DHHS daycare licensing: what it means and how to get licensed

Last updated 2026-07-09

What does DHHS actually license in childcare?

DHHS stands for Department of Health and Human Services. At the federal level, the U.S. Department of Health and Human Services runs the Child Care and Development Fund (CCDF), the main federal grant that sends money to states for childcare subsidies. But the day-to-day licensing of centers and family daycare homes happens at the state level, and in many states that state agency is also named DHHS or a close variant.

States that use the DHHS name (or a near match) for their childcare licensing office include Maine (Maine DHHS, Office of Child and Family Services), Michigan (Michigan DHHS, Bureau of Community and Health Systems), Nebraska (Nebraska DHHS, Division of Children and Family Services), and New Hampshire (New Hampshire DHHS, Bureau of Child Development and Head Start). Some states split the function. North Carolina uses DHHS as the umbrella but routes licensing through the Division of Child Development and Early Education (DCDEE).

Here is the practical effect for you. When you search for daycare licensing in your state and land on a DHHS page, you are in the right place. The agency issues the license, runs inspections, takes complaints, and can pull your approval. Knowing that DHHS is both a federal funding overseer and a state licensing body in many places clears up most of the confusion new operators run into.

Which states use DHHS as their daycare licensing authority?

Seven states use DHHS or a near-identical name for their childcare licensing office, though agency names shift with reorganizations. Confirm on the official state website before you start an application. Here is a working reference table.

State	Licensing Agency Name	Notes
Maine	Maine DHHS, Office of Child and Family Services	Licenses family child care and centers [1]
Michigan	Michigan DHHS, Bureau of Community and Health Systems	Separate rules for Group Home, Family Home, Center [2]
Nebraska	Nebraska DHHS, Division of Children and Family Services	Uses "childcare license" terminology
New Hampshire	NH DHHS, Bureau of Child Development and Head Start	Licenses child care programs statewide [10]
North Carolina	NC DHHS, Division of Child Development and Early Education	Star-rated license system, 1-5 stars [3]
Maryland	Maryland DHHS (rebranded from DHMH)	Oversees residential and center licensing
South Dakota	SD DHHS, Division of Child Protection Services	Family and group family daycare homes

This table is not exhaustive. Alabama, Alaska, and Hawaii each use a department with "health and human services" in the name but may route childcare licensing through a sub-agency with its own branding. The rule of thumb: start at your state's official .gov portal and search "childcare licensing."

If your state is Michigan, the requirements run detailed enough to merit their own read. Michigan daycare licensing covers the three license types (Family, Group Home, Center) and the exact square footage and ratio rules DHHS enforces there.

What are the basic requirements to get a DHHS daycare license?

Requirements differ by state and by license type (family home vs. group home vs. center), but every DHHS licensing system touches the same core categories. Here they are with honest specifics.

Background checks. Every adult in the home or on staff needs a criminal history check, and most states now require an FBI check on top of the state database. Several states also search the child abuse and neglect registry. In Maine, background checks are required for all household members 16 and older in a family childcare home, more than the provider ^[1]. This surprises people.

Training hours before licensure. Pre-service training ranges from 0 hours (rare) to 40 or more depending on the state and license type. North Carolina requires a minimum of 2 hours of approved training before initial licensure for some license types, but center directors often need a credential ^[3]. Michigan requires family home providers to complete a Licensing Orientation before the application moves forward ^[2].

Physical space and health standards. You need a minimum square footage per child (commonly 35 sq ft of indoor play space), working smoke and carbon monoxide detectors, a fenced outdoor play area in many states, and a first aid kit. Water and lead testing is increasingly required, especially after Flint.

Written policies and records. Most DHHS agencies want a written emergency evacuation plan, signed parental permission forms, and immunization records for each child on file.

Inspection. A licensor visits before the license is issued. This is a pre-licensure inspection. It is not a surprise visit. You schedule it. But it is thorough.

Application fee. Fees vary widely. Some states charge nothing for a family home license. Others charge $50 to $200. Center licenses can run $100 to $500 or more depending on capacity ^[4].

If you plan to accept state childcare subsidies, your license is the gateway. A licensed program qualifies to join the CCDF subsidy system in most states. Childcare subsidy explains how that reimbursement process works once you are licensed.

