More than 3.2 million children are enrolled in child-care programs that participate in and receive reimbursement for food from the United States Department of Agriculture’s Child and Adult Care Food Program (CACFP). This paper discusses the results of a study which tested the hypothesis that higher CACFP reimbursement rates for food result in higher food expenditure and higher nutritional quality of food served in family child-care homes. Researchers found that providers receiving higher reimbursement spent significantly more on food ($2.36 per child per day) than those receiving lower reimbursement ($1.96 per child per day). Child-care providers receiving the higher rate of reimbursement served healthier food with more protein, whole grains, vitamins and minerals.