Child Care Service Stage II

Eligibility for Stage II

Child care in Stage II may be available to former CalWORKs clients who received cash aid under Temporary Assistance for Needy Families (TANF) or CalWORKs for at least one month within the 24 months before applying for Stage II child care and need child care to continue employment.

Stage II child care services are also available to clients who meet the transfer criteria.

Transfer Criteria: Child care services for clients who meet the criteria below are referred to Alternative Payment Programs (APPs) for transfer to Stage II services via the APP/CWES Referral & Communications (SCD 1776). The client is:

  • Discontinued from cash aid AND employed (part or full-time), or
  • On cash aid AND employed (part or full-time), or
  • In an educational or vocational training activity AND they are within two months of timing-out from the 60-month CalWORKS limit.

Exception: Individuals employed through Expanded Subsidized Employment (ESE) must not be referred to an Alternative Payment Program (APP) until they are notified their CalWORKs will be discontinued. To avoid a family fee, the APP referral must be made prior to the effective date of CalWORKs discontinuance.

Direct Referrals to Stage II

A Direct Referral to Stage II Child Care can be made for eligible former CalWORKs clients who received AFDC or CalWORKs for at least one month within the past 24 months before being referred to Stage II Child Care, in the following instances:

  • The client becomes employed after timing out.
  • The client is enrolled in school.
  • The client is a prior CalWORKs recipient who is now a non-needy caretaker.
  • The client was a Cal-Learn participant.

To submit a Direct Referral, the Associate Employment Counselor (AEC)/Employment Counselor (EC) will email a completed Alternative Payment Program Direct Referral (SCD 1717) form to ‘SCChild’ located in the SSA Global Outlook Address List two-three months before the existing child care certificate ends.  The AEC/EC will continue paying Stage I Child Care until the client has been successfully transferred to an APP.

Family Fees for Recipients

Under no circumstances must CalWORKs families receiving cash aid be charged a family fee, including those transferred to Stage II. These families may include a parent who is safety net/timed out or a sanctioned second parent.

24-Month Eligibility

Under 24-month eligibility, if the APP referral is made prior to the effective date of CalWORKs discontinuance, there will be no family fee during the 12-month Post-Aid Services (PAS) period. When completing the APP/CWES Referral & Communication Form (SCD 1776), no income is reported while the client is a current cash aid recipient. At the end of the 24 months, the APP will recertify the family, and there may be a family fee.

If the APP referral is made after the effective date of CalWORKs discontinuance, then the income is reported on the SCD 1776, and the client may have a family fee.

85% State Median Income (SMI)

Former CalWORKs clients who are employed may be eligible for Stage I or Stage II child care services if monthly income does not exceed 85 percent of the SMI. Refer to Child Care Service Family Fee Schedule.

Pending Stage II

Former CalWORKs clients who cannot be served in Stage II due to the lack of available child care funding slots in Stage II may receive services in Stage I until they can be transferred to Stage II.

In-Home Providers

Families who meet the transfer criteria for CalWORKs Stage II services, regardless of having an in-home license-exempt provider, are to be transferred to CalWORKs Stage II.   

CalWORKs Stage II APPs shall authorize in-home license-exempt care for families if the parent signs a self-attestation form with the APP. By signing this form, the parent acknowledges that they are assuming employer responsibilities for the in-home license-exempt provider and are responsible for complying with any applicable federal and state employment laws.  

24-month Period for Stage II Child Care

The 24-month period for Stage II Child Care begins the first month after the client’s cash aid has been discontinued.

Clients who cannot be transferred from Stage I to Stage II because no slots are available, may receive help with child care costs for up to 24 months, in Stage I and Stage II combined, after cash aid is discontinued or until they are otherwise ineligible for child care within the 24-month period.

Clients Who Move to Santa Clara County

Clients who are discontinued from cash aid in another county, and who move to Santa Clara County within their 24-month Stage II eligibility period, may be referred directly to an APP for Stage II child care services.

Related Topics

Child Care Service Background

Child Care Service - Child Care Structure

Child Care Service Resources and Referral

Child Care Service Program Eligibility

Child Care Service - Child Care Rates

Child Care Service Licensed Provider

Child Care Service License-Exempt Provider

Child Care Service - Exempt Volunteers

Child Care Service - Payments for Closed Cases

Child Care Service Approval and Authorization

Child Care Service Recertification

Child Care Service Discontinuances

Child Care Service - Client Notifying the Provider

Child Care Service Extensions/Changes

Child Care Service - Other Allowable Activities

Child Care Service Screening for Stage II

Child Care Service Referral Process for Stage II

Child Care Service Billing

Child Care Service Payment Principles

Child Care Service Family Fee

Child Care Service Authorizations Online

Child Care Service Cal-OAR Measure

Child Care Service Regional Market Rates (RMR)

Child Care Service Regional Market Rates (RMR) Based on the 2021 Survey

Child Care Service Family Fee Schedule