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Alaska Family Services: 75 applications, 118 children enrolled so far in ACE subsidy pilot; payments to begin in September

Anchorage ACE Fund Board · September 2, 2025
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Summary

Alaska Family Services reported 75 family applications for the ACE childcare subsidy, representing 118 children. The board heard the program formula (CCAP co-pay plus $200 per child for CCAP families; 75% of state rate for non-CCAP families), a projected six-month cost of about $469,424 given current applicants, and a plan to begin disbursing checks in September.

Alaska Family Services (AFS) told the Anchorage ACE Fund board that 75 family applications have been received for the ACE childcare subsidy program so far, representing 118 children (33 infants, 16 toddlers, 25 preschoolers and 44 school-age children). Desiree Scheffler, AFS CEO, presented the enrollment summary and the formula the program will use to pay providers.

Desiree explained that for families already receiving the state Child Care Assistance Program (CCAP) the ACE subsidy will cover the CCAP co-pay plus $200 per month per child; for families who do not receive CCAP, the program will cover 75% of the state rate for the child's age and facility type. "For employees who receive childcare assistance, the ACCE subsidy will pay their childcare assistance co pay plus $200 per month per child," she said.

Using the 75 family applications as the working pool, Desiree reported the subsidy would equate to roughly $78,237 per month and about $469,424 for six months; if no other applications arrive, the annualized cost would be just under $1 million. AFS has also received 55 facility applications and reported 11 of 20 pilot/capital contract awardees have finalized contracts and can begin work; others are resolving insurance and purchasing steps.

AFS said it will begin mailing family eligibility notifications and facility payment request forms the next week and expects to start distributing checks to enrolled facilities in September and October. The agency also plans participant surveys in September and October to gather information from childcare employees, employers and facilities.

Board members asked clarifying questions about verification and the open application period; Desiree said the program changed from a closed to an open application period to better accommodate staffing shifts over the school year and that AFS had introduced application help, a Zoom Q&A and FAQ materials on its website.

The board heard implementation risks including the municipal standard for reimbursable grants (which can be challenging for smaller providers that cannot front expenses) and insurance-related delays for some capital/pilot projects. Staff said they would continue to work with the municipality purchasing office and with grantees to resolve outstanding contract requirements.

Next steps: AFS will continue eligibility verifications, begin mailing notices and payment forms, start checks in September as capacity allows, and conduct surveys to inform future program adjustments.