Add Montana Child Care Assistance Program (Best Beginnings Child Care Scholarship)

[hua7450]

Summary

Implements Montana's Child Care Assistance Program (Best Beginnings Child Care Scholarship) in PolicyEngine. The program is administered by Montana DPHHS, Early Childhood Services Bureau (ECSB), and is CCDF-funded. Subsidy = lesser of the provider's charge or the state maximum rate, minus the parent's sliding-scale copayment, floored at $0.

Closes #8661

Regulatory Authority

• ARM Title 37, Chapter 80 (Child Care Assistance):
  • ARM 37.80.102 — definitions / income
  • ARM 37.80.201 — nonfinancial requirements & priority (120/60/40 activity hours; school-hours age-6 rule; priority list)
  • ARM 37.80.202 — financial requirements; payment; parent copayment (§(1) initial 150% FPG; §(2) graduated 185% FPG at redetermination; asset test; lesser-of payment; $10 TANF copay)
  • ARM 37.80.205 — child care rates (half/full-time day definitions; max payable rates)
• DPHHS Best Beginnings Sliding Fee Scale, effective 07-01-2025 (copay % by FPG bracket; the URL filename says 2023 but the document header reads "Effective 07-01-2025")
• DPHHS Best Beginnings Provider Monthly Rates (single page — maximum monthly rates by provider type x age x half/full-time)
• DPHHS Child Care Policy Manual:
  • CC 1-7 Parent Eligibility (eligibility categories; teen-parent and disabled-parent exceptions)
  • CC 2-3 Non-TANF Activity Requirements (120/60/40 activity thresholds; full-time-student, disabled-parent, and incarcerated-parent waivers)
  • CC 2-6 Income Evaluation Table, pp. 1-14 (counted vs excluded income types)

Eligibility

Requirement	Source	How modeled
Income limit (initial / graduated)	ARM 37.80.202(1)-(2)	mt_ccap_income_eligible — non-TANF applicant ≤ 150% FPG; non-TANF continuing recipient (mt_ccap_enrolled) ≤ 185% FPG at redetermination; TANF families categorically eligible
Over 85% SMI => not eligible	Sliding Fee Scale footnote; 45 CFR 98.20(a)(2)	mt_ccap_income_eligible — countable_income <= hhs_smi * 0.85 (param income/income_limit_smi_rate.yaml = 0.85); rarely binds (FPG limit is tighter)
Activity hours	ARM 37.80.201; CC 2-3	mt_ccap_activity_eligible — two-parent 120/mo combined, single-parent 60/mo (from weekly_hours_worked_before_lsr); per-parent waivers for full-time students (incl. teens in HS), disabled parents, and incarcerated parents in two-parent families
CCDF asset test	ARM 37.80.202 (= 42 USC 9858n(4)(B))	reuses federal is_ccdf_asset_eligible
Immigration (child)	landing page; 45 CFR 98.20	reuses federal is_ccdf_immigration_eligible_child
Montana residency + parent/child cohabitation	ARM 37.80.201; CC 2-2	defined_for = StateCode.MT on mt_ccap_eligible; SPM-unit grouping co-locates parent and child
At least one eligible child	ARM 37.80.202	add(spm_unit, period, ["mt_ccap_eligible_child"]) > 0
Eligible child age	ARM 37.80.201; CC 2-1 (CCDF default)	mt_ccap_eligible_child — age < 13, or < 19 if special needs (params eligibility/child_age_limit.yaml = 13, eligibility/special_needs_child_age_limit.yaml = 19)
Eligibility categories	CC 1-7	non-TANF income pathway AND TANF categorical pathway via is_tanf_enrolled

Income Standards

Per ARM 37.80.202(1)-(2):

• Initial eligibility (first-time applicant): non-TANF countable income at or below 150% FPG (income/fpg_limit/initial.yaml = 1.5).
• Graduated eligibility (continuing recipient, at annual redetermination): non-TANF countable income at or below 185% FPG (income/fpg_limit/graduated.yaml = 1.85). The applicant-vs-redetermination split is driven by the mt_ccap_enrolled input (default = applicant).
• TANF families: categorically income-eligible via is_tanf_enrolled (their income is far below the FPG limits regardless).
• SMI ceiling: countable income above 85% of state median income (SMI) is a hard ineligibility overlay (hhs_smi * 0.85). With the 185% FPG ceiling the FPG limit binds first for all but the largest households (size 13+ in 2026), so this rarely controls.

