Implement Missouri Child Care Subsidy (CCS) program

[hua7450]

Summary

Implements Missouri's Child Care Subsidy program, administered by the DESE Office of Childhood, in PolicyEngine. Missouri colloquially calls this program "CCAP," but the official name is the Child Care Subsidy; the implementation uses the mo_ccs_ variable prefix and lives under gov/states/mo/dese/ccs/ accordingly.

The subsidy is a provider-reimbursement childcare benefit: each eligible child's daily base reimbursement rate (looked up by region, provider type, age group, and time unit) is reduced by the family's sliding fee, floored at zero, and capped at the family's actual childcare expense. Existing families above the traditional income limit can receive a phased-down ("transitional") subsidy.

Closes #8652

Regulatory Authority

• 5 CSR 25-200.050 (Definitions) and 5 CSR 25-200.060 (Eligibility and Authorization) — Cornell LII. These are the primary, live citations; the CSR rule text is thin and incorporates the Child Care Subsidy Eligibility Policy Manual by reference.
• DESE Child Care Subsidy Eligibility Policy Manual (Revised May 2026) — the operative manual. Substantive citations use its current section numbering: §4 Eligibility Criteria (incl. §4.5 Eligible Child, §4.7 Income, §4.8 Assets), §5 Assessing Income (§5.6 Exclusions, §5.7 Deductions), §6 Qualifying Activity / Valid Need, §9 Payment / Sliding Fee, §11 Transitional Child Care. The live DESE manual deep links return a branded HTTP 403 WAF page, so a few parameter files retain Internet Archive Wayback snapshots of the older (2010/2025-numbered) manual pages where no stable live link exists.
• November 2025 Child Care Eligibility Income Guidelines and Sliding Fee Chart — single-page PDF.
• 2025 Rates Held Harmless 2.0 — XLSX, effective Oct 1, 2025 – Jun 30, 2026.
• FFY 2025–2027 CCDF State Plan (Missouri, approved 2026-03-26) — corroborates the base-rate table (§4.3.2), the 25% special-needs differential (§2.3.2(d)/§4.3.3), and the 85% SMI ceiling.

Program Overview

• Administration: DESE Office of Childhood (the program transferred from the DSS Children's Division to DESE effective 2021-08-28; regulations moved from Title 13 (DSS) to Title 5 (Education), 5 CSR 25-200).
• Benefit type: Provider-reimbursement childcare subsidy. A daily base reimbursement rate (minus the family's sliding fee) is paid per eligible child, with transitional phase-out tiers for existing families whose income has risen above the traditional limit.

Eligibility

Requirement	Source	How modeled
Eligible child under 13	5 CSR 25-200.050(15); Manual §4.5(1)	mo_ccs_eligible_child — age < child_age_limit (13)
Special-needs child under 18; under 19 if still in elementary/secondary school	5 CSR 25-200.050(11),(15); Manual §4.5(2),(3)	mo_ccs_eligible_child — special_needs_child_age_limit (18), extended to special_needs_in_school_age_limit (19) when is_in_k12_school or is_in_secondary_school; special-needs proxied by is_disabled
Protective-services child eligible to under 19 (regardless of school)	5 CSR 25-200.050(11)(D),(15)(B); Manual §4.5(4)	mo_ccs_protective_services is treated as special-needs and reaches the under-19 ceiling
Child resides with parent/caretaker in the EU	5 CSR 25-200.050(15); Manual §4.4	is_tax_unit_dependent in mo_ccs_eligible_child
US citizen / qualified alien	5 CSR 25-200.050; Manual §4.2	reuse federal is_ccdf_immigration_eligible_child
Missouri residency	5 CSR 25-200.060; Manual §4.1	defined_for = StateCode.MO (chains through eligibility vars)
Eligibility-unit (EU) composition	Manual §4.3; 5 CSR 25-200.050	SPMUnit-level scoping on mo_ccs_eligible and the income variables
Need for care — employment / education / training / job search / incapacitation / homelessness	5 CSR 25-200.060; Manual §6.1–6.8	mo_ccs_activity_eligible — head/spouse activity present (weekly_hours_worked > 0, is_full_time_student, or is_disabled), or household is_homeless
Protective-services pathway (bypasses income, need-for-care, and the asset test)	5 CSR 25-200.060(7)(A),(7)(B); Manual §4.8	mo_ccs_protective_services (is_in_foster_care or receives_or_needs_protective_services)
Asset cap (self-certified net worth, protective children excluded)	5 CSR 25-200.060; Manual §4.8	reuse federal is_ccdf_asset_eligible; waived for the protective pathway
Income tests	Manual §4.7, §9.1, §11.1; chart	mo_ccs_income_eligible (see Income)

