This bill mandates the Department of Health and Human Services (HHS) to adjust the half-day reimbursement rates for child care providers participating in the state child care assistance program. Specifically, the reimbursement rates will be set at the eighty-fifth percentile of the 2024 market rate survey, which HHS will conduct to assess the market rates for child care services across Iowa.

The bill aims to ensure that child care providers receive fair compensation that reflects the current market conditions, thereby supporting the sustainability of child care services in the state. By aligning reimbursement rates with the 85th percentile of the market survey, the legislation seeks to enhance the financial viability of child care providers and improve access to quality child care for families in Iowa.