Program payments for day care homes are based on the number of meals served to enrolled children, multiplied by the appropriate reimbursement rate for each breakfast, lunch, supper, or snack they are approved to serve.

Tier I day care homes are those that are located in low-income areas, or those in which the provider’s household income is at or below 185 percent of the Federal income poverty guidelines. Sponsoring organizations may use elementary, jr. high or high school free and reduced price enrollment data or census block group data to determine which areas are low-income.

Tier II homes are those family day care homes which do not meet the location or provider income criteria for a tier I home. The provider in a tier II home may elect to have the sponsoring organization identify income-eligible children, so that meals served to those children who qualify for free and reduced price meals would be reimbursed at the higher tier I rates.

A child’s eligibility for tier I rates in a tier II day care home may be documented through submission of an income eligibility statement which details family size and income or participation in any of a number of means-tested State or Federal programs with eligibility at or below 185 percent of poverty.