Arizona Child Care Assistance for Grandparents: The Income Exemption You Need to Know

The Rule That Changes Everything

Most grandparents raising grandchildren assume their retirement income disqualifies the household from child care subsidies. Arizona Administrative Code R6-5-4914(D)(6) says otherwise.

When a non-parent relative applies for DES Child Care Assistance solely for a related child in their care, the caregiver and spouse are excluded from both the family size determination and the income test. Eligibility is based on the child's countable income alone.

A grandparent collecting $3,000 a month in Social Security and pension? Irrelevant. A working aunt earning $65,000? Not counted. The only income DES evaluates is whatever the child receives — survivor benefits, child support, or trust distributions. Most children in kinship care have little or no countable income.

How R6-5-4914 Actually Works

Standard DES child care assistance requires family income at or below 165% of the Federal Poverty Level. Most grandparent households would exceed that limit if their income were counted.

Under the relative caregiver exemption, DES calculates the "family" as the child only. A single child with no income of their own clears the income test automatically. The grandparent still needs to meet a program activity requirement — working, attending training, or qualifying under an age or disability exemption — but their earnings don't count against the child.

Under this exception, a relative caregiver's income does not count toward the child-only application. The child needs care regardless of whether the grandparent has retirement savings.

Who Qualifies as a Relative Caregiver

The exemption covers non-parent relatives caring for a related child: grandparents, great-grandparents, aunts, uncles, adult siblings, and other relatives within the DES definition. The key word is "non-parent" — biological or adoptive parents living in the home don't qualify for this exclusion.

You don't need a court order to use this rule. Grandparents with an informal arrangement, a parental power of attorney under ARS 14-5104, or a formal guardianship can all apply.

Non-Certified Relative Providers

If you're approved for DES child care assistance, you can choose a family member as the child care provider — a Non-Certified Relative Provider (NCRP). Eligible relatives include grandparents, great-grandparents, aunts, uncles, or adult siblings living in a separate household.

The provider must complete a background check and obtain a Level 1 Fingerprint Clearance Card from the Arizona Department of Public Safety. Once cleared, DES reimburses the relative provider directly for child care.

How to Apply

File the DES Child Care Assistance application (form CCA-0001A) through your local DES child care eligibility office. Bring documentation of the caregiving relationship, the child's identity, and any child income.

When filling out the application, make clear that you're a non-parent relative applying on behalf of a related child. The income exclusion isn't automatic — the eligibility worker needs to know the relationship to apply R6-5-4914 correctly.

The Arizona kinship financial help guide includes a step-by-step walkthrough of the child care application, the documents DES requires, and how this subsidy stacks with child-only TANF and SNAP benefits.

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