Implement Virginia Child Care Assistance Program (CCAP)

[hua7450]

Summary

Implements Virginia's Child Care Subsidy Program (CCSP) in PolicyEngine, including eligibility determination, locality-grouped income tests, copayment calculation (both current 2023 and new 2025-07-01 scales), and benefit computation.

Closes #7932

Regulatory Authority

• 8VAC20-790 -- Virginia Administrative Code, Child Care Program
• VDOE Child Care Subsidy Program Guidance Manual (Aug 2023) -- 199-page operational guidance
• FY26 Copayment One Pager -- New copay scale effective July 1, 2025
• VECF Budget Language Summary -- Current copay amounts and caps
• HB30 Item 126 #2h -- Budget amendment enacting copay changes
• Vol. 42 Iss. 5 Regulatory Update (Nov 19, 2025) -- Final regulation implementing new copayment structure

Program Overview

• Official name: Child Care Subsidy Program (CCSP)
• Oversight: Virginia Department of Education (VDOE)
• Administration: Virginia Department of Social Services (VDSS) through local departments of social services (LDSS)
• Funding: Federal CCDBG/CCDF block grant + state funds
• Federal authority: Child Care and Development Block Grant (CCDBG) Act of 2014

Eligibility

Requirement	Source	How Modeled
Child under 13	8VAC20-790-20(A)	va_ccsp_child_eligible: age < p.child (param = 13)
Extended age under 18 for disabled/court	8VAC20-790-20(B)	va_ccsp_child_eligible: where(is_disabled, p.disabled_child, p.child)
Child citizenship/immigration	8VAC20-790-40(B)(1)	Reuses is_ccdf_immigration_eligible_child
Virginia residency	8VAC20-790-40(A)	defined_for = StateCode.VA on all variables
Asset test ($1M)	8VAC20-790-40(C)(4)	Reuses is_ccdf_asset_eligible
Activity test (work/education)	8VAC20-790-30	va_ccsp_activity_eligible: weekly_hours_worked >= p.min_hours_per_week OR is_full_time_student, checked on head/spouse
12-month eligibility period	8VAC20-790-40(D)	va_ccsp_enrolled bare input switches income test from FPG entry to SMI exit limit

Federal CCDF variables reused (2):

• is_ccdf_immigration_eligible_child -- child citizenship/immigration status
• is_ccdf_asset_eligible -- $1M federal asset test

Income Eligibility

Virginia uses a dual FPG/SMI income test with locality-based thresholds.

New applicants (not enrolled): income must not exceed a percentage of the Federal Poverty Guideline based on locality group:

Locality Group	FPG Rate	Source
Group I (lowest cost-of-living)	150% FPG	8VAC20-790-40(C)(1)
Group II	160% FPG	8VAC20-790-40(C)(1)
Group III (highest cost-of-living)	185% FPG	8VAC20-790-40(C)(1)

Locality group is modeled as a bare input enum (va_ccsp_locality_group) defaulting to Group III (most generous). Full locality-to-group mapping (Appendix Z, 133 localities) is deferred.

Young child exception: families with a child age 5 or younger also qualify at 85% SMI regardless of locality group -- the income limit is max(FPG limit, 85% SMI).

Enrolled families (at redetermination): income limit is 85% of State Median Income (SMI) regardless of locality group.

Categorical waivers:

• TANF recipients: automatically income-eligible via is_tanf_enrolled (8VAC20-790-30(A))
• Medicaid/WIC recipients: noted in regulations (8VAC20-790-40(C)(3)) but not yet modeled in va_ccsp_income_test_waived -- can be added in a follow-up

Countable income (va_ccsp_countable_income): uses adds/subtracts pattern with 13 income sources (employment, self-employment, child support received, Social Security, pension, unemployment, workers' comp, veterans benefits, disability, interest, dividends, rental, alimony) minus child support paid. 30 categories of income are excluded by omission per 8VAC20-790-40(C)(1).

Copayment

Current Scale (Jan 1, 2023 -- June 30, 2025)

Income as % FPG	Per-Child Monthly Copay
0--100% FPG	$0
101--200% FPG	$60
201--300% FPG	$120
301% FPG -- 85% SMI	$180

• Max children assessed: 3 (max family copay from scale: $540/month)
• Family income cap: 7% of gross countable income
• TANF exempt: TANF recipients pay $0

Source: Guidance Manual Appendix B; VECF Budget Language Summary

New Scale (effective July 1, 2025)

Income as % FPG	Per-Child Monthly Copay
Income = $0	$0
>0--100% FPG	$5
101--150% FPG	$125
151--200% FPG	$175
201--250% FPG	$225
251--300% FPG	$275
301--350% FPG	$325
351% FPG -- 85% SMI	$375

• Family income cap: 5% of gross countable income
• TANF exempt: still $0

Source: FY26 Copayment One Pager; HB30 Item 126 #2h; 8VAC20-790 (amended Nov 19, 2025)

Both scales are encoded in per_child_scale.yaml with date-keyed thresholds. The .inf threshold technique makes 2025-only brackets unreachable under the 2023 scale.

Benefit Calculation

benefit = max(childcare_expenses - copay, 0)

Simplified: no Maximum Reimbursable Rate (MRR) ceiling. MRR varies by provider type, child age, and locality (~240 rate cells) and is deferred for future implementation.

Requirements Coverage (23 in-scope)

REQ	Category	Description	Status
REQ-001	ELIGIBILITY	Child age < 13	Covered
REQ-002	ELIGIBILITY	Extended age < 18 (disabled/court)	Covered
REQ-003	ELIGIBILITY	Child citizenship/immigration	Covered
REQ-004	ELIGIBILITY	Virginia residency	Covered
REQ-005	ELIGIBILITY	Asset test ($1M)	Covered
REQ-009	ELIGIBILITY	Activity test (parameterized min hours)	Covered
REQ-012	ELIGIBILITY	12-month enrolled flag	Covered
REQ-013	INCOME	Initial FPG by locality group (I/II/III)	Covered
REQ-014	INCOME	Young child (<=5) 85% SMI exception	Covered
REQ-015	INCOME	Exit/redetermination 85% SMI	Covered
REQ-016	INCOME	TANF auto income-eligible	Covered
REQ-017	INCOME	Medicaid/WIC categorical eligibility	Partial (TANF only; Medicaid/WIC deferred)
REQ-019	INCOME	Countable income (13 sources)	Covered
REQ-020	INCOME	Disregarded income (30 categories by omission)	Covered
REQ-021	INCOME	Deductions (child support paid)	Covered
REQ-023	COPAY	Current scale $0/$60/$120/$180	Covered
REQ-024	COPAY	Max 3 children assessed	Covered
REQ-025	COPAY	7% income cap (current)	Covered
REQ-026	COPAY	TANF exempt from copay	Covered
REQ-027	COPAY	New scale 2025-07-01 ($0/$5/$125--$375)	Covered
REQ-028	COPAY	5% income cap (new)	Covered
REQ-029	COPAY	Zero-income = $0 copay	Covered
REQ-030	BENEFIT	Benefit = expenses - copay	Covered

Coverage: 22/23 fully covered, 1 partial (REQ-017 Medicaid/WIC deferred).

Not Modeled (by design)

What	Source	Why Excluded
Immunization requirement	8VAC20-790-40(B)(2)	Administrative requirement, not simulatable
Parent age >= 18	Guidance Manual 3.3.5	Administrative; PolicyEngine doesn't model emancipation
School attendance exclusion	8VAC20-790-40(B)(3)	Administrative scheduling constraint
Two-parent good cause documentation	8VAC20-790-40(B)(4)	Administrative documentation requirement
Family day home exclusion	8VAC20-790-40(B)(5)	Provider-specific administrative rule
Non-financially-responsible applicant (250% FPG)	8VAC20-790-40(C)(1)(b)	Rare edge case requiring separate applicant type
Income conversion factors (weekly x4.3, etc.)	8VAC20-790-40(C)(1)	Handled by PolicyEngine period system
Maximum Reimbursable Rates (MRR)	8VAC20-790-40(E)	~240 rate cells by locality/age/provider; deferred
Five program categories	8VAC20-790-30	Administrative distinctions; TANF rules captured via is_tanf_enrolled
Full locality-to-group mapping (133 localities)	Guidance Manual Appendix Z	Modeled as bare input enum instead

