Military Fee Assistance Updates: What Families Need to Know

If you've been feeling confused about the recent military fee assistance changes, you're not alone. We recently hosted an Ask Me Anything session with our founder and CEO, Kayla, to walk through what was supposed to happen on November 1st, why it didn't, and what this all means for your family.

Recently, a memo came out from the DoD announcing some significant shifts to the military fee assistance program. The changes included two major updates: moving from 11 total family income categories to 12, and raising the rate cap from $1,800 to $2,000 per month per child for most programs. For families in high cost of living areas who are paying well over that old $1,800 cap, this increase would have meant more assistance to help cover the gap between what you pay at civilian centers and what you would pay at a CDC or FCC on installation.

The additional income category was intended to create more equity across the system, though as Kayla pointed out in the session, the reality is that very few families actually fall into those lowest income categories. When you factor in BAH, spousal income, and any special pay or bonuses, most military families land somewhere in the middle to upper categories. Adding another category at the top means families in that highest bracket will be responsible for higher payments, which feels particularly challenging given how much military families already juggle.

These changes were supposed to roll out on November 1st across all branches, but then everything got postponed. The government shutdown created delays, and while some branches like Navy and Coast Guard had already started communicating about the updates, others like Air Force, Space Force, and Marine Corps went radio silent. Army only announced changes for families using CDC and FCC care on installation.

Right now, nothing has changed. Families are still operating under the old income categories and the old rate caps, and we have not received any communication about when the new structure will be implemented or whether families will receive back pay for the months they would have benefited from higher assistance.

We know this is frustrating, especially for those of you who were counting on that extra support. The delays you're experiencing with fee assistance payments right now existed before the shutdown. If you're on the Navy, Coast Guard, or DoD civilian side, processing has been slow for months. The same goes for Army, Air Force, Space Force, and Marine Corps families. Nothing about those delays has changed yet.

So what can you do right now? We've updated our fee assistance calculators to help you estimate what your costs should look like under both the current system and the anticipated new system once it rolls out. You'll need to know what you would pay at a CDC based on your total family income category, and then you can plug in what your civilian provider is charging per week. The calculator will show you how much assistance you should anticipate and how much you'll be responsible for paying out of pocket. We've also included the meal pilot option in the calculator, which can provide additional assistance if your care costs are under the rate cap and you're paying separately for meals or formula.

If you're a family who would have benefited from the November 1st changes and you're struggling to navigate this confusion, please reach out to our case management team. We're here to help advocate for you and work through your individual situation. This rollout has been disorganized and the lack of clear communication has left too many families in limbo during an already stressful time.

We love that the DoD is finally starting to address the gap between rising child care costs and stagnant rate caps. We wish the Child Care in Your Home program had also received a rate cap increase, as nanny care remains prohibitively expensive for most families. And we remain concerned about adding another high income category without addressing the fact that the lowest categories are rarely used. But we'll keep pushing for clarity, equity, and support for every military family navigating this system.

You can watch the full Ask Me Anything session for a detailed walkthrough of the calculators and all the specifics. The slide deck Kayla used is also available, and we'll continue updating our resources as we learn more.

Additional Relevant Links:

• Link to the full Ask Me Anything video (YouTube and/or Facebook)

• Link to the slide deck used during the presentation

• Link to the DoD memo announcing the fee assistance changes

• Link to the fee assistance calculator on the OCC Project website

• Link to the CDC/FCC rate sheet calculator

• Link to case management intake form

• Link to newsletter signup (where updates were originally shared)

• Link to previous Ask Me Anything session about non-appropriated funds (NAF)