How long does it take to get a DHHS daycare license?

Plan for 90 to 180 days from the day you submit a complete application. Some providers get through in 60 days when background checks clear fast and the first inspection passes. Others wait six months because a check hit a snag or the home needed repairs.

Here is where the time gets eaten up:

1. Background check processing. FBI fingerprint checks can take 4 to 8 weeks on their own. 2. Scheduling the pre-licensure inspection. In states with thin licensing staff and a backlog, you may wait 4 to 6 weeks just for an appointment. 3. Correcting deficiencies. If your first inspection finds violations (a missing outlet cover, a yard gate that doesn't self-latch), you get a correction notice and reschedule. 4. Finishing required training. If your state requires CPR certification and you haven't done it, you can't submit a complete application.

Maine's Office of Child and Family Services publishes a multi-step checklist that lays out the sequence and shows which steps run in parallel ^[1]. Downloading that checklist on day one saves time.

One practical move: start your background check paperwork first. It is the longest lead-time item, and you can do it while you finish training or prep your space. Do not wait until everything else is done.

What happens during a DHHS daycare inspection?

A licensor walks every space children will use and compares what they see to the licensing rules in writing. The pre-licensure inspection and the annual renewal inspection follow roughly the same checklist, so what you fix the first time keeps mattering.

Common inspection points:

• Smoke and carbon monoxide detector placement and working condition
• Outlet covers on all accessible outlets
• Stair gates and door guards
• Hot water temperature at taps children can reach (usually must not exceed 120 degrees Fahrenheit)
• Storage of medications, cleaning products, and sharp objects out of child reach
• First aid kit contents (check against your state's required list)
• Outdoor play area fencing height and gate latches
• Crib and sleep equipment compliance for infant care
• Posted emergency evacuation plan
• Staff-to-child ratio compliance on the day of the visit
• Immunization records for enrolled children
• Posted license and capacity certificate

Inspectors document violations on a numbered deficiency form. Violations usually fall into three buckets: immediate health and safety threats (fix now, may require removing children), non-immediate deficiencies (fix within 30 days), and technical violations (fix within 90 days). A single immediate threat can trigger suspension.

Routine monitoring visits (unannounced, after initial licensure) happen at least once a year in most states. CCDF regulations require states to conduct at least one unannounced inspection per year for every licensed provider ^[5]. Some states do two or three. High-complaint programs get more.

The best preparation is your own walkthrough using the actual state checklist. Every DHHS licensing agency publishes it. Print it, walk the space, check every box yourself a week before the visit.

How do CCDF federal rules shape what DHHS requires?

The Child Care and Development Fund is the federal block grant that gives states roughly $5.8 billion a year in childcare assistance ^[6]. States that accept CCDF money (all of them do) must meet minimum health and safety standards set by the federal DHHS. Those minimums are a floor, not a ceiling. States add requirements on top.

The 2014 CCDBG reauthorization (the Child Care and Development Block Grant Act) expanded the federal health and safety rules a lot. Under 45 CFR Part 98, states must now require, at minimum ^[5]:

• Pre-service and ongoing training on health and safety topics including CPR, first aid, child abuse recognition and reporting, safe sleep, and emergency preparedness
• Background checks for all providers, including an FBI check
• At least annual unannounced inspections
• A quality rating and improvement system (QRIS) or a plan for one

The statute says states must ensure "compliance with requirements relating to health and safety" for any provider receiving CCDF funds. That phrase comes directly from 42 U.S.C. 9858c, the CCDBG statute ^[7].

Here is what that means for you. If you want to accept subsidy payments from any family using state assistance, you have to be licensed and meet these federal minimums. An unlicensed or license-exempt provider in a state that has carved out exemptions cannot accept CCDF-funded payments in most cases.

Child Care Aware of America's annual "Demanding Change" report tracks how states put CCDF rules into practice and is a good benchmark for where your state sits ^[4].

What does a DHHS daycare license cost?

Fees are usually a small slice of the startup cost, and the total investment to get licensed runs higher than most people expect. The Child Care Aware of America 2023 report found center-based startup costs range from roughly $10,000 to over $50,000 depending on facility size, required renovations, and state ^[4]. Family home providers spend much less, often $500 to $5,000 total, but that number swings on how much work the space needs.

