Michigan Childcare Assistance for Kinship Caregivers

What the CDC Program Covers

Michigan's Child Development and Care program — commonly called CDC — subsidizes childcare costs for low-income families. For a grandparent or relative who's gone back to work, started classes, or entered a training program to support a child they're now raising, CDC can cover a significant portion of the childcare bill.

The program pays licensed childcare centers, group home providers, and registered relative providers directly. You choose the provider, and MDHHS sends payment based on the provider's rate up to the state maximum. You pay a co-payment based on your household income and size.

Income Limits

Initial eligibility is capped at 200% of the federal poverty level. For a household of two (one caregiver and one child), the entry limit is $1,803 per month in gross income. For a household of three, it's $2,277.

Once enrolled, you don't lose benefits the moment your income rises above the entry threshold. Michigan uses a graduated exit scale so families aren't penalized for earning more. The exit thresholds are substantially higher:

This exit scale means a grandmother who takes a part-time job paying $2,500/month to help with expenses won't immediately lose her childcare subsidy — the buffer is wide enough to make the transition stable.

The Activity Requirement

CDC generally requires that the caregiver is engaged in an approved activity: working, attending school, or participating in a job training program. MDHHS authorizes care based on the approved activity and program rules.

Two exceptions matter for kinship caregivers:

FIP recipients: Caregivers receiving FIP cash assistance may be exempt from the standard activity requirement.

Protective services: If the child was placed with you through Child Protective Services, the activity requirement may be waived.

If you're a retired grandparent who isn't working and the child doesn't receive FIP, you'd need to meet the activity requirement to qualify. But given that child-only FIP is available to most kinship households regardless of the caregiver's income, applying for the cash grant first may open the door to childcare subsidies as well.

Choosing a Provider

You can use three types of providers under CDC:

Licensed childcare centers: Commercial daycare operations with state licensing. These typically offer the most structured environment and longest hours.

Licensed group homes: Smaller operations, usually in a residential setting, with state licensing for a limited number of children.

Registered relative providers: A relative (aunt, grandparent, adult sibling) can register as a childcare provider and receive payment for caring for the child. The catch: the relative provider cannot live in the same household as the child. An aunt across town can register as a provider, but the grandmother the child lives with cannot pay herself through the program.

Relative providers must complete MDHHS registration, pass background checks, and complete basic health and safety training. The reimbursement rate for relative providers is lower than for licensed centers, but the arrangement offers flexibility and trust that matters to families in kinship situations.

Applying

Apply through MI Bridges or at your local MDHHS office. You'll need proof of income, documentation of your approved activity (pay stubs, school enrollment, training program enrollment), and information about your chosen childcare provider.

Apply as soon as you have the required information, and confirm the authorized start date and provider with MDHHS before relying on the subsidy.

The Financial Help for Grandparents and Relatives Raising a Child in Michigan guide covers CDC alongside every other Michigan benefit, with an application checklist and document tracker for each program.

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