5 C.F.R. § 792.206 – Payment of subsidies.

(a) Payment of child care subsidies must be made directly to child care providers, unless one of the following exceptions applies:
1. (1) In overseas locations, the agency may pay the employee if the provider deals only in foreign currency.
2. (2) In unique circumstances, an agency may obtain written permission from OPM to pay the employee directly.
(b) An agency may make advance payments to a child care provider in certain circumstances, such as when the provider requires payment up to one month in advance of rendering services. An agency may not make advance payments for more than one month before the employee receives child care services except where an agency has contracted with another entity to administer the child care subsidy program, in which case the agency may advance payments to the entity administering the program as long as the requirements in § 792.205(b) are met.