Here is a realistic cost breakdown for a family home license in a DHHS state:

Item	Typical Cost Range
Application fee	$0 to $200
FBI fingerprint processing	$25 to $50 per person
State background check	$15 to $40 per person
CPR and first aid certification	$60 to $120
Pre-service training (if fee-based)	$0 to $300
Physical space modifications (gates, detectors, etc.)	$200 to $1,500
First aid kit and supplies	$50 to $150
Total estimate	$350 to $2,360

Center licenses add layers: fire marshal inspections, health department permits, food service permits, and maybe a building permit if you renovate a commercial space. Budget for each one separately, and budget time along with money, since every agency runs its own schedule.

Some states offer grants or fee waivers for new family home providers, especially in childcare deserts. Your DHHS licensing office or your state's childcare resource and referral agency (CCR&R) is the place to ask.

What staff qualifications does DHHS require?

Staff requirements differ sharply between family home, group home, and center licenses, and between states. Here is the general shape of it.

A family childcare home (one provider, up to 6 children in most states) usually asks for a high school diploma or GED, completed pre-service training, CPR and first aid certification, and a clear background check. No college degree at this level in most states.

A childcare center director is a different story. Most DHHS states require a Child Development Associate (CDA) credential, an associate's degree in early childhood education, or a bachelor's degree. North Carolina's DCDEE requires center directors to hold at least a Level II credential within one year of hire ^[3].

Requirements below the director level vary too. In Michigan, a Family Day Care Home provider (1 to 6 children) needs to finish the state orientation and a basic training requirement. A Michigan center director must meet education requirements tied to the center's licensed capacity ^[2].

The CDA credential is worth understanding if you are starting out. It is a nationally recognized credential that many states accept as a qualification threshold. CDA credential explains the full process and cost.

CPR certification generally has to be renewed every 2 years (both the American Red Cross and American Heart Association set this interval) ^[9]. Keep renewal dates in a tracking system. Expired CPR cards are one of the most common compliance violations out there.

What are the staff-to-child ratios under DHHS licensing?

Ratios set how many children one adult can supervise at once. State licensing rules set them, and they change by age group. CCDF does not fix a national ratio number. It requires each state to set its own, so you get variation.

Below are example ratios from several DHHS states, drawn from state licensing regulations as of 2024. They may have been updated since.

Age Group	Maine [1]	Michigan [2]	North Carolina [3]
Infants (0-12 months)	1:4 (center)	1:4 (center)	1:5 (center)
Toddlers (1-2 years)	1:4 (center)	1:4 (center)	1:6 (center)
Preschool (3-5 years)	1:10 (center)	1:8 (center)	1:10 (center)
School age (5+)	1:14 (center)	1:12 (center)	1:15 (center)
Family home (mixed ages)	1:6 max (provider only)	1:6 max (provider only)	1:5 under 2

Ratios run stricter for infants and toddlers because those ages need more hands-on care. Mixed-age groups in family homes often carry special rules, like counting each child under 2 as two slots.

These numbers matter during inspections. If a licensor arrives and the ratio is out of compliance that day, even for a few minutes, it is a violation. A staff call-out is not an acceptable explanation. You need a substitute policy.

How do you renew a DHHS daycare license and stay compliant?

Most DHHS state licenses run for one year, though some states issue two-year licenses with an interim monitoring visit. Renewal is simpler than the initial application because background checks usually refresh only every few years (check your state's interval) and there is no pre-licensure inspection, just a monitoring visit.

Here is the timeline that works. Set a calendar reminder 120 days before your license expires. At 120 days, pull the renewal form from your DHHS licensing agency website. Many states run online portals now. Submit 60 days before expiration. That buffer covers you if something is missing.

Things that trip people up on renewal:

• Staff CPR or training records that expired during the year and were never renewed
• A new household member (for family home providers) who needs a background check
• Facility changes (added a room, changed the outdoor space) that were never reported
• Old violations marked corrected on paper but never submitted with proof

Operate under an expired license and you are technically unregulated. Families accepting subsidies lose access immediately because the state stops payment to unlicensed providers. Some states fine you for operating without a valid license.