Benefit Calculation

Subsidy = min(provider charge, state maximum rate) - copay, floored at $0, summed across eligible children.

• Copay = max(GMI x FPG-bracket %, $10) for non-TANF families. TANF recipients (is_tanf_enrolled) pay a flat $10. The $10 minimum (param copayment/minimum.yaml) is both the non-TANF floor and the TANF flat amount.
• Copay sliding scale (param copayment/copay_rate.yaml, a single_amount bracket keyed on the % FPG ratio): 14 rate tiers from 0.5% (at/below 100% FPG) stepping up to 7.0%. Per the Sliding Fee Scale footnote ("the co-payments listed are minimums and correspond to the lowest level for each income range"), each labeled FPG% is the floor of its tier — e.g. the 1.0% tier runs 105% up to 115% FPG. Bracket thresholds are the labeled % values (0, 1.05, 1.15, …, 1.85) with no offset, since single_amount is "at or above threshold." The published scale's tiers run to 200% FPG, but income eligibility caps at 185% FPG for non-TANF families, so tiers above 185% are unreachable for eligible families (retained only to mirror the published scale).
• Provider maximum rate (param rates/provider_rates.yaml) is a 3-dimensional lookup: provider type (6) x age group (3) x half/full-time (2). Half-time = 5 or fewer hours/day; full-time = more than 5 up to 12 hours/day (ARM 37.80.205). mt_ccap_care_time defaults to FULL_TIME (we don't track per-day care hours at the moment). RCE / School-Age-Provider NA cells are encoded as 0 (not payable).

Requirements Coverage

REQ	Description	Parameter	Variable	Test
REQ-001	Eligible child under age limit (13 / special-needs 19)	eligibility/child_age_limit.yaml, eligibility/special_needs_child_age_limit.yaml	mt_ccap_eligible_child.py	mt_ccap_eligible_child.yaml
REQ-002	Child + parent live together in Montana	—	mt_ccap_eligible.py (defined_for=StateCode.MT)	mt_ccap_eligible.yaml (Case 2 WY)
REQ-003	Household has >=1 eligible child	—	mt_ccap_eligible.py	mt_ccap_eligible.yaml (Case 3)
REQ-004	Activity hours (two-parent 120, single 60) + per-parent waivers	eligibility/activity_hours/{two_parent,single_parent}.yaml	mt_ccap_activity_eligible.py	mt_ccap_activity_eligible.yaml (18 cases)
REQ-005	Full-time-student / teen-in-HS parent: work requirement waived*	—	mt_ccap_activity_eligible.py (is_full_time_student waiver)	mt_ccap_activity_eligible.yaml (Cases 3, 12)
REQ-006	Disabled parent excluded from family minimum-hour calc	—	mt_ccap_activity_eligible.py (is_disabled waiver)	mt_ccap_activity_eligible.yaml (Cases 13-15)
REQ-007	CCDF immigration check	(federal)	mt_ccap_eligible_child.py (is_ccdf_immigration_eligible_child)	mt_ccap_eligible_child.yaml (Case 6)
REQ-008	CCDF asset test	(federal)	mt_ccap_eligible.py (is_ccdf_asset_eligible)	mt_ccap_eligible.yaml (Cases 6, 7)
REQ-009	FPG income limit — applicant 150% / redetermination 185% (ARM 37.80.202(1)-(2))	income/fpg_limit/initial.yaml (1.5), income/fpg_limit/graduated.yaml (1.85)	mt_ccap_income_eligible.py, mt_ccap_enrolled.py	mt_ccap_income_eligible.yaml (Cases 1-6)
REQ-010	>85% SMI => not eligible	income/income_limit_smi_rate.yaml (= 0.85)	mt_ccap_income_eligible.py (hhs_smi)	mt_ccap_income_eligible.yaml (Cases 10-11)
REQ-011	Countable income sources	income/countable_income/sources.yaml	mt_ccap_countable_income.py	mt_ccap_countable_income.yaml
REQ-013	Payment = min(charge, rate) - copay, floor 0	—	mt_ccap.py	mt_ccap.yaml, integration.yaml
REQ-014	State max rates (6 x 3 x 2)	rates/provider_rates.yaml	mt_ccap_max_rate.py	mt_ccap_max_rate.yaml (18 cases)
REQ-015	Half/full-time rate distinction	rates/provider_rates.yaml	mt_ccap_care_time.py	mt_ccap_max_rate.yaml
REQ-019	RCE / School-Age-Provider NA cells = 0	rates/provider_rates.yaml	mt_ccap_max_rate.py	mt_ccap_max_rate.yaml (Case 12)
REQ-020	Copay = max(GMI x %, $10)	copayment/minimum.yaml (= 10)	mt_ccap_copay.py	mt_ccap_copay.yaml
REQ-021	Copay % sliding scale (0.5% -> 7.0%, floor reading)	copayment/copay_rate.yaml	mt_ccap_copay.py	mt_ccap_copay.yaml (boundary cases)
REQ-022	TANF recipients flat $10 copay	copayment/minimum.yaml	mt_ccap_copay.py	mt_ccap_copay.yaml (Case 6), integration.yaml (Case 4)
REQ-023	Graduated tier to 185% FPG at redetermination (non-TANF)	income/fpg_limit/graduated.yaml	mt_ccap_income_eligible.py (mt_ccap_enrolled)	mt_ccap_income_eligible.yaml (Cases 4-6)
REQ-026	Non-TANF + TANF eligibility pathways	—	mt_ccap_income_eligible.py, mt_ccap_eligible.py	mt_ccap_eligible.yaml (Case 8)

