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Child Care Subsidies & Assistance in Tennessee

Tennessee's Smart Steps covers families up to 85% SMI but a waitlist resumed August 2025 after the federal pandemic funding cliff. A 5% flat copay took effect October 2025. The Promising Futures Act (May 2026) creates Smart Steps Plus for 85–150% SMI. No state CDCC.

Data current as of May 21, 2026

Child care subsidy (CCDF) in Tennessee

Program name
Smart Steps Child Care Payment Assistance
Administered by
Tennessee Department of Human Services (TDHS)
Income ceiling
Up to 85% State Median Income at initial application (~$50,664/year for a family of four, schedule effective October 1, 2025). The 2026 Promising Futures Act creates Smart Steps Plus for working families between 85% and 150% SMI.
Family fee / copay
Flat 5% of gross income, effective October 1, 2025 (the prior under-150% FPL zero-copay waiver was eliminated). Copay is divided proportionally across children in care. Waived for Families First/TANF, Early Head Start partnership, mental-health/substance-abuse services, and DCS referrals. The federal 2024 Final Rule caps the family fee at 5% of family income.
Waitlist status
Recently re-opened — Waitlist activated August 26, 2025 after the end of pandemic-era CCDF stabilization and a ~$44.5M reduction in Tennessee's federal CCDF discretionary award. Currently enrolled families continue through their 12-month eligibility period.
Apply
www.tn.gov/humanservices/for-families/child-care-services/child-care-payment-assistance.html

Priority groups (served first)

  • Families First / TANF participants
  • SNAP Employment & Training participants
  • Transitional Child Care
  • At-Risk Child Only cases
  • Teen Parent Child Care
  • DCS referrals (foster care, adoption assistance, non-state custody)

State pre-K in Tennessee

Program name
Tennessee Voluntary Pre-K (VPK)
Administered by
Tennessee Department of Education (TDOE); delivered through local school districts
Access
Income-targeted
Eligibility
Primary group: 4-year-olds in families at or below 185% of the federal poverty level. Priority also for children with disabilities, English learners, children in foster care, and children experiencing homelessness (income-blind for these categories).
Coverage
TN VPK meets 9 of 10 NIEER quality benchmarks. More than 75% of Tennessee districts maintain VPK waitlists. 2024-25 per-classroom funding: $121,700.
Apply
www.tn.gov/education/districts/early-learning/voluntary-pre-k.html

State tax credits & extras in Tennessee

State CDCC
Tennessee does not offer a state Child and Dependent Care Credit. Tennessee has no personal income tax (the Hall Income Tax was fully repealed in 2021). The federal CDCC (claimed on IRS Form 2441) is the only income-tax-based child care credit Tennessee families can use.

Other state programs and credits

  • Smart Steps Plus (Promising Futures Act, signed May 19, 2026)
    New sliding-scale scholarship for working families between 85% and 150% State Median Income — the cliff the original Smart Steps leaves uncovered. Funded by hemp-derived cannabinoid and vapor product tax revenues directed into a dedicated child care fund. Companion programs include CareShare Tennessee (employer/employee/state shared contributions) and a Child Care Workforce Scholarship Pilot.

Where to apply or get help in Tennessee

Find a daycare in Tennessee

Once you know what you qualify for, Childery's directory helps you pick a provider. Browse Tennessee's licensed daycares with independent Process and Structural quality ratings, or search by ZIP code or city.

Browse Tennessee daycares

Sources

Every state layers its own program on top of a federal floor — CCDF (the federal block grant), Head Start, the federal DCFSA (employer pre-tax benefit), and the federal Child and Dependent Care Credit. See the federal overview for what the floor looks like before any state adds.