mo_ccs_eligible = has an eligible child and (protective services or (income-eligible and activity-eligible and asset-eligible)). The protective pathway bypasses the income maximums, the need-for-care test (5 CSR 25-200.060(7)(B)), and the net-worth/asset test (Manual §4.8 excludes applicants with a protective-services child).

Income

• Countable income (mo_ccs_countable_income) = monthly gross income (earned + unearned) of EU members, modeled via an adds list of countable income sources (income/countable_income/sources.yaml).
• Adjusted income (mo_ccs_adjusted_income) = countable gross − health_insurance_premiums, floored at 0. Medical-insurance premiums are the only deduction (5 CSR 25-200.050(2); Manual §5.7).
• Traditional test: adjusted income ≤ 150% FPG by household size (new applicants).
• Transitional test: existing families up to 242% FPG, gated by the mo_ccs_enrolled SPMUnit boolean input (only enrolled recipients can use the >150% path).
• 85% SMI ceiling: adjusted income must also not exceed 85% of state median income (min(FPG limit, 85% SMI); Manual §4.7, CCDF State Plan). In practice the FPG limit is the binding ceiling at all realistic household sizes, so the SMI cap is a non-binding federal backstop.

The manual's income-exclusions list (§5.6.1–5.6.6) is modeled by omission: sources.yaml enumerates only the 15 countable PolicyEngine income variables, so any excluded type is simply absent from the list (the SC/WV pattern). Several excluded types have no PolicyEngine equivalent and so drop out automatically (e.g., LIHEAP/energy assistance, in-kind income, lump sums, SNAP value, tribal/restitution payments). Two excluded types cannot be split out cleanly and are documented as known limitations:

• The veterans education-maintenance portion of veterans_benefits (§5.6.1(8)) — we don't track the education-portion split at the moment, so gross veterans benefits are counted (a slight over-count).
• Earnings of a school-attending child (§5.6.3(2)) — we don't filter income by the earner's age/school status at the moment.

Benefit Calculation

• Daily base rate (mo_ccs_maximum_daily_benefit) is looked up by region (5) × provider type (5) × age group (3) × time unit (3) from the Daytime rate table. Special-needs children use the special-needs rate column (rates/<provider>/special_needs.yaml), which is the market rate plus the 25% special-needs differential (CCDF State Plan §2.3.2(d)/§4.3.3). Only daytime rates are modeled (see Not Modeled).
• Subsidy = Σ over eligible children of min(daily rate × attending days, per-child pre-subsidy expense) − the family's sliding fee, floored at 0 (mo_ccs), then multiplied by the transitional funding rate.
• Transitional tiers: TCC1 / TCC2 / TCC3 fund 80% / 60% / 50% of the remaining base rate over the FPG bands 151–185% / 186–215% / 216–242% (transitional/funding_rate.yaml; Manual §11.1).
• Sliding fee (mo_ccs_copay): a daily fee per child looked up by household size (1–20, via copay/tier/size_N.yaml) × monthly adjusted-income band, with per-unit fees varying by full / half / part day (copay/daily_fee/{full,half,part}_unit.yaml; Manual §9.1). A $1/year minimum applies to families enrolled in TANF (is_tanf_enrolled, a proxy for the manual's TANF-only-income condition) or whose gross income is below 25% of State Median Income (minimum_annual_fee.yaml, smi_minimum_rate.yaml). Special-needs and protective-services children are exempt from the sliding fee. (Note: the variable is named mo_ccs_copay but computes the Manual §9.1 sliding fee; the separate §9.2 co-payment — provider charges above the state max rate — is correctly not part of the DESE subsidy and falls out as the family's residual childcare expense.)

