Public Law 107-67 section 630 permits federal agencies to assist federal employees with child care tuition costs. If you meet FAA’s eligibility criteria, your child care costs will be reduced. In addition, you may be able to treat certain amounts of your subsidy as excluded from gross income.

The subsidy is available to permanent full-time FAA employees whose total family income is $100,000 or less and have a child aged 13 or under (or disabled and under age 18) in licensed child care. The amount you can receive depends on your total family income and the amount you pay for child care. The chart below shows the percentage of your total child care costs that FAA will pay based on your total family income. If your total family income is less than $100,000 annually, than the FAA will pay the corresponding percentage of your child care costs indicated in below.

Total Family Income = $70,000 or less
Percentage of Child Care Costs FAA Will Pay = 70%

Total Family Income = $70,001 – $85,000
Percentage of Child Care Costs FAA Will Pay = 45%

Total Family Income = $85,001 – $100,000
Percentage of Child Care Costs FAA Will Pay = 30%

Total Family Income = Over $100,000
Percentage of Child Care Costs FAA Will Pay = 0%

Subsidy benefits are available only for employees who meet the eligibility requirements. Employees will be eligible for subsidy payments for services provided only after the subsidy application has been approved.

Each month, either you or your provider will forward the child care invoice to the CCS service provider. Both you and your licensed child care provider must certify on the form that the child care services were delivered for your child and the employee must certify that they continue to be a permanent full time employee with the FAA. Once the CCS service provider receives the completed invoice authorization, payment will be made directly to the child care provider.

Payments are not made to the employee unless the child care provider is located in a foreign duty location and only accepts foreign currency. You will be responsible for paying the remainder of your child care costs to your child care provider.

Your CCSP subsidy will be reduced if you receive a state or local child care subsidy. Also, you are responsible for determining whether acceptance of FAA subsidy affects your eligibility for child care subsidies from any other source. 

Family 1: Sue is a single mother and has two children. Both of the children are in the same licensed child care center, one full time and the other is in before and after school care. Sue’s total monthly tuition bill for both children is $680. Her total family income (Adjusted Gross Income on the IRS tax form) is $86,000. Sue will be eligible to receive a subsidy of $204 per month (30% of $680). Sue will pay her child care provider $476 per month and the CCS service provider will send checks to the provider for $204 each month.

Family 2: Tom and Alice have three children in child care with a provider licensed to provide care in her home. Their monthly child care bill is $700. Their total family income (i.e., Adjusted Gross Income) is $80,000. Tom and Alice will be eligible to receive a subsidy of $315 per month (45% of $700).

Tom and Alice will pay a monthly child care bill of $385 and the child care provider will receive a monthly check for $315 from the CCS service provider.

Family 3: John is a single father with a total family income of $36,500. He has one child in licensed child care at the cost of $480 per month. The state he lives in provides him with an $80 per month child care subsidy ($480 – $80 = $400). John will be eligible to receive a subsidy of $280 per month (70% of John’s $400 per month cost after reduction for the state subsidy). John will pay a monthly bill of $120 and the child care provider will receive a monthly check for $280 from the CCS service provider.

The provider must be licensed in the state or location in which they operate. The provider is asked to show proof of license in the application instructions. If you do not currently have a licensed child care provider, information about identifying child care services is included in the U.S. Department of Health and Human Services’ Administration for Children and Families website.

No, you may choose any registered or licensed child care program. FAA’s onsite and near-site centers are eligible for the subsidy but not mandatory.

The tax laws regarding child care credits and subsidies are complicated. You should be aware that there will be tax consequences to receiving a subsidy greater than $2,500 per year (if married, filing separately) or $5,000 per year (if filing as a married couple or single person, head of household). Also, the subsidy you receive for a child who does not meet the IRS’s definition of a dependent will be treated as taxable income to you. You are responsible for determining your income tax situation. Publication 503 “Child and Dependent Care Expenses” is a tax resource that may be helpful and can be found at https://www.irs.gov, or consult your tax advisor.

Note: Per IRS Publication 503, employees are only eligible for $5,000 in tax-free dependent care benefits per calendar year ($2,500 if married and filing separately). This limit applies to the combination of CCSP and Dependent Care Flexible Spending Account (DCFSA) benefits. 

Children from birth through age 13, and children who are disabled and under age18 are eligible. For this subsidy, a child is defined as:

• A biological child who lives with the FAA employee.
• An adopted child.
• A stepchild.
• A foster child.
• A child for whom a judicial determination of support has been obtained.
• A child who received regular and substantial support from the employee, the employee’s spouse or the employee’s domestic partner as a parent or legal guardian.

The IRS may qualify eligible children differently. Please check with your tax advisor to determine eligibility based on existing tax law, as well as any tax implications. The employee is responsible for determining tax implications. Remember that under this program, the benefits you receive may be excluded from gross income if your child meets the IRS’s definition of a dependent. If your child does not meet that definition, you may still receive benefits, but they will be considered taxable income. 

You may get application materials through the Office of Human Resource Management and on the MyFAA Employee website. You can also get application forms from the CCS service provider, Cherokee Nation Federal Consulting. Your application forms include information about you, your child and the licensed child care provider you intend to use. Your child care provider must also complete certain registration information as your designated child care provider.

Employees are responsible for submitting a recertification package each year to the CCS service provider to confirm continued eligibility for both family income and employment status. The recertification month for each employee is April 1st through April 30th. 

If an application is denied, the employee may request the Office of Human Resource Management to review the application. Consistent with the Human Resource Policy Manual, WL-12.1 FAA Child Care Subsidy Program, the FAA retains the authority to make the final determination on all questions concerning the CCSP and the eligibility of any person to participate.

The FAA has a service provider that works with the FAA National Child Care Program Manager and oversees the operational and technical aspects of the CCSP. For information regarding the CCS service provider, contact Cherokee Nation Federal Consulting by email at faaccsp@cfedfc.us or by phone at 866-201-7267.

For questions about your specific application or about benefit payments to your child care provider, contact the CCS service provider:

Cherokee Nation Federal Consulting
Email: faaccsp@cfedfc.us
Phone: 866-201-7267

Your eligibility is based on the most recent year’s completed income tax returns.

The CCS service provider may request a copy of the child’s birth certificate to verify the child’s eligibility.

Daytime summer programs and before and after school programs are often eligible for the CCSP. FAA employees must provide a certification, license or accreditation for that program to accept minors in their care. Often times, public school systems or county governments can provide you with the documentation. In extremely rare circumstances, if a program does not require accreditation or certification, the appropriate governing authority (e.g., public school system) must provide documentation on letterhead. The FAA makes the final determination.

No, the employee must initiate the appeal process by notifying the Office of Human Resource Management, Child Care Program Manager.

After your application is received by the CCS service provider, they will review the submitted information and send an email to acknowledge receipt of the application. The employee should receive the email within two weeks. If the application is incomplete, additional correspondence will be sent requesting the missing information. Once the submission is complete, the application is processed, and the employee is notified of the status.

Yes. The FAA will pay the same percentage of a registration fee as the monthly child care costs.

No. If your application is not approved prior to your employment termination, you no longer meet the eligibility criteria for payment.