What is Tiered Reimbursement?

The Child Care Reimbursement System is a quality initiative that offers higher subsidy payments to programs that demonstrate they meet higher standards of care. Programs that are licensed as a center or facility and registered family child care homes are currently receiving Tier I rates through the child care subsidy program. Programs may apply for Tier II or Tier III reimbursement rates if specific higher quality standards are met. A center may receive one of three tiered rates based on the age of the children in care and the program’s tier level. Programs that meet Tier II standards receive $3.00 extra daily and programs that are accredited receive $6.00 extra daily per full day per child. Part days are converted to full days before the supplement is calculated.

Which programs are eligible for tiered reimbursement?

To be eligible for Tier II reimbursement rates, a child care center or facility must have a regular operating license (not a provisional or initial), and a family child care home must have a certificate of registration for at least six (6) months. The program must also enroll children who receive subsidies for care.

Bonus Funding Available

After child care programs meet the required quality standards and raise their tier level, additional funding is available as a “bonus” for increasing the program’s quality. The bonuses are available in the following amounts:

  • Centers: $1,500.00
  • Facilities: $500.00
  • Homes: $250.00


To apply for tiered reimbursement or change your tier level, you must complete and submit a Tiered Reimbursement Application along with the required documentation listed on the application form. For more instructions on how to apply or to access an application form, which includes quality standards, click the applicable link below:

Child Care Center Tiered Reimbursement Application
Child Care Facility Tiered Reimbursement Application
Family Child Care Home Tiered Reimbursement Application

Tier II Validation Notebook Documentation Samples may be found at: