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Subsidy payments are becoming more and more popular for childcare providers. If your center accepts subsidy payments, you know first-hand how difficult it can be to manage them. From tracking attendance, monitoring contracts, tracking reimbursements, and more, accepting subsidies can be an intense process.

However, accepting these payments can be a great value-add for your center and allow care to be more accessible for a range of families. If you’re interested in accepting subsidy payments and managing them better at your center, keep reading.

What are Subsidy Payments?

State programs offer subsidy programs for lower income families to help make childcare affordable. 

These vary from state-to-state. Most commonly a center can expect to have a certain amount reimbursed by the subsidy program based on the child’s attendance. The childcare subsidy will be paid directly to providers to be passed on to families as a fee reduction. Families make a co-contribution to the childcare fees and pay the provider the difference between the fee charged and the subsidized amount.

To learn more about participating in subsidy payments, contact your local childcare agency.

Tools to Help Manage Subsidy Payments

As previously mentioned, subsidy payments can be confusing and hard to manage. Centers have to track attendance, monitor contract expirations, account for expected reimbursement, and more.

Until now, there hasn’t been a tool or platform sophisticated enough to handle these types of payments. Kangarootime created a tool to help you manage the entire subsidy payment process. 

The tool allows centers to manage payments, view insights, track absences and monitor contract end dates. Administrators are able to save time with this simple tool that is tailored to the specific needs of childcare centers and preschools that accept subsidy payments for care. Kangarootime’s Subsidy Billing tool is flexible for the varying requirements by each state and also allows for weighting for Star Ratings.

Using our subsidy management feature you can:

Save time

Eliminate manual work that your current subsidy process requires. 

Prevent gaps in care

Prevent gaps in case from children using subsidy payments with contract expiration notifications. 

More precise data

 You’ll have more accurate financial projections, giving you more insight into your business’s health.

Avoid Revenue Loss

Avoid revenue loss with the ability to track subsidy payments.

To learn more and get started, click here.


Kangarootime is the leading all-in-one childcare management software for daycares and preschools. With billing and invoicing capabilities, parent communication and staff management tools and classroom automation, Kangarootime helps childcare centers grow and scale. To learn more about optimizing your center with Kangarootime, visit kangarootime.com

Marissa Schneggenburger

Author Marissa Schneggenburger

Marissa Schneggenburger is the Marketing Coordinator at Kangarootime and experienced in content marketing. Marissa attended St. John Fisher College and received a B.S. in Marketing with minors in Finance and Spanish. Marissa also completed her MBA in Strategic Marketing from Niagara University. Marissa is passionate about the childcare industry and providing informative and engaging content.

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