Keep a compliance binder or digital folder with the current license, all staff training certificates and CPR cards, background check confirmation letters, the last inspection report, and your emergency evacuation plan. When a licensor shows up unannounced, handing over that binder in two minutes projects competence and shortens the visit.

If you want a structured way to track all of this, the ChildCareComp compliance toolkit organizes renewals, staff training deadlines, and inspection records in one place.

Can you operate a daycare without a DHHS license (license-exempt programs)?

Yes, many states exempt certain programs from licensing. But the exemptions are narrower than most people assume, and they come with real tradeoffs.

Common license-exempt categories in DHHS states:

• Care by a relative (grandparent, aunt, sibling)
• Care in the child's own home by a nanny or au pair
• Programs running fewer than 4 hours per day
• Programs serving fewer than a set minimum number of children (often 2 or 3, not counting the provider's own children)
• Faith-based programs in some states (this exemption is narrowing after CCDBG reauthorization)

The biggest downside of running exempt: you cannot accept CCDF subsidy payments in most states. Families using state assistance vouchers need a licensed provider. That cuts you off from a real slice of the market, especially in lower-income communities.

You also can't join most quality rating systems, which limits your ability to market on a star rating, and some states tie subsidy rates to those ratings. Exempt providers in states with mandatory reporting laws still have to report suspected child abuse, and in states that moved to universal licensing, the exempt category has basically vanished.

If you are caring for only a few children and starting small, running exempt while you work toward full licensure is a reasonable temporary path in states that allow it. Just track the child count carefully. Crossing the threshold without a license is a violation.

What happens if DHHS finds a violation or receives a complaint?

When DHHS gets a complaint about a licensed provider, a licensor investigates. In most states, complaints about immediate health or safety threats require a visit within 24 hours. Other complaints get a visit within 5 to 15 business days.

After an investigation, outcomes range across:

• No violation found (complaint unfounded)
• Technical violation with a correction notice
• Substantiated violation with a corrective action plan
• Conditional license (you can operate under heightened monitoring)
• License suspension (children must leave immediately)
• License revocation (you cannot operate; applies to the person and sometimes the address)

License revocations are public record in most states. Maine, Michigan, and North Carolina all publish enforcement actions on their DHHS licensing websites.

You have appeal rights. Every state runs an administrative appeals process. If you think a finding is wrong, request the appeal in writing within the time limit in the violation notice (often 10 to 30 days). Miss that deadline and you usually waive the right to appeal.

The most protective thing you can do before a complaint ever lands: document everything. Write incident reports the day they happen. Keep sign-in and sign-out sheets current. Record every medication administered. When a he-said-she-said complaint comes in, paper documentation wins.

How does a DHHS license connect to childcare tax credits and subsidies for families?

From a family's side, your license status decides whether they can use childcare tax benefits and subsidy programs at your program.

The Child and Dependent Care Tax Credit (federal Form 2441) requires families to list the provider's name, address, and either a Social Security number or EIN ^[11]. There is no explicit rule that the provider be licensed for the family to claim the credit, but an unlicensed provider in a state where care is required to be licensed can create a problem. Licensed status is cleaner for everyone.

For CCDF subsidies (state childcare vouchers), licensing is required in most states. A family with a subsidy voucher can only spend it at a licensed provider or, depending on the state's rules, a license-exempt relative caregiver. If your license lapses, subsidy payments stop immediately, so families scramble for alternative care and you lose revenue in the same moment ^[5].

Some states also tie their state child and dependent care tax credits to licensed provider status. Childcare tax credit explains the federal credit rules in more detail, and childcare subsidy covers how to become a subsidy-accepting provider once you have your license.

Being licensed is what makes your program financially reachable for families below median income. Child Care Aware found the average annual cost of center-based infant care tops $15,000 in most states ^[4], so subsidy access is often the difference between full enrollment and half-empty classrooms.

Where do you actually start the DHHS licensing application?

Go straight to your state's DHHS website and find the childcare licensing section. Do not rely on a third-party summary (including this one) as your application guide. Regulations change. Use the primary source.

