Child Care and Development Fund (CCDF) Lead Agencies are required to consider cost information when setting payment rates. Many Agencies meet this requirement by doing a narrow cost analysis. This brief draws on state examples and expert advice to

• describe steps to consider when analyzing gaps between child care costs and payment rates; and
• discuss strategies for closing those gaps and improving child care access based on narrow cost analysis information.

It is the third in a three-part series. Defining Narrow Cost Analysis defines narrow cost analysis and discusses child care costs and prices. Approaches to Narrow Cost Analysis offers examples and expert advice on how to do a good narrow cost analysis.

Please see the Building Child Care Research Capacity project page for additional products aimed at helping CCDF Lead Agencies use data and research to make informed policy decisions.