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According to an Aid to Families with Dependent Children (AFDC) Information Memorandum Number FSA-IM-88-11 from the Department of Health and Human Services, states must treat work-related child care costs as a disregard from earned income for both applicants and recipients. Although states may also provide work-related child care as a service under Title XX of the Social Security Act, the Information Memorandum clarifies that states are required to offer recipients of the AFDC program who are employed the choice of either receiving child care services purchased under Title XX or making their own child care arrangements and having the expense disregarded from their earned income. This regulation assures compliance with federal regulations and laws by allowing recipients a choice in their child care arrangements.
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