For the most common DHHS states:

• Maine: maine.gov, search "childcare licensing" under DHHS, Office of Child and Family Services ^[1]
• Michigan: michigan.gov/mdhhs, Bureau of Community and Health Systems, Child Care Licensing ^[2]
• North Carolina: ncdhhs.gov, Division of Child Development and Early Education ^[3]
• New Hampshire: nh.gov, DHHS Bureau of Child Development and Head Start ^[10]

Every state has a childcare resource and referral agency (CCR&R) that offers free help with the application. To find yours, go to childcareaware.org and use the state resource finder ^[4]. CCR&R staff help new providers fill out paperwork, identify required training, and sometimes offer small grants for startup supplies.

The federal CCDF agency (the Office of Child Care, within U.S. DHHS) also publishes a state licensing requirements database at childcare.gov ^[8]. It is not perfect, but it gives you a quick national comparison.

Once you have your license, the compliance work is ongoing. ChildCareComp's compliance toolkit consolidates renewal deadlines, ratio calculators, and inspection prep checklists if you want a single organized system for staying current.

Frequently asked questions

Is a DHHS license the same as a state daycare license?

In states where the Department of Health and Human Services is the licensing authority (Maine, Michigan, Nebraska, New Hampshire, North Carolina, and others), yes. DHHS issues and oversees the state daycare license directly. In states where a different agency handles licensing, such as a Department of Education or a stand-alone Early Childhood agency, a DHHS license is a different document or does not exist for childcare purposes.

How many children can I care for with a family home license from DHHS?

Most states cap a family childcare home at 6 children total, including the provider's own children under a set age. Some states allow up to 8 with an assistant. The cap varies: Maine allows up to 12 children in a large family childcare home with an assistant. Always check your state's specific family home license type, since group home and large family home categories carry different maximums.

Do I need a DHHS license if I only watch kids for a few hours a day?

Many states exempt programs running fewer than 4 hours per day from licensing. But this exemption is defined by statute in each state and applies differently to different program types. Before assuming you are exempt, read your state's DHHS licensing statute directly or call your CCR&R. Operating without a license when one is required carries fines and can bar you from ever getting one.

What happens if my DHHS license expires and I keep operating?

Operating with an expired license is effectively operating without a license, which breaks state law in most states. Consequences include fines (from $50 to $1,000 per day in states with civil penalties), loss of the right to accept subsidy payments, and in serious cases a bar from future licensing. Families using state subsidies lose access immediately since subsidy systems verify license status.

Does a DHHS license automatically let me accept childcare subsidies?

An active DHHS license is the main requirement for joining the CCDF subsidy system, and most states enroll licensed providers automatically or through a short registration. You will also sign a provider agreement with your state's subsidy agency and set up direct deposit for reimbursements. Some states add a quality rating requirement before subsidy rates climb above the base rate.

What background check does DHHS require for daycare licensing?

Most DHHS states now require a state criminal history check and an FBI fingerprint-based federal check, plus a search of the state child abuse and neglect registry. For family home providers, the checks extend to all household members age 16 and older in many states, more than the provider. Processing averages 2 to 6 weeks for state checks and 4 to 8 weeks for FBI checks.

Can DHHS revoke my daycare license and can I appeal?

Yes to both. DHHS can revoke a license for repeated violations, an immediate health or safety threat, or operating outside license conditions. Revocations are public record. You have the right to appeal through the state's administrative appeals process, but you must request it in writing within the window stated in your revocation notice, typically 10 to 30 days. Miss that deadline and your appeal rights usually end.

What training hours does DHHS require before I can open?

Pre-service training ranges from about 6 hours (some family home license types) to 40 hours or more (center director positions) depending on the state and license type. All CCDF-funded states must require training on CPR, first aid, safe sleep, child abuse recognition, and emergency preparedness at minimum. Check your state's DHHS licensing checklist for the exact number and approved training sources.

How often does DHHS inspect licensed daycare programs?

CCDF regulations require at least one unannounced annual inspection for every licensed provider in states that accept CCDF funding, which is every state. Many states run two or three annual visits for family homes and more frequent visits for centers. Complaint investigations trigger additional visits outside the routine schedule. High-risk or recently sanctioned programs get more frequent unannounced monitoring.

