TN Child Care Assistance: Income Limits, Rules, and How to Apply

Tennessee child care assistance, run by the Department of Human Services as the Child Care Certificate Program, helps eligible families pay for care for children from six weeks old through kindergarten while parents work, attend school, or transition off public assistance. Most families qualify if their gross monthly household income falls below 85 percent of Tennessee’s state median income and the working parent averages at least 30 hours a week of work or school.¹ Applications go through the One DHS Customer Portal at onedhs.tn.gov.

Which Program Fits Your Situation

The Certificate Program is really five tracks under one roof, and the one that applies to you depends on why you need care.²

Smart Steps is the main track for working parents and post-secondary students. You need to average 30 or more hours per week of work or undergraduate coursework. Graduate study only counts for six of those hours.
Families First Child Care covers families currently receiving Tennessee’s TANF benefits, provided as a supportive service under your Individual Opportunity Plan.
Transitional Child Care continues coverage for up to 18 months after you leave Families First, as long as you’re working 30 or more hours a week.
At-Risk Child Only Child Care is for guardians of at-risk children who work or attend school at least 30 hours a week.
Teen Child Care Assistance helps eligible middle and high school mothers who stay enrolled in school.

Every track carries a parent co-pay tied to income, and every track covers children from six weeks through kindergarten age.¹

Income Limits for FY 2026

The income ceilings below took effect October 1, 2025, and reflect 85 percent of Tennessee’s state median income by household size:³

Household of 2: up to $4,948 per month
Household of 3: up to $6,112 per month
Household of 4: up to $7,277 per month
Household of 5: up to $8,441 per month
Household of 6: up to $9,605 per month
Household of 7: up to $9,824 per month
Household of 8: up to $10,042 per month

Smart Steps families whose income creeps above the 85 percent line at their annual review may still qualify for Smart Steps Plus if it lands between the 86th and 100th percentile of SMI, but that extension only opens up at recertification or when adding a new spouse to the household.³

The 30-Hour Rule and Other Requirements

Income alone won’t get you in. For Smart Steps, Transitional Child Care, and At-Risk Child Only Child Care, you need to average at least 30 hours a week of work, school, or a combination.¹ This is where most part-time workers get stuck. A 25-hour-a-week job doesn’t qualify on its own; you’d need coursework to push you over the line.

Families First participants take a different path. Your TANF case manager builds an Individual Opportunity Plan with you covering work, training, or education, and you sign a Personal Responsibility Plan agreeing to cooperate with child support and take part in work or work-preparation activities unless you’re exempt.⁴ Child care follows from that plan.

Teen parents have one rule: stay enrolled in middle or high school. Drop out and the benefit ends.⁵

Children in foster care follow a separate path entirely: the Department of Children’s Services can declare them eligible directly, bypassing the standard DHS application.²

What to Have Ready Before You Apply

Gather these before you open the portal. The most common cause of delay is an incomplete file that stalls your case while you scramble to upload what’s missing.¹

Proof of income: recent pay stubs, tax returns if you’re self-employed, or documentation of other household income.
Proof of Tennessee residency, such as a utility bill or lease.
Proof of work, school, or training: an employer letter showing hours and wages, a class schedule, or an enrollment verification.
A valid photo ID for the applicant.
Birth certificates or other records for each child who needs care.

How to Apply

Applications go through the One DHS Customer Portal at onedhs.tn.gov. You’ll create a secure account, complete the application fields for household size, income, employer, and children, then upload your documents.⁶ The same portal lets you check case status, upload anything you missed, and manage your child care dashboard after approval.

If online isn’t an option, the Apply Online Services page lists alternative ways to reach DHS.⁷ A caseworker reviews your application and may follow up for clarification. Plan for the review to take several weeks after you’ve submitted everything.

What You’ll Pay

Once approved, you receive a Child Care Certificate that specifies what the state will pay. DHS pays your provider directly for the authorized hours, and you cover a co-pay set on a sliding scale by household income. Families near the bottom of the eligible income range pay less than those close to the 85 percent SMI ceiling.³

One thing to watch: if your provider charges more than the state’s payment rate, you owe the difference on top of your co-pay. Ask any prospective provider about that gap before you enroll.

Choosing a Provider

Your certificate is accepted at child care agencies licensed by DHS or approved by the Tennessee Department of Education, as long as the provider participates in the Certificate Program. Tennessee’s Find Child Care locator lists participating providers.²

Families in Families First, Transitional, or At-Risk Child Only Child Care have an extra option: an individual caregiver instead of a licensed center. That person’s home has to meet health and safety guidelines, the caregiver must pass a background check, and they must finish health and safety training before DHS will approve them.

Keeping Your Benefits

You have to recertify every 12 months.⁸ DHS confirms you still meet the income limit, the 30-hour rule, and residency. Miss the deadline or drop below 30 hours, and you can lose coverage. Report changes in income, household size, or employment through the One DHS portal as they happen rather than waiting for the annual review.

Waiting Lists When Funding Is Tight

The program runs on a mix of federal Child Care and Development Fund grants and state money, so capacity varies year to year. When demand outruns funding, DHS has placed new Smart Steps applicants on a waiting list while continuing to serve families already enrolled, with priority going to the highest-need categories. Your application stays active while you wait, so keep your contact information current in the One DHS portal and check status periodically.⁶

If You’re Denied

You can appeal a denial or termination. File through the One DHS portal, in writing using form HS-3058, or by email, fax, or phone. The Appeals Clerk’s Office is reachable at (833) 772-8347 or AppealsClerksOffice.DHS@tn.gov.⁹ File as soon as you get the denial letter; deadlines are short and delay only narrows your options.

1
Tennessee Department of Human Services. Child Care Payment Assistance
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Tennessee Department of Human Services. Child Care Certificate Program
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Tennessee Department of Human Services. Income Eligibility Limits and CoPay Chart
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Tennessee Department of Human Services. Families First Eligibility Information
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kidcentral tn. Child Care Certificate Program
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Tennessee Department of Human Services. One DHS Customer Portal
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Tennessee Department of Human Services. Apply Online Services
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kidcentral tn. Child Care Certificate Program
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Tennessee Department of Human Services. Appeals – File an Appeal (SNAP, Families First, and Child Care Assistance Programs)