This paper provides information on state and territory efforts to use contracts and grants with providers. We start by providing an overview of States and Territories whose 2016-18 CCDF Plans indicate that they are currently using contracts and grants, and then discuss the following: - The overall approach of States and Territories that use contracts and grants, including examples - Contract and grant payment practices - Monitoring processes for grants and contracts The last section addresses lessons learned and best practice approaches for using contracts and grants to advance the goals of the Child Care and Development Block Grant. (author abstract)