Maryland Child Care Scholarship Program

Quick Facts

• Administration: Managed by the Maryland State Department of Education’s Division of Early Childhood (MSDE).
• Coverage: Pays a portion of child care costs directly to providers; families may owe a copay based on income.
• Eligibility window: Income ceiling set at 65% of State Median Income; certain homeless families qualify without income verification.
• Provider options: Licensed child care centers, family child care homes, Head Start/Early Head Start wraparound care, and qualifying informal care.
• Redetermination: Every 12 months, with simplified reporting for families on Temporary Cash Assistance (TCA) or SNAP.
• Priority groups: Children with disabilities, foster children, and families experiencing homelessness receive expedited processing.

Program Overview

Maryland’s Child Care Scholarship (CCS) reduces the out-of-pocket burden of high-quality child care, enabling parents to work or continue education. Families submit a single application to MSDE, which determines eligibility and assigns a scholarship level. The state pays providers up to a maximum rate based on region, child age, and quality rating (Maryland EXCELS level). Families may pay a sliding-scale copay, often $0 for the lowest-income households. In 2025, Maryland increased scholarship rates to align with the 85th percentile of market rates, improving provider participation and expanding parent choice.

CCS supports workforce development by ensuring parents can maintain employment or attend training. The program integrates with workforce boards, community colleges, and apprenticeships; proof of enrollment in approved activities qualifies parents for subsidies. MSDE coordinates with the Department of Human Services to share income data, reducing paperwork for families receiving SNAP or TCA.

2025 Enhancements

• Rate increase: Scholarship reimbursement rates now reflect the 2023 Market Rate Survey at the 85th percentile, narrowing the gap between subsidy and private pay rates.
• Copay reduction: Families at or below 40% of SMI pay no copay. Others see lower copays capped at 7% of income.
• Digital portal: The Maryland OneStop portal allows electronic applications, document uploads, and real-time status tracking.
• Quality incentives: Providers rated Level 3 or higher in Maryland EXCELS receive a 10% bonus on scholarship payments.
• Homelessness priority: Families experiencing homelessness can receive presumptive eligibility for 60 days while gathering documents.

Eligibility Breakdown

1. Residency: Parent or guardian must live in Maryland. Provide proof such as a lease, utility bill, or shelter letter.
2. Child age: Children must be under 13, or under 19 if they have a disability and require supervision. Provide birth certificates or medical documentation.
3. Activity requirement: Parents must work at least 20 hours per week, attend school full-time, or participate in an approved training program. TCA recipients automatically meet activity requirements.
4. Income: Household gross income must be at or below 65% of SMI. As of 2025, this equates to roughly $81,000 for a family of four. Families receiving TCA, SNAP, or SSI for the child qualify categorically.
5. Citizenship: Children must be U.S. citizens or qualified noncitizens. Parents’ immigration status is not considered.
6. Provider licensing: Care must be provided by a licensed center, registered family child care provider, or approved informal provider (relative care allowed under certain conditions).

Application Roadmap

1. Create OneStop account: Visit the Maryland OneStop portal to start an online application. Paper applications remain available through local DSS offices.
2. Complete application: Provide household information, income sources, work or school schedules, and child details. Indicate chosen provider and Maryland EXCELS ID if available.
3. Upload documents: Submit pay stubs, school enrollment letters, proof of residency, birth certificates, and immigration documents (if applicable). For self-employment, provide tax returns or ledgers.
4. Provider confirmation: MSDE contacts the selected provider to verify licensing status, rates, and availability. Providers must sign the Scholarship Provider Agreement.
5. Eligibility determination: Within 30 days (10 days for homeless or foster families), MSDE issues an approval letter specifying the scholarship rate and family copay.
6. Attend orientation: Some counties require orientation sessions covering copay policies, reporting requirements, and Maryland EXCELS quality ratings.
7. Begin care: The state pays the provider directly each month. Families pay copays to the provider by the fifth of the month.

Documentation Checklist

• Proof of identity for parent/guardian (driver’s license, state ID, passport)
• Proof of Maryland residency (lease, utility bill, shelter letter)
• Birth certificates or adoption records for each child
• Social Security numbers (if available)
• Pay stubs for the last 30 days, or employer letter stating hours and wages
• School schedule or training enrollment verification
• Self-employment ledger or tax return (if applicable)
• Proof of participation in TCA, SNAP, or SSI (if applicable)
• Provider’s license number and Maryland EXCELS rating

Timeline Benchmarks

• Day 0: Application submitted.
• Day 5–7: MSDE requests missing documents if needed.
• Day 10: Expedited determination for homeless, foster, or protective services cases.
• Day 30: Standard determination deadline. Contact customer service if no decision received.
• Month 12: Redetermination packet mailed 60 days before expiration. Submit updates to prevent lapses.