All 20 in-scope requirements have parameter/variable/test coverage.

* REQ-005: the work-requirement waiver for a parent in full-time school (including a teen in high school/HiSET) is modeled via the is_full_time_student waiver, plus the incarcerated-parent waiver in two-parent ("intact") families via is_incarcerated. The teen-parent "may be treated as a separate household" / under-20 specifics are not modeled (entity structure).

Not Modeled

These features are documented limitations — we don't track the underlying inputs at the moment:

REQ	What	Why excluded
REQ-005 (sub)	Teen parent treated as a separate household; under-20 specifics	No teen-parent household-split input (the work-requirement waiver itself is modeled)
REQ-012	Entry-level income floor = TANF GMI + $1	Entry-vs-redetermination income floor not tracked; bracket math is driven by % FPG
REQ-016	Full monthly authorization when attendance >=85%	No per-day attendance input; assumes full-month authorization
REQ-017	Extended-care multipliers (12-18h = 1.25x, >18h = 1.5x)	No daily-hours-in-care input at that granularity
REQ-018	No school-hours care for age 6+ as of Sept 10	No school-hours-care / school-calendar input
REQ-023 (timing)	Graduated-tier redetermination timing (12-month period / only-at-redetermination)	We proxy applicant-vs-redetermination with the mt_ccap_enrolled input, but not the 12-month eligibility clock
REQ-024	Funding-limited priority / waitlist categories	Priority affects waitlist ordering, not benefit calc
REQ-025	Presumptive eligibility (30 days)	No application-date / presumptive-period state
REQ-026 (sub-pathways)	Tribal / Tribal-TANF / CFSD-referral eligibility categories	No tribal-enrollment / CFSD-referral input
REQ (activity)	Part-time student + 40/mo work pathway; "least hours outside the home" two-parent nuance; "paid legal labor / minimum wage" earnings condition	Part-time-school status not tracked; covered via the meets_ccdf_activity_test fallback input. Activity test checks hours only, not whether the work is paid at minimum wage
REQ-015 (derivation)	Auto-classification of half- vs full-time by daily hours	No per-day-hours-in-care input; care_time is a bare input defaulting to FULL_TIME

⚠️ Regulatory Note — FPG threshold sources (reviewers please confirm)

Eligibility uses ARM 37.80.202(1)-(2): initial 150% FPG, graduated 185% FPG (non-TANF, at redetermination). The published Sliding Fee Scale (eff. 07-01-2025) shows higher operational ceilings — a standard table running to 185% FPG ("MAX ENTRY") and a graduated table to 200% FPG ("EXIT"). We use the sliding-fee scale only for the copay percentages, and the ARM rule text for the income-eligibility limits. Reviewers should confirm which source governs eligibility (the ARM rule text vs. the operational scale), since the two differ by ~35 FPG points.

