Though child care subsidies are essential to welfare reform, little is known about the child care providers upon whom the subsidy system depends. This report describes subsidy policies or practices that can affect providers—specifically how much they are paid and how they experience the subsidy system. It concludes that these policies may ultimately affect the willingness of providers to serve subsidized families, as well as their financial stability and quality. The research is based on qualitative data collected in 17 sites in 12 states in 1999 from child care administrators, key experts, child care subsidy caseworkers, and parents and child care providers in the subsidy system.