Strategies to Maximize the Scholarship

1. Choose high-quality providers: Maryland EXCELS Level 3+ providers earn bonus payments, allowing more comprehensive services without additional parent cost.
2. Coordinate schedules: Align work/school schedules with provider hours to avoid paying for additional care outside scholarship coverage.
3. Document variable income: For fluctuating hours, provide multiple pay stubs or employer statements. Accurate reporting prevents overpayment and recoupment.
4. Utilize sibling discounts: Some providers waive copays for second children; negotiate based on the guaranteed state payment.
5. Leverage training programs: Enrollment in community college or apprenticeship programs qualifies for CCS. Share class schedules to document need for care during study hours.
6. Monitor attendance: Scholarship payments require attendance records. Communicate absences promptly to avoid provider billing issues.

Common Pitfalls

• Incomplete documentation: Missing pay stubs or residency proof delays approvals. Use the OneStop checklist to ensure all uploads succeed.
• Switching providers without notice: Inform MSDE before changing providers to avoid payment gaps. Submit a new provider agreement promptly.
• Copay delinquency: Late copays can result in termination. Set reminders or automate payments with providers.
• Unreported income changes: Increases must be reported within 10 days. Failure to do so may create overpayments that MSDE recoups.
• Provider non-compliance: Working with unlicensed or suspended providers disqualifies payments. Verify licensing status regularly via the Maryland EXCELS directory.

Coordinated Supports

• Judy Centers & Family Support Centers: Offer wraparound services, parenting classes, and developmental screenings.
• Pre-K programs: Families can combine state pre-K with CCS for wraparound hours.
• Child Care Resource & Referral (CCRC): Assists families in selecting quality providers and understanding EXCELS ratings.
• Workforce partners: Local Workforce Development Boards coordinate CCS with training scholarships, transportation assistance, and job placement.
• Special Needs Services: MSDE’s Inclusive Practices Branch provides consultative support and adaptive equipment for children with disabilities.

Success Stories

• Nursing student parent: Alicia in Baltimore County uses CCS while attending nursing school full-time. The scholarship covers a Level 4 center, and her copay is $15/week. MSDE coordinated with her college to verify class hours each semester.
• Military family: The Thompsons stationed at Fort Meade use CCS in conjunction with Child Care Aware fee assistance. The state subsidy covers off-base care during overnight shifts.
• Entrepreneur parent: Jamal runs a landscaping business with variable income. By submitting quarterly profit-and-loss statements, he maintains eligibility and keeps his two children enrolled in a STEM-focused family child care home.

Frequently Asked Questions

Do I have to be employed full-time? No. Part-time work combined with school or training counts. Document hours carefully.

Can relatives provide care? Yes, if they become approved informal providers or register as family child care homes. They must pass background checks and health/safety inspections.

What if I lose my job? Report within 10 days. CCS allows a three-month job search period where subsidies continue while you look for new employment.

How are copays calculated? Copays are based on income, household size, and child age. The approval letter lists the monthly amount. Families under 40% SMI pay $0.

Can I use CCS for summer camps? Licensed summer camps and school-age programs qualify. Submit schedules indicating need for full-day coverage.

Resource Directory

• Maryland OneStop Portal: Submit applications, upload documents, track status.
• MSDE Child Care Scholarship Customer Service: 866-243-8796 for eligibility questions and redetermination.
• Child Care Resource & Referral Network: Search providers, request referrals, and attend parent workshops.
• Maryland EXCELS: Quality rating database and tools for evaluating providers.
• Maryland Workforce Exchange: Connects CCS parents to training and employment opportunities.

Glossary

• State Median Income (SMI): Benchmark used to set income eligibility levels.
• Copay: Parent’s monthly contribution toward child care costs.
• Maryland EXCELS: State quality rating and improvement system for child care programs.
• Presumptive eligibility: Temporary approval allowing immediate care while documents are gathered.
• Provider Agreement: Contract between MSDE and provider outlining payment rates and responsibilities.

By leveraging the Child Care Scholarship Program, Maryland families can secure stable, high-quality care that supports career advancement and children’s early learning. Staying organized, reporting changes promptly, and collaborating with providers ensures the subsidy remains active and maximizes family benefits.