any other program. Between payroll taxes, overtime, unemployment insurance, and workers' comp, the costs add up fast. We'll keep advocating for this cap to match the $2,000 rate.


If you think your rates should have changed and they haven't, contact your installation CYP office directly.


Updated Calculators: Know What You'll Actually Pay


We've updated both our MCCYN and CCH calculators to reflect the 2026 changes. These are free tools, no login required, that help you estimate what you'll actually pay before you apply.


The calculators factor in your total family income, your DoD parent fee category, provider rate caps, and even the meal allowance pilot (which is still live and being offered automatically to eligible families). You can email yourself a copy of the results to compare options or reference later.


Whether you're trying to decide between on-installation care and fee assistance, or you're weighing the CCH program against other options, these calculators give you real numbers, not guesses.


The Big One: Basic Allowance for Child Care


This is our major policy recommendation for 2026 and beyond, and it's the kind of proposal that could actually change things.


Think BAH, but for child care. A monthly allowance based on your rank, location, and your children's ages. You decide how to use it: a trusted caregiver, a nanny, a family member, a provider who doesn't participate in fee assistance, or even staying home to care for your own children in those early years.


Just like you can't live on-installation and receive BAH, you couldn't use installation-based care and receive the Basic Allowance for Child Care. But here's what it would solve:


No waitlists. No gatekeeping. Right now, DoD care serves around 20% of families who need it. Fee assistance is so complicated that families are waiting 150 to 160 days just to get approved. A Basic Allowance for Child Care eliminates that entirely.


Real choice for families. Civilian providers have no financial incentive to participate in fee assistance, it's just extra paperwork. This puts the power back in parents' hands, especially when you're competing with civilians for the same limited slots.


It's trust-based, but not new. The military already trusts you to find housing and buy food with BAH and BAS. No one's checking your Kroger receipts or inspecting your house. Why not child care? You know what works for your family.


It accounts for the hidden reality. Our case management data shows that over 50% of military families need a trusted caregiver in addition to full-time child care. That's often a spouse stepping in to fill gaps, turning down jobs, taking part-time work, or putting off school. This proposal recognizes that reality.


And no, this wouldn't eliminate on-installation care. Just like BAH didn't empty installation housing, this would strengthen DoD-operated care by allowing it to focus on the most mission-critical families: deployed families, TDY families, those needing weekend or overnight care.


We believe this could actually be more cost-effective than the current patchwork of programs, pilot initiatives, and infrastructure costs, but we're still researching that.


This Is Still a Proposal—But You Can Help


The Basic Allowance for Child Care doesn't exist yet. But it could, and your voice matters in making that happen.


Use the calculator. Take the two-minute survey. Tell us what this would mean for your family, whether it would help you fill gaps, whether you'd still choose DoD-operated care, or what difference it would make in your spouse's career or your financial stability.


Watch the full Q&A to get all the details, see the calculators in action, and understand exactly how these changes impact your family. The video walks through real examples, answers common questions, and breaks down the complicated stuff so you can make informed decisions about your child care.


We're going to keep breaking down the complicated stuff and fighting for policies that actually work for military families. Thanks for trusting us with your stories, we're doing more with them this year.


Resources Mentioned in the Q&A


OCC Policy Explainers: https://www.occproject.org/policy

Fee Policy Updates Visual with links to official documents: https://www.canva.com/design/DAG9UUi1koA/EVFjQd7dVgCvnt-jijPodA/view

 
 
 

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