Requirements Coverage

All in-scope requirements are covered (138 tests pass). Out-of-scope rate-table differentials (evening/weekend, accreditation, high-subsidy) and administrative provisions are listed under "Not Modeled."

REQ	Description	Parameter(s)	Variable	Test(s)
001	Eligible child under 13	eligibility/child_age_limit	mo_ccs_eligible_child	eligibility/mo_ccs_eligible_child (1–3)
002	Special-needs child <18 (<19 in elementary/secondary school)	special_needs_child_age_limit, special_needs_in_school_age_limit	mo_ccs_eligible_child	mo_ccs_eligible_child (4,5,8,9,12,14)
003	Resides with parent/caretaker	—	mo_ccs_eligible_child	mo_ccs_eligible_child (7)
004	Immigration (citizen/qualified alien)	—	is_ccdf_immigration_eligible_child	mo_ccs_eligible_child (6)
005	Missouri residency	—	defined_for = StateCode.MO	covered via chain
006	EU composition	—	SPMUnit scoping	mo_ccs_eligible
008	Countable monthly gross income	income/countable_income/sources	mo_ccs_countable_income	income/mo_ccs_countable_income
009	AGI = gross − health insurance premiums	—	mo_ccs_adjusted_income	income/mo_ccs_adjusted_income
010	Traditional ≤150% FPG	income/fpl_rate/initial_eligibility	mo_ccs_income_eligible	mo_ccs_income_eligible (1–3)
011	Transitional ≤242% FPG (enrolled)	income/fpl_rate/transitional	mo_ccs_enrolled, mo_ccs_income_eligible	mo_ccs_income_eligible (4,5,9,10)
012	Income exclusions (inverse list)	income/countable_income/sources	mo_ccs_countable_income	mo_ccs_countable_income
013/014/015	Need for care: employment / education / training / job search	—	mo_ccs_activity_eligible	eligibility/mo_ccs_activity_eligible
016	Asset cap (waived for protective children)	—	is_ccdf_asset_eligible, mo_ccs_eligible	mo_ccs_eligible (10,11)
017	5 geographic regions	region/region_1..4_counties	mo_ccs_region	mo_ccs_region
018	5 provider types	rates/<provider>/	mo_ccs_provider_type	mo_ccs_maximum_daily_benefit (1–5)
019	3 age groups	age_group/age	mo_ccs_age_group	mo_ccs_age_group
020	3 time units	time_category/hours	mo_ccs_time_category	mo_ccs_time_category
021	Daytime base rate table	rates/*/base	mo_ccs_maximum_daily_benefit	mo_ccs_maximum_daily_benefit (1–12)
023	Special-needs rate column (market + 25%)	rates/*/special_needs	mo_ccs_maximum_daily_benefit	mo_ccs_maximum_daily_benefit (special-needs cases)
028	TCC tiers 80/60/50%	transitional/funding_rate	mo_ccs_maximum_daily_benefit, mo_ccs	mo_ccs_maximum_daily_benefit (14–16)
029	TCC FPG bands 151/186/216–242	transitional/funding_rate	mo_ccs_maximum_daily_benefit	mo_ccs_maximum_daily_benefit (17,18); integration (3)
030	Sliding fee by HH size 1–20 × income band	copay/tier/size_1..20	mo_ccs_copay	copay/mo_ccs_copay (9,10,13)
031	Per-unit fee (full/half/part)	copay/daily_fee/{full,half,part}_unit	mo_ccs_copay	copay/mo_ccs_copay (1–3)
032	$1/yr minimum (TANF-enrolled proxy or <25% SMI)	copay/minimum_annual_fee, copay/smi_minimum_rate	mo_ccs_copay	copay/mo_ccs_copay (5,6,11,12)
033	Special-needs/protective: no sliding fee	—	mo_ccs_copay	copay/mo_ccs_copay (7)
034	Transitional fee rows TCC1/2/3	copay/tier/size_*	mo_ccs_copay	copay/mo_ccs_copay (4)
035	Payment = rate(+special-needs) − fee, floored 0	—	mo_ccs	mo_ccs (1,6)
036	Cap at provider charge / pre-subsidy expenses	—	mo_ccs	mo_ccs (2); integration (7)
037	Protective-services pathway (income/need/asset bypass; age to <19)	—	mo_ccs_protective_services, mo_ccs_eligible	eligibility/mo_ccs_protective_services; mo_ccs_eligible (5,7,10); mo_ccs_eligible_child (10,11,13)
038	85% SMI ceiling (CCDF)	—	mo_ccs_income_eligible (min(FPG, 85% SMI))	mo_ccs_income_eligible (11,12)

