The Child Care Food Program was established by Congress in 1968 to provide meals to children in day care centers, settlement houses, and recreation centers. The program was created in response to the need to provide good nutrition to children in areas of need where there were large numbers of working mothers. The law provided limited federal reimbursement for meals served to children by public or private nonprofit institutions. It also provided funds to help institutions buy equipment for preparing and serving meals.

Congress passed Public Law 95-627 in November 1978. This law makes the program permanent and allows for program expansion while ensuring that the program continues to provide quality nutrition. Under this law, any public or private nonprofit institution or sponsored facility that is licensed or approved to care for children may participate in the program. This includes child care centers, recreation centers, after-school facilities, family child care homes, and those providing day care for physically challenged children.

The United States Department of Agriculture, Food and Nutrition Service, administers the program on a national level. The national office develops regulations, publications and forms, and establishes the policies necessary to carry out the program.

State educational agencies (Department of Public Instruction in Wisconsin) or regional Food and Nutrition Service offices are the administering agencies that manage and direct the program in each state.

To participate in the CACFP, the family child care home must have a sponsor that is nonprofit, tax-exempt. In September 1985, Wisconsin Early Childhood Association became a sponsor of family child care homes throughout the entire state.