Files Added

policyengine_us/
  parameters/gov/states/va/dss/ccsp/
    activity/
      min_hours_per_week.yaml             # 8 hours/week minimum activity
    age_threshold/
      child.yaml                          # 13 (standard)
      disabled_child.yaml                 # 18 (disabled/court)
    copay/
      income_cap_rate.yaml                # 0.07 (2023) -> 0.05 (2025-07-01)
      max_children.yaml                   # 3
      per_child_scale.yaml                # Both 2023 and 2025-07-01 brackets
    income/
      countable_income/
        sources.yaml                      # 13 income types
        subtracts.yaml                    # child_support_expense
      exit_smi_rate.yaml                  # 0.85
      initial_eligibility_fpg_rate.yaml   # GROUP_I: 1.5, GROUP_II: 1.6, GROUP_III: 1.85
      young_child_age_threshold.yaml      # 6 (child must be < 6)
      young_child_smi_rate.yaml           # 0.85

  variables/gov/states/va/dss/ccsp/
    va_ccsp.py                            # Main benefit (SPMUnit, MONTH, USD)
    va_ccsp_activity_eligible.py          # Activity test (SPMUnit, MONTH, bool)
    va_ccsp_child_eligible.py             # Child eligibility (Person, MONTH, bool)
    va_ccsp_copay.py                      # Family copayment (SPMUnit, MONTH, USD)
    va_ccsp_countable_income.py           # Countable income via adds/subtracts (SPMUnit, MONTH, USD)
    va_ccsp_eligible.py                   # Overall eligibility (SPMUnit, MONTH, bool)
    va_ccsp_enrolled.py                   # Bare input: currently enrolled (SPMUnit, MONTH, bool)
    va_ccsp_income_eligible.py            # Income eligibility with dual FPG/SMI test (SPMUnit, MONTH, bool)
    va_ccsp_income_test_waived.py         # TANF waiver (SPMUnit, MONTH, bool)
    va_ccsp_locality_group.py             # Bare input enum: GROUP_I/II/III (SPMUnit, YEAR)
    va_child_care_subsidies.py            # Year aggregation wrapper (SPMUnit, YEAR, USD)

  tests/policy/baseline/gov/states/va/dss/ccsp/
    integration.yaml                      # 7 full-pipeline integration tests
    va_ccsp.yaml                          # 4 benefit tests
    va_ccsp_activity_eligible.yaml        # 5 activity test cases
    va_ccsp_child_eligible.yaml           # 8 child eligibility tests
    va_ccsp_copay.yaml                    # 5 copayment tests
    va_ccsp_countable_income.yaml         # 5 income calculation tests
    va_ccsp_eligible.yaml                 # 5 overall eligibility tests
    va_ccsp_income_eligible.yaml          # 7 income eligibility tests
    edge_cases/
      integration_edge.yaml              # 7 boundary integration tests
      va_ccsp_activity_eligible_edge.yaml # 6 activity edge cases
      va_ccsp_child_eligible_edge.yaml   # 7 child eligibility edge cases
      va_ccsp_copay_2025_07.yaml         # 11 new-scale copay tests (July 2025+)
      va_ccsp_copay_edge.yaml            # 13 copay boundary tests
      va_ccsp_edge.yaml                  # 7 benefit edge cases
      va_ccsp_income_eligible_edge.yaml  # 14 income threshold boundary tests

Review History

Two rounds of automated program review (/review-program) were conducted:

Round 1: 8 critical issues identified and fixed:

• Activity test was not parameterized (REQ-009) -- added min_hours_per_week parameter
• Missing edge case tests for locality group boundaries
• Missing 2025-07-01 copay scale tests
• Income cap rate not date-split for 2025
• Other test coverage gaps

Round 2: 0 critical issues. All requirements verified covered.

Test Plan

• 111 test assertions pass across 15 YAML test files
• Core tests: child eligibility, income eligibility (all 3 locality groups), activity test, copayment, benefit
• Edge cases: exact threshold boundaries for each locality group, enrolled vs. new applicant, young child SMI exception, 2025-07-01 copay scale, TANF exemptions, disabled child, multi-child cap, income cap binding
• Integration tests: full pipeline from inputs through eligibility, copay, and benefit
• CI passes

[codecov]

Codecov Report

✅ All modified and coverable lines are covered by tests.
✅ Project coverage is 100.00%. Comparing base (30cb6e5) to head (bab8059).
⚠️ Report is 24 commits behind head on main.

Additional details and impacted files

@@            Coverage Diff             @@
##              main     #7933    +/-   ##
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  Coverage   100.00%   100.00%            
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  Files            1        11    +10     
  Lines           15       165   +150     
  Branches         1         0     -1     
==========================================
+ Hits            15       165   +150     

Flag	Coverage Δ
unittests	100.00% <100.00%> (ø)

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