NJ CCAP Child Care Assistance for Grandparents and Kinship Caregivers

Child care costs can consume a kinship caregiver's entire monthly budget — especially when you're a grandparent who went back to work specifically to support a grandchild, or an aunt juggling full-time employment with a child you didn't plan to raise. New Jersey's Child Care Assistance Program (CCAP) covers a large share of those costs, and the state sets significantly higher income limits for kinship caregivers than for other families.

Kinship-Specific Income Limits

New Jersey recognizes that kinship caregivers face unusual financial pressure and provides expanded CCAP eligibility based on the caregiver's age:

Caregivers under age 60 must work at least 30 hours per week (or be enrolled in school or job training) and have household income up to 350% of the Federal Poverty Level. For a two-person household, that's roughly $75,740 per year. For three people, about $95,550.

Caregivers age 60 or older get two additional advantages. First, they're exempt from the full-time employment requirement — part-time work qualifies, and even caregivers who aren't working can receive part-time child care subsidies. Second, the gross income cap rises to 500% of FPL, which is approximately $108,200 per year for two people and $136,500 for three.

These thresholds are substantially more generous than the standard CCAP limits for non-kinship families, reflecting the reality that many grandparent caregivers have moderate retirement income that would disqualify them under normal rules.

How Copayments Work

CCAP doesn't cover 100% of child care costs for most families. You pay a monthly copayment based on household income, and the state covers the rest up to the provider's approved rate.

• At or below 100% FPL: Copayments are completely waived — $0 out of pocket.
• 101% to 200% FPL: Reduced copayments, typically 2% to 5% of gross income depending on the number of care hours.
• Above 200% FPL: Standard copayments, roughly 4% to 7% of gross income.

For a grandparent earning $1,800 per month in Social Security (near 100% FPL for a two-person household), the copayment would likely be waived entirely. A working aunt earning $3,500 per month (around 190% FPL for two) would pay a reduced copayment of roughly $70 to $175 per month — far less than the full cost of care.

The Graduated Phase-Out Protection

One of CCAP's best features for kinship families is the Graduated Phase-Out (Tier E). Once you're enrolled, your subsidy doesn't suddenly vanish if your income increases at the next annual recertification.

If household income has risen above the initial entry limit but stays below 85% of the State Median Income — $84,962 for a two-person household, $108,303 for three, $134,671 for four — your child care subsidy continues for an additional 12-month transition period. The copayment increases to reflect the higher income, but you keep the subsidy rather than losing it entirely.

This matters for kinship caregivers who take on additional work hours to cover expenses. A raise or extra shifts won't immediately terminate the child care support that makes working possible in the first place.

How to Apply

CCAP applications are handled by county Child Care Resource and Referral (CCR&R) agencies — organizations like Child Care Connection in Mercer County or Programs for Parents in Essex County. You can apply through MyNJHelps.gov or directly at your county CCR&R office.

The application requires:

• Proof of employment or school enrollment (recent pay stubs, employer letter, or school registration — waived for caregivers 60+ who aren't working)
• Household income verification (four weeks of pay stubs, Social Security award letters, pension statements)
• The child's birth certificate and proof of residency
• Documentation of the kinship relationship (birth certificates linking you to the child, or a court order)

Processing takes up to 30 calendar days. Once approved, the CCR&R helps you identify eligible child care providers in your area and sets up the subsidy payments directly with the provider.

Stacking CCAP with Other Kinship Benefits

CCAP works alongside the other benefit programs available to kinship caregivers. A grandparent can simultaneously receive a child-only TANF grant ($214/month for one child), SNAP food benefits, free NJ FamilyCare health coverage for the child, and CCAP child care assistance. Each program uses its own income calculation rules, and qualifying for one does not disqualify you from others.

One interaction to be aware of: TANF cash grants and KCSP subsidies count as unearned income for SNAP calculations. CCAP uses its own income assessment, so ask your county CCR&R how those payments are treated when it determines household income.

For the full picture of every financial benefit available to kinship caregivers in New Jersey — and how they stack together — see our Financial Help for Grandparents and Relatives Raising a Child in New Jersey guide.

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