How does the USDA food program help a child care center?

Any licensed non-profit child care center can participate in the Child and Adult Care Food Program (CACFP). In addition, any "for-profit" center can participate as long as 25% of the children served come from lower income families.

How would you benefit?

The quick answer: You would receive a monthly cash reimbursement.

Midwest Child Care Association will reimburse a child (or adult day) care center for a portion of their food costs as long as the center serves meals that meet federal standards. So participating in the CACFP is an easy way to bring in more money without increasing the fees you charge your parents.

These payments, typically referred to as meal reimbursements, are made based on a formula for the number of children you feed at a given meal, times the rate of reimbursement for that meal. The rate of reimbursement varies based on several factors, including the type of meal served and income levels of the children. Specifically, there are three different levels of meal reimbursement defined by the USDA:

• Breakfast
• Lunch & Dinner/Supper
• Snacks (a morning snack, afternoon snack, and evening snack)

In the lower 48 states, for example, the highest level of reimbursement for lunch & dinner is $2.47 per child served (for the 2007-2008 fiscal year, which runs July 2007 - June 2008). So if you serve 60 children at a lunch, you can receive $148.20 for that lunch!

However, the rates vary based on the income levels of the children. The USDA has defined three different income levels:

• Free - The highest level of reimbursement, this is given to children whose household income is less than 130% of the poverty level (about $26k per year for a family of four).
• Reduced - The middle level of reimbursement, this is given to children whose household income is less than 185% of the poverty level (about $38k per year for a family of four).
• Paid / Base / Denied - The lowest level of reimbursement, this is given for all other children.

So each time you enroll a child, you will have the child's parents fill out an income eligibility application. At a "for-profit center", at least 25% of enrolled children must be in the Free or Reduced category to participate. In non-profit centers, this requirement is avoided. When you sign up with Midwest we will be happy to show you exactly what needs to be done. We are just a phone call or an email away and our friendly staff are always willing to help.

For specific information on the reimbursement rates, click here.

Average Monthly Paycheck

The amount you get paid each month will vary depending on the number of meals & snacks you serve, and depending upon your enrollment. Child care centers offering drop-in care and serving 6 meals & snacks a day to 200+ children who come and go throughout the day can obviously expect to receive a much bigger check each month than those serving a smaller number of children for just one or two meals.

However, let's make a few assumptions and show you how much you would be paid. Assume:

• You serve 60 children:
  • 10 children are classified by income as Free
  • 20 children are classified by income as Reduced
  • 30 children don't classify as either, so they fall into the Base category
• Each is served a Breakfast, Lunch, and afternoon snack
• You're open each weekday

In this scenario, you'd receive $1,782.90 each month. Larger centers serving more low income children can see reimbursements as high as $10,000 per month.

How do you get started?

You must be a licensed center or working on getting licensed.  We are always willing to work with centers that are just getting started. We can help with your questions on licensing, policies, procedures, center design and much more.

Contact us for further Information