What is the difference between a DHHS family home license and a group home license?

A family home license typically covers 1 to 6 children with one provider and no required assistant. A group home or large family home license covers 7 to 12 children and requires at least one assistant caregiver. Group home licenses usually add space, training, and equipment requirements. Michigan, for example, keeps distinct rules and separate applications for Family Day Care Home, Group Day Care Home, and Child Care Center licenses.

Do faith-based daycares need a DHHS license?

It depends on the state. Some states historically exempted faith-based childcare from licensing. After the 2014 CCDBG reauthorization, states accepting CCDF funds must ensure that all providers receiving subsidy payments, including faith-based ones, meet health and safety standards. Many states have narrowed or ended faith-based exemptions as a result. Check your state's current DHHS licensing statute, since this area changed a lot after 2014.

What is the average cost to start a licensed home daycare in a DHHS state?

For a family home license, total startup costs usually run $500 to $5,000, covering application fees ($0 to $200), background checks ($40 to $90 per adult), CPR and first aid certification ($60 to $120), required training, and physical modifications like safety gates, outlet covers, and smoke detectors. The wide range reflects how much work your space needs before it passes inspection.

Can I get help paying for DHHS daycare licensing costs?

Yes. Your state's childcare resource and referral agency (CCR&R) often runs small grants or stipends for new providers, especially in childcare desert areas. Some DHHS states offer fee waivers for family home applicants. The federal CCDF Child Care Stabilization grants, active in 2021 to 2023, have ended, but state-level startup assistance programs remain. Contact your CCR&R first; find yours at childcareaware.org.

Does being DHHS licensed affect my homeowner's insurance or zoning?

Often yes. Most standard homeowner's policies exclude business activity. Running a licensed family daycare from your home usually requires a business rider or a separate commercial policy. Zoning is a separate issue from licensing: your municipality may require a home occupation permit or zoning variance even after DHHS licenses you. Check both insurance and local zoning before accepting any children.

Sources

1. Maine DHHS, Office of Child and Family Services – Child Care Licensing: Maine DHHS licenses family childcare homes and centers; background checks required for all household members 16 and older in family home applications
2. Michigan DHHS, Bureau of Community and Health Systems – Child Care Licensing: Michigan DHHS licenses Family Day Care Homes, Group Day Care Homes, and Child Care Centers with distinct rules for each type; orientation required before application
3. North Carolina DHHS, Division of Child Development and Early Education: NC DCDEE administers a 1 to 5 star quality rating system tied to licensing; center directors must meet credential-level requirements within one year of hire
4. Child Care Aware of America – Demanding Change: Repairing Our Child Care System (2023): Average annual cost of center-based infant care exceeds $15,000 in most states; center startup costs range from $10,000 to over $50,000; state CCR&R agencies provide free application assistance
5. U.S. Department of Health and Human Services, Office of Child Care – CCDF Regulations (45 CFR Part 98): States accepting CCDF must require annual unannounced inspections, FBI-based background checks, and pre-service and ongoing health and safety training including CPR, first aid, and safe sleep
6. U.S. Department of Health and Human Services, Office of Child Care – CCDF Program Fact Sheet: CCDF provides states roughly $5.8 billion per year in childcare assistance funding under the Child Care and Development Block Grant Act
7. Child Care and Development Block Grant Act of 2014 – 42 U.S.C. 9858c: States must ensure compliance with requirements relating to health and safety for any provider receiving CCDF funds; statute expanded health and safety minimums in 2014 reauthorization
8. U.S. Department of Health and Human Services, Child Care State Licensing Database – childcare.gov: Federal DHHS publishes a national state-by-state childcare licensing requirements database for comparison across states
9. American Red Cross – CPR Certification Renewal Policy: CPR certification must be renewed every two years per American Red Cross and American Heart Association guidelines
10. New Hampshire DHHS, Bureau of Child Development and Head Start: New Hampshire DHHS Bureau of Child Development and Head Start licenses child care programs statewide
11. IRS – Publication 503, Child and Dependent Care Expenses: Families must provide the care provider's name, address, and tax identification number when claiming the Child and Dependent Care Tax Credit on Form 2441