Documented Assumptions

• Applicant vs redetermination via mt_ccap_enrolled (default = applicant): the 150% (initial) vs 185% (graduated) split from ARM 37.80.202(1)-(2) is selected by this input. Households that don't set it — including all microdata — are treated as first-time applicants at the 150% limit. TANF families are categorically eligible regardless.
• Copay bracket = floor reading: each labeled FPG% is the bottom of its co-pay tier (per the scale footnote "co-payments listed are minimums and correspond to the lowest level for each income range"), so the 1.0% tier covers 105% up to 115% FPG, etc. Thresholds use the labeled % directly with no +0.0001 offset.
• Age-group month boundaries (Infant/Toddler 0-35 mo, Preschool 36-71 mo, School Age 72+ mo): the Provider Rates PDF gives no month cutoffs. The Infant/Toddler (36 mo) cutoff is a documented assumption; the Preschool/School-Age (72 mo) cutoff follows ARM 37.80.102 (school-age = 6th birthday). Documented in the mt_ccap_child_age_category docstring.
• Child age limits 13 / special-needs 19: CCDF defaults; ARM defers to the policy manual for the exact figures.
• care_time defaults to FULL_TIME: there is no per-day-hours-in-care input, so half-time must be set explicitly.
• Activity hours use weekly_hours_worked_before_lsr (converted to monthly via 52/12), so the activity gate is stable under labor-supply responses.
• tanf excluded from countable-income sources: avoids a childcare <-> TANF circular dependency. TANF families are instead handled via the is_tanf_enrolled categorical pathway plus the flat $10 copay branch.

Test plan

• 118 tests pass locally (unit + integration + edge cases)
• CI passes

Files Added

policyengine_us/parameters/gov/states/mt/dphhs/ccap/
├── age_group/months.yaml
├── copayment/copay_rate.yaml
├── copayment/minimum.yaml
├── eligibility/activity_hours/single_parent.yaml
├── eligibility/activity_hours/two_parent.yaml
├── eligibility/child_age_limit.yaml
├── eligibility/special_needs_child_age_limit.yaml
├── income/countable_income/sources.yaml
├── income/fpg_limit/initial.yaml
├── income/fpg_limit/graduated.yaml
├── income/income_limit_smi_rate.yaml
└── rates/provider_rates.yaml

policyengine_us/variables/gov/states/mt/dphhs/ccap/
├── mt_ccap.py
├── mt_ccap_care_time.py
├── mt_ccap_child_age_category.py
├── mt_ccap_copay.py
├── mt_ccap_countable_income.py
├── mt_ccap_max_rate.py
├── mt_ccap_provider_type.py
├── mt_child_care_subsidies.py
└── eligibility/
    ├── mt_ccap_activity_eligible.py
    ├── mt_ccap_eligible.py
    ├── mt_ccap_eligible_child.py
    ├── mt_ccap_enrolled.py
    └── mt_ccap_income_eligible.py

policyengine_us/tests/policy/baseline/gov/states/mt/dphhs/ccap/
├── integration.yaml
├── mt_ccap.yaml
├── mt_ccap_activity_eligible.yaml
├── mt_ccap_child_age_category.yaml
├── mt_ccap_copay.yaml
├── mt_ccap_countable_income.yaml
├── mt_ccap_eligible.yaml
├── mt_ccap_eligible_child.yaml
├── mt_ccap_income_eligible.yaml
├── mt_ccap_max_rate.yaml
└── mt_child_care_subsidies.yaml

Federal-registration edits (2 files):

• policyengine_us/parameters/gov/hhs/ccdf/child_care_subsidy_programs.yaml — added mt_child_care_subsidies to the adds list
• policyengine_us/programs.yaml — added the MT Best Beginnings state_implementations entry under the federal CCDF program (variable mt_child_care_subsidies, parameter prefix gov.states.mt.dphhs.ccap)

12 parameters, 13 variables, 11 tests (118 test cases).

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