This bill amends the state child care assistance (CCA) program by updating the income eligibility requirements for families seeking assistance for children needing basic and special needs care. Specifically, it raises the income eligibility limit for basic care from 160% of the federal poverty level (FPL) to 170% for FY 2025-2026, 180% for FY 2026-2027, 190% for FY 2027-2028, and finally to 200% on or after July 1, 2028. For children needing special needs care, the limits are increased from 200% to 210% for FY 2025-2026, 220% for FY 2026-2027, 230% for FY 2027-2028, and 240% on or after July 1, 2028.

Additionally, the bill modifies how reimbursement rates for child care providers are determined. It mandates that the Department of Health and Human Services (HHS) conduct statewide reimbursement rate surveys at least every two years and set reimbursement rates based on the most recent survey data. The reimbursement rates must be established at no less than the 65th percentile and no more than the 80th percentile of the rates charged by private pay customers, ensuring that the rates reflect current market conditions. This change aims to provide better support for child care providers and improve the overall quality of care available to families in need.

Statutes affected:
Introduced: 237A.13