The bill mandates that the Iowa Department of Health and Human Services (HHS) amend its rules to establish reimbursement rates under the state child care assistance program (CCA) for child care provided to unhoused children. Specifically, the reimbursement rate for caring for an unhoused child will be set equal to that of a child requiring special-needs care. The bill provides a detailed definition of "unhoused," which includes various living situations such as residing with others due to loss of housing, living in motels or shelters, being abandoned in hospitals, or living in places not intended for regular sleeping accommodations.

This legislative change aims to ensure that child care providers receive equitable compensation for caring for unhoused children, recognizing the unique challenges and needs of this vulnerable population. By aligning the reimbursement rates for unhoused children with those for special-needs children, the bill seeks to enhance access to quality child care for families facing housing instability.