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The 2014 reauthorization of the Child Care and Development Block Grant will change how states and territories provide child care subsidies to low-income families. Families receiving federally funded child care subsidies can choose from different types of child care, including license-exempt providers (e.g., relatives or neighbors) who have generally faced relatively few regulations. Now, license-exempt providers in all states and territories will have to comply with additional requirements such as background checks and training. This brief describes state and territory policies for license-exempt providers before reauthorization and how those policies will have to change in the coming years.