Michigan Child Development and Care Subsidy Provider Enrollment

What the CDC Scholarship Program Actually Is

Michigan's Child Development and Care (CDC) program is a state-administered subsidy that pays licensed child care providers directly for serving income-eligible families. Families earning up to 200% of the Federal Poverty Level qualify, and the program is jointly managed by MiLEAP and the Michigan Department of Health and Human Services (MDHHS) through the Bridges eligibility system.

For home-based providers, CDC enrollment can provide access to state reimbursement — but it also means strict compliance with attendance documentation and billing protocols. The reimbursement rates vary by region and age group, so understanding the enrollment mechanics before your first subsidized child starts care is essential.

Step 1: Register on the SIGMA VSS Platform

Before you can receive any state payments, you need a vendor profile on Michigan's SIGMA Vendor Self Service (VSS) platform. This is where the state sets up your electronic funds transfer (EFT) for direct deposit reimbursements.

You'll need your Federal EIN or Social Security Number, your banking details for direct deposit, and your MiLEAP-issued Provider ID from your licensing paperwork. Complete the vendor setup before relying on electronic reimbursements.

Step 2: Complete Form DHS-4025 for Each Subsidized Child

When a family presents a CDC scholarship authorization, you and the parent jointly complete Form DHS-4025 (Child Development and Care Provider Verification). This form captures the child's name, the parent's case number, your Provider ID, and the agreed-upon care schedule.

The parent submits the signed form to their MDHHS caseworker. Within approximately 10 days, you'll receive a CDC Provider Notice (Form DHS-198) confirming the child's name, approved billable hours, service dates, and any Family Contribution (co-pay) the parent owes you directly.

Keep a copy of every DHS-4025 in your subsidy records with the related CDC Provider Notice.

Step 3: Set Up and Use the I-Billing Portal

The I-Billing system is where you submit your actual care hours for reimbursement. Access it through MiLogin using your state-assigned Provider ID and Personal Identification Number (PIN).

Every two weeks, you log in and enter the exact hours each subsidized child was in your care. The system cross-references your entries against the authorized hours on the child's CDC Provider Notice. Payments are issued via EFT on the state's biweekly payment schedule.

The critical detail: your I-Billing entries must match your daily attendance records. MDHHS auditors compare electronic billing against physical or electronic, date-stamped, parent-signed attendance records showing exact drop-off and pick-up times. Discrepancies trigger repayment demands and can result in civil fraud charges.

Protecting Yourself During Audits

Federal Child Care and Development Block Grant (CCDBG) standards require states to audit provider billing records. Michigan takes this seriously.

Maintain a secure, time-stamped attendance tracking system — either physical sign-in sheets or a digital check-in app — and require daily parental signatures at both drop-off and pick-up. Never bill for hours a child was absent, even if the family asks you to. The short-term revenue is not worth the audit exposure.

A certified public accountant familiar with child care businesses can help you set up proper bookkeeping and track deductible expenses using the standard Time-Space percentage formula that the IRS accepts for home-based providers.

Beyond CDC: Michigan's Tri-Share Program

If families fall between 200% and 325% of the Federal Poverty Level — too high for CDC eligibility but still struggling with child care costs — Michigan's Tri-Share Child Care program (expanded in 2026 as the Care-Share model) may help. Under Tri-Share, costs are split equally among the employer, the employee, and the state. The program operates through 11 regional hubs and is funded with over $4.5 million in state allocations.

Participating as a Tri-Share provider can expand your enrollment pipeline; confirm the program's current provider requirements alongside your existing home license.

Getting the Full Subsidy Setup Sequence

The CDC enrollment process has multiple interdependent steps — vendor registration, form routing, billing setup, and attendance documentation — that need to happen in the right order. Our Michigan Home Daycare Licensing Guide walks through the complete subsidy onboarding sequence alongside the licensing process itself, so you can start accepting subsidized families as soon as your license is active.

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