Not Modeled (by design)

What	Source	Why excluded
Evening/Weekend (EW) rate schedule	XLSX "EW Rates 2025" sheet	Only daytime rates modeled; deferred to a follow-up rate-differentials PR
+20% accredited differential	rates landing page	Deferred to follow-up PR (per scope)
+30% accredited (≥half subsidy kids) differential	rates landing page	Deferred to follow-up PR (per scope)
Held-harmless FY2025 rate cap	rates landing page	Current rates are already net of the held-harmless adjustment — no modeling effect
EU optional-member fee optimization	Manual §4.3	Caseworker discretion — not simulatable
New-application waitlist (eff. 2026-03-01)	DESE waitlist page	Administrative, not a household eligibility rule
Work-activity hours verification	Manual §6	Need assumed met if a qualifying activity is present
Non-payment → ineligible until paid	5 CSR 25-200.060(3)(C)5	Administrative
§9.2 co-payment (provider charges above state max) as a separate line	Manual §9.2; 5 CSR 25-200.060(3)(D)	Correctly not part of the DESE subsidy; falls out as the family's residual expense (pre_subsidy_childcare_expenses − subsidy)

The 25% special-needs differential is modeled (see REQ 023); the remaining differentials (+15% evening/weekend, +20%/+30% accreditation) are deferred.

Historical Notes

• The program transferred from the DSS Children's Division to the DESE Office of Childhood in 2021; its regulations moved from Title 13 (DSS) to Title 5 (Education), 5 CSR 25-200.
• All parameters are effective 2025-10-01, the start of the current rate/chart era (Oct 2025 – Jun 2026).

Verification Notes

• The income thresholds (150% traditional / 242% transitional FPG) and the 85% SMI ceiling were verified against the May 2026 Eligibility Policy Manual (§4.7, §11.1), the November 2025 chart, and the FFY 2025–2027 CCDF State Plan.
• The full base-rate and special-needs (+25%) rate tables were verified cell-by-cell against the "Daytime Rates 2025" sheet of the rates workbook and the CCDF State Plan §4.3.2 base-rate table.
• Region county classification was read from the XLSX "Breakdown Of Counties" sheet; Regions 1–4 are enumerated in region/region_N_counties.yaml and Region 5 is the catch-all default.
• A few parameter files retain Internet Archive Wayback snapshots of the older DESE manual where the live deep link returns HTTP 403; the substantive content is corroborated by 5 CSR 25-200, the May 2026 manual, and the current chart/XLSX.

Files Added

policyengine_us/parameters/gov/states/mo/dese/ccs/    48 parameter files
policyengine_us/variables/gov/states/mo/dese/ccs/     16 variable files
policyengine_us/tests/policy/baseline/gov/states/mo/dese/ccs/   15 test files (138 cases)

Federal/shared wiring edits:

• policyengine_us/parameters/gov/hhs/ccdf/child_care_subsidy_programs.yaml — registers mo_child_care_subsidies in the federal CCDF aggregator.
• policyengine_us/parameters/gov/household/household_state_benefits.yaml — attributes mo_child_care_subsidies to Missouri's state benefits.
• policyengine_us/programs.yaml — adds the Missouri CCS program entry (variable: mo_ccs, parameter_prefix: gov.states.mo.dese.ccs, status: complete).

Changelog: changelog.d/mo